Endeavour Group’s net profit after tax fell 16 per cent to $426 million in FY25. While results were buoyed by a four per cent growth in sales in the Hotel business, which countered a 1.2 percent fall in retail sales to $10 billion, reflecting subdued consumer spending in retail liquor and supply chain disruption during the peak Christmas trading period.
Snapshot
- Group sales: $12.1b, down 0.3% on prior corresponding period (pcp);
- Group operating EBIT: $1b, down 7.3% pcp;
- Group EBIT: $926m, down 11% pcp; and
- NPAT: $426m, down 15.8% pcp.
It also reported an 11 per cent fall in earnings before interest and tax (EBIT) to $926 million due to the lower liquor sales and costs of its One Endeavour project to separate from Woolworths.
The EBIT result included the impact of $16 million of restructuring costs in the second half. with costs associated with the closure of the Prowine bottling facility as well as support office
and One Endeavour restructuring costs.
Interim CEO Kate Beattie said, “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.”
She mentioned the recent launch of CUB’s Hard Rated Orange RTD was Dan Murphy’s most successful new product ever launched.
One Endeavour’s FY25 cash expenditure was $110 million, lower than previous guidance of $114 million to $129 million. But certain project design and planning costs – previously expected to be capitalised – and associated restructure costs were expensed, which saw One Endeavour operating expenditure reach $80 million compared to the previous guidance of $69 million to $74 million.
Beattie said Endeavour had updated the sequencing of the One Endeavour program to prioritise near-term value delivery and maximise overall program benefits. The People Systems implementation was completed during the year.
“We have accelerated the introduction of a standalone ERP system, with completion targeted for H1 F28. Store systems separation has been deferred to start after the ERP program and complete in F30. This will enable us to avoid a two-step approach of separating from Woolworths on the existing technology stack and subsequently upgrading.
“We will now separate directly onto a modern omnichannel store systems solution connected to our new ERP, avoiding substantial interim cost,” she said.
The group has begun a strategy refresh which will include a portfolio-wide review of performance, key business drivers and execution across Retail, Hotels and the Pinnacle business. The outcome will be shared with the market in the second half of the financial year.
Endeavour executive update
At the beginning of the month, executive chair, Ari Mervis, resigned, effective immediately, citing disagreements with the board. Director Duncan Makeig has stepping into the role in an interim capacity.
CFO Kate Beattie was appointed interim CEO, while incoming CEO Jayne Hrdlicka – officially starting on 1 January 2026 – will be consulting to the board and senior management two days a week on the strategy refresh process.
Deputy CFO, Tali Ross, is acting as interim CFO.
