Re cashflow, in 1H 25, inventory values were materially below, driven by a focus on inventory optimisation. The buildup was much less this half year, not due to supply chain disruptions. In 2H 25, levels of inventory will also track lower. Page 19 has an explanation.
The One Endeavour program will see a gradual rundown in costs incurred as payable to WOW. OE is a simplification program. Flow through productivity effects will benefit EDV.
In 2Q 25, EDV lacked sufficient stock to support promotions given the WOW industrial relations problems. There has been a continued challenge with premiumisation: in the champagne to sparkling wine space, shoppers are trading down. In spirits (affected by CPI indexation of excise), there've been volume declines, but beer is relatively stable and some Guinness products are doing well, as in wine is 'K' by Krondorf. Two red wines priced at A$13 are really hitting the mark.
EDV Price at posting:
$4.26 Sentiment: Hold Disclosure: Held
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