Australia · Delayed Price · Currency is AUD Endeavour Group Earnings Call Transcripts
Fiscal Year 2026
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Underlying EBIT reached AUD 563 million, with group sales up 0.9% year-over-year. Retail and hotels both gained market share, but retail margins declined due to price leadership and promotions. CapEx guidance was raised to support accelerated hotel renewals.
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Group sales declined slightly year-over-year, but retail sales momentum improved in September and October, supported by strong online growth and targeted promotions. Hotels delivered solid growth, while elevated promotional intensity and inflationary pressures are expected to impact margins.
Fiscal Year 2025
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The AGM highlighted a challenging year with declining retail sales but growth in hotels, major leadership changes, and a strategic review underway. Shareholders approved all director elections and the remuneration report, while management addressed concerns on performance, governance, and future plans.
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Stable FY2025 revenue was driven by strong hotel growth offsetting retail softness, with EBIT and NPAT down due to cost inflation and restructuring. Cash flow remained robust, net debt fell, and strategic investments in innovation and efficiency continued.
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Sales declined 1.7% year-over-year to AUD 2.8 billion, with retail down but hotels up 5.1%. Online sales and loyalty programs grew, while cost inflation and increased promotional activity pressured margins. Flat to modest retail growth and mid-single-digit hotel growth are targeted for Q4.
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Stable revenue and strong cash flow were achieved despite supply chain disruptions and a soft retail environment, with hotels outperforming and disciplined cost management offsetting inflation. The CEO transition and ongoing tech separation are key developments.
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Quarterly sales grew 0.5% to AUD 3.1B, with hotels offsetting flat retail. Retail EBIT margin is expected to decline due to promotional intensity and cost inflation, while hotels maintain positive momentum. Key efficiency and renewal programs continue.
Fiscal Year 2024
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The meeting reviewed modest sales and earnings growth amid macroeconomic headwinds, with unchanged dividends and a focus on cost optimization. Board and executive changes were highlighted, along with strategic plans for technology separation and operational efficiency. Shareholders raised concerns on share price, gaming regulation, and remuneration.
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Record sales and EBIT were achieved in both Retail and Hotels, with strong cost optimization and margin expansion offsetting inflation and higher finance costs. Early F25 trading shows improved momentum, and disciplined capital management supports continued investment in renewals and digital initiatives.