The Kroger Co. (KR), a well-known American supermarket chain, recently reported increased net earnings in its latest Securities and Exchange Commission (SEC) filing for the quarter ending on May 20, 2023. With a net earning of $962 million, the company has demonstrated considerable growth in comparison to the $664 million earned in 2022.
The company’s sales also increased during this quarter, amounting to $45,165 million compared to $44,600 million from the same period in 2022. This increase can be attributed to various factors, such as the company’s efficient operations, the expansion of its store network, and successful marketing strategies.
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Operating Expenses and Profit
Operating expenses also experienced a significant change throughout the year. Merchandise costs, including advertising, warehousing, and transportation, went from $34,952 million in 2022 to $35,080 million in 2023. Operating, general, and administrative expenses rose from $6,997 million to $7,393 million during the same period. Moreover, rent increased from $256 million to $265 million, while depreciation and amortization saw a jump from $890 million to $957 million.
Despite the growth in operating expenses, Kroger Co. maintained a positive operating profit. In the first quarter of 2023, the company reported a $1,470 million operating profit, slightly lower than the $1,505 million from 2022. The year-over-year decrease in operating profit can be attributed to the increased investment in the business and higher operating expenses.
Cash Flow and Investment Activities
In terms of cash flow, the company saw an impressive increase in net cash provided by operating activities, with $2,860 million reported in 2023 compared to $1,102 million in 2022. This demonstrates Kroger’s ability to efficiently manage its cash flow and maintain a strong financial position.
The company’s investment activities also witnessed a change during the quarter. Payments for property and equipment, including payments for lease buyouts, amounted to $1,028 million in 2023 in comparison to $745 million in 2022. Proceeds from the sale of assets also increased, totaling $86 million, up from the $14 million reported in the previous year.
Conclusion
Overall, Kroger Co.’s financial performance in the first quarter of 2023 demonstrates a strong growth trajectory. The increase in both net earnings and sales, coupled with a strong cash flow position, suggest a promising outlook for the supermarket giant. However, it is important to note that as a large company with numerous shareholders and stakeholders, continuous monitoring of both internal and external factors is necessary to maintain a steady growth pace and to address any potential challenges that may arise.
Income Statement
Financials in millions USD. Fiscal year is February – January. source
| Year | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 – 1992 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | Revenue | 148258 | 137888 | 132498 | 122286 | 121852 | 123280 | 115337 | 109830 | 108465 | 98375 | Upgrade |
| 1 | Revenue Growth (YoY) | 7.52% | 4.07% | 8.35% | 0.36% | -1.16% | 6.89% | 5.01% | 1.26% | 10.26% | 1.82% | Upgrade |
| 2 | Cost of Revenue | 116480 | 107539 | 101597 | 95294 | 95103 | 95811 | 89502 | 85496 | 85512 | 78138 | Upgrade |
