Endeavour shares drop on lower profit, dividend
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More news: Shares in Endeavour Group are down nearly 5% to $4.28 in early trading after Australia’s largest alcoholic drinks retailer cut its interim dividend as first-half profit declined 15% to $298 million amid subdued consumer spending and supply chain disruption in Victoria.
"EDV’s result was slightly below expectations. Cashflow was strong and net debt fell $273 million on the prior corresponding period. Hotel sales improving momentum is positive, as is EDV’s continuing to “pursue opportunities to unlock value in its $1 billion-plus property portfolio”. However, sales momentum in early 3Q25 is poor for the Retail division, as is the delay in finding a new CEO," E&P retail analyst Phillip Kimber said in a note.
Endeavour Group cuts dividend as profit slumps, names Aru Mervis as executive chair
The news: Australia’s largest alcoholic drinks retailer, Endeavour Group, has cut its interim dividend as first-half profit declined 15% to $298 million due to lower sales following subdued consumer spending and supply chain disruption in Victoria during the period.
The company also said its chairman Ari Mervis will become executive chairman, effective 17 March, replacing Steve Donohue, who resigned as CEO in September.
The numbers: Endeavour, which was spun off from Woolworths before listing on the ASX in 2021, was expected to report a 14% drop in profit to $300.5 million, down from $351 million a year earlier.
The board declared an interim dividend of 12.5 cents per share, lower than last year's payout of 14.3 cents. Analysts surveyed by Visible Alpha had also forecast the company would cut its interim dividend to 12.3 cents per share.
Retail sales fell 1.5% year on year to $5.5 billion, reflecting subdued consumer spending in the first quarter, and an estimated $40 million to $50 million in lost sales due to supply chain disruption in Victoria that reduced stock availability in stores during the peak end-of-year trading period.
The context: The Dan Murphy's and BWS owner said that despite "challenging macro economic conditions" first-half sales were "broadly in line" with the prior corresponding period.
Elsewhere, the group confirmed that chief executive Donohue will relinquish his duties on 17 March, as current chair Mervis transitions into the role of executive chairman.
Mervis will be in the role for up to 12 months while the appointment of a new CEO is finalised.
