Kroger Company (the) · NYSE:KR
Kroger Company (the) — The Kroger — Q1 2023 Earnings Presentation
18 slides from Kroger Company (the)'s earnings presentation, Jun 15, 2023
Slide 1: Kroger Q1 2023 Earnings Release
Kroger Q1 2023 Earnings Release June 15, 2023
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 2023 Results
Q1 2023 Results +3.5% $1,470M $1.32 ID Sales(1) GAAP Operating Profit GAAP EPS +15% $1,669M $1.51 Adj. FIFO Operating Profit Adj. EPS Digital Sales +4% Growth +4% Growth (1) Identical sales without fuel would have grown 5.0% in the 1st quarter of 2023 if not for the reduction in pharmacy sales from
Slide 4: Full-Year 2023 Guidance
Full-Year 2023 Guidance • Identical sales without fuel of 1.0% – 2.0%, with underlying growth of 2.5% – 3.5% after adjusting for the effect of Express Scripts • Adjusted net earnings per diluted share of $4.45 - $4.60, including an estimated benefit from the 53rd week of approximately $0.15 • Adjust
Slide 5: Progress on our go-to-market strategy
Fresh Personalization Q1 2023 Highlights Accelerated Fresh Produce Initiative Grew households, loyal households Leading with Fresh, with 1,738 stores now certified and customer trips through personalized shopping experience Accelerating with Digital Increased Alternative Farming offerings to 1,094 s
Slide 6: Strengthening our Value Creation Model
Strengthening our Value Creation Model Delivering Sustainable Total Shareholder Return of 8 – 11%* Supermarket Fuel Expanded FIFO gross margin ex- Average retail price of $3.55 this quarter Strong fuel through strong Our Brands vs. $4.00 the same quarter last year Supermarket, performance, sourcing
Slide 7: Associate Experience
Associate Experience • Associate Wellbeing: Awarded the 2023 Gold Bell Seal for Workplace Mental Health by Mental Health for America • Trusted Workplace: Featured on the 2023 Axios Harris Poll 100, an annual ranking of the most visible and trusted companies in America • Retention and Development: Im
Slide 8: Live our Purpose
Live our Purpose Recognized as one of Newsweek’s “America’s Announced the launch of new Kroger-USO mobile Received 2023 SEAL Business Sustainability Most Trustworthy Companies” for 2023 food kitchens to support military families Award for Zero Hunger | Zero Waste Attained milestone of more than one
Slide 9: Investment Thesis
Investment Thesis Strong Business with Proven Value Strong Balance Sheet & Exciting Growth Opportunities(1) Creation Model Resilient Free Cash Flow • Conveniently located +2,700 stores • Net Earnings Growth, 3-5% • Strong Free Cash Flow Yield • First Party Data on 60M Households ⎻ ID Sales Growth (e
Slide 10: Appendix
Appendix 10
Slide 11: Table 1. Consolidated Statements of Operations
Table 1. THE KROGER CO. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (unaudited) FIRST QUARTER 2023 2022 SALES $ 45,165 100.0% $ 44,600 100.0% OPERATING EXPENSES MERCHANDISE COSTS, INCLUDING ADVERTISING, WAREHOUSING AND TRANSPORTATION (a), AND LIFO CHARGE (b) 35,080
Slide 12: Table 2. Consolidated Balance Sheets
Table 2. THE KROGER CO. CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) May 20, May 21, 2023 2022 ASSETS Current Assets Cash $ 241 $ 245 Temporary cash investments 2,391 1,137 Store deposits in-transit 1,143 1,110 Receivables 1,766 1,887 Inventories 7,030 7,358 Prepaid and other current assets
Slide 13: Table 3. Consolidated Statements of Cash Flows
Table 3. THE KROGER CO. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) YEAR-TO-DATE 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings including noncontrolling interests $ 962 $ 666 Adjustments to reconcile net earnings including noncontrolling interests to net cash provid
Slide 14: 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 wit
Slide 15: 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 16: 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 17: 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 to other income (expense) for loss on investments were $78 a
Slide 18: 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