Company Reports

Endeavour is Australia's preeminent omnichannel liquor retailer, operating the largest network of brick-and-mortar stores throughout the country, with more than 1,700 liquor outlets across the well-known Dan Murphy's and BWS brands. Endeavour also has substantial interests in hotels and electronic gaming machines, operating more than 12,000 gaming machines across its portfolio of over 300 hotels, pubs, and clubs. Endeavour is one of Australia's leading employers, with staff of some 30,000 throughout Australia.

Endeavour's sales and underlying NPAT for fiscal 2026 were in line with its unaudited results. Lower liquor prices helped improve sales momentum, which is extending into fiscal 2027. Operating costs are guided to step up in the short term, though, crimping profit margins. Shares dropped 5%.

Endeavour's unaudited underlying earnings are down 15% year on year. Underlying net profit after tax of AUD 363 million in fiscal 2026 excludes AUD 311 million in mostly noncash one-off items. Group sales increased by 1%, with resilient hotel revenue offset by soft liquor sales growth.

New management stuck to the script at Endeavour's investor day. In liquor retailing, the dual-brand strategy remains unchanged, offering both value and convenience. The smaller hotels segment complements liquor retailing and remains an integral part of the group.

Endeavour is Australia's preeminent omnichannel liquor retailer, operating the largest network of brick-and-mortar stores throughout the country, with more than 1,700 liquor outlets across the well-known Dan Murphy's and BWS brands. Endeavour also has substantial interests in hotels and electronic gaming machines, operating more than 12,000 gaming machines across its portfolio of over 300 hotels, pubs, and clubs. Endeavour is one of Australia's leading employers, with staff of some 30,000 throughout Australia.

Endeavour's sales rose by 1% in the four-month period to April on last year. Freight costs are increasing. Heightened geopolitical risk is prompting management to take a conservative stance on inventories. Up to AUD 400 million could be added to liquor stocks to hedge supply chain risks.

Endeavour is Australia's pre-eminent omnichannel liquor retailer, operating the largest network of brick-and-mortar stores throughout the country, with more than 1,700 liquor outlets across the well-known Dan Murphy's and BWS brands. Endeavour also has substantial interests in hotels and electronic gaming machines, operating more than 12,000 gaming machines across its portfolio of over 300 hotels, pubs, and clubs. Endeavour is one of Australia's leading employers, with staff of some 30,000 throughout Australia.

Endeavour's underlying pretax profit of AUD 408 million for the first half of fiscal 2026 was within its January guidance range. Group sales increased 1% year on year, though the core liquor retailing segment was virtually flat. Retail sales momentum is still soft so far in the second half.

Endeavour is Australia's pre-eminent omnichannel liquor retailer, operating the largest network of brick-and-mortar stores throughout the country, with more than 1,700 liquor outlets across the well-known Dan Murphy's and BWS brands. Endeavour also has substantial interests in hotels and electronic gaming machines, operating more than 12,000 gaming machines across its portfolio of over 300 hotels, pubs, and clubs. Endeavour is one of Australia's leading employers, with staff of some 30,000 throughout Australia.

Endeavour's liquor sales momentum is improving. In the December 2025 quarter, sales were up 2% year on year. Sales had declined year on year in both the September quarter and in fiscal year 2025. However, sales are driven by heavy discounting, which is cutting into liquor profit margins.

Endeavour's sales were flat in the first quarter of fiscal 2026. Solid performance in the smaller hotels segment offset a 1% decline in liquor retailing sales. However, liquor sales momentum is starting to improve, driven by price cutting on lower online delivery fees.

Endeavour is Australia's pre-eminent omnichannel liquor retailer, operating the largest network of brick-and-mortar stores throughout the country, with more than 1,700 liquor outlets across the well-known Dan Murphy's and BWS brands. Endeavour also has substantial interests in hotels and electronic gaming machines, operating more than 12,000 gaming machines across its portfolio of over 300 hotels, pubs, and clubs. Endeavour is one of Australia's leading employers, with staff of some 30,000 throughout Australia.

Endeavour's fiscal 2025 sales of AUD 12.1 billion and reported profit of AUD 425 million were within management guidance. Group sales declined by 1%, normalized for 52 weeks. The soft sales performance meant operating margins were squeezed, with normalized underlying EBIT down 10%.

Executive Chairman Ari Mervis is stepping down immediately because of disagreements with the board. New permanent CEO Jayne Hrdlicka is commencing her role in January 2026. Until then, CFO Kate Beattie is filling the void as interim CEO.

Household incomes are growing in real terms after a period of rampant inflation. With inflation back within the Reserve Bank of Australia’s target range, the focus is shifting to keeping the job market in good shape. Monetary settings are slightly restrictive, providing room for more easing.

Liquor sales appear to have bottomed. Following two quarters of declining sales, Easter sales were flat on last year. Stock on shelves was replenished after strikes curtailed deliveries in December 2024, and customer loyalty scores are back to prestrike levels.

Tariffs are softening Australian consumer sentiment and investors are preferring defensive over cyclical retailers. Since sweeping US tariffs were announced April 2, our Morningstar Australia Consumer Defensive Index is up 3%, but the Morningstar Australia Consumer Cyclical Index is flat.

US President Donald Trump's "liberation day" tariffs have rattled global markets. Tariff rates have been raised to levels not seen in a century, which will likely set in motion a cascade of supply-demand side shocks, all acting to weigh on the rate of economic growth.

Endeavour is Australia's pre-eminent omnichannel liquor retailer, operating the largest network of brick-and-mortar stores throughout the country, with more than 1,600 liquor outlets across the well-known Dan Murphy's and BWS brands. Endeavour also has substantial interests in hotels and electronic gaming machines, operating more than 12,000 gaming machines across its portfolio of more than 300 hotels, pubs, and clubs. Endeavour is one of Australia's leading employers, with staff of some 30,000 throughout Australia.

Endeavour reported soft sales, declining 1% in the first half of fiscal 2025 with at-home liquor consumption subdued. Operating costs are rising, weighing heavily on profit margins. First-half net profit aftertax declined by 15% to AUD 298 million, and the interim dividend was cut by 13%.