Kroger reveals first-quarter 2022 results — including fresh program

The Kroger Co., Cincinnati, released its first quarter 2022 financial results to investors and the general public — with details on how fresh produce and digital initiatives are panning out.

Total company sales were $44.6 billion in the first quarter, compared to $41.3 billion for the same period last year, according to a news release. Excluding fuel, sales increased 3.8% compared to the same period last year.

The company’s shares are sold on the New York Stock Exchange as KR.

“Kroger achieved strong first quarter results as we successfully executed on our strategy of ‘Leading with Fresh’ and ‘Accelerating with Digital,” Chairman and CEO Rodney McMullen said in the release. “Our team is doing an outstanding job managing costs in an inflationary environment, which is allowing us to continue to invest in our associates while providing our customers the freshest food at affordable prices when and where they need it.”

Kroger is focusing on delivering value through several strategies: personalized experiences, Our Brands products, data-driven promotions and e-commerce solutions, he said.

Related: Learn more about The Kroger Co.

First quarter highlights include:

• Identical sales without fuel increased 4.1%.
• Operating profit of $1,505 million; adjusted first-in, first-out operating profit of $1,601 million.
• Company is widening its competitive moats to deliver value for customers.
  • Fresh department identical sales increased 5.2%.
  • Our Brands identical sales increased 6.3%.
  • Digitally engaged households grew by more than half a million and digital coupon downloads increased 11%

The press release delved deeper into the Leading with Fresh and Accelerating with Digital programs:

Leading with Fresh  

• Achieved the two highest single-day floral sales in Kroger history, led by Valentine's Day and Mother's Day.
• Accelerated End-to-End Fresh Produce initiative with 355 new stores certified, driving higher fresh sales during the quarter.
• Launched 239 new, seasonal Our Brands items, including fresh products to elevate summer cooking.
• Unveiled a study completed with the University of Cincinnati and Kroger Health to understand how Kroger's Food as Medicine platform and dietitians can support customers' goals to incorporate more fresh foods and live healthier lives by leveraging technology, health education, and the OptUP shopping tool.

Accelerating with Digital

• Opened two new Kroger Delivery facilities, powered by Ocado, in Dallas and Pleasant Prairie, Wis., allowing Kroger to serve fresh and affordable products directly to more households.
• Expanded the Kroger Delivery network by opening three new spoke facilities, which serve as last-mile cross-dock locations, including Columbus, Ohio, and Louisville, Ky., in existing geographies, as well as Miami, a new geography.
• Introduced national e-commerce experience that expands Kroger's Home and Baby offerings by selling several thousand new products on Kroger's Ship Marketplace in collaboration with Bed Bath & Beyond Inc.

Read more report details here.