VVV

Valvoline Reports 13% Revenue Growth

Valvoline Inc. has recently released its 10-Q report, providing a detailed look at its financial performance and operations. Valvoline is primarily engaged in operating and franchising vehicle service centers and retail stores in the United States and Canada. The company offers fluid exchange for motor oil, transmission and differential fluid, and coolant, as well as parts replacement and safety services for various types of vehicles. Valvoline operates and franchises over 1,900 service center locations through its Valvoline Instant Oil Change and Great Canadian Oil Change retail locations, and supports nearly 300 locations through its Express Care platform.

In the second fiscal quarter of 2024, Valvoline reported a 13% increase in net revenues, driven by a 7.7% growth in system-wide same-store sales and the addition of 147 net new stores. Income from continuing operations grew by 32% to $43.3 million, with diluted earnings per share from continuing operations increasing by 74% to $0.33. Adjusted EBITDA increased by 21%, reaching $105.1 million. Additionally, the company returned $40.4 million to its shareholders through share repurchases during the quarter.

System-wide store sales for the second quarter of 2024 reached $746.1 million, reflecting a year-over-year growth of 13.1%. The number of company-operated stores stood at 919, while the franchised stores totaled 1,009, bringing the total system-wide stores to 1,928.

Net revenues for the three months ended March 31, 2024, increased by $44.2 million, or 12.8%, compared to the prior year period. Gross profit increased by $19.5 million, or 15.4%, driven primarily by mix improvements from non-oil change service penetration and premiumization. Selling, general and administrative expenses increased by $9.7 million, mainly due to costs from implementing stand-alone information technology platforms and increased investments in advertising and talent.

Valvoline's performance in the second fiscal quarter of 2024 demonstrates strong growth in net revenues, income from continuing operations, and adjusted EBITDA, along with a focus on returning value to shareholders through share repurchases. Following these announcements, the company's shares moved 0.1%, and are now trading at a price of $42.0. If you want to know more, read the company's complete 10-Q report here.

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