Endeavour Group’s stock declined 3.8% to AUD 3.26 on Monday, underperforming the broader ASX 200 which rose 0.6%, after the company reported a 14.8% drop in underlying net profit for fiscal 2026.
The Australian liquor retailer and hotel operator posted AUD 12.2 billion in group sales, a 1.3% increase from the prior year. Underlying earnings before interest and tax fell 8.7% to AUD 845 million, while net profit after tax declined to AUD 363 million from AUD 426 million. Free cash flow turned negative at AUD 182 million, compared with a positive AUD 187 million in fiscal 2025, reflecting higher capital expenditure and reduced earnings.
The retail division bore the brunt of the decline, with underlying EBIT dropping 17.6% to AUD 464 million. Endeavour cited costs tied to the One Endeavour restructuring program and price reductions implemented to regain market share against competitors. The hotels segment provided partial relief, with EBIT rising 4.1% to AUD 462 million, though this was insufficient to offset the retail segment’s weakness.
