Australia's Endeavour slips after warning about higher supply costs from Iran war

Endeavour

04/05/2026 02:10

May 4 (Reuters) - Australia's Endeavour Group EDV.AX warned on Monday that Iran war-driven fuel and freight inflation would increase its supply-chain costs by A$6 million to A$8 million ($4.33 million to $5.77 million) in the second half of the year, sending its shares to a near one-month low.

Here are some details:

The owner of liquor chain Dan Murphy's said momentum was softer in late third quarter in its hotels unit due to cost-of-living strains.

The group has rolled out a three‑year efficiency drive, aiming to deliver A$100 million in savings by fiscal 2027, by trimming support offices headcount and optimising stores, among others.

The company is pre-emptively lifting inventories by up to A$400 million to hedge against Middle East–related supply disruptions, a move that will temporarily raise leverage through higher working capital funded through incremental short-term debt.

Retail arm sales advanced 2.9% in the third quarter from last year, while the hotels segment delivered a 3.7% lift.

Analysts at Citi said the update underscored slowing sales momentum and mounting fuel-driven cost pressures in the second half, reinforcing its rationale for downgrading the stock to "neutral" from "buy" in late March.

Shares of Endeavour slid as much as 8.2% to A$3.14 by 0049 GMT in their weakest intraday session since February 28, 2025.

The stock was among top losers on the benchmark S&P/ASX 200 index .AXJO, underperforming the benchmark's 0.4% dip.

($1 = 1.3870 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Subhranshu Sahu)

 ((tanishk.Kumar@thomsonreuters.com; X: @thatstanishk))