• Stable revenue with strong momentum in Hotels offsetting softness in Retail
• Achieved $75 million in optimisation savings from endeavourGO program
• Completed 27 hotel renewals and progressed property portfolio optimisation

Endeavour Group has reported full year sales of $12.1 billion, down 0.3% on a 52-week basis. The Group's results reflect contrasting performance from its Hotels and Retail businesses. Hotel sales grew by 4.1% on a 52-week basis to $2.1 billion, with sales momentum accelerating during the year. Retail sales of $10.0 billion fell by 1.2% on a 52-week basis, reflecting subdued consumer spending in retail liquor and the impact of supply chain disruption. The Group maintained disciplined cost management, holding its underlying CODB to a 3.2% increase, and achieved $75 million in optimisation savings from its endeavourGO program. The Group delivered operating cash flow of $1.2 billion, representing a cash realisation ratio of 110%, and net debt fell by $187 million. In light of the Group's strong cash generation, the Board declared a fully franked final dividend of 6.3 cents per share, representing a full-year payout ratio of 79%. The Group has commenced a strategy refresh, which will be shared with the market in the second half of the financial year.

In F26, the Group expects capital expenditure of between $420 million and $470 million, including One Endeavour, and One Endeavour total capital and operating expenditure of between $90 million and $110 million. Finance costs are expected to be broadly in line with F25.

Hotel sales momentum remains strong, supported by higher transaction volumes. The Group will accelerate investment across the Hotel network in H1 F26, including the introduction of 600 new EGM cabinets, the launch of a new Nightcap accommodation website and booking engine, and enhancements to its pub+ loyalty membership benefits. Consumer spending in the retail liquor market remains subdued, however H1 provides the opportunity to reinforce the Group's position as the market leader for value, range, service and convenience, as it leans into the increased occasions to socialise and celebrate during the spring/summer event season.