Endeavour Group Reports $426m NPAT, Cuts Net Debt by $187m in FY25

FY25 Financial Overview

Endeavour Group has delivered a largely stable financial performance for the fiscal year ended 2025, with total sales marginally down by 0.3% on a comparable 52-week basis. The company’s hotel division was the standout performer, posting a 4.1% increase in sales, driven by targeted capital investments and enhanced loyalty programs. This growth helped offset a 1.2% decline in retail liquor sales, which faced headwinds from softer consumer spending and supply chain disruptions in the first half of the year.

Despite the mixed sales performance, Endeavour reported a net profit after tax (NPAT) of $426 million, a 15.8% decrease from the previous year. This decline was influenced by $11 million in post-tax restructuring costs incurred in the second half, alongside the challenging retail environment.

Operational Highlights and Cost Discipline

The company’s disciplined approach to capital and operational expenditure was evident in its $187 million reduction in net debt, underscoring strong cash flow generation and capital management. Endeavour’s ongoing optimisation program, endeavourGO, delivered $75 million in cost savings during FY25, contributing to a cumulative $265 million since FY22. These savings have been crucial in mitigating inflationary pressures and supporting continued investment in growth initiatives.

Strategic moves included the integration of Shorty’s operations into Dan Murphy’s, transitioning Jimmy Brings to a partnership model, and exiting non-core production by closing the Prowine bottling facility. Additionally, the company progressed its property portfolio optimisation, realising $50 million from asset sales and lodging multiple development applications for high-potential freehold sites.

Technology and Leadership Transition

Endeavour reprioritised its One Endeavour technology program, accelerating the rollout of a new enterprise resource planning (ERP) system while deferring the store transition component. This revised sequencing aims to reduce near-term costs and de-risk the program by avoiding interim legacy system upgrades. The program’s capital and operating expenditure guidance for FY26 has been lowered by approximately $80 million compared to previous estimates.

Looking ahead, the company is preparing for a leadership change with incoming Managing Director and CEO Jayne Hrdlicka set to commence in January 2026. This transition coincides with a strategic refresh aimed at driving growth across both retail and hospitality segments.

Outlook and Market Position

Endeavour expects hotel sales momentum to continue, supported by venue renewals, upgrades to electronic gaming machines, and enhancements to the pub+ loyalty program. While retail liquor market conditions remain subdued, the company anticipates improvement as inflation moderates and real wages increase. Capital expenditure for FY26 is forecast between $420 million and $470 million, including $40 million to $50 million allocated to the One Endeavour program, with finance costs expected to remain broadly stable.

Overall, Endeavour Group’s FY25 results reflect a resilient business balancing growth in hospitality with challenges in retail liquor, underpinned by strong cash flow, cost discipline, and strategic investments.