CINCINNATI, OH - Kroger recently reported its second quarter 2024 results, showing how it continues to position itself for long-term sustainable growth. In addition to this, the retailer also included an update regarding its merger with Albertsons.
“Kroger achieved solid results in the second quarter demonstrating the strength and resiliency of our model. We are growing households and increasing customer visits by offering a compelling combination of affordable prices and personalized promotions on great quality products, all through a unique seamless experience,” shared Rodney McMullen, Chairman and Chief Executive Officer. “We appreciate our associates for their focus on full, fresh, and friendly, which elevates the customer experience. Our long-term model is to consistently invest to lower prices so more customers shop with us, which in turn fuels our alternative profit businesses and drives greater efficiencies. This flywheel enables Kroger to deliver exceptional value for customers and investing in our associates, and by doing so, we are well-positioned to generate attractive and sustainable returns for shareholders.”
Here is a quick breakdown of the highlights:
- Operating Profit of $815 million; EPS of $0.64
- Adjusted FIFO Operating Profit of $984 million and Adjusted EPS of $0.93
- Achieved strong Adjusted Free Cash Flow
- Executed its go-to-market strategy to deliver value for customers
- Grew digital sales by 11 percent
- Total company sales were $33.9 billion in both the second quarters of 2024 and 2023
- Sales increased 1.3 percent compared to the same period last year, excluding fuel
Regarding the merger with Albertsons, McMullen added the following:
“As we near the close of the FTC's preliminary injunction hearing, we are confident in the facts and the strength of our position,” he noted. “The food industry has always been competitive and will continue to be after this merger. We are committed to closing this merger because bringing Kroger and Albertsons together will provide meaningful and measurable benefits—lower prices, secure jobs, and expanded access to fresh, affordable food—for customers, associates, and communities across the country.”
Todd Foley, Interim Chief Financial Officer, also commented.
“Our solid sales results through the first two quarters of the year give us the confidence to raise the low end of our full-year identical sales without fuel guidance by 50 basis points,” said Foley. “We now expect identical sales without fuel to be in the range of 0.75 percent to 1.75 percent. Our positive customer trends are driving sales momentum that we expect to continue in the second half of the year.”
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.
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