2025 Q1 - Quarterly Results

Exhibit99.1 KrogerReportsFirstQuarter2024ResultsandReaffirmsGuidance FirstQuarterHighlights ·IdenticalSaleswithoutfuelincreased0.5% ·OperatingProfitof$1,294million;EPSof$1.29 ·AdjustedFIFOOperatingProfitof$1,499millionandAdjustedEPSof$1.43 ·Executeditsgo-to-marketstrategytodelivervalueforcustomers oGrewdigitalsalesmorethan8%,withDeliveryandPickupcombiningfordouble-digitgrowth oIncreasedtotalhouseholds,loyalhouseholdsandcustomervisits CINCINNATI,June20,2024–TheKrogerCo.(NYSE:KR)todayreporteditsfirstquarter2024results,reaffirmedguidanceandupdatedinvestorsonhowLeadingwithFreshandAcceleratingwithDigitalcontinuestopositionKrogerforlong-termsustainablegrowth. CommentsfromChairmanandCEORodneyMcMullen “Krogerisofftoasolidstartin2024ledbybetter-than-expectedperformanceofourgrocerybusiness. Krogerisdeliveringexceptionalvalueatatimewhenmanycustomersneeditmorethanever,byprovidingaffordablepriceswithpersonalizedpromotions.Weappreciateourassociateswhoareelevatingthecustomerexperienceandimprovingstoreexecution.Together,thisisgrowinghouseholdsandincreasingcustomervisits. Thelong-terminvestmentswehavemadetostrengthenanddiversifyourmodelenablesustomanageeconomiccyclesandgivesustheconfidencetodeliveronourfullyearoutlook.Bydeliveringvalueforcustomersandinvestinginourassociates,Krogerremainswell-positionedtogenerateattractiveandsustainablereturnsforourshareholders.” 1 FirstQuarterFinancialResults 1Q24($inmillions;exceptEPS) 1Q23($inmillions;exceptEPS) IDSales*(Table4) 0.5% 3.5% EarningsPerShare $1.29 $1.32 AdjustedEPS(Table6) $1.43 $1.51 OperatingProfit $1,294 $1,470 AdjustedFIFOOperatingProfit(Table7) $1,499 $1,669 FIFOGrossMarginRate* Decreased7basispoints OG&ARate* Increased22basispoints *Withoutfuelandadjustmentitems,ifapplicable. Totalcompanysaleswere$45.3billioninthefirstquartercomparedto$45.2billionforthesameperiodlastyear.Excludingfuel,salesincreased0.6%comparedtothesameperiodlastyear. Grossmarginwas22.4%ofsalesforthefirstquarter.TheFIFOgrossmarginrate,excludingfuel,decreased7basispointscomparedtothesameperiodlastyear.Thedecreaseinratewasprimarilyattributabletolowerpharmacymarginsandincreasedpriceinvestments,partiallyoffsetbyfavorableproductmixreflectingOurBrandsmarginperformance. TheLIFOchargeforthequarterwas$41million,comparedtoaLIFOchargeof$99millionforthesameperiodlastyear.Thedecreasedchargeforthequarterwasduetolowerinflationexpectationsforthecurrentyearcomparedtolastyear. TheOperating,General&Administrativerateincreased22basispoints,excludingfuelandadjustmentitems,comparedtothesameperiodlastyear.Thisincreaseinratewasdrivenbyplannedinvestmentsinassociatewagesandincreasedincentiveplancosts,partiallyoffsetbycontinuedexecutionofcostsavingsinitiatives. CapitalAllocationStrategy Krogerexpectstocontinuetogeneratestrongfreecashflowandremainscommittedtoinvestinginthebusinesstodrivelong-termsustainablenetearningsgrowth,aswellasmaintainingitscurrentinvestmentgradedebtrating.TheCompanyexpectstocontinuetopayitsquarterlydividendandexpectsthistoincreaseovertime,subjecttoboardapproval.Krogerhaspauseditssharerepurchaseprogramtoprioritizede-leveragingfollowingtheproposedmergerwithAlbertsons. Kroger’snettotaldebttoadjustedEBITDAratiois1.25comparedto1.34ayearago(Table5).Thecompany’snettotaldebttoadjustedEBITDAratiotargetrangeis2.30to2.50.Kroger’sstrongbalancesheetprovidesampleopportunitiesfortheCompanytopursuegrowthandenhanceshareholdervalue. 2 Full-Year2024Guidance* Reaffirmed ·IdenticalSaleswithoutfuelof0.25%–1.75% ·AdjustedFIFOOperatingProfitof$4.6–$4.8billion ·Adjustednetearningsperdilutedshareof$4.30–$4.50 ·AdjustedFreeCashFlowof$2.5–$2.7billion** ·Capitalexpendituresof$3.4–$3.6billion ·Adjustedeffectivetaxrateof23%*** *Withoutadjusteditems,ifapplicable.KrogerisunabletoprovideafullreconciliationoftheGAAPandnon-GAAPmeasuresusedin2024guidancewithoutunreasonableeffortbecauseitisnotpossibletopredictcertainofouradjustmentitemswithareasonabledegreeofcertainty.Thisinformationisdependentuponfutureeventsandmaybeoutsideofourcontrolanditsunavailabilitycouldhaveasignificantimpacton2024GAAPfinancialresults. **Adjustedfreecashflowexcludesplannedpaymentsrelatedtotherestructuringofmulti-employerpensionplans,paymentsrelatedtoopioidsettlementsandmerger-relatedexpenses. ***Theadjustedtaxratereflectstypicaltaxadjustmentsanddoesnotreflectchangestotheratefromthecompletionofincometaxauditexaminationsandchangesintaxlaws,whichcannotbepredicted. FirstQuarter2024HighlightsLeadingwithFresh ·Introduced346newOurBrandsitems ·AchievedanewrecordforquarterlyfloralsalesledbystrongValentine’sDayandMother’sDaysales ·Launchedanewbrand,Field&Vine,whichoffershighqualityandregionallygrownberries AcceleratingwithDigital ·Increaseddeliverysalesby17%overlastyearledbyCustomerFulfillmentCenters ·Increaseddigitallyengagedhouseholdsby9%comparedtolastyear ·ExpandednewKrogerPrecisionMarketingadvertisingcapabilitiesonMeta’splatforms ·Achievedanewrecordforquarterlypickupfillrate AssociateExperience ·Awardedthe2024PlatinumBellSealforWorkplaceMentalHealthbyMentalHealthAmeri