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Endeavour Group earnings: NPAT drops as sales rise; interim dividend declared

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The Endeavour Group Ltd (ASX: EDV) share price is in focus today after the company reported half-year sales of $6.7 billion, up 0.9% on last year, while underlying NPAT fell 6.7% to $278 million. The board declared an interim dividend of 10.8 cents per share.

What did Endeavour Group report?

  • Group sales: $6.7 billion, up 0.9% vs H1 F25
  • Underlying EBIT: $563 million, down 5.4% vs H1 F25
  • Underlying NPAT: $278 million, down 6.7% vs H1 F25
  • Statutory NPAT: $247 million, down 17.1% vs H1 F25
  • Cash realisation: 165%
  • Interim dividend: 10.8 cents per share, fully franked

What else do investors need to know?

Retail sales momentum improved late in the half, especially with Dan Murphy’s and BWS posting four straight months of growth and a record December sales month. Online sales for the two banners jumped by 35% to $608 million, now making up more than 11% of total sales.

Hotels continued to perform strongly, with sales up 4.4% and a record December as well. The company’s hotel renewal program is progressing, with 21 venue upgrades and over 800 new gaming machines installed.

Strategically, Endeavour confirmed it will keep its combined Retail and Hotels portfolio, seeing the mix as the best way to drive value for shareholders. The group also finalised a new warehousing contract in Victoria with DHL, preparing for future supply chain needs.

What did Endeavour Group management say?

Managing Director and CEO Jayne Hrdlicka said:

We are pleased to report that the Group has delivered a first half earnings result that demonstrates the strength in our customer franchise as we restart top line growth in Retail. In a challenging market, our increased focus on value and price leadership has been embraced by our customers and is delivering both sales growth and market share gains. Our Hotels business continues to improve its performance, supported by positive trends in food and bar transactions and growth in gaming revenue driven by targeted investment in refurbishments and new EGMs.

What’s next for Endeavour Group?

Looking ahead, Endeavour notes sales growth for the first seven weeks of the new half – up 1.3% for Retail and 4.5% for Hotels. The Retail arm expects to add three Dan Murphy’s stores and close three BWS stores, while Hotels plans at least 14 venue renewals and another 800-plus new EGMs.

The company says consumer demand remains uncertain amid inflation and interest rate pressure, but believes its scale and value brands leave it well placed to compete. Further strategic details will be shared at its Investor Day in May.

Endeavour Group share price snapshot

Over the past 12 months, Endeavour shares have declined 7%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

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The post Endeavour Group earnings: NPAT drops as sales rise; interim dividend declared appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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