Are you curious about how one of the largest grocery retailers in the US, Kroger, performed financially last year? Understanding a company's financial health can be incredibly insightful, whether you're an investor, a curious consumer, or simply interested in the business world. Let's dive deep into Kroger's profits for their last fiscal year and explore what the numbers tell us.
Step 1: Let's Get Started! Are You Ready to Uncover the Numbers?
Before we jump into the specifics, it's important to understand what "profit" truly means in the context of a large corporation like Kroger. When people talk about a company's profit, they often mean Net Income, which is the bottom line after all expenses, taxes, and other deductions have been accounted for. It's the money the company actually gets to keep.
Kroger's fiscal year doesn't perfectly align with the calendar year. Their fiscal year 2024 ended on February 3, 2024. So, when we talk about "last year's profit," we're referring to their performance during this fiscal period.
 |
| How Much Did Kroger Profit Last Year |
Step 2: Locating the Key Financial Figure: Net Income
To find Kroger's profit, we need to look at their official financial reports. Publicly traded companies like Kroger release these reports regularly, typically quarterly and annually. The most comprehensive report is the Annual Report, often filed as a 10-K with the Securities and Exchange Commission (SEC).
QuickTip: Focus on what feels most relevant.
Sub-heading: Where to Find the Data
Investor Relations Websites: The easiest place to find a company's financial reports is on their dedicated investor relations section of their official website. For Kroger, this would be ir.kroger.com.
SEC Filings (EDGAR Database): For the most official and detailed documents, you can always go directly to the SEC's EDGAR database and search for Kroger (ticker symbol: KR).
Step 3: Dissecting Kroger's Fiscal Year 2024 Profit
Now, for the big reveal!
According to their financial reports, Kroger's annual net income for fiscal year 2024 was $2.164 billion.
Tip: Watch for summary phrases — they give the gist.
Sub-heading: Understanding the Context
It's crucial to understand that this figure represents a decline from the previous fiscal year. In fiscal year 2023, Kroger's net income was $2.244 billion. This represents a 3.57% decline year-over-year. While $2.164 billion is still a substantial profit, the decline is a point of interest for analysts and investors.
Sub-heading: Gross Profit vs. Net Income
While net income is the ultimate measure of profit, you might also come across gross profit. Gross profit is the revenue remaining after deducting the cost of goods sold. It doesn't include operating expenses, interest, or taxes. For fiscal year 2024, Kroger's annual gross profit was $33.364 billion, which was a 4.99% increase from 2023. This shows that while their initial sales and the cost to produce or acquire those goods improved, other factors impacted their overall net income.
Step 4: Beyond the Bottom Line: What Else Do the Reports Tell Us?
QuickTip: Every section builds on the last.
A single profit number doesn't tell the whole story. To truly understand a company's financial health, it's essential to look at other metrics and trends.
Sub-heading: Sales Performance
Total Company Sales: Kroger's total company sales were $147.1 billion in fiscal year 2024. This is a slight decrease compared to $150.0 billion in the previous fiscal year, which included an extra 53rd week in 2023.
Identical Sales without Fuel: This metric is important because it removes the volatility of fuel prices and the impact of an extra week, providing a clearer picture of core grocery sales. For fiscal year 2024, identical sales without fuel increased by 1.5%. This indicates continued underlying strength in their retail operations.
Sub-heading: Operating Profit and Adjusted Figures
Operating Profit: Kroger reported an operating profit of $3.8 billion for fiscal year 2024.
Adjusted FIFO Operating Profit: This is another important metric for analysts, as it adjusts for the Last-In, First-Out (LIFO) inventory accounting method and other non-recurring items. Kroger's adjusted FIFO operating profit for fiscal year 2024 was $4.7 billion.
Sub-heading: Earnings Per Share (EPS)
QuickTip: Read actively, not passively.
EPS: This tells you how much profit the company made per outstanding share of its stock. For fiscal year 2024, Kroger's EPS was $3.67.
Adjusted EPS: Similar to adjusted operating profit, adjusted EPS provides a clearer picture of core earnings per share. Kroger's adjusted EPS for fiscal year 2024 was $4.47.
Step 5: Interpreting the Data: What Does It All Mean?
While Kroger saw a decline in net income, several factors are at play. The slight dip in total sales can be attributed to the extra week in the previous fiscal year. However, the increase in identical sales without fuel and gross profit suggests that Kroger's core grocery business is still performing well. The decline in net income might be influenced by various factors like increased operating expenses, investments, or changes in tax rates. It's crucial for a deeper analysis to delve into the specific line items of their income statement and cash flow statement.
10 Related FAQ Questions with Quick Answers (How to...)
Here are some common questions related to understanding company profits and financial statements:
How to find a company's fiscal year end?
Quick Answer: A company's fiscal year end is usually stated prominently in their annual reports (10-K filings) or on their investor relations website. It may not always align with the calendar year.
How to differentiate between gross profit and net income?
Quick Answer: Gross profit is revenue minus the cost of goods sold. Net income is the "bottom line" profit after all expenses, including operating expenses, interest, and taxes, are deducted from revenue.
How to access a company's annual financial reports?
Quick Answer: Visit the company's official investor relations website or search the SEC's EDGAR database for their 10-K filings.
How to understand "identical sales" for a retailer?
Quick Answer: Identical sales (or same-store sales) measure the sales growth from stores that have been open for a comparable period, excluding the impact of new store openings or closures, and often excluding fuel sales to show core performance.
How to interpret a decline in net income?
Quick Answer: A decline can be due to various reasons: increased operating costs, one-time expenses, higher taxes, or decreased sales. It requires a deeper dive into the financial statements to identify the specific causes.
How to use Earnings Per Share (EPS) in analysis?
Quick Answer: EPS indicates how much profit a company makes per share of its stock. It's often used to compare a company's profitability over time or against competitors, and it's a key input for valuation metrics.
How to assess a company's financial health beyond profit?
Quick Answer: Look at other financial statements (Balance Sheet and Cash Flow Statement), analyze trends over multiple periods, and calculate financial ratios (e.g., liquidity, solvency, efficiency ratios).
How to find out if a company is investing for future growth?
Quick Answer: Examine the "Cash Flow from Investing Activities" section of the Cash Flow Statement. Significant capital expenditures (CapEx) can indicate investment in assets for future growth.
How to understand "adjusted" financial figures?
Quick Answer: "Adjusted" figures typically exclude certain non-recurring or non-operational items that might distort the view of a company's core performance, providing a "cleaner" picture.
How to compare Kroger's profit performance to its competitors?
Quick Answer: Obtain the financial reports of Kroger's competitors (e.g., Walmart, Albertsons) and compare their net income, sales growth, and key financial ratios over the same periods. This provides industry context.
 |
