Q3 2025 Endeavour Group Ltd Trading Update Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Craig Woolford - MST Marquee - Analyst : Can I just ask a question about the comment you made about discounting activities picked up at the start of the fourth quarter? Some of the trade feedback we've had would be that Endeavour triggered that, like led that discounting. Can you just comment on what kind of discounts they were in market and what signals you're trying to give us about the pressure on gross margins?

Question: Michael Simotas - Jefferies - Analyst : I actually just wanted to follow on from Craig's question, if I can. And specifically, the comment around the priority being to drive retail momentum through price and value leadership. Endeavour is still lagging Coles and arguably some other players in the market. How aggressive are you willing to be, whether it be with the price lever or something else to try to drive that retail momentum in the interim period before Jayne formally takes on the CEO role?

Question: Bryan Raymond - JPMorgan - Analyst : I'll just follow on from the prior two questions also on gross margin and the promotional cadence that you guys have at the moment. I just wanted to understand a bit better the mix of promotional investment you guys are putting in at the moment, just in terms of the storewide discounts, which, primarily through the online channel in terms of the $50 off over $300 basket, and how that compares to prior period? Is that something that you guys have done much of in the past? I don't recall it much before this year. And also how supply-funded promotions are trending. And just to clarify, Kate, on your comment earlier around gross margin expansion being somewhat challenging, whether the flattish result in the first half is a good benchmark for the second half given what's going on with the promotional cadence. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 05, 2025 / 12:30AM, EDV.AX - Q3 2025 Endeavour Group Ltd Trading Update Call

Question: Ben Gilbert - Jarden - Analyst : Just wanted to understand, just to make sure I'm thinking about the math right for the retail sort of sales guidance you've given. So effectively, you've adjusted to the 16 weeks is down and then you're going to say we're going to be roughly flat for the residual. So on a sort of on a like-for-like basis, probably imply also a total basis, adjusting to extra week in the pcp [on supply] talking sort of down around 1% or a little bit better for the second half to retail now. Is that right? And I suppose a follow-up of a key question for that is what you're saying around the cost inflation, coupled with margins. Is the reason you provided some more color because you think the market sort of is to rethink the numbers a little bit for that second half in retail?

Question: David Errington - BofA Global Research - Analyst : Ari, look, I think the time is appropriate to discuss what Jayne Hrdlicka is going to bring to Endeavour. You obviously appointed her, so obviously, she's brought to the table some of the key strategies that she'd like to implement. And maybe you can use this as a forum to talk about some of them. And I'll come from this angle. I've been around the block a few times, as you can imagine, as have you. My concern is that a new CEO comes in, generally, what they do is that they can the company to shreds, pull costs out pretty egregiously, make big provisions, bring in a heap of consultants. Can you give us a bit of a discussion as to what Jayne is likely to bring to the table? Because I've got to say that is my concern is that we could be going through an unstable period at Endeavour. And given you're going to be the Chair, can you basically take this as a forum to tell us as shareholders what we can expect not only in the next nine months, but probably the next 18 months. That would be really appreciated if you could do that for us.

Question: David Errington - BofA Global Research - Analyst : You mentioned once, I remember you saying, Peter Margin was a very independent Director. Can you give us an update why he abruptly left?

Question: Shaun Cousins - UBS - Analyst : Maybe to jump to Hotels. Could you talk a little bit about how gaming market share is performing? I'm just curious around, I think in February, the company noted that it was somewhat challenged that clubs seem to be doing better than pubs, regionals seem to be doing better than metro, and venues closer to the casino seem to be doing better than the suburbs, and each of those were negative for Endeavour. I'm just curious if those trends are still playing out. Further in Victoria, is your market share now above or below the level it was prior to the closures the company embarked on when you closed -- sorry, pardon me, you closed earlier around that 4:00 to 10:00 AM period when your peers chose to sort of later, please?

Question: Shaun Cousins - UBS - Analyst : Great. And just to confirm that you're not yet back at the level of market share you had pre the decision to close between 4:00 to 10:00 AM ahead of your peers. You're working towards that, but you were not there. And I just want to -- sorry, just seeking some clarity in that answer, please?

Question: Phil Kimber - E&P - Analyst : I just had a question around Queensland. Obviously, your Hotels business, in particular, does skew to that market as well as Victoria. Was there any impact either to your Retail business or your Hotels business for all the weather events in the third quarter? Is there anything to call out there?

Question: Sam Teeger - Citi - Analyst : Just can you help us understand how you're thinking about the impact on your retail sales and margins over the year as Coles progresses with the Liquorland conversions and especially interested from a BWS perspective?

Question: Tom Kierath - Barrenjoey - Analyst : Just a question on Jayne's appointment. Eight months is a fair while, I suppose, until she starts given, as I understand she's not currently employed or she's not coming from a competitor, but just be interested in why it's taking so long, A. And then B, whether you can actually bring that date forward a little if the property checks kind of happen maybe faster than you thought. I just guess I'm concerned that performance in the next kind of few quarters suffers a little bit without her in the building?

Question: Richard Barwick - CLSA - Analyst : Can I just want to clarify exactly your thinking behind your sales expectations for Retail in the next fourth quarter because you've made the point that outside of seasonal or promotional events, the sales have been quite subdued. So i.e., those events have been very important in driving sales. You've just been through a period with Anzac Day and Easter, which is obviously key. They're big events to help drive sales. And so therefore, arguably, having those two events together would have been a big contributor to sales momentum. And you make the point that there's a lack or there's less of these events for the remainder of the quarter. So I'm just sort of struggling to understand why you think sales momentum is going to continue to improve from here.

Question: Lisa Deng - Goldman Sachs - Analyst : I think it's a follow-up on Tom's question because Jayne's starting January 1, but I think over 60% of our numbers or our EBIT is made in the first half. So in the frequent consultation, up to her official starting point, will she have a decision how -- or I guess, like how involved will she get in the first half '26 operational decisions. And then I guess a follow-up on that is post-election, and where really the first half will be up on us soon, what are we sort of thinking in terms of any policy impact, consumer changes and category changes?

Question: Pete Meichelboeck - Select Equities - Analyst : Just had a follow-up question in relation to gaming and some of the comments you made earlier around the increased market share in Victoria, which we understand, and also the comments I think you made around sort of its improved performance in some of the hotels where new cabinets have gone in. I'm just wondering, have any of the other state markets seen an improvement in market share for you guys?