Cost-of-living pressures continue to impact Endeavour Group, which has reported a retail sales decline of 1.2% to $10 billion during FY25.

Full year sales for the group reached $12.1 billion, down 0.3% on a 52-week basis, with net profit falling by 16% to $426 million over the year.

However, hotel sales grew by 4.1% on a 52-week basis to $2.1 billion.

Endeavour Group CEO Kate Beattie said: “Hotel sales grew by 4.1% on a 52-week basis to $2.1 billion. Sales momentum accelerated during the year, with H2 sales up 5.0% on a 52-week basis.

“Pleasingly, sales growth was delivered across all four key business drivers [food, bars, gaming and accommodation]. Gaming performance was driven by growth in our key markets of Queensland and Victoria.

“The Group invested in more than 1000 new EGMs during the year, with installations weighted to the second half. Sales growth in food and bars benefitted from optimised menus, the successful launch of the pub+ loyalty program and strong trading around key social occasions including Father’s Day, Christmas and Easter.

“Retail sales of $10 billion fell by 1.2% on a 52-week basis, reflecting subdued consumer spending in retail liquor and
the impact of supply chain disruption that reduced stock availability in stores during the peak Christmas trading period
and into the start of the second half.

“Retail liquor market conditions have remained soft as a result of ongoing cost-of-living pressure with a growing focus on value for money, particularly in outer suburban areas.

“Customers with higher discretionary income and younger demographics have been less impacted by the cost-of-living squeeze, with sales in the luxury wine category – bottles priced at $25 and above – and ultra-convenience, which is a popular channel for Millennials and Gen Z, continuing to grow.”

Endeavour Group’s best-selling new product ever

Beattie said engagement was “really strong” among Millennials and Gen Z in the RTD category.

“And as new products come to market, they are being very strongly embraced,” she said.

She also revealed that Asahi’s Hard Rated Orange was Endeavour Group’s best-selling new product ever.

Outlook for FY26

In the first seven weeks of FY26, Endeavour Group saw hotel sales growth of 4.4%, however Dan Murphy’s and BWS sales were -1.3%

The Group said hotel sales momentum remains strong, supported by higher transaction volumes. In H1 F26, it plans to accelerate investment across the hotel network including the introduction of 600 new EGM cabinets, the launch of a new
Nightcap accommodation website and booking engine and enhancements to its pub+ loyalty membership benefits.

Endeavour said consumer spending in the retail liquor market remains subdued, however “H1 provides the opportunity to reinforce our position as the market leader for value, range, service and convenience, as we lean into the increased occasions to socialise and celebrate during the spring/summer event season”.

“We expect retail liquor market conditions to improve as inflation moderates and real wages increase,” Endeavour Group said. “The Group expects to open two (net) Dan Murphy’s stores and eight (net) BWS stores in H1 F26.”

The Group also noted it has commenced a strategy refresh which will include a portfolio-wide review of its performance,
key business drivers and execution across retail, hotels and the Pinnacle business.

The outcome of this review will be shared with the market in the second half of the financial year.

Ex-Virgin Australia head Jayne Hrdlicka will join Endeavour Group as its new Managing Director and CEO on 1 January 2026.