Slide 1: Kroger Q1 2022 Earnings Release
Kroger Q1 2022 Earnings Release June 16, 2022
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: Feeding the Human Spirit
Feeding the Human Spirit Reopened Table Mesa store with the Hosted nationwide spring hiring event Celebrated 100-year anniversaries at support of associates and the community Dillons and Fred Meyer Recognized by Qualtrics for Celebrated International Women’s Day with Partnered with the USO to bring
Slide 4: Key Initiatives Drive Strong Q1 Results
Key Initiatives Drive Strong Q1 Results +4.1% $1,505M $0.90 ID Sales(1) GAAP Operating Profit GAAP EPS -6.3% $1,601M $1.45 Digital Sales FIFO Adjusted Adjusted EPS Operating Profit +16.4% +21.8% Growth in FIFO Adjusted OP Growth in Adjusted EPS (1) Excluding Fuel 4
Slide 5: Q1 2022 Highlights: Leading with Fresh, Accelerating with Digital
Q1 2022 Highlights Leading with Fresh, Accelerating with Digital Topline Growth • Fresh Seamless and • ID sales increased 5.2% Personalization led by the expansion of • Digitally engaged our End-to-End Fresh households grew by more Produce Program than half a million • Expanded national • Our Brands
Slide 6: Q1 2022 Highlights: Margin Expansion
Q1 2022 Highlights Leading with Fresh, Accelerating with Digital Margin Expansion • Improving Product Mix • Growing Alternative • Launched 239 new, Profit seasonal Our Brands • Kroger Precision items Marketing added 100 new brand partners and • Productivity announced three new Improvements collabora
Slide 7: Live Our Purpose
Live Our Purpose • 2021 Zero Hunger | Zero Waste Highlights: • Directed $210 million of $350 million in annual charitable giving to help end hunger in communities • Directed a record one-year total of 546 million meals • Achieved 79% waste diversion from landfills • Kroger Health: Recognized by the
Slide 8: 2022 Updated Full-Year Guidance
2022 Updated Full-Year Guidance Adjusted Metric* FY22 Guidance as of March 3, 2022 FY22 Guidance as of June 16, 2022 IDs (%) 2.0% - 3.0% 2.5% - 3.5% EPS ($) $3.75 - $3.85 $3.85 - $3.95 Operating Profit ($B) $4.2 - $4.3 $4.3 - $4.4 Tax Rate** 23% 22% Cap Ex ($B) $3.8 - $4.0 $3.8 - $4.0 Free Cash Flow
Slide 9: Investment Thesis
Investment Thesis Leading Market Position Proven Value Strong Balance Sheet & with Exciting Growth Creation Model Resilient Free Cash Flow Opportunities • 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 10: Appendix
Appendix w Kroger
Slide 11: Consolidated Statements of Operations
Table 1. THE KROGER CO. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (unaudited) FIRST QUARTER 2022 2021 SALES $ 44,600 100.0% $ 41,298 100.0% OPERATING EXPENSES MERCHANDISE COSTS, INCLUDING ADVERTISING, WAREHOUSING AND TRANSPORTATION (a), AND LIFO CHARGE (b) 34,952
Slide 12: Consolidated Balance Sheets
Table 2. THE KROGER CO. CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) May 21, May 22, 2022 2021 ASSETS Current Assets Cash $ 245 $ 360 Temporary cash investments 1,137 1,949 Store deposits in-transit 1,110 1,011 Receivables 1,887 1,936 Inventories 7,358 6,767 Prepaid and other current assets
Slide 13: Consolidated Statements of Cash Flows
Table 3. THE KROGER CO. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) YEAR-TO-DATE 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings including noncontrolling interests $ 666 $ 143 Adjustments to reconcile net earnings including noncontrolling interests to net cash provid
Slide 14: Supplemental Sales Information
Table 4. Supplemental Sales Information (in millions, except percentages) (unaudited) Items identified below should not be considered as alternatives to sales or any other GAAP measure of performance. Identical sales is an industry-specific measure and it is important to review it in conjunction wit
Slide 15: Reconciliation of Net Total Debt and Net Earnings to Adjusted EBITDA
Table 5. Reconciliation of Net Total Debt and Net Earnings Attributable to The Kroger Co. to Adjusted EBITDA (in millions, except for ratio) (unaudited) The items identified below should not be considered an alternative to any GAAP measure of performance or access to liquidity. Net total debt to adj
Slide 16: 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 earnings per diluted common share for
Slide 17: Net Earnings Per Diluted Share Excluding Adjustment Items (continued)
Table 6. Net Earnings Per Diluted Share Excluding the Adjustment Items (continued) (in millions, except per share amounts) (unaudited) (a) The amounts presented represent the after-tax effect of each adjustment. (b) The pre-tax adjustment to OG&A expenses for pension plan withdrawal liabilities was
Slide 18: 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 19: Thank you
Thank you For additional information, please visit ir.kroger.com