Endeavour Group shares rally as executive chair Ari Mervis quits
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More news: Endeavour Group was the best performing company on the ASX 200 in early trade, even as the drinks retailer said it is poised to miss market estimates for full-year profit and revenue.
The group also announced the abrupt departure of executive chair Ari Mervis due to disagreements within the board.
Endeavour shares were up 4.5% to $4.22 at 10:50am AEST, having traded roughly flat since the turn of the year.
The group said this morning that it expects FY25 net profit after tax to be between $420 million and $425 million, a 2% miss to consensus forecasts of $431.6 million. Anticipated full-year sales of $12.06 billion are also softer than average market estimates of $12.09 billion.
RBC Capital Markets analyst Michael Toner noted that Mervis' departure "appears to be driven by disagreements within the board regarding strategy". He anticipates "a period of ongoing disruption and turnover within the company" over the coming 12 months.
Endeavour Group chair Ari Mervis quits after board 'disagreements'
The news: Endeavour Group's executive chairman Ari Mervis has resigned with immediate effect, citing disagreements with the board.
The context: The Dan Murphy's and BWS operator said its lead independent director Duncan Makeig will assume the role of interim chair and will lead the search process for a new independent chair.
Mervis transitioned into the temporary role of executive chair in March, following the resignation of former chief executive Steve Donohue. Mervis was due to return to his regular role of chair when new CEO Jayne Hrdlicka commenced on 1 January.
As a result of Mervis' departure, Endeavour has named chief financial officer Kate Beattie interim CEO, effective immediately, until Hrdlicka joins the company. Hrdlicka is currently consulting on a strategy refresh with the board and senior management.
Beattie has been with Endeavour for eight years, and served as CFO since 2023.
Endeavour also announced that full-year net profit after tax is expected to be between $420 million and $425 million, with group sales estimates at $12.06 billion. This would mark a decline from last year's net profit after tax of $512 million and total sales of $12.3 billion.
The company said the profit result includes the impact of a number of one-off items incurred during the second half of the year, including restructuring and redundancy costs, and an impairment relating to the closure of the group's Prowine bottling facility.
The source: ASX
