• Retail sales subdued in Q3, but improved in April and Easter sales in line with prior year
• Hotels performing well, with strong sales momentum across all business drivers
• Growing customer loyalty base, with 5.5 million My Dan's members and over 540,000 pub+ members
• Continuing to progress optimisation of retail stores and hotels network

Endeavour Group Limited reported its F25 Third Quarter Trading Update, highlighting a solid Easter sales performance in Q4 following subdued Retail trading in Q3. The Hotels business continued to perform well, with strong sales momentum across all business drivers. In Q3 F25 (13 weeks), Retail sales were $2,331 million, down 3.1% compared to the prior corresponding period. On a 16-week normalised basis, Retail sales decreased by 1.3% compared to the prior year. The decline in Q3 sales reflects subdued trading in the quarter as well as the impact of the timing of key holidays, with Easter falling in Q4 F25 compared to Q3 F24.The Hotels business delivered strong performance, with sales of $512 million in Q3 F25, up 5.1% compared to the prior corresponding period. On a 16-week normalised basis, Hotels sales grew by 4.9% compared to the prior year. The sales momentum was driven by strong performance across key events and continued resilience in gaming, as well as strength in food and bar sales.The company continues to grow its customer loyalty base, with 5.5 million active My Dan's members and over 540,000 pub+ members. Customer satisfaction and engagement metrics also improved across the Retail and Hotels businesses.Endeavour Group is progressing the optimisation of its retail stores and hotels network, with plans to add three net new Retail stores, complete 14 Retail renewals, and complete eight Hotels renewals in the fourth quarter. The company also continues to progress its property strategy, with a development application lodged for a new hotel at the Morrison Hotel site in Queensland.Looking ahead, the Group expects Retail market conditions to gradually improve as inflation moderates and the prospects for interest rate cuts increase. In Hotels, positive sales momentum is expected to continue, supported by resilience in gaming and strength in food and bar sales.

The Group confirms that capital expenditure outlook for F25 remains within the guidance range of $375 million to $425 million, including the One Endeavour program capital. H2 F25 guidance for One Endeavour program capital expenditure and operating costs remains within the previously guided range of $35 million to $45 million for capital expenditure and $30 million to $35 million for operating costs. Finance costs in F25 are expected to be within the guidance range of $305 million to $315 million.

Looking ahead, the Group expects Retail market conditions to gradually improve as inflation moderates and the prospects for interest rate cuts increase. In Hotels, positive sales momentum is expected to continue, supported by resilience in gaming and strength in food and bar sales. While inflationary pressures are gradually easing, cost inflation will remain a headwind for both Retail and Hotels in the remainder of the second half.