Endeavour Group Limited

This report is an updated version of the report published on 31 October 2025 at 11:38 AM AEDT. 

Section 1: Company Overview, Low Carbon Emission Initiatives and Fundamental Insights

Section 1.1: Endeavour Group Limited (ASX: EDV) is Australia’s retail drinks and hospitality business. It operates well-known brands including Dan Murphy’s, BWS, ALH Hotels, and Pinnacle Drinks, supported by over 30,000 employees across Australia and New Zealand. Kalkine’s Low Carbon Research Report covers the Investment Highlights, Low Carbon Emission Initiatives, Key Financial Metrics, Risks, and Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Section 1.2: Why Low Carbon Emission Matters?

The shift toward a low-carbon economy is one of the most significant challenges of current time, spurred by the urgent need to combat climate change and reduce the environmental impact of corporate activities. This report covers the ASX-listed low-carbon emission company, Endeavour Group Ltd (ASX: EDV), that is committed to sustainability and responsible environmental practices.

Carbon and Waste Management - Key Metrics

The image below highlights Endeavour Group’s total CO₂ emissions per million in revenue decreased from 47.36 in 2022 to 44.59 in 2024, reflecting roughly a 5.8% reduction. The reduction aligns with EDV’s sustainability roadmap—particularly its renewable energy adoption and solar power expansion across 277 sites, as well as efficiency gains from energy-smart control systems and refrigeration upgrades. It signals progress toward the company’s 2050 net zero target for Scope 1 and 2 emissions.

In contrast, total energy use per million in revenue rose from 224.20 in 2022 to 246.95 in 2024, indicating an approximate 10.1% increase. This rise could be attributed to several factors:

• Expansion of retail and hotel operations, increasing overall energy consumption despite efficiency efforts.
• Electrification initiatives, such as shifting from fossil fuel-based systems to renewable electricity (which initially increases reported energy use).
• New technology deployments like smart control systems and EV charging infrastructure that raise total electricity consumption but reduce carbon intensity.

Thus, while total energy use grew, the carbon impact per unit of energy declined, suggesting a cleaner energy mix and improved emissions management.

Peer Comparison: Carbon Emission and Waste Management Metrics

The peer comparison chart below highlighted that Endeavour Group as set one of the most ambitious carbon reduction goals among its Australian retail and hospitality peers — targeting 100% emissions reduction (net zero) by 2050, aligning with its long-term sustainability roadmap outlined in the 2025 Sustainability Report. While EDV’s total CO₂ equivalent emissions of ~365,924 tonnes remain higher than most peers due to its extensive retail and hotel operations, the company’s proactive decarbonisation measures — including 277 solar-enabled sites, transition to renewable electricity by 2030, and energy efficiency programs in 175 stores — demonstrate tangible progress toward lowering carbon intensity. Its waste recycling ratio of 32.18%, however, trails major retailers like Coles and Woolworths, reflecting the greater challenge of achieving circularity across diversified venues such as hotels, liquor stores, and production units. EDV’s sustainability initiatives — particularly its 98% recyclable Own Brand packaging and expanded recycling partnerships — indicate that waste recovery and circular packaging remain key focus areas to elevate performance closer to top-tier industry benchmarks.

1.3 The Key Positives, Negatives, Investment Highlights, and Risks

1.4 Top 10 Shareholders:

The top 10 shareholders together form ~42.74% of the total shareholding. Mathieson (Bruce Joseph Jr.), and AustralianSuper hold maximum stakes in the company at ~15.04% and ~12.41%, respectively.

1.5 Key Metrics: In FY25, EDV's cash cycle reduced to 23 days vs 28.9 days in FY24. Below are captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 Results Highlights

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock price declined by ~1.72% in the last one month, whereas over the last six months, it has declined by ~11.26%. The stock has a 52-week low and 52-week high of AUD 3.450 and AUD 4.770, respectively, and is currently trading close to its 52-week low. EDV was last covered in a report dated ‘5 September 2025’.

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 31 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.