Kroger Company (the) · NYSE:KR
Kroger Company (the) — The Kroger — Q1 2024 Earnings Presentation
18 slides from Kroger Company (the)'s earnings presentation, Jun 20, 2024
Slide 1: Kroger Q1 2024 Earnings Release
Kroger Q1 2024 Earnings Release June 20, 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: Q1 2024 Results
Q1 2024 Results +0.5% $1,294M $1.29 ID Sales(1) GAAP Operating Profit GAAP EPS +8% $1,499M $1.43 Digital Sales Delivery and Pickup combined Adj. EPS for double-digit growth Adj. FIFO Operating Profit 5% decline (1) Without fuel 3
Slide 4: 2024 Full-Year Guidance - Reaffirmed
2024 Full-Year Guidance* - Reaffirmed Adjusted Metric FY24 Guidance Identical Sales without fuel (%)* 0.25% – 1.75% Operating Profit ($B)* $4.6 – $4.8 EPS ($)* $4.30 – $4.50 Free Cash Flow ($B)** $2.5 – 2.7 Cap Ex ($B) $3.4 – $3.6 Tax Rate*** 23% * Without adjusted items, if applicable. Kroger is un
Slide 5: Progress on our go-to-market strategy
Fresh Personalization Q1 2024 Highlights Launched a new brand, Field & Vine, which offers high quality and regionally grown Grew digitally engaged households by 9%, increasing customer loyalty and promoting Leading with Fresh, berries growth in alternative profit businesses like Kroger Precision Mar
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 Customers redeemed 8% more fuel exceptional value led to growth in rewards compared to the same quarter last Strong Grocery, total households, loyal households,
Slide 7: Associate Experience
Associate Experience • Supporting Associates: Awarded the 2024 Platinum Bell Seal for Workplace Mental Health by Mental Health America • Leadership Recognition: Recognized as one of the All-Time Top Corporations for Women Business Enterprises by the WBENC • Diverse and Inclusive Workplace: Named as
Slide 8: Live Our Purpose
Live Our Purpose Featured on the 2024 Axios Harris Poll Sponsored the 2024 National STEM Festival through Celebrated Earth Month with a contribution 100, an annual ranking of the most Kroger’s Zero Hunger | Zero Waste Foundation to the World Wildlife Fund and introduction visible and trusted compani
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
Appendix 10
Slide 11: Consolidated Statements of Operations
Table 1. THE KROGER CO. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (unaudited) FIRST QUARTER 2024 2023 SALES $ 45,269 100.0% $ 45,165 100.0% OPERATING EXPENSES MERCHANDISE COSTS, INCLUDING ADVERTISING, WAREHOUSING AND TRANSPORTATION (a), AND LIFO CHARGE (b) 35,124
Slide 12: Consolidated Balance Sheets
Table 2. THE KROGER CO. CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) May 25, May 20, 2024 2023 ASSETS Current Assets Cash $ 345 $ 241 Temporary cash investments 2,501 2,391 Store deposits in-transit 1,226 1,143 Receivables 1,968 1,766 Inventories 6,694 7,030 Assets held for sale 607 - Prepa
Slide 13: 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 $ 956 $ 962 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 wi
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 the 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 (gain) loss on investments were $(16) and $78 in the fir
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