Endeavour Group H1 F24 Performance Overview

Endeavour Group Limited (ASX: $EDV) has reported a resilient performance for the first half of the financial year 2024 (H1 F24). The company achieved a 2.5% increase in sales, reaching $6.7 billion, with Earnings before interest and tax (EBIT) growing to $661 million. The Group's focus on cost optimisation and gross margin management contributed to this growth, offsetting the impact of higher finance costs in line with previous guidance.

Executive Commentary on H1 F24 Performance

Endeavour Group Managing Director and CEO, Steve Donohue, highlighted the company's strong first half results, emphasizing the resilience demonstrated across the Retail and Hotels segments. He noted the growth in Retail sales driven by Dan Murphy's and BWS, as well as the improved food and bar offerings contributing to the growth in Hotels sales. Donohue also mentioned the progress in delivering the company's strategy to achieve 10%+ shareholder returns from F26, underpinned by high cash generation, stable dividends, and disciplined capital investment.

Summary of H1 F24 Results and Outlook

Endeavour Group's H1 F24 performance showcased resilience, with Retail and Hotels segments driving sales growth and EBIT expansion. The company's strategic focus on cost optimisation and gross margin management proved effective in mitigating the impact of higher finance costs. Looking ahead, the company remains well-positioned to navigate through the economic cycle, leveraging its structurally resilient businesses and strong balance sheet. With a commitment to delivering 10%+ return to shareholders from F26, Endeavour Group aims to balance short and longer-term objectives through performance optimisation and disciplined cost and investment management.