Top-News
Donnerstag,
07.03.2024 08:00
von
PR Newswire
| Aufrufe: 119
Kroger Reports Fourth Quarter and Full-Year 2023 Results, Announces Guidance for 2024
Die Regale in einem Supermarkt. (Symbolbild)
pixabay.com
PR Newswire
CINCINNATI, March 7, 2024
Fourth Quarter Highlights
- Identical Sales without fuel decreased 0.8%; underlying Identical Sales without fuel increased 0.1%(1)
- Operating Profit of $1,194 million; EPS of $1.01
- Adjusted FIFO Operating Profit of $1,307 million and Adjusted EPS of $1.34, which include a benefit of $187 million and $0.20 from the 53rd week, respectively
- Executed its go-to-market strategy to deliver value for customers
- Grew digital sales more than 10%, excluding the 53rd week
- Increased both loyal households and customer visits
Fiscal 2023 Highlights
- Identical Sales without fuel increased 0.9%; underlying Identical Sales without fuel increased 2.3%(1)
- Operating Profit of $3.1 billion; EPS of $2.96
- Adjusted FIFO Operating Profit of $5.0 billion and Adjusted EPS of $4.76, which include a benefit of $187 million and $0.20 from the 53rd week, respectively
- Delivered Adjusted EPS growth of 8% excluding the 53rd week
- Delivered $1.3B in Operating Profit from Alternative Profit Businesses
- Increased associate wages resulting in average hourly wage of nearly $19 and rate of nearly $25 with comprehensive benefits factored in, which is a 33% increase in rate in the last five years
- Achieved strong Adjusted Free Cash Flow leading to a net total debt to adjusted EBITDA ratio of 1.33, excluding the 53rd week
CINCINNATI, March 7, 2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR) today reported its fourth quarter and fiscal year 2023 results, provided 2024 guidance and updated investors on how Leading with Fresh and Accelerating with Digital continues to position Kroger for long-term sustainable growth.
Comments from Chairman and CEO Rodney McMullen
"Kroger achieved strong 2023 results, in line with our long-term growth model and built upon three consecutive years of historic growth.
As customers manage macroeconomic pressures, we are lowering prices and offering even more ways to save with personalized promotions and rewards. Our unique seamless shopping experience provides customers the products they want, when and how they want them, with zero compromise on quality, convenience and selection.
We respect and appreciate our associates who are delivering a full, fresh and friendly customer experience. Over the last five years, we've made historic investments in associate wages, benefits and career development opportunities, including significant investments to help stabilize associates' future pension benefits.
We are increasing customer visits and growing loyal households through the strength of our retail business, which positions Kroger for more ways to drive sustainable future growth. We expect to continue our momentum in 2024 by delivering value for customers, investing in associates and generating attractive and sustainable shareholder returns."
Fourth Quarter Financial Results
| | 4Q23 ($ in millions; except EPS) | 4Q23 Excluding the 53rd week ($ in millions; except EPS) | 4Q22 ($ in millions; except EPS) |
| ID Sales* (Table 4)(1) | (0.8) % | N/A | 6.2 % |
| Earnings Per Share | $1.01 | $0.81 | $0.62 |
| Adjusted EPS (Table 6) | $1.34 | $1.14 | $0.99 |
| Operating Profit | $1,194 | $1,007 | $826 |
| Adjusted FIFO Operating | $1,307 | $1,120 | $1,274 |
| FIFO Gross Margin Rate* | Increased 13 basis points (excluding the 53rd week)
| ||
| OG&A Rate* | Increased 40 basis points (excluding the 53rd week) | ||
| |
| * Without fuel and adjustment items, if applicable. |
| (1) Identical Sales without fuel would have grown 0.1% in the 4th quarter of 2023 if not for the reduction in pharmacy sales from the previously communicated termination of our agreement with Express Scripts effective December 31, 2022. |
Total company sales were $37.1 billion in the fourth quarter, including $2.7 billion from the 53rd week, compared to $34.8 billion for the same period last year. Excluding fuel and the 53rd week, sales decreased 0.5% compared to the same period last year.
Gross margin was 22.7% of sales for the fourth quarter. The FIFO gross margin rate, excluding fuel and the 53rd week, increased 13 basis points compared to the same period last year. The improvement in rate was primarily attributable to strong Our Brands performance, sourcing benefits and lower supply chain costs, partially offset by increased price investments and higher shrink.
The LIFO credit for the quarter was $18 million, compared to a LIFO charge of $234 million for the same period last year. The credit was due to lower year over year product cost inflation than expected.
The Operating, General & Administrative rate increased 40 basis points, excluding fuel, the 53rd week and adjustment items, compared to the same period last year. This increase in rate was driven by planned investments in associate wages, an adjustment for self-insurance expenses and the decision to contribute an additional $40 million to multi-employer pension plans, helping stabilize associates' future benefits and reduce future obligations, partially offset by continued execution of cost savings initiatives and lower incentive plan costs.
