Endeavour Group Limited

This report is an updated version of the report published on 9 January 2026 at 12:24 PM AEDT.

Section 1: Company Overview, Low Carbon Emission Initiatives and Fundamentals

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 illustrates a decline in Endeavour Group’s CO₂ emissions intensity, with total emissions per AUD million of revenue falling from 47.36 in 2022 to 44.59 in 2024, representing an approximate 5.8% reduction. This improvement is consistent with EDV’s sustainability strategy and reflects the impact of increased renewable energy uptake, including the rollout of solar infrastructure across 277 sites, along with efficiency gains from upgraded refrigeration systems and energy-smart control technologies. Collectively, these initiatives indicate steady progress toward the Group’s net zero Scope 1 and 2 emission targets by 2050.

Conversely, total energy consumption per AUD million of revenue increased from 224.20 in 2022 to 246.95 in 2024, an uplift of around 10.1%. The rise in energy intensity can be attributed to several structural and strategic factors:

• Expansion of retail and hotel operations, which inherently raises energy demand despite ongoing efficiency improvements.
• Electrification of operations, including the transition away from direct fossil fuel use toward electricity—particularly renewable electricity—which can temporarily elevate reported energy consumption.
• Deployment of new technologies, such as real-time energy monitoring systems, advanced refrigeration, and EV charging infrastructure, all of which increase electricity usage but materially lower emissions per unit of energy consumed.

Overall, the contrasting trends suggest that while Endeavour Group’s operations have become more energy intensive in absolute terms, the carbon intensity of that energy has declined. This reflects a cleaner energy mix, improved emissions management, and an early decoupling of carbon emissions from operational growth—an important indicator of the effectiveness of EDV’s long-term decarbonisation strategy.

Peer Comparison: Carbon Emission and Waste Management Metrics

The peer comparison table indicates that Endeavour Group (EDV) has set one of the most ambitious decarbonisation targets among Australian retail and hospitality peers, committing to a 100% emissions reduction (net zero) by 2050 in line with its FY25 Sustainability Report. While EDV’s total CO₂ equivalent emissions of around 365,924 tonnes are higher than most peers due to the scale and diversity of its retail, hotel, and production operations, the Group has made measurable progress in reducing carbon intensity through renewable energy adoption, including solar installations across 277 sites, a pathway to 100% renewable electricity by 2030, and energy efficiency initiatives across 175 stores. EDV’s waste recycling ratio of 32.18% remains below that of major supermarket peers, reflecting the structural challenges of managing waste across hospitality-led formats; however, ongoing initiatives such as 98% recyclable Own Brand packaging and expanded recycling partnerships signal waste circularity as a key focus area for future improvement.

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

1.4 Top 10 Shareholders:

The top 10 shareholders together form ~43.08% 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 debt/equity ratio improved to 1.52x in FY25 vs 1.61x 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 has increased by ~2.62% in the last one month, whereas over the last six months, it has declined by ~7.68%. The stock has a 52-week low and 52-week high of AUD 3.450 and AUD 4.570, respectively, and is currently trading below its 52-week mid-level. EDV was last covered in a report dated ‘31 October 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 9 January 2026. 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.