Kroger (KR) Financials

Kroger (NYSE: KR) has demonstrated consistent revenue growth and profitability over the last several years, with solid quarterly results up to Q1 2025. Here is a summary of the key trends and financial highlights from their reported financial statements covering the last four years:

• Strong Operating Revenue Growth: Kroger's quarterly operating revenues have steadily increased from around $34.7 billion in Q2 2022 to $45.1 billion in Q1 2025, indicating robust top-line growth driven by its retail operations.
• Increasing Net Income: The company’s net income has improved steadily from a loss in Q2 2023 (-$179 million) to a net income of $868 million in Q1 2025, showing improved profitability and operational efficiency.
• Robust Gross Profit Margins: Despite rising operating costs, Kroger has maintained healthy gross profits, for example, $10.6 billion in Q1 2025, reflecting effective cost management relative to revenue growth.
• Consistent Cash Flow from Operations: The company generated strong operating cash flow, such as $2.15 billion in Q1 2025 and $2.34 billion in Q1 2024, supporting ongoing investments and shareholder returns.
• Capital Investments Supporting Growth: Kroger continues to invest substantially in property, plant, and equipment with purchases nearing or exceeding $1 billion per quarter in recent quarters, ensuring ongoing modernization and capacity expansion.
• Dividend Growth and Share Repurchases: The company has consistently returned capital to shareholders with dividends increasing slightly from $0.26 to $0.32 per share over the period. Share repurchases are also evident, supporting EPS growth.
• Stable Debt Levels with Maturities Managed: Kroger holds long-term debt around $12 billion to $17 billion in recent periods, with systematic repayments and refinancing apparent, indicating sound debt management but continued leverage.
• Inventory and Cash Position Fluctuations: Inventories have fluctuated but generally increased in line with revenue growth, while cash and equivalents varied significantly quarter-to-quarter, reflecting seasonal and operational cash cycle effects.
• Rising Operating Expenses: Selling, general, and administrative expenses have increased substantially as sales grow, compressing operating margins somewhat — for example, SG&A was $7.9 billion in Q1 2025 compared to $5.9 billion in Q3 2024.
• Negative Other Income / Expense Impact: Other income/expense items have consistently exerted a drag on pre-tax income, often driven by investment income losses or interest expenses, reducing net profitability.

Overall, Kroger appears to be on a stable growth trajectory with expanding revenues and improving earnings. The company is investing heavily in its infrastructure while maintaining shareholder-friendly capital return policies. Investors should watch the impact of rising SG&A and other operating expenses on margins as well as how Kroger manages its debt levels in the medium term.