Kroger Q4 identical sales +6.2%, adj EPS $0.99; FY23 guidance $4.45-$4.60

EPS $ 3.06 $ 2.17 Adjusted EPS (Table 6) $ 4.23 $ 3.68 Operating Profit $ 4.1 $ 3.5 Adjusted FIFO Operating Profit (Table 7) $ 5.1 $ 4.3 FIFO Gross Margin Rate* Decreased 9 basis points OG&A Rate* Decreased 19 basis points * Without fuel and adjustment items, if applicable. Identical sales without fuel would have grown 5.8% in Fiscal 2022 if not for the reduction in pharmacy sales from Kroger’s termination of its agreement with Express Scripts effective December 31, 2022. This terminated agreement had no material impact on profitability. 3 Total company sales were $148.3 billion in 2022, compared to $137.9 billion for the same period last year.

EPS** $ 0.62 $ 0.75 Adjusted EPS (Table 6) $ 0.99 $ 0.91 Operating Profit** $ 826 $ 965 Adjusted FIFO Operating Profit (Table 7) $ 1,274 $ 1,014 FIFO Gross Margin Rate* Decreased 1 basis point OG&A Rate* Decreased 56 basis points * Without fuel and adjustment items, if applicable. Identical sales without fuel would have grown 6.7% in the 4th quarter if not for the reduction in pharmacy sales from Kroger’s termination of its agreement with Express Scripts effective December 31, 2022. This terminated agreement had no material impact on profitability. ** Included in our EPS and Operating Profit this quarter was a $164 million goodwill and fixed asset impairment charge relating to Vitacost.com and $160 million charge for the fair value of interest rate hedges associated with proposed merger financing. 2 Total company sales were $34.8 billion in the fourth quarter, compared to $33.0 billion for the same period last year.