Kroger Company (the) · NYSE:KR
Kroger Company (the) — The Kroger — Q2 2024 Earnings Presentation
18 slides from Kroger Company (the)'s earnings presentation, Sep 12, 2024
Slide 1: Kroger Q2 2024 Earnings Release
Kroger Q2 2024 Earnings Release September 12, 2024
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: Q2 2024 Results
Q2 2024 Results +1.2% $815M $0.64 ID Sales(1) GAAP Operating Profit GAAP EPS +11% $984M $0.93 Digital Sales Adj. EPS Adj. FIFO Operating Profit 3% decline (1) Without fuel 3
Slide 4: 2024 Full-Year Guidance
2024 Full-Year Guidance* FY24 Guidance as of FY24 Guidance as of Adjusted Metric June 20, 2024 September 12, 2024 Identical Sales without fuel (%)* 0.25% – 1.75% 0.75% – 1.75% Operating Profit ($B)* $4.6 – $4.8 $4.6 – $4.8 EPS ($)* $4.30 – $4.50 $4.30 – $4.50 Free Cash Flow ($B)** $2.5 – $2.7 $2.5 –
Slide 5: Progress on our go-to-market strategy
Fresh Personalization Q2 2024 Highlights Celebrated seven awards earned by Murray’s Cheese varieties at the American Grew eCommerce households by 14%, increasing customer loyalty and promoting Leading with Fresh, Cheese Society Competition growth in alternative profit businesses like Kroger Precisio
Slide 6: Strengthening our Value Creation Model
Strengthening our Value Creation Model Delivering Sustainable Total Shareholder Return of 8 – 11%* Grocery Fuel Strong store execution and Fuel reward activity through our loyalty exceptional value led to growth in program led to gallon sales which Strong Grocery, total households, loyal households
Slide 7: Associate Experience
Associate Experience • Inclusive Workplace: Received the top score on the Disability Equality Index® making the company one of the Best Places to Work for Disability Inclusion for the fifth consecutive year • Celebrating Our Leaders: Celebrated 67 female leaders named as Top Women in Grocery Honoree
Slide 8: Live Our Purpose
Live Our Purpose Recognized as one of the World’s Most Awarded scholarships to 120 children of Provided meals in coordination with Trustworthy Companies for 2024 by Kroger Employees. Since 2008, Kroger the USO for military service members Newsweek and Statista has awarded more than 3,300 scholarship
Slide 9: Investment Thesis
Investment Thesis Strong Business with Proven Value Strong Balance Sheet & Exciting Growth Opportunities 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 62M Households • ID Sales Growth (ex.
Slide 10: Appendix
IX Append w Kroger
Slide 11: Table 1. Consolidated Statements of Operations
Table 1. THE KROGER CO. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (unaudited) SECOND QUARTER YEAR-TO-DATE 2024 2023 2024 2023 SALES $ 33,912 100.0% $ 33,853 100.0% $ 79,181 100.0% $ 79,018 100.0% OPERATING EXPENSES MERCHANDISE COSTS, INCLUDING ADVERTISING, WAREHOU
Slide 12: Table 2. Consolidated Balance Sheets
Table 2. THE KROGER CO. CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) August 17, August 12, 2024 2023 ASSETS Current Assets Cash $ 233 $ 263 Temporary cash investments 2,553 2,157 Store deposits in-transit 1,091 1,141 Receivables 2,149 1,820 Inventories 6,643 6,828 Assets held for sale 589 -
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 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings including noncontrolling interests $ 1,421 $ 783 Adjustments to reconcile net earnings including noncontrolling interests to net cash prov
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 w
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 (loss) per diluted common sh
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 for loss (gain) on investments were $121 and ($367) in the s
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 (loss) for certain items described below. Adjusted FIFO operatin