Half Year 2026 Endeavour Group Ltd Earnings Call Transcript
Key Points
- Endeavour Group Ltd (EDVGF) reported an underlying EBIT of $563 million, reaching the upper end of their forecasted range.
- The retail segment saw a sales increase of 0.2% to $5.5 billion, with Dan Murphy's and BWS achieving combined sales growth of 0.7%.
- The hotels segment experienced a 4.4% sales growth to $1.2 billion, supported by investments in electronic gaming machines and venue renewals.
- The company achieved a record level of purchase intent and value-for-money customer engagement scores, leading to an all-time record sales month in December.
- Endeavour Group Ltd (EDVGF) delivered savings of $24 million through their endeavourGO optimization program, contributing to a cumulative benefit of $289 million over 4.5 years.
- The group's underlying earnings were impacted by investments in lower shelf prices and increased promotional activity, leading to a decline in retail EBIT by 11.6%.
- A pretax net expense of $45 million was incurred due to significant items, including a $40 million provision for the planned closure of the Melbourne Liquor distribution center.
- Gross profit margin in retail declined by 84 basis points to 23.9%, reflecting the focus on price leadership amidst elevated promotional activity.
- Sales growth in both retail and hotels moderated in February compared to January, with ongoing consumer softness evident.
- The company faces challenges from a competitive market landscape and uncertain consumer spending due to elevated inflation and rising interest rates.
Thank you for standing by, and welcome to the Endeavour Group's half year 2026 results briefing. (Operator Instructions)
I'd now like to hand the conference over to Jayne Hrdlicka, Managing Director and CEO. Please go ahead.
Thank you, and good morning, everyone. Thanks for joining us today for Endeavour Group's half year 2026 results. I'm joined today by Kate Beattie, our Chief Financial Officer, who was most recently our Interim Chief Executive Officer.
I'd like to begin today by acknowledging the Gadigal people as the traditional custodians of the land we're presenting from today and pay my respects to their elders past, present and emerging.
I'll start on slide 4 and speak briefly to the to the group's half one highlights. In the first half, the group delivered underlying EBIT of $563 million, which is the upper end of the range we provided in our January trading update.
In retail, our continued focus on value and price leadership has been embraced by our
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