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EDV - Endeavour Group

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Endeavour Group is Australia's leading retail drinks and hospitality business, with a market share of approximately 40% in retail liquor and approximately 9% in hotels.

Endeavour Group is the leading retail drinks and hospitality business in Australia.The Retail business of Endeavour Group operates across two key brands – Dan Murphy's and BWS – each of which combines its strong store presence and brand with an integrated digital offering. Dan Murphy's and BWS are further complemented by Endeavour Group's specialty businesses – Langton's, Cellarmasters, Shorty's Liquor and Jimmy Brings – which also provide key capabilities to the group.

The Hotels business of Endeavour Group is Australia's largest on‑premise venue operator, with a portfolio of 332 distinct licensed venues in capital cities and urban and regional centres.

Endeavour Group’s business is based around digital engagement, with 18 million web and app visits in the month of December 2020 (the highest among its competitors), and significant customer reach, with 5.1 million My Dan's members, Monty's Rewards members, and access to 12.8 million Everyday Rewards members through the partnership between Woolworths and BWS.

It is anticipated that EDV will list on the ASX during June 2021.

Endeavour Group | Australian Retail Drinks Network & Licensed Hotels

Endeavour Group is Australia’s largest retail drinks network & portfolio of licensed hotels. Find nformation for employees, community, investors, suppliers & industry
endeavourgroup.com.au
 
Listing date24 June 2021 12:00 PM AEST ##
Company contact detailshttps://endeavourgroup.com.au/
Ph: 02 9333 8008
Principal ActivitiesAustralian drinks retailer of products such as liquor and operator of various licensed hospitality venues.
GICS industry groupTBA
Issue PriceN/A
Issue TypeOrdinary Fully Paid Shares
Security codeEDV
Capital to be RaisedN/A
 
One I will be keeping an eye on, may drop pretty hard post listing as institutional investors scramble to get out.
 
The Ex date for WOW holders to receive 1 Endeavour share for each WOW share held is 25 June. The WOW share price is up 9% over the last 4 weeks. Is the share price rise an indication of the interest in Endeavour, or totally unrelated?
 
hard to say. Some has been the general market buoyancy, (from 17/05, WOW up 7.5% while XJO up 4.7% ... and COL down 0.1%, with a 4.4% drop today after bringing out Investor Strategy Day Presentation).

Some might be rotation into WOW from COL and MTS as fund managers position for what will be a cleaner set of books. The ESG contingent don't like the liquor and pokies aspect and may be finding it easier to buy a more visible company.. As @galumay said, it will be interesting to see if EDV is dropped from portfolios when trading as a distinct entity.
 
No one really likes to talk about “sin stocks” anymore. But if they did, there are few better examples than pokies and alcohol spin-off Endeavour Drinks, set to be one of the ASX’s largest listings this year.

As the country’s largest hotel group owner, with 9 per cent of a fragmented market and about 48 per cent of the retail liquor market before the pandemic began, Endeavour is charging into life as a stand-alone ASX-listed entity with some big unanswered questions about social licence looming large....

ESG considerations are increasingly important, not least because they are top of mind for the large local super funds and many offshore investors.

But for many investors, these challenges are still outweighed by the fact that Endeavour Drinks – which owns 1630 Dan Murphy’s and BWS stores across the country – is one of the rare “category killers” in the market.

ESG questions loom large for a stand-alone Endeavour Drinks

As Woolworths spins out its gaming and alcohol retailing division this week, investors are split about how much ESG issues will weigh down the business’ strengths.
www.afr.com
 
One way to approach it is that you get the worst case scenario in the IPO structure, regulatory change, unlikely as it is, could lead to the repealing of the ludicrous requirements for liquor retail in Queensland that has forced WOW/EDV to hold pokies and pubs. If they could divest those then its a much cleaner business and is a lot easier to model.

Not my sort of thing, but an interesting thought exercise!
 
Endeavour Group group sales for the first quarter climbed 3.1 per cent on the pcp to $3.02 billion.
  • Retail sales for the first quarter were down 6.2 per cent to $2.49 billion,
  • Hotel sales for the quarter were up 90.8 per cent to $538 million.
“First quarter sales have accelerated in our hotels, while our retail brands have continued their market leadership as we cycle the unique peaks in COVID-19 lockdowns in place at the same period last year."
Click to expand...
 
EDV, low of 6.75, now about mid way from high of today........done a great job clawing back from low of this morning. I hold
 
and precisely why EDV is my December ( 2022 ) tip

i consider 'sin stocks ' as ' possible safe havens ' in my twisted world

now the ESG folks run a mile from such companies even better ( less chance those ETF managers will lend shares to short-sellers )

i hold EDV strictly because of the WOW spin-off ( and have been averse to throw cash at EDV , so far , concerned a WOW-management mentality still pervades in the company )

liable to get a boost in Xmas sales ( but will investors consider that )

good luck in the comp. everyone
 
If you like EDV, but want a more stable exposure to the business, you could consider investing in CLW, which is their landlord and owns the land and buildings the houses a bunch of their pubs and bottle shops.

The lease is a 10 x 10 x 10 x 10, triple net lease, which means EDV has a potential 40 year lease with annual inflation adjusted rents and market appraised rent increases every 10 years, and is responsible for paying all the outgoings.
 
i hold some CLW and HPI ( bought with hard cash )

but maybe there is a sensible price level to throw some actual cash at EDV as well

don't forget SCP ( now RGN ) for those liquor outlet exposures as well ( i hold RGM partly as a result of the WOW spin-off of SCP )

cheers
 
In view of Endeavour's business, and WOW deciding to sell 5.5%, I decided to buy a parcel. Below is a snippet from the announcement.

Woolworths Group agrees to sell 5.5% of Endeavour Group
Woolworths Group has agreed to sell 5.5% of the issued capital of Endeavour Group
via a block trade at a price of $6.46 per share.
Woolworths Group CEO, Brad Banducci, said: “Our decision to reduce our stake
comes after a successful transition from ownership to partnership with Endeavour
Group. The proceeds will be used for strategic investments and general corporate
purposes.”
Following the sale, Woolworths Group will retain a 9.1% interest in Endeavour Group
and has no current intention to undertake a further selldown in the short to medium
term
 
am waiting for EDV to slip lower before adding to the EDV holding ( which was courtesy of the WOW demerger )it will be interesting to see where WOW uses the cash ( the block trade at a discount to the previous share price hints at some urgency )
 
Quote WOW...

The proceeds will be used for strategic investments and general corporate
purposes.”

I read it that they don't see Endeavour as a problem, but needs the extra cash to use on something else......from time to time, they sell their real estate ( WOW stores) to restructure too

Edit: some years ago, they sold Caltex petrol station to EG group as part of restructuring
 
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