Kroger Company (the) · NYSE:KR
Kroger Company (the) — The Kroger — Q3 2024 Earnings Presentation
18 slides from Kroger Company (the)'s earnings presentation, Dec 5, 2024
Slide 1: Kroger Q3 2024 Earnings Release
Kroger Q3 2024 Earnings Release December 5, 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: Q3 2024 Results
Q3 2024 Results +2.3% $828M $0.84 ID Sales(1) GAAP Operating Profit GAAP EPS +11% $1,017M $0.98 Digital Sales Adj. EPS Adj. FIFO Operating Profit +3% growth (1) Without fuel 3
Slide 4: 2024 Full-Year Guidance
2024 Full-Year Guidance* FY24 Guidance as of FY24 Guidance as of Adjusted Metric* September 12, 2024 December 5, 2024 Identical Sales without fuel (%) 0.75% – 1.75% 1.20% – 1.50% Operating Profit ($B) $4.6 – $4.8 $4.6 – $4.7 EPS ($) $4.30 – $4.50 $4.35 – $4.45 Free Cash Flow ($B)** $2.5 – $2.7 $2.5
Slide 5: Progress on our go-to-market strategy
Fresh Personalization Q3 2024 Highlights Announced the top five food trends for 2025 Enhanced the Boost by Kroger Plus Membership by including Disney streaming Released the 12 Days of Murray’s Cheese options with an annual membership advent calendar featuring a curated collection of cheeses, jams an
Slide 6: Strengthening our Value Creation Model
Strengthening our Value Creation Model Delivering Sustainable Total Shareholder Return of 8 – 11%* Grocery Health and Wellness Strong store execution and Strong sales growth compared to last exceptional value led to growth in year driven by GLP-1s total households and loyal Strong Grocery, household
Slide 7: Associate Experience
Associate Experience • Leadership Recognition: Celebrated 32 company leaders named 2024 Progressive Grocer GenNext Honorees • Celebrating Diverse Leadership: Celebrated the third year of Kroger’s Game Changers program, bringing together female business leaders, entrepreneurs and key community member
Slide 8: Live Our Purpose
Live Our Purpose Supported disaster response efforts for Enhanced innovative nutrition scoring system Celebrated Hunger Action Month with those impacted by Hurricane Helene to incorporate more nutritional attributes, Kroger’s annual campaign to support food making it easier for customers to make ban
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) THIRD QUARTER YEAR-TO-DATE 2024 2023 2024 2023 SALES $ 33,634 100.0% $ 33,957 100.0% $ 112,815 100.0% $ 112,975 100.0% OPERATING EXPENSES MERCHANDISE COSTS, INCLUDING ADVERTISING, WAREHO
Slide 12: Consolidated Balance Sheets
Table 2. THE KROGER CO. CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) November 9, November 4, 2024 2023 ASSETS Current Assets Cash $ 235 $ 254 Temporary cash investments 13,123 1,471 Store deposits in-transit 1,082 1,197 Receivables 2,193 1,938 Inventories 7,585 7,931 Prepaid and other curre
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 $ 2,038 $ 1,430 Adjustments to reconcile net earnings including noncontrolling interests to net cash pr
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 w
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 loss (gain) on investments were $20 and ($27) in the thi
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