$200M+ loss for Woolworths after Change to Endeavour Group Investment 

January 29, 2024
By Cody Profaca

Woolworths Group has announced an adjustment to its accounting treatment of Endeavour Group, of which it currently owns 9.1%. The ASX announcement released today states that, as of the 31st of December, Woolworths no longer wields significant influence over the drinks group. 

“As a result, the Group will derecognise its equity accounted investment in Endeavour Group and recognise an investment in Endeavour Group as a financial asset, measured at fair value,” said the company’s report.

“This is expected to result in a loss of $209 million, which will be recognised as a significant item in the Group’s profit or loss based on an Endeavour Group closing share price of $5.21 on 31 December 2023.”

Moving forwards, future dividends from Endeavour Group will be recognised as income in the “Other” segment when declared by Woolworths Group. 

The announcement comes shortly after Endeavour Group was involved in a corporate quarrel over the company’s leadership and performance, culminating in a campaign by major shareholder Bruce Mathieson to have Peter Hearl removed from his chairman position, a title he’d held since the company demerged from Woolworths in 2021. The dispute was resolved earlier this month after both Hearl and Mathieson’s son stepped down from their positions on the company’s board. 

Woolworths has since voted against Mathieson’s efforts to advocate for Bill Wavish as a new board member. 

The full ASX Announcement can be viewed here.

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