Leadership Changes and Retail Challenges Cloud Endeavour Group’s Outlook

Financial Performance Overview

Endeavour Group Limited has released its full-year results for the 52 weeks ended 29 June 2025, revealing a modest contraction in revenue alongside a notable decline in profitability. Total revenue from sales of goods and services reached $12.058 billion, a 0.3% decrease on a comparable 52-week basis from the prior year. Profit after tax attributable to equity holders dropped 15.8% to $426 million, reflecting challenges in the retail segment and elevated operating costs.

The retail business, encompassing the Dan Murphy’s and BWS brands, experienced a 1.2% decline in sales on a comparable basis, impacted by subdued consumer spending and a significant supply chain disruption in December 2024 that constrained stock availability during a critical trading period. Despite these headwinds, the company maintained its focus on price leadership and value, with strong customer engagement around key social occasions.

Hotels Segment and Operational Initiatives

Conversely, the Hotels segment delivered a 4.1% increase in sales, driven by growth across food, beverage, gaming, and accommodation services. The pub+ loyalty program, launched nationally in August 2024, now boasts 480,000 active users, accounting for over a quarter of food and bar transactions, underscoring the segment’s momentum. The company also completed 27 hotel renewals and made strategic acquisitions and disposals to optimize its portfolio.

Operationally, Endeavour achieved $75 million in cost savings through its endeavourGO program, offsetting inflationary pressures. The One Endeavour technology separation program progressed with the completion of People Systems implementation and a revised timeline for ERP and store systems separation, aiming to reduce interim costs and enhance scalability.

Leadership Transition and Strategic Outlook

FY25 was marked by significant leadership changes. Steve Donohue stepped down as CEO in March 2025, succeeded on an interim basis by CFO Kate Beattie. After an extensive global search, Jayne Hrdlicka was appointed as the new Managing Director and CEO, set to commence in January 2026 pending regulatory approvals. The Board also saw renewal with the appointments of Penny Winn and Peter Hardy as Non-executive Directors.

The Board and management are undertaking a comprehensive strategic business review to refine the Group’s focus over the next three years, aiming to simplify operations, leverage unique assets, and drive sustainable shareholder returns. This includes reinforcing Endeavour’s market leadership in retail liquor and hospitality, enhancing customer experiences, and advancing its sustainability commitments.

Sustainability and Risk Management

Endeavour continues to prioritize its environmental, social, and governance (ESG) agenda, with a commitment to sourcing 100% renewable electricity by 2030 and achieving net zero emissions by 2050. The Group conducted its first quantitative climate scenario analysis, focusing on bushfire risks, and is actively managing transition and physical climate risks. Compliance and risk management frameworks have been strengthened amid increasing regulatory scrutiny, particularly in liquor and gaming sectors.

Despite a challenging external environment, including inflationary pressures and evolving consumer preferences, Endeavour’s strong cash flow generation enabled a fully franked final dividend declaration of 6.3 cents per share, with a Dividend Reinvestment Plan activated to support shareholder value.