Kroger Company (the) · NYSE:KR
Kroger Company (the) — The Kroger — Q4 2024 Earnings Presentation
21 slides from Kroger Company (the)'s earnings presentation, Mar 6, 2025
Slide 1: Kroger Q4 2024 Earnings Release
Kroger Q4 2024 Earnings Release March 6, 2025
Slide 2: Safe Harbor
Safe Harbor This presentation includes certain statements that constitute “forward-looking statements” about Kroger’s financial position and expected performance, including our proposed transaction with Albertsons Companies. These statements are based on management’s assumptions and beliefs in light
Slide 3: Q4 2024 Results
Q4 2024 Results +2.4% $912M $0.90 ID Sales(1) GAAP Operating Profit GAAP EPS +11% $1,174M $1.14 Adj. EPS Digital Sales(2) Adj. FIFO Operating Profit Flat vs. Q4’2023 (2) (1) Without fuel (2) Excluding 53rd week in 2023 3
Slide 4: Full-Year 2024 Results
Full-Year 2024 Results +1.5% $3.8B $3.67 ID Sales(1) GAAP Operating Profit GAAP EPS +10% $4.7B $4.47 Digital Sales(2) Adj. EPS Adj. FIFO Operating Profit 2% decline(2) (1) Without fuel (2) Excluding 53rd week in 2023 4
Slide 5: Progress on our go-to-market strategy
Fresh Personalization 2024 Launched a new Fresh brand offering, Field Delivered more personalized value with & Vine, offering high quality and regionally 10% increase in digital coupon savings for grown berries customers Highlights Achieved produce identical sales which outpaced total company identi
Slide 6: Strengthening our Value Creation Model
Strengthening our Value Creation Model Delivering Sustainable Total Shareholder Return of 8 – 11%* Supermarket Health and Wellness Strong store execution and value Strong sales growth compared to last Strong led to growth in total household and year driven by GLP-1s Supermarket, enhanced loyalty in
Slide 7: Associate Experience
Associate Experience • Investing in our Associates: Increased associate wages resulting in an average hourly wage of more than $19 and rate of more than $25 with comprehensive benefits factored in, which is a 38% increase in rate in the last seven years • Record Retention: Achieved record retention
Slide 8: 2025 Full-Year Guidance
2025 Full-Year Guidance* Adjusted Metric FY25 Guidance IDs (%)* 2.0% – 3.0% EPS ($)* $4.60 – $4.80 Operating Profit ($B)* $4.7 – $4.9 Free Cash Flow ($B)** $2.8 – $3.0 Cap Ex ($B) $3.6 – $3.8 Tax Rate*** 23% * Without adjusted items, if applicable. Kroger is unable to provide a full reconciliation o
Slide 9: Live Our Purpose
Live Our Purpose Responded to the Los Angeles wildfires Raised more than $3M through our Expanded prescription drug safety program to with supplies and monetary donations Holiday Hunger campaign to support more than 470 U.S. schools to support those affected local hunger relief organizations Recogni
Slide 10: Investment Thesis
Investment Thesis Strong Business with Proven Value Strong Balance Sheet & Exciting Growth Creation Model Resilient Free Cash Flow Opportunities • Conveniently located +2,700 • Net Earnings Growth, 3-5% • Strong Free Cash Flow Yield stores • ID Sales Growth (ex. Fuel), 2-4% • Investment Grade Debt R
Slide 11: Appendix
Appendix w Kroger
Slide 12: Table 1. Consolidated Statements of Operations
Table 1. THE KROGER CO. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (unaudited) FOURTH QUARTER YEAR-TO-DATE 2024 2023 2024 2023 SALES $ 34,308 100.0% $ 37,064 100.0% $ 147,123 100.0% $ 150,039 100.0% OPERATING EXPENSES MERCHANDISE COSTS, INCLUDING ADVERTISING, WAREH
Slide 13: Table 2. Consolidated Balance Sheets
Table 2. THE KROGER CO. CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) February 1, February 3, 2025 2024 ASSETS Current Assets Cash $ 216 $ 235 Temporary cash investments 3,743 1,648 Store deposits in-transit 1,312 1,215 Receivables 2,195 2,136 Inventories 7,038 7,105 Prepaid and other curren
Slide 14: Table 3. Consolidated Statements of Cash Flows
Table 3. THE KROGER CO. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) YEAR-TO-DATE 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings including noncontrolling interests $ 2,672 $ 2,169 Adjustments to reconcile net earnings including noncontrolling interests to net cash pr
Slide 15: Table 4. 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 w
Slide 16: Table 5. Reconciliation of Net Total Debt and 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 17: Table 6. Net Earnings Per Diluted Share Excluding 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 18: Table 6. 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 adjustments for loss (gain) on investments were $22 and $166 in the four
Slide 19: 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 20: Table 8. Adjusted Free Cash Flow
Table 8. Adjusted Free Cash Flow (in millions) (unaudited) Adjusted free cash flow is an important performance measure used by management, and management believes it is also a useful metric for investors and analysts to evaluate the Company's ability to generate additional funding from business oper
Slide 21: Table 9. Gross Margin
Table 9. Gross Margin (in millions, except percentages) (unaudited) In the Consolidated Statements of Operations within Table 1, the Company separately presents rent and depreciation and amortization to evaluate operational effectiveness. The table below calculates gross margin in accordance with Ge