#Kroger Co. Q3 FY2024 #EarningsReport Summary | $KR (+1.05%)

In Q3 FY2024, Kroger navigated the challenges of divestitures and macroeconomic uncertainties, achieving solid performance in key growth areas like digital and pharmacy. Despite a slight YoY revenue decline, strong operational strategies drove a gross margin increase.

📊 Income Statement Highlights (vs. Q3 FY2023):

▫️ Net Income: $618M vs. $646M (-4.33%)

▫️ Total Revenue: $33.63B vs. $33.96B (-1.01%)

▫️ Adjusted EPS: $0.98 vs. $0.95 (+3.16%)

▫️ Operating Profit: $828M vs. $912M (-9.21%)

▫️ Adjusted FIFO Operating Profit: $1.02B vs. $1.02B (-0.49%)

▫️ Gross Margin: 22.9% (+51 basis points)

▫️ Digital Sales: +11% YoY

▫️ LIFO Charge: $4M vs. $29M (-86.21%)

Key Particulars:

▫️Identical Sales (Excl. Fuel): +2.3% YoY

▫️Sale of Specialty Pharmacy reduced sales by ~$340M but improved gross margins.

💼 Balance Sheet Highlights (vs. Q3 FY2023):

▫️ Total Assets: $62.42B vs. $51.02B (+22.35%)

▫️ Total Liabilities: $49.52B vs. $39.83B (+24.35%)

▫️ Equity: $12.89B vs. $11.19B (+15.20%)

▫️ Cash and Investments: $13.36B vs. $1.73B (+672.26%)

Key Particulars:

Net Total Debt to Adjusted EBITDA improved to 1.21 from 1.40.

🔮 Future Outlook:

Kroger narrows its FY2024 guidance:

▫️Identical Sales Growth (Excl. Fuel): 1.20%-1.50%

▫️Adjusted EPS: $4.35-$4.45

▫️Adjusted FIFO Operating Profit: $4.6B-$4.7B

Strategic priorities include accelerating digital and loyalty programs, leveraging merger synergies with Albertsons (pending regulatory approval), and continuing cost efficiency initiatives.