Earnings slipped at the The Kroger Co. in the first quarter but still beat analyst estimates as the company prepares to defend its proposed merger with Albertsons Cos.
Company net earnings were $947 million, or $1.29 per diluted share, versus $962 million, or $1.32 per diluted share, in the year-previous quarter. Adjusted for one-time events, the company stated, net earnings were $1.05 billion, or $1.43 per diluted share, versus $1.1 billion, or $1.51 per diluted share, in the year-before period.
A Yahoo Finance-published analyst consensus had earnings per diluted share at $1.35 and revenues at $45.06 billion.
Identical sales without fuel impact increased 0.5%, Kroger reported. Sales were $45.27 billion versus $45.17 billion in the year-earlier quarter. Operating profit was $1.29 billion versus $1.47 billion in the year-prior period.
Kroger chairman and CEO Rodney McMullen said in a conference call the company’s personalization of promotions is bearing fruit, prompting an 18% increase in coupon clips in the quarter year over year. The Kroger media network continues to grow. The company is enhancing the network, with KPM just introducing an ad measure capability on Meta platforms as accessed with Kroger.
MnMullen added Kroger continues to pursue and defend its merger with Albertsons Cos. in part by updating its divestiture arrangement with C&S Wholesale Grocers to meet concerns voiced by United State federal and state officials about the combination. He said the company is prepared for an upcoming court date on the merger with not only its enhanced divestiture package but also with arguments that would benefit consumers and union workers.
In announcing the financial results, McMullen said, “Kroger is off to a solid start in 2024 led by better-than-expected performance of our grocery business. Kroger is delivering exceptional value at a time when many customers need it more than ever by providing affordable prices with personalized promotions. We appreciate our associates who are elevating the customer experience and improving store execution. Together, this is growing households and increasing customer visits.”
McMullen added Kroger has been making long-term investments “to strengthen and diversify our model enables us to manage economic cycles and gives us the confidence to deliver on our full-year outlook. By delivering value for customers and investing in our associates, Kroger remains well-positioned to generate attractive and sustainable returns for our shareholders.”