| 3 | Gross Profit | 31778 | 30349 | 30901 | 26992 | 26749 | 27469 | 25835 | 24334 | 22953 | 20237 | Upgrade |
| 4 | Selling, General & Admin | 23848 | 23203 | 24500 | 21208 | 20786 | 21510 | 19162 | 17946 | 17161 | 15196 | Upgrade |
| 5 | Other Operating Expenses | 3804 | 3669 | 3621 | 3533 | 3349 | 3347 | 3221 | 2812 | 2655 | 2316 | Upgrade |
| 6 | Operating Expenses | 27652 | 26872 | 28121 | 24741 | 24135 | 24857 | 22383 | 20758 | 19816 | 17512 | Upgrade |
| 7 | Operating Income | 4126 | 3477 | 2780 | 2251 | 2614 | 2612 | 3452 | 3576 | 3137 | 2725 | Upgrade |
| 8 | Interest Expense / Income | 535 | 571 | 544 | 603 | 620 | 601 | 522 | 482 | 488 | 443 | Upgrade |
| 9 | Other Expense / Income | 694 | 866 | -1131 | -480 | -2016 | 509 | -2 | 10 | 19 | 12 | Upgrade |
| 10 | Pretax Income | 2897 | 2040 | 3367 | 2128 | 4010 | 1502 | 2932 | 3084 | 2630 | 2270 | Upgrade |
| 11 | Income Tax | 653 | 385 | 782 | 469 | 900 | -405 | 957 | 1045 | 902 | 751 | Upgrade |
| 12 | Net Income | 2244 | 1655 | 2585 | 1659 | 3110 | 1907 | 1975 | 2039 | 1728 | 1519 | Upgrade |
| 13 | Net Income Growth | 35.59% | -35.98% | 55.82% | -46.66% | 63.08% | -3.44% | -3.14% | 18.00% | 13.76% | 1.47% | Upgrade |
| 14 | Shares Outstanding (Basic) | 718 | 744 | 773 | 799 | 810 | 895 | 942 | 966 | 981 | 1028 | Upgrade |
| 15 | Shares Outstanding (Diluted) | 727 | 754 | 781 | 805 | 818 | 904 | 958 | 980 | 993 | 1040 | Upgrade |
| 16 | Shares Change | -3.58% | -3.46% | -2.98% | -1.59% | -9.51% | -5.64% | -2.24% | -1.31% | -4.52% | -3.17% | Upgrade |
| 17 | EPS (Basic) | 3.10 | 2.20 | 3.31 | 2.05 | 3.80 | 2.11 | 2.08 | 2.09 | 1.74 | 1.47 | Upgrade |
| 18 | EPS (Diluted) | 3.06 | 2.17 | 3.27 | 2.04 | 3.76 | 2.09 | 2.05 | 2.06 | 1.72 | 1.45 | Upgrade |
| 19 | EPS Growth | 41.01% | -33.64% | 60.29% | -45.74% | 79.90% | 1.95% | -0.49% | 19.77% | 18.62% | 4.69% | Upgrade |
| 20 | Free Cash Flow Per Share | 2.09 | 5.01 | 5.32 | 2.26 | 1.58 | 0.83 | 0.75 | 1.67 | 1.45 | 1.23 | Upgrade |
| 21 | Dividend Per Share | 0.940 | 0.780 | 0.680 | 0.600 | 0.985 | 0.490 | 0.450 | 0.500 | 0.340 | 0.307 | Upgrade |
| 22 | Dividend Growth | 20.51% | 14.71% | 13.33% | -39.09% | 101.02% | 8.89% | -10.00% | 47.06% | 10.75% | 24.29% | Upgrade |
| 23 | Gross Margin | 21.43% | 22.01% | 23.32% | 22.07% | 21.95% | 22.28% | 22.40% | 22.16% | 21.16% | 20.57% | Upgrade |
| 24 | Operating Margin | 2.78% | 2.52% | 2.10% | 1.84% | 2.15% | 2.12% | 2.99% | 3.26% | 2.89% | 2.77% | Upgrade |
| 25 | Profit Margin | 1.51% | 1.20% | 1.95% | 1.36% | 2.55% | 1.55% | 1.71% | 1.86% | 1.59% | 1.54% | Upgrade |
| 26 | Free Cash Flow Margin | 1.01% | 2.70% | 3.11% | 1.48% | 1.05% | 0.60% | 0.61% | 1.47% | 1.31% | 1.29% | Upgrade |
| 27 | Effective Tax Rate | 22.54% | 18.87% | 23.23% | 22.04% | 22.44% | -26.96% | 32.64% | 33.88% | 34.30% | 33.08% | Upgrade |
| 28 | EBITDA | 7011 | 6040 | 7284 | 6020 | 7095 | 4539 | 5794 | 5655 | 5066 | 4416 | Upgrade |
| 29 | EBITDA Margin | 4.73% | 4.38% | 5.50% | 4.92% | 5.82% | 3.68% | 5.02% | 5.15% | 4.67% | 4.49% | Upgrade |
| 30 | Depreciation & Amortization | 3579 | 3429 | 3373 | 3289 | 2465 | 2436 | 2340 | 2089 | 1948 | 1703 | Upgrade |
| 31 | EBIT | 3432 | 2611 | 3911 | 2731 | 4630 | 2103 | 3454 | 3566 | 3118 | 2713 | Upgrade |
| 32 | EBIT Margin | 2.31% | 1.89% | 2.95% | 2.23% | 3.80% | 1.71% | 2.99% | 3.25% | 2.87% | 2.76% | Upgrade |
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!