Endeavour Group profit tumbles as rates keep lid on sales growth

Rising inflation and the threat of further interest rate hikes by the Reserve Bank are keeping a lid on a return to form for Dan Murphy’s and BWS owner Endeavour Group.

Delivering her first set of financials for the group, new chief executive Jayne Hrdlicka on Wednesday reported slim sales growth of just under one per cent for the six months to January 5 to $6.7 billion and a profit down almost 20 per cent.

The revenue result was spearheaded by a booming hotels and pubs business, where sales soared 4.5 per cent over the period compared to a year earlier.

While investment in discounted prices in a highly competitive retail booze market was starting to pay dividends — delivering anemic sales growth of just 0.2 per cent to $5.5b in the first half — Endeavour said growth of 1.3 per cent in the first seven weeks of the new calendar year was being held back by the ongoing effects of supply chain disruption.

Sales at the group’s more than 350 pubs and hotels shot up 4.4 per cent in the first half to $1.2b, driven by an uplift in gaming, strong results from refurbished venues and positive trends in food and bar transactions in the last three months of 2025.

Ms Hrdlicka said an increased focus on value and price leadership had been embraced by customers despite the “challenging market”

“Looking forward, we are excited about the next phase for Endeavour as we complete our strategy work and begin the process of getting early opportunities ready for implementation,” the former Virgin Airlines CEO said.

“The group has a unique asset portfolio, a large and loyal customer base and some of Australiaʼs most trusted retail brands.

“We also have a talented team, including our new executive leadership group, who are energised about our future and hungry to deliver the significant change agenda we have in front of us.”

Endeavour reported a first-half profit of $247m, a fall of 17.1 per cent from a year earlier, and underlying earnings of $563m, down 5.4 per cent.

Online sales at Dan Murphy’s and BWS now make up 11.3 per cent of sales for the two chains as cost-conscious customers chase discount offers.

In a further sign that lower prices were adding to the bottom line, Endeavour reported the strongest ever sales month in December, driven by Dan Murphyʼs record trading weeks leading into both Christmas and New Yearʼs Eve, with Christmas Eve setting a new daily sales record.

While sales across its hotel and retail portfolios improved in January, the group noted a moderation in February after the RBA delivered the first of what could be several interest rate hikes this year.

“The outlook for consumer spending remains uncertain given elevated inflation and rising interest rates,”Endeavour said.

“The groupʼs scale, value proposition and market leading brands mean we are well positioned to compete and win in a market where consumers remain focused on value for money.”