US grocer Kroger Co. has posted rising first-quarter profits despite employee unrest at the company.
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Kroger posted net income of US$336.6m for the three months to 26 May, up from US$306.4m a year earlier. Turnover was up 6.7% to US$20.7bn.
“Our associates continue to strengthen our connection with shoppers, building customer loyalty and generating strong identical sales growth,” said David Dillon, Kroger chairman and CEO. “This is a key driver of our objective to increase earnings and generate shareholder value.”
Kroger has become embroiled in a tense labour situation in southern California and is negotiating with workers over new contracts.
Kroger’s first-quarter results also included charges of US$0.02 a share stemming from a two-day walkout by workers at a distribution centre in Kentucky that two companies operate for the retailer.
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By GlobalDataLooking ahead, the company raised the lower end of its forecast for organic supermarket sales growth, excluding fuel sales. Kroger estimates like-for-like sales will grow by 3.5-5% from a previous range of 3-5% for fiscal 2007.
