• Retail sales trend improved during the quarter with a return to positive sales growth in September
• Focus on value and price leadership supporting improved Retail sales momentum
• Hotels sales momentum remains strong with all key business drivers in growth

Endeavour Group's Q1 F26 trading result was underpinned by continued growth in the Hotels business, while Retail sales momentum improved progressively through the quarter. Hotels delivered 4.4% sales growth, while Retail sales across Dan Murphy's and BWS were 1.0% below the prior comparable period (pcp). Following a soft start to F26, the Retail sales trajectory improved over Q1, with positive sales growth in September. Targeted and well-executed promotions during the September school holidays and footy finals delivered strong sales, however consumer spending was relatively subdued outside of key events. The company's focus on delivering great value, range and service to customers drove improvements in customer satisfaction scores across both Dan Murphy's (+1 point) and BWS (+4 points). Endeavour Group has continued to strengthen its competitive position by reinforcing its best-in-market everyday low pricing on key brands and products, complemented by value-focused promotions and underpinned by Dan Murphy's lowest liquor price guarantee. The Hotels business continues to perform well, with growth across all four key drivers: Food, Bars, Gaming, and Accommodation. Enhanced experiences for hotel guests were reflected in higher customer satisfaction scores, and the company's pub+ loyalty program now has over 560,000 active members, accounting for almost 30% of Food and Bars transactions.

In F26, Endeavour Group expects capital expenditure to remain within the guidance range of $420 million to $470 million, including One Endeavour. One Endeavour total capital and operating expenditure is expected to be between $90 million and $110 million. Finance costs are expected to be broadly in line with F25, while Hotels depreciation and amortisation is expected to be approximately $20 million higher than in F25 on a full year basis.

Looking ahead, the second quarter remains a key trading period for the Group, with marquee events including Spring Racing, The Ashes Series, Christmas festivities, New Year and the start of summer holidays. In Retail, the company is focused on strengthening its market-leading position for value, range, service and convenience, capitalising on the increased number of occasions to socialise and celebrate. In Hotels, the company will continue to focus on improving guest experience, through both capital and operational investments across the network, and on enhancing the benefits for members of the pub+ loyalty program to deepen customer engagement.