Endeavour Group (ASX:EDV) has revealed a sharp decline in underlying profit after tax following a major strategic review that triggered hundreds of millions of dollars in asset write-downs and restructuring costs.
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The retail and hospitality giant’s preliminary unaudited results for the 2026 financial year show underlying net profit after tax fell 17.4% to $363 million, down from $426 million a year earlier.
The result was impacted by $372 million in pre-tax significant items, equivalent to $311 million after tax, as the group moved to simplify its portfolio and reset its asset base.
Endeavour said the costs included $58 million in restructuring and strategic review expenses, alongside a $40 million provision linked to the planned cessation of its supply chain services agreement with Woolworths Group at the Melbourne Liquor Distribution Centre.
Despite the earnings pressure, group sales remained resilient, rising 1.3% year-on-year to $12.21 billion. Retail sales increased 0.7% to $10.02 billion, while hotel sales delivered stronger growth, climbing 4.2% to $2.19 billion.
Underlying earnings before interest and tax (EBIT), however, declined to $845 million from $926 million in the prior year.
Endeavour Group managing director and chief executive Jayne Hrdlicka said the asset reset marked an important step in simplifying the company’s operations and focusing investment on its core businesses.
“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,” Hrdlicka said.
A major focus is resetting its multi-brand retail strategy, with the company looking to strengthen Dan Murphy’s price position while better differentiating Dan Murphy’s and BWS for their respective customer bases.
The company is also targeting significant cost reductions, with a goal of delivering $300 million in savings by financial year 2029, including $100 million expected in FY27.
Management said the transformation program will focus on reducing operational complexity, improving productivity and directing capital towards higher-return opportunities.
The company is exiting several winery assets, including Chapel Hill, Oakridge and Josef Chromy, as it reassesses the role of its wine production portfolio.
Endeavour Group will release its final audited full-year results on 24 August 2026.
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