Endeavour Preliminary F26 EBIT $845m, $372m Charges

Endeavour Group (ASX:EDV) provided preliminary unaudited results for the 52 weeks ended 28 June 2026. Total group sales were $12,212 million, up 1.3% on the prior 52-week period, comprising Retail sales of $10,016 million, up 0.7%, and Hotels sales of $2,196 million, up 4.2%. Total group underlying earnings before interest and tax was $845 million, compared with $926 million in F25, made up of Retail $464 million (from $563 million), Hotels $462 million (from $444 million) and Other of negative $81 million, unchanged. Total group underlying profit after tax was $363 million, compared with $426 million attributable to equity holders of the parent entity. Underlying results exclude the impact of significant items, and the group confirmed its dividend policy is based on underlying NPAT.

The group expects to recognise $372 million (net) of pre-tax significant item expenses, or $311 million after tax, which it said are predominantly non-cash and relate to the write down of carrying values for assets as well as cash costs associated with implementing the group's strategy review. The largest component is $194 million of portfolio rationalisation and asset impairments, which the company said primarily comprises $78 million at Pinnacle from reclassification of winery and vineyard assets as held-for-sale or for closure and inventory write-downs, impairment of 25 hotels at $67 million, and impairment of 75 retail stores at $45 million plus $4 million of retail range rationalisation. The balance is $80 million of write-downs of non-current assets, $58 million of restructuring and strategy review costs, and a $40 million provision relating to cessation of the supply chain services contract with Woolworths Group for warehouse operations at the Melbourne Liquor Distribution Centre in September 2028. Managing Director and CEO Jayne Hrdlicka said that following the reset of the asset base and simplification of the portfolio the group is well placed to focus capital and resources on its core businesses. Endeavour said the results remain subject to finalisation and the audit process, with final audited results scheduled for 24 August 2026.