Jefferies cuts earnings estimates for Australia's Endeavour, expects persistent margin pressure

Endeavour

02/11/2025 19:44

** Analysts at Jefferies acknowledge first-quarter sales growth in Australia's Endeavour Group EDV.AX but have sharply cut earnings estimates, warning that sales remain below levels needed to avoid operating deleverage, given their expectations of rising costs across segments

** Brokerage cuts FY26 NPAT by 9%

 ** Hotel and liquor shop owner reported 4.4% sales growth in first-quarter on October 31

** Analysts note that although overall like-for-like sales in co's retail segment fell 1.3% in Q1, sales growth turned positive in liquor brands BWS and Dan Murphy's in September, and acknowledge total sales in hotels at 4.4%, above Jefferies' estimates

** However, Jefferies warns of increased D&A costs in hotels segment, and sees retail margins contracting further in retail segment

 (Reporting by Shruti Agarwal in Bengaluru; Editing by Edmund Klamann)

 ((Shruti.Agarwal@thomsonreuters.com))