F26 Results Presentation

Key points

• Retail sales momentum building with combined sales growth of 1.4% in H2
• Hotels delivered 4.2% sales growth with 38 venues renewed
• $300m cost out target by F29 reaffirmed

Full summary

Endeavour Group Ltd's F26 results show a steady improvement in retail sales momentum, with combined sales growth for Dan Murphy's and BWS increasing from 0.7% in H1 to 1.4% in H2. Hotels experienced a 4.2% sales growth, supported by a hotel renewals program that saw 38 venues upgraded. The company reaffirmed its $300m cost out target by F29, with initiatives delivering 70% of the F27 target already executed. Financial performance showed underlying Group EBIT declined by 8.7%, while underlying cash realisation ratio stood at 93%.

Guidance

Targeting $300m cost savings by F29, including $100m in F27

Outlook

Endeavour Group plans to increase annual growth capex investment by up to $60m and opex of $40m to $60m in F27 to deliver transformation.