Endeavour Group, owner of Dan Murphy’s and BWS, has told the market to expect a 14.8% drop in underlying profit after tax to about $363 million based on unaudited FY26 numbers. Total group sales edge higher to $12.2 billion, up 1.3% year on year, powered by a 4.2% lift in its hotels division against 0.7% growth in retail. Management highlights a 17.6% fall in retail profitability, while hotels record a 4.1% profit rise, underlining the split fortunes inside the group. Endeavour plans to recognise $311 million in after-tax significant item expenses, largely non-cash impairments on asset values, alongside cash outlays tied to its ongoing strategy review.
The significant items include a major write-down of wineries and vineyards that Endeavour moved to sell after its internal business review, plus impairments on outdated technology platforms, underperforming stores and selected hotels. Those adjustments will drag reported net profit for the year to June 28 to around $52 million compared with $426 million a year earlier, even though top-line sales still grow modestly. Management describes the clean-up as a reset of balance sheet carrying values, acknowledging that some legacy assets no longer justify their previous book numbers. Strategy costs linked to reshaping the portfolio are booked at the same time, concentrating much of the financial pain into a single year.
Endeavour’s leadership presents the overhaul as a turnaround story, accepting weaker short-term earnings to position the business for stronger returns later. The shift in profit mix towards hotels indicates the group increasingly leans on venues for growth, while its core retail liquor arm grapples with softer margins and rising competition. Selling wineries and vineyards marks a retreat from some capital-intensive parts of the drinks value chain, freeing up focus and potentially capital for retail and hospitality.
