Endeavour Group’s revenue dropped 0.3 per cent year over year to $3.1 billion in the fiscal first quarter ended October 5, 2025.
Total retail sales fell 1.4 per cent to $2.5 billion, with Dan Murphy’s and BWS sales tumbling 1.0 per cent lower to $2.4 billion.
The result reflects reduced Specialty sales, which plunged 16.2 per cent to $57 million, after Shorty’s operations were integrated into Dan Murphy’s, as well as the transition of Jimmy Brings to a partnership model with Milkrun in F25.
The group noted a 20.9 per cent rise in online liquor sales, driven by strong promotional activity. Online sales accounted for 10.2 per cent of Dan Murphy’s and BWS sales during the period.
Meanwhile, hotel sales increased by 4.4 per cent to $592 million due to growth across food, bars, gaming, and accommodation businesses.
The company said that sales returned to positive growth in September, influenced by targeted promotions during the school holidays and football finals season. In contrast, consumer spending was slower outside peak events.
During the quarter, the Endeavour Group’s network comprised 1,728 retail stores. Dan Murphy’s added two stores, closed one, and completed four renewals, while BWS opened six stores, closed five, and completed 13 renewals.
Moreover, the group now operates 352 hotels after the planned closure of O’Malley’s and the Imperial Hotel in Queensland due to government resumption.
Moving forward, Endeavour said that the second quarter remains as an important trading period, with major events such as Spring Racing, the Ashes Series, Christmas festivities, New Year, and the start of summer holidays. Promotional intensity across the retail market is anticipated to stay elevated in the second half.
In the second quarter, the group is cycling last year’s supply chain disruption that affected sales and limited promotional investment during the peak summer trading period.
Earnings growth in the half continues to face pressure from wage inflation, higher security expenses, and increased depreciation and amortisation (D&A).
The Group’s capital expenditure outlook remains in line with the guidance range at $420 million to $470 million, inclusive of One Endeavour. Total capital and operating expenditure for One Endeavour is projected to be between $90 million and $110 million.
Finance costs are expected to be broadly consistent with FY25. Hotels D&A is projected to be around $20 million higher than last year, mainly driven by the installation of approximately 900 new electronic gaming machines (EGMs) in the second half of F25 and the accelerated renewal program.
“In retail, we’re focused on strengthening our market-leading position for value, range, service, and convenience, capitalising on the increased number of occasions to socialise and celebrate,” said Kate Beattie, CEO of Endeavour Group.
“In hotels, we will continue to focus on improving guest experience, through both capital and operational investments across our network, and on enhancing the benefits for members of our pub+ loyalty program to deepen customer engagement.”
“We are making good progress on our Group-wide strategy review, which will establish the framework for creating value for all our stakeholders and delivering sustainable returns for shareholders over the medium to long term.”
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