Australia's Endeavour prelim FY26 profit falls, takes $262 million overhaul hit (updated)

Endeavour

05/08/2026 01:29

Recasts to add details, background, share moves in paragraph 3, and context
Aug 5 (Reuters) - Australia's Endeavour Group EDV.AX said on Wednesday its preliminary 2026 underlying profit fell, while flagging item expenses of A$372 million ($262 million), most of which stemmed from impairments tied to a sweeping portfolio overhaul.
Endeavour, the owner of liquor chain Dan Murphy's, reported a preliminary total underlying profit after tax of A$363 million for the full year ended June 28, compared with A$426 million a year earlier. 
Shares of the firm fell as much as 5.5% in early trade, hitting their lowest level since July 24, before paring losses to trade down 2% as of 0021 GMT.
CEO Jayne Hrdlicka, who took over in January after leading Virgin Australia VGN.AX through its post-pandemic recovery, said Endeavour was well placed to focus capital and resources on maximising value in its core businesses following the portfolio simplification.
The company said significant items would total A$311 million after tax for the year and were predominantly non-cash.
The significant item expenses include A$194 million in portfolio rationalisation and asset impairment charges, including write-downs linked to its Pinnacle drinks business, as well as impairments across 25 hotels and 75 retail stores.
The charges follow Endeavour's strategy overhaul, announced in May, which included plans to exit wineries and vineyards, scale back its drinks portfolio and reduce its dividend payout, measures the company expects will free up about A$300 million by 2029 for investment in its retail operations.
For the 52-week period ended June 28, underlying EBIT from its retail arm fell to A$464 million from A$563 million a year earlier, even as sales from the division rose to A$10.02 billion from A$9.95 billion. 
The remainder of the charges includes provisions for a contract end with Woolworths Group, along with write-downs of outdated technology systems and restructuring and strategy review costs.
Endeavour is Australia's largest owner of pubs and bottle shops, including the BWS liquor chain, and operates more than 340 hotels.
($1 = 1.4196 Australian dollars)

 (Reporting by Shruti Agarwal in Bengaluru; Editing by Savio D'Souza and Sherry Jacob-Phillips)
 ((Shruti.Agarwal@thomsonreuters.com;))