Kroger Company (the) · NYSE:KR
Kroger Company (the) — The Kroger — Q1 2021 Earnings Presentation
19 slides from Kroger Company (the)'s earnings presentation, Jun 17, 2021
Slide 1: Kroger Q1 2021 Earnings Release
Kroger Q1 2021 Earnings Release June 17, 2021
Slide 2: Safe Harbor
Safe Harbor This presentation includes certain statements that constitute “forward-looking statements” about Kroger’s financial position and expected performance. These statements are based on management’s assumptions and beliefs in light of currently available information. Such statements are indic
Slide 3: Q1 2021 Highlights
Q1 2021 Highlights Leading with Fresh, Accelerating with Digital Feed the Human Spirit • Associate Experience Margin Expansion • Restructured Sound Pension Trust to improve stability and Topline Growth • Growing Alternative Profit security of retirement benefits • Leading with Fresh • On track to in
Slide 4: Key Initiatives Drive Strong Results
Key Initiatives Drive Strong Results +14.9% +108% 2-Year Stack Identical 2-Year Stack Digital Sales Increase* Sales Growth*** -4.1% +16% Q1 Identical Sales** Q1 Digital Sales Continued strength in Fresh Driven by strength in Delivery departments and Ship *Identical sales, without fuel, 2-year basis
Slide 5: Key Initiatives Drive Strong Results
Key Initiatives Drive Strong Results $805M Operating Profit $0.18 EPS $1,375M FIFO Adjusted Operating Profit $1.19Adjusted EPS +19.9% +28.6% 2 Year CAGR FIFO Adjusted OP* 2 Year CAGR Adjusted EPS* *The 2-year basis items denoted with CAGR represent the compounded annual growth rate utilizing annual
Slide 6: Topline Growth: Leading with Fresh, Accelerating with Digital
Leading with Fresh Improving +1,000 +253 CX ToplineExpansion Margin Growth Applicants for Go Fresh and New Our Brands Items Improved Fresh Scores and In- Local Supplier Introduced Stock Fill Rates, Accelerator and Reduced Pickup Wait Time Accelerating with Digital +15% Launched 258B Capacity New Kro
Slide 7: Margin Expansion
Alternative Profit Strong Growth Retail Media KPF Margin Expansion On Track to Grow by $100M Exceptional Growth Fueled Double Digit Growth - $150M by Digital Increase Profitability Enhancing On Track Mix To Deliver Fourth Private Selection, Consecutive Year Simple Truth and Big of $1B Cost Pack Grow
Slide 8: Live Our Purpose
Live Our Purpose • COVID Response: Launched #CommunityImmunity Giveaway to help support America’s goal for 70% of adults to receive their first vaccine dose by July 4th by offering a chance to win one of five $1 million checks and one of 50 groceries for a year over five weeks • To date, Kroger Heal
Slide 9: 2021 Updated Guidance
2021 Updated Guidance IDs (%) EPS ($) Operating Tax Cap Ex Free Cash Profit ($B) Rate** ($B) Flow ($B)**** Adjusted* (4.0%) – (2.5%) $2.95 - $3.10 $3.5 - $3.7 23% $3.4 - $3.6 $1.8 - $2.0 2-Year 10.1% - 11.6% 16% - 19% 8.5% - 10.8% $3.0 - $3.1 Basis*** (Stack) (CAGR) (CAGR) (Average) * Without adjust
Slide 10: Investment Thesis
Investment Thesis Leading Market Position with Proven Value Strong Balance Sheet & Exciting Growth Opportunities Creation Model Resilient Free Cash Flow • No 1 or No 2 Market Share in • Net Earnings Growth, 3-5% • Strong Free Cash Flow Yield Majority of Markets ⎻ ID Sales Growth (ex. Fuel), 2-4% • I
Slide 11: Appendix
Appendix 11
Slide 12: Table 6. Net Earnings Per Diluted Share Excluding the Adjustment Items
Table 6. Net Earnings Per Diluted Share Excluding the Adjustment Items {in millions, except per share amounts) (unaudited) ‘The purpose of this table is to better illustrate comparable operating results from our ongoing business, after removing the effects on net eamings per diluted common ‘share fo
Slide 13: Table 6. Net Earnings Per Diluted Share Excluding Adjustment Items (continued)
(a) (b) Note: luted Share Excluding the Adjustment Items (continued) lions, except per share amounts) (unaudited) Table 6. Net Earnings Per (in ‘The amounts presented represent the after-tax effect of each adjustment. The pre-tax adjustment to OG8A expenses for pension plan withdrawal liabilities wa
Slide 14: Table 7. Operating Profit Excluding the Adjustment Items
Table 7. Operating Profit Excluding the Adjustment Items (in millions) (unaudited) The purpose of this table is to better illustrate comparable operating results from our ongoing business, after removing the effects on operating profit for certain items described below. Adjusted FIFO operating profi
Slide 15: Table 8. Two-Year Financial Results
Table 8. Two-Year Financial Results (in millions, except per share amounts) (unaudited) The purpose of this table is to better illustrate comparable two-year growth from our ongoing business for the current year for identical sales without fuel, adjusted operating profit and adjusted net earnings pe
Slide 16: Table 8. Two-Year Financial Results (continued)
(a) Kroger Table 8. Two-Year Financial Results (continued) (in millions, except per share amounts) (unaudited) OPERATING PROFIT EXCLUDING THE ADJUSTMENT ITEMS TWO-YEAR CAGR* Operating profit LIFO charge FIFO Operating profit Adjustment for pension plan withdrawal liabilities Adjustment for Home Chef
Slide 17: Table 8. Two-Year Financial Results (continued)
Kroger Table 8. Two-Year Financial Results (continued) (in millions, except per share amounts) (unaudited) NET EARNINGS PER DILUTED SHARE EXCLUDING THE ADJUSTMENT ITEMS TWO-YEAR CAGR* Net eamings attributable to the Kroger Co. Adjustment for pension plan withdrawal liabilities (a)(b) Adjustment for
Slide 18: Table 8. Two-Year Financial Results (continued)
(3) (b) (g) (h) Table 8. Two-Year Financial Results (continued) (in millions, except per share amounts) (unaudited) CAGR represents the compounded annual growth rate. ‘The amounts presented represent the after-tax effect of each adjustment. ‘The pre-tax adjustments to OG&A expenses for pension plan
Slide 19: Thank you
Thank you For additional information, please visit ir.kroger.com 19