Endeavour Group shares drop as FY25 earning miss estimates
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More news: Endeavour Group shares slipped after the drinks company's full-year earnings missed market estimates .
Shares were down 2.4% to $4.10 at 1:15pm AEST, having retreated 25.9% over the last 12 months.
RBC Capital Markets analyst Michael Toner said the result missed consensus forecasts by 1.6% at the EBIT line. He noted that the key focus for investors will be the increasing divergence between Endeavour's retail and hotels performance.
The retail business saw negative sales growth for the first seven weeks of FY26, compared to consensus estimates of 2% growth, he said. Its hotels division saw 4.4% growth during the same period, outstripping average forecasts of 2.7% growth.
Endeavour Group reports 16% slide in full-year profit as sales edge down
The news: BWS and Dan Murphy's owner Endeavour Group posted a $426 million net profit for the 2025 financial year, marking a 15.8% downturn on FY24, as weaker liquor spend and supply chain disruption weighed on sales.
The numbers: The result missed market estimates of $431 million, according to Visible Alpha data.
Endeavour recorded full-year sales of $12.1 billion, down 0.3% year on year, but edged out average forecasts of $12.08 billion.
The company declared total dividends of 18.8 cents per share, down 13.8% from FY24, but topping estimates of 18 cents per share.
The context: Endeavour said softer sales during the year were driven by subdued consumer spending in retail liquor and the impact of supply chain disruption that reduced stock availability in stores during the peak Christmas trading period.
The company noted that retail liquor market conditions have remained soft as a result of ongoing cost of living pressure, with a growing focus on value for money among consumers, particularly in outer suburban areas.
Endeavour said that during the first seven weeks of FY26, it saw hotel sales growth of 4.4%, while combined sales at Dan Murphy's and BWS lowered 1.3%.
The group plans to accelerate investment across its hotel network in the first half of this financial year, and expects to add two net Dan Murphy's stores and eight net BWS stores during the six-month period.
The sources: ASX, RBC Capital Markets research
