Endeavour Group "Investor Day Preview" (Neutral) Cousins

Research evidence excerpt

Endeavour Group "Investor Day Preview" (Neutral) Cousins

Global Research

25 May 2026ab

Endeavour Group Equities

AustraliaInvestor Day Preview

Consumer Services

12-month rating Neutral

Comprehensive strategy review findings to be released at 27 May Investor Day

EDV provided a detailed financial scorecard in Dec-23. While we do not expect as 12m price target A$3.45

thorough a scorecard, we do anticipate quantification of cost savings and financial

markers for what successful strategy execution could be (e.g. above market LFL sales

Price (25 May 2026) A$3.11

growth, EBIT outlook after significant investment from 1-Oct-25, ROC on new capex).

Current balance sheet targets (3.0-3.5x net debt [including leases]/EBITDA; FY26E UBSe RIC: EDV.AX BBG: EDV AU

3.8x) may be revised to pre AASB16 (FY26E UBSe 2.1x), while dividend payout ratio

Trading data and key metrics

guidance (70-75%) may also be revised, with comments about balance sheet resilience

52-wk range A$4.27-3.02

a focus. Earnings unchanged post 3Q26 sales (UBSe FY26E/27E EPS +1.1%/-7.0% vs

Visible Alpha). Retain Neutral as cautious on the Retail recovery given structural & Market cap. A$5.58b/US$4.00b

cyclical headwinds despite a broadly resilient Hotels division and turnaround potential. Shares o/s 1,796m (COM)

Free float 70%

Retail: Revenue growth, market share drivers and cost management the focus Avg. daily volume ('000) 4,214

Structural headwinds plague the liquor category, while cyclical headwinds have returned Avg. daily value (m) A$14.6

with the category more discretionary than staples. Volumes rose in 2Q26 & 3Q26 (UBSe) Common s/h equity (06/26E) A$3.89b

due to significant price investment and VIC industrial action headwinds in the pcp, but P/BV (06/26E) 1.4x

declines are forecast going forward.