Kroger Reports Third Quarter 2024 Results and Narrows Guidance Range

The Kroger Co. (NYSE: KR) recently announced its financial results for the third quarter of 2024 in a press release issued on December 5, 2024. The company reported positive performance metrics while also updating its guidance for the remainder of the year.

Highlights from the Third Quarter:
– Identical Sales without fuel increased by 2.3%.
– Operating profit totaled $828 million, with earnings per share (EPS) of $0.84.
– Adjusted FIFO Operating Profit stood at $1,017 million with Adjusted EPS of $0.98.
– The company achieved strong Adjusted Free Cash Flow.
– Kroger successfully executed its go-to-market strategy, leading to notable growth in digital sales and Our Brands sales outpacing total grocery sales growth.
– Total households and loyal households also experienced an increase.

Chairman and CEO Rodney McMullen commented on the third-quarter results, emphasizing the successful performance in the pharmacy and digital sectors. He highlighted the company’s ability to grow total households by offering value through low prices, personalized offers, and quality Our Brands products. McMullen noted the confidence in Kroger’s model to deliver value for customers, invest in associates, and generate returns for shareholders, despite the uncertain macroeconomic environment.

McMullen also addressed the pending merger with Albertsons, expressing confidence in the potential benefits the merger could provide. He stressed the merger’s aim to lower prices, increase job security, and improve access to fresh, affordable food for customers, associates, and communities nationwide.

Additionally, Kroger closed the sale of its specialty pharmacy business in October 2024 for $464 million, resulting in changes to overall sales figures. The third quarter saw total company sales of $33.6 billion, a slight decrease from the previous year primarily due to the sale of Kroger Specialty Pharmacy and lower fuel sales.

Looking ahead, Kroger reaffirmed its commitment to its capital allocation strategy, including investing in sustainable growth, maintaining an investment grade debt rating, and paying quarterly dividends. The company has temporarily paused its share repurchase program to focus on reducing debt following the proposed merger with Albertsons.

Full-Year 2024 Guidance Updates:
– Identical Sales without fuel guidance range narrowed to 1.20% – 1.50%.
– Adjusted FIFO Operating Profit guidance revised to $4.6 billion – $4.7 billion.
– Adjusted EPS guidance adjusted to $4.35 – $4.45.
– Adjusted Free Cash Flow anticipated to range between $2.5 billion – $2.7 billion.
– Capital expenditures projected to be $3.6 billion – $3.8 billion.
– Adjusted effective tax rate expected to be around 22.5%.

Kroger’s financial statements exhibited a solid performance in the third quarter, demonstrating the company’s resilience and ability to navigate market challenges while focusing on customer value and sustainable growth.

The company’s quarterly conference call with investors is scheduled to broadcast live on December 5, 2024, further providing insights into Kroger’s financial performance.

Please note that this article summarizes the information disclosed in the 8-K SEC filing by Kroger for the benefit of MarketBeat’s audience.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Kroger’s 8K filing here.

About Kroger

The Kroger Co operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys.