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Kroger(KR) - 2025 Q3 - Quarterly Results
KRKroger(KR)2024-12-05 13:07

Sales Performance - Identical sales without fuel increased by 2.3% in Q3 2024[2] - Digital sales grew by 11% in Q3 2024[2] - Total company sales for Q3 2024 were 33.6billion,adecreasefrom33.6 billion, a decrease from 34.0 billion in Q3 2023, primarily due to the sale of Kroger Specialty Pharmacy and lower fuel sales[8] - Sales for Q3 2024 were 33.634billion,aslightdecreasefrom33.634 billion, a slight decrease from 33.957 billion in Q3 2023, representing a 100% sales ratio for both periods[31] - Year-to-date sales for 2024 were 112.815billion,comparedto112.815 billion, compared to 112.975 billion in 2023, maintaining a 100% sales ratio[31] - Identical sales excluding fuel for Q3 2024 increased by 2.3% to 29.47billion,comparedto29.47 billion, compared to 28.818 billion in Q3 2023[44] - Year-to-date identical sales excluding fuel for 2024 increased by 1.2% to 97.595billion,comparedto97.595 billion, compared to 96.397 billion in 2023[44] Profitability Metrics - Operating profit for Q3 2024 was 828million,withanEPSof828 million, with an EPS of 0.84[2] - Adjusted FIFO operating profit reached 1,017million,andadjustedEPSwas1,017 million, and adjusted EPS was 0.98[2] - Operating profit for Q3 2024 was 828million(2.5828 million (2.5% of sales), down from 912 million (2.7% of sales) in Q3 2023[31] - Year-to-date operating profit for 2024 was 2.937billion(2.62.937 billion (2.6% of sales), up from 1.902 billion (1.7% of sales) in 2023[31] - Net earnings attributable to The Kroger Co. for Q3 2024 were 618million(1.8618 million (1.8% of sales), compared to 646 million (1.9% of sales) in Q3 2023[31] - Year-to-date net earnings for 2024 were 2.031billion(1.82.031 billion (1.8% of sales), up from 1.428 billion (1.3% of sales) in 2023[31] - Net earnings including noncontrolling interests for 2024 is 2.038billion,a42.52.038 billion, a 42.5% increase from 1.430 billion in 2023[39] - Net earnings attributable to The Kroger Co. for Q3 2024 were 618million,comparedto618 million, compared to 646 million in Q3 2023[54] - Year-to-date net earnings for 2024 were 2,031million,upfrom2,031 million, up from 1,428 million in 2023[54] - Adjusted net earnings excluding adjustment items for Q3 2024 were 719million,comparedto719 million, compared to 698 million in Q3 2023[54] - Year-to-date adjusted net earnings excluding adjustment items for 2024 were 2,447million,downfrom2,447 million, down from 2,500 million in 2023[54] - Net earnings per diluted share for Q3 2024 were 0.84,comparedto0.84, compared to 0.88 in Q3 2023[54] - Adjusted net earnings per diluted share excluding adjustment items for Q3 2024 were 0.98,comparedto0.98, compared to 0.95 in Q3 2023[54] - Year-to-date adjusted net earnings per diluted share excluding adjustment items for 2024 were 3.34,downfrom3.34, down from 3.42 in 2023[54] - Operating profit for Q3 2024 was 828million,comparedto828 million, compared to 912 million in Q3 2023[63] - Year-to-date operating profit for 2024 was 2,937million,upfrom2,937 million, up from 1,902 million in 2023[63] - Adjusted FIFO operating profit excluding adjustment items for Q3 2024 was 1,017million,comparedto1,017 million, compared to 1,022 million in Q3 2023[63] Gross Margin and LIFO Charges - Gross margin for Q3 2024 was 22.9%, with FIFO gross margin rate excluding fuel increasing by 51 basis points[9] - LIFO charges for Q3 2024 were 4million,comparedto4 million, compared to 29 million in Q3 2023[35] - Year-to-date LIFO charges for 2024 were 66million,downfrom66 million, down from 131 million in 2023[35] Debt and Financial Ratios - Kroger's net total debt to adjusted EBITDA ratio improved to 1.21 from 1.40 a year ago[14] - Total debt increased by 9.838billionto9.838 billion to 22.601 billion in 2024, compared to 12.763billionin2023[48]Nettotaldebtdecreasedby12.763 billion in 2023[48] - Net total debt decreased by 1.814 billion to 9.478billionin2024,comparedto9.478 billion in 2024, compared to 11.292 billion in 2023[48] - Adjusted EBITDA for the rolling four quarters ended November 9, 2024, is 7.845billion,comparedto7.845 billion, compared to 8.078 billion for the same period in 2023[49] - Net total debt to adjusted EBITDA ratio improved to 1.21 in 2024 from 1.40 in 2023[49] Cash Flow and Capital Expenditures - Adjusted free cash flow guidance for 2024 remains at 2.52.5 – 2.7 billion[16] - Net cash provided by operating activities for 2024 is 4.39billion,comparedto4.39 billion, compared to 4.868 billion in 2023[39] - Payments for property and equipment, including lease buyouts, increased to 3.133billionin2024from3.133 billion in 2024 from 2.907 billion in 2023[39] - Proceeds from issuance of long-term debt in 2024 is 10.499billion,comparedtononein2023[39]AssetsandLiabilitiesTotalassetsasofNovember9,2024,were10.499 billion, compared to none in 2023[39] Assets and Liabilities - Total assets as of November 9, 2024, were 62.418 billion, up from 51.021billionasofNovember4,2023[37]TotalliabilitiesasofNovember9,2024,were51.021 billion as of November 4, 2023[37] - Total liabilities as of November 9, 2024, were 49.524 billion, compared to 39.830billionasofNovember4,2023[37]GuidanceandForecastsFullyear2024guidanceforidenticalsaleswithoutfuelwasnarrowedto1.2039.830 billion as of November 4, 2023[37] Guidance and Forecasts - Full-year 2024 guidance for identical sales without fuel was narrowed to 1.20% – 1.50%[16] - Adjusted FIFO operating profit guidance for 2024 was narrowed to 4.6 – $4.7 billion[16]