The Kroger Co. (KR), America’s largest grocery retailer, recently released its unaudited consolidated financial statements for the first quarter ended May 20, 2023. The company reported a record net earnings of $962 million, reflecting its successful strategies in expanding its business operations and enhancing its digital and robotics capabilities in distribution networks.
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The highlight of the quarter was the net earnings attributable to The Kroger Co. that showed a significant increase of 46% compared to the same quarter last year ($657 million).
Earnings per diluted common share also saw a significant increase, growing to $1.32 in Q1 2023 from $0.90 in Q1 2022. This boost in performance signifies the company’s commitment to creating a better experience for its customers through a combination of store development, digital advancements, and strategic partnerships.
As a part of their business expansion, Kroger has partnered with Ocado International Holdings Limited and Ocado Group plc to enhance their distribution network capabilities.
In the first quarter of 2023, Kroger opened an additional customer fulfillment center in Frederick, Maryland. This strategic partnership with Ocado allowed the company to establish a finance lease when the facility began fulfilling customer orders.
Kroger’s long-term debt remained steady at $10,139 million, and the fair value of outstanding total debt was $10,300 million as of May 20, 2023.
This aligns with the company’s objective of maintaining a healthy balance sheet and optimizing debt levels for growth opportunities. Additionally, the company’s total shareowners’ equity increased to $10,014 million as of January 28, 2023, and $10,880 million on May 20, 2023.
In Q1 2023, Kroger also contributed $110 million to employee 401(k) retirement savings accounts, up by 4.7% from the $105 million contributed in Q1 2022.
This demonstrates the company’s commitment to valuing and rewarding its employees.
In terms of financial commitments and contingencies, Kroger continues to manage various claims and lawsuits arising in the normal course of business.
This includes lawsuits pertaining to the company’s alleged role in the opioid crisis. Although the potential outcomes of these claims and lawsuits remain uncertain, the company vigorously defends these matters and believes they are without merit.
The financial success of Kroger in Q1 2023 is a testament to its strategic planning, investments in innovation, and commitment to delivering an exceptional experience for customers and employees alike. As the company continues to expand its offerings in-store and online, success is expected to strengthen and grow further in upcoming quarters.
In conclusion, Kroger Co.’s Q1 2023 financial statements showcase the company’s remarkable net earnings growth and sustained financial stability. Kroger’s ongoing investments in its business operations, strategic partnerships, and digital advancements place the company in a favorable position for future success, creating a bright outlook for investors and stakeholders.
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!