2022-06-23 | NYSE: KR | Press release

0

CINCINNATI, June 23, 2022 /PRNewswire/ — The Board of Directors of Kroger Co (NYSE: KR) has approved a dividend increase of $0.84 at $1.04 per year. The next quarterly dividend of 26 cents per share will be paid on September 1, 2022to shareholders of record at the close of business on August 15, 2022.

Kroger’s quarterly dividend has grown at a compound annual growth rate of 14% since it was reinstated in 2006. This is the 16e consecutive year of increased dividend. The company continues to expect, subject to board approval, an increasing dividend over time.

“This increase in the dividend demonstrates the confidence of the Board of Directors in our strategy of Lead with Fresh, Accelerate with Digital,” said Rodney McMullen, Chairman and CEO of Kroger. “Our business continues to generate strong and consistent free cash flow and has proven resilient in various operating environments. Our strong balance sheet provides significant financial flexibility to continue investing in our business to drive growth. Looking forward, we are well positioned to deliver total shareholder returns of 8-11% over time.”

Capital allocation strategy

Kroger remains committed to investing in the business to generate sustainable long-term net income growth, maintaining its current investment-grade debt rating and returning excess free cash flow to shareholders through share buybacks and a dividend growing over time. The company actively balances the use of its adjusted free cash flow to achieve these goals.

About Kroger

At Kroger Co. (NYSE: KR), we are dedicated to our purpose: Feeding the Human Spirit™. We are, in our family of companies, nearly half a million associates who serve more than nine million customers daily through a seamless digital shopping experience and 2,800 retail food stores under a variety of banner namesserve America through inspiring and improving food, and creating #ZeroZeroZeroWaste Hunger communities by 2025. To learn more about us, visit our writing and investor relations to place.

This press release contains certain statements that constitute “forward-looking statements” about the company’s future performance. These statements are based on management’s assumptions and beliefs in light of information currently available to it. These statements are indicated by words or phrases such as “continuing,” “delivering,” “expecting,” “future,” “positioned,” “strategy,” and “trends.” Various uncertainties and other factors may actual results may differ materially from those contained in the forward-looking statements. These include the specific risk factors identified in the “Risk Factors” section of our Annual Report on Form 10-K for our last fiscal year and all documents filed subsequently, as well as the following:

Kroger’s ability to achieve FIFO incremental sales, earnings, operating income and adjusted free cash flow targets may be affected by: factors, risks and challenges related to the COVID-19 pandemic, including , among other things, the length of time the pandemic continues, future variants, mutations or related strains of the virus and the effectiveness of vaccines against the variants, the continued effectiveness of vaccines over time, and the availability of booster shots. vaccines, the extent of vaccine denial and global access to vaccines, as well as the effect of vaccine and/or related testing mandates and regulations, the potential for additional future spikes in infection and disease rates , including breakthrough infections among fully vaccinated people, and the corresponding potential for disruptions in workforce availability and customer buying patterns, reimposed restrictions es due to the resurgence and corresponding future easing of restrictions and disruptions to domestic and global supply chains or capacity constraints; if and when the global pandemic becomes endemic, the pace of recovery when the pandemic subsides or becomes endemic, which may vary significantly over time and between the different regions we serve; collective bargaining; potential work stoppages; changes in the unemployment rate; labor market pressures; changes in government funded benefit programs; changes in the types and number of businesses that compete with Kroger; the pricing and promotional activities of existing and new competitors, including non-traditional competitors, and the aggressiveness of such competition; Kroger’s response to such actions; the state of the economy, including interest rates, the current inflationary environment and potential future inflationary and/or deflationary trends and such trends in certain commodities, products and/or operating costs; the geopolitical environment, including the war in Ukraine; unstable political situations and social unrest; tariff changes; the effect that fuel costs have on consumer spending; fuel margin volatility; manufacturing product costs; diesel fuel costs related to Kroger’s logistics operations; consumer spending trends; the extent to which Kroger customers are prudent in their purchases in response to economic conditions; uncertainty of economic growth or recession; share buybacks; changes in the regulatory environment in which Kroger operates; Kroger’s ability to retain pharmacy sales from third-party payers; consolidation in the healthcare sector, including pharmacy benefit managers; Kroger’s ability to negotiate changes to multi-employer pension plans; natural disasters or adverse weather conditions; the effect of public health crises or other significant catastrophic events; potential costs and risks associated with potential cyberattacks or data security breaches; the success of Kroger’s future growth plans; the ability to execute our growth strategy and value creation model, including pursuing cost savings, growing our alternative profit businesses, and our ability to better serve our customers and generate customer loyalty and sustainable growth through our strategic staves of fresh produce, our brands, personalization and seamless; and the successful integration of merged businesses and new partnerships. Our ability to achieve these goals may also be affected by our ability to manage the factors identified above. Our ability to execute our financial strategy may be affected by our ability to generate cash flow.

Kroger assumes no obligation to update the information contained herein except as required by applicable law. Please refer to Kroger’s reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties.

Quote Show original content to download multimedia:https://www.prnewswire.com/news-releases/kroger-board-of-directors-raises-quarterly-dividend-by-24-301574039.html

SOURCEThe Kroger Co.

Share.

Comments are closed.