Endeavour Group has provides its preliminary results for the financial year ending 28 June 2026, with net profit falling to $52 million.

That’s down from $426 million in the prior year, due to $372 million in “significant item expenses”. The write down includes $194 million for portfolio rationalisation and asset impairments, following the company’s decision to restructure Pinnacle Drinks and its premium wine portfolio.

This primarily comprises carrying “value adjustments” across three core areas:

• Pinnacle: Includes carrying value adjustments due to the reclassification of winery and vineyard assets as held-for-sale or for closure, and write-down of inventory resulting from range rationalisation ($78 million).
• Hotels: Impairment of 25 hotels ($67 million).
• Retail: Impairment of 75 stores ($45 million) and retail range rationalisation ($4 million).

Other expenses include the costs of establishing a centralised business services function, including outsourcing of back-office functions, as well as broader support team restructuring costs which the company said would support delivery of its cost reduction targets.

Also included are corporate advisory and consulting fees associated with the development and execution to date of the group-wide strategy review.

Endeavour Group said it expects full-year sales for Dan Murphy’s and BWS to rise by only 0.7% to $10.016 billion with hotels sales to rise 4.2% to $2.196 billion. Total sales for 2026 are expected to be up 1.3% to $12.212 billion.

As previously disclosed, the Group has also recognised a pre-tax provision of $40 million related to cessation of the supply chain services contract with Woolworths Group for warehouse operations at the MLDC in September 2028. This provision reflects the estimated amount the Group is contractually required to reimburse to Woolworths for one-off cessation costs, following Woolworths decision to close the MLDC in September 2028.

Endeavour Group Managing Director and CEO Jayne Hrdlicka said: “After a comprehensive review of our portfolio, we have reassessed the carrying value of some of our assets including legacy technology systems, wineries and vineyards and a small number of retail stores and hotels.

“Following the reset of our asset base and simplification of our portfolio we are now well placed to focus our capital and resources on maximising the value of our core businesses through our multi-year business transformation strategy.”

Final audited results and further details on Endeavour Group’s trading performance will be provided at its F26 full-year results presentation on 24 August 2026.