Fiscal 2023 Financial Results
| | 2023 ($ in billions; except EPS) | 2023 Excluding the 53rd week ($ in billions; except EPS) | 2022 ($ in billions; except EPS) |
| ID Sales* (Table 4)(1) | 0.9 % | N/A | 5.6 % |
| Earnings Per Share | $2.96 | $2.76 | $3.06 |
| Adjusted EPS (Table 6) | $4.76 | $4.56 | $4.23 |
| Operating Profit | $3.1 | $2.9 | $4.1 |
| Adjusted FIFO Operating | $5.0 | $4.8 | $5.1 |
| FIFO Gross Margin Rate*(2) | Increased 18 basis points (excluding the 53rd week)
| ||
| OG&A Rate*(2) | Increased 21 basis points (excluding the 53rd week) | ||
| |
| * Without fuel and adjustment items, if applicable. |
| (1) Identical Sales without fuel would have grown 2.3% in fiscal 2023 if not for the reduction in pharmacy sales from the previously communicated termination of our agreement with Express Scripts effective December 31, 2022. (2) In fiscal 2023, the terminated agreement had a positive effect on the FIFO Gross Margin Rate, excluding fuel, and a negative effect on the OG&A Rate, excluding fuel and adjustment items. The overall net effect on operating profit was slightly positive. |
Total company sales were $150.0 billion in 2023 including $2.7 billion from the 53rd week, compared to $148.3 billion for the same period last year. Excluding fuel and the 53rd week, sales increased 1.1% compared to the same period last year.
Gross margin was 22.2% of sales for 2023. The FIFO gross margin rate, excluding fuel and the 53rd week, increased 18 basis points compared to the same period last year. This improvement in rate was primarily attributable to strong Our Brands performance, sourcing benefits, lower supply chain costs and the effect of our terminated agreement with Express Scripts, partially offset by increased price investments and higher shrink.
The LIFO charge for 2023 was $113 million, compared to a LIFO charge of $626 million for the same period last year. This was driven by lower product cost inflation compared to the same period last year.
The Operating, General & Administrative rate increased 21 basis points, excluding fuel, the 53rd week and adjustment items, compared to the same period last year. This increase in rate was driven by planned investments in associates, investments in strategic growth initiatives and the effect of our terminated agreement with Express Scripts, partially offset by the continued execution of cost savings initiatives and lower incentive plan costs.
Capital Allocation Strategy
Kroger expects to continue to generate strong free cash flow and remains committed to investing in the business to drive long-term sustainable net earnings growth, as well as maintaining its current investment grade debt rating. The Company expects to continue to pay its quarterly dividend and expects this to increase over time, subject to board approval. Kroger has paused its share repurchase program to prioritize de-leveraging following the proposed merger with Albertsons.
Kroger's net total debt to adjusted EBITDA ratio is 1.33, excluding the 53rd week, compared to 1.56 a year ago (Table 5). The company's net total debt to adjusted EBITDA ratio target range is 2.30 to 2.50.
Full-Year 2024 Guidance*
- Identical Sales without fuel of 0.25% – 1.75%
- Adjusted FIFO Operating Profit of $4.6 – $4.8 billion
- Adjusted net earnings per diluted share of $4.30 – $4.50
- Adjusted Free Cash Flow of $2.5 – $2.7 billion**
- Capital expenditures of $3.4 – $3.6 billion
- Adjusted effective tax rate of 23%***
| * Without adjusted items, if applicable. Kroger is unable to provide a full reconciliation of the GAAP and non-GAAP measures used in 2024 guidance without unreasonable effort because it is not possible to predict certain of our adjustment items with a reasonable degree of certainty. This information is dependent upon future events and may be outside of our control and its unavailability could have a significant impact on 2024 GAAP financial results. |
| ** Adjusted free cash flow excludes planned payments related to the restructuring of multi-employer pension plans or payments related to opioid settlements and merger related costs. |
| *** The adjusted tax rate reflects typical tax adjustments and does not reflect changes to the rate from the completion of income tax audit examinations and changes in tax laws, which cannot be predicted |
Comments from Interim CFO Todd Foley
"Kroger's 2023 results provide another proof point of the strength and resilience of our value creation model, which supported another year of strong free cash flow and net earnings growth.
In 2024, we expect to grow revenue by delivering value for customers and enhancing our seamless shopping experience. We plan to balance investments in our business, including lowering prices and increasing associate wages, with productivity and cost savings initiatives, improvement on long-term initiatives in gross margin and growth in our alternative profit businesses.
This strength in our model gives us confidence in our ability to deliver on our 2024 guidance and maintain our strong track record of delivering for our customers, investing in our associates and generating attractive and sustainable returns for shareholders."
Werbung
Mehr Nachrichten zur Kroger Company Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)
-1
Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink.
Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.
