Endeavour Group unveils preliminary F26 results and $372m portfolio reset
Endeavour Group (ASX: EDV) has released preliminary unaudited results for the 52 weeks ended 28 June 2026, alongside details of Significant Items expected to be recognised in its F26 financial statements.
The drinks and hospitality group recorded Total Group Sales of $12,212m, up 1.3%, with Total Group Underlying EBIT of $845m and Underlying NPAT of $363m. Separately, the Group flagged $372m in pre-tax Significant Items ($311m after-tax), described as predominantly non-cash and tied to a portfolio reset and Group-wide strategy review.
These figures remain preliminary and unaudited. Final audited results are scheduled for release at the F26 full-year results presentation on 24 August 2026. For investors, the update pairs modest top-line growth with a material one-off reset that repositions the asset base.
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Sales grew while underlying earnings softened
Trading performance across the two core segments diverged over the period. Retail sales reached $10,016m, up 0.7%, while Hotels delivered $2,196m, up 4.2%, making Hotels the stronger growth driver.
At the earnings level, segment performance told a different story. Retail Underlying EBIT fell to $464m from $563m, while Hotels EBIT rose to $462m from $444m. The Other segment recorded -$81m. Underlying NPAT came in at $363m, down from $426m in F25.
| Metric ($m) | F26 (52 wks) | F25 (52 wks) | Change / Commentary |
|---|---|---|---|
| Retail sales | 10,016 | 9,950 | Up 0.7% |
| Hotels sales | 2,196 | 2,108 | Up 4.2% |
| Total Group Sales | 12,212 | 12,058 | Up 1.3% |
| Retail EBIT | 464 | 563 | Down year-on-year |
| Hotels EBIT | 462 | 444 | Up year-on-year |
| Total Group Underlying EBIT | 845 | 926 | Down year-on-year |
| Underlying NPAT | 363 | 426 | Down year-on-year |
The Hotels outperformance partially offset pressure on Retail earnings, leaving Underlying EBIT below the prior comparable period.
Retail GP margin compression of 85 basis points in the first half reflected a deliberate pricing strategy at Dan Murphy’s and BWS, with management accepting near-term profit pressure in exchange for volume recovery across four consecutive months of sales growth.
Breaking down the $372m in Significant Items
The Group expects to recognise the Significant Items across four components, predominantly non-cash. The breakdown is as follows:
-
Melbourne Liquor Distribution Centre (MLDC) — $40m (mainly cash): a pre-tax provision reflecting the estimated amount the Group is contractually required to reimburse to Woolworths for one-off cessation costs, following Woolworths’ decision to close the MLDC in September 2028.
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Restructuring and Strategy Review Costs — $58m (mainly cash): the costs of establishing a centralised Business Services function, including outsourcing of back-office functions and broader support team restructuring, plus corporate advisory and consulting fees tied to the strategy review. These are partly offset by $8m in gains from property and other asset sales.
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Write-downs of Non-Current Assets — $80m (non-cash): primarily legacy technology systems, other intangibles and property, plant and equipment, mainly due to obsolescence and cessation of use following the strategy review.
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Portfolio Rationalisation and Asset Impairments — $194m (non-cash).
The $194m in portfolio rationalisation and asset impairments comprises carrying value adjustments across three core areas:
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Pinnacle: winery and vineyard assets reclassified as held-for-sale or for closure, plus an inventory write-down from range rationalisation ($78m).
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Hotels: impairment of 25 hotels ($67m).
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Retail: impairment of 75 stores ($45m) plus Retail range rationalisation ($4m).
A $61m tax benefit applies, giving a total after-tax Significant Items figure of $311m. The Group confirmed its dividend policy is based on Underlying NPAT, meaning the Significant Items do not directly drive the dividend calculation.
Why “Significant Items” matter to investors
Significant Items, sometimes called non-underlying items, are one-off charges or gains reported separately from a company’s normal trading results. Isolating them allows investors to see the “underlying” run-rate of the business without the noise of unusual events.
A key distinction sits within these figures. Non-cash write-downs are accounting adjustments that reduce the carrying value of assets on the balance sheet, with no money leaving the business. Cash costs, by contrast, are actual outflows, such as restructuring payments or advisory fees.
This matters here because most of the $372m is non-cash. The headline charge reflects a rebasing of asset values rather than a direct cash drain, while Underlying earnings remain the cleaner measure of ongoing performance.
CEO frames the reset as clearing the deck for transformation
Management positioned the reset as a step toward simplifying the portfolio and refocusing capital on core businesses.
Managing Director and CEO Jayne Hrdlicka
“After a comprehensive review of our portfolio, we have reassessed the carrying value of some of our assets including legacy technology systems, wineries and vineyards and a small number of Retail stores and Hotels. Following the reset of our asset base and simplification of our portfolio we are now well placed to focus our capital and resources on maximising the value of our core businesses through our multi-year business transformation strategy.”
What comes next for Endeavour Group
Final audited results and further detail on the Group’s trading performance are scheduled for the F26 full-year results presentation on 24 August 2026.
The MLDC supply chain services contract with Woolworths is scheduled to cease in September 2028, with the associated provision payable at that time. Beyond this, the Group pointed to ongoing delivery of its cost reduction targets through the centralised Business Services function and its multi-year business transformation strategy.
Investors should note that all figures presented remain preliminary and unaudited, subject to finalisation and the audit process. Confirmed figures are expected at the 24 August 2026 presentation.
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