Endeavour Group has posted its FY25 results, which show “subdued consumer spending” across its retail business, with sales down 1.2 per cent to $10bn, but hotel sales growth of 4.1 per cent to $2.1bn “across all four key business drivers”.
Overall the group posted a “stable revenue” of $12.1bn, down 0.3 per cent on a 52-week basis, and net profit after tax (NPAT) of $426m, which is 15.8 per cent down on FY24, on a 52-week basis. The NPAT result includes a $11m post-tax impact of restructuring costs in the second-half of the year.
Endeavour CEO Kate Beattie said the full year sales results reflect the contrasting performance of the hotel and retail businesses.
“Hotel sales grew by 4.1 per cent on a 52-week basis to $2.1bn. Sales momentum accelerated during the year, with H2 sales up 5.0 per cent on a 52-week basis,” Beattie said.
“Pleasingly, sales growth was delivered across all four key business drivers (Food, Bars, Gaming and Accommodation). Gaming performance was driven by growth in our key markets of Queensland and Victoria.
“The Group invested in more than 1000 new EGMs during the year, with installations weighted to the second half. Sales growth in Food and Bars benefitted from optimised menus, the successful launch of the pub+ loyalty program and strong trading around key social occasions including Fatherʼs Day, Christmas and Easter.
“In Hotels, GP margin improvements driven by better buying and menu optimisation in Food and Bars were partly offset by investment in our pub+ loyalty program.”
Speaking about the retail side of the business, Beattie said: “Retail sales of $10bn fell by 1.2 per cent on a 52-week basis, reflecting subdued consumer spending in retail liquor and the impact of supply chain disruption that reduced stock availability in stores during the peak Christmas trading period and into the start of the second half.
“Retail liquor market conditions have remained soft as a result of ongoing cost of living pressure with a growing focus on value for money, particularly in outer suburban areas.
“Customers with higher discretionary income and younger demographics have been less impacted by the cost-of-living squeeze, with sales in the luxury wine category (bottles priced at $25 and above) and ultra-convenience, which is a popular channel for Millennials and Gen Z, continuing to grow.
“In retail we maintained GP margin despite a market-wide increase in competitive intensity in the fourth quarter, as we tailored our pricing and promotions to deliver budget-friendly offers to value conscious consumers.”
In its results statement to the Australian Stock Exchange, Endeavour highlighted its performance in the first seven weeks of FY26, which are already reflecting the pattern seen in FY25, with hotel sales growth of 4.4 per cent, while sales across Dan Murphy’s and BWS have fallen by 1.3 per cent.
The Group also announced that it has commenced a strategy refresh which will include a portfolio-wide review of the Groupʼs performance, key business drivers and execution across Retail, Hotels and the Pinnacle business, “with the aim of ensuring we deliver exceptional customer experiences, deliver business growth and maximise shareholder returns”.
The outcome of this review will be shared in the second half of the financial year.