Valvoline Reports 12% Sales Growth in Q4 2024

By Bobby Samwell • Tuesday, November 19 10:34 • Permanent Link

Valvoline Inc. has reported its financial results for the fourth quarter and fiscal year ended September 30, 2024. The company's sales from continuing operations reached $1.6 billion, growing 12% driven by system-wide same-store sales (SSS) growth of 6.7%. The store count increased nearly 9% year over year, bringing the system-wide total to 2,010. Reported income from continuing operations grew 8%, reaching $215 million, and earnings per diluted share (EPS) increased by 33% to $1.63.

For the fourth quarter, sales from continuing operations grew 12% to $436 million, driven by system-wide SSS growth of 5.4%. Reported income from continuing operations increased by 19% to $89 million, with EPS increasing by 26% to $0.68. Continuing operations adjusted EBITDA grew 17% to $443 million, with adjusted EPS increasing by 33% to $1.57.

The company returned $227 million in cash to shareholders via share repurchases during fiscal year 2024. Additionally, it added 158 net stores to the network, with over half coming from ground-up builds. In the fourth quarter, it completed two refranchising transactions converting 28 stores to franchise locations and signed a definitive agreement to refranchise an additional 38 stores in early fiscal 2025.

Looking ahead to fiscal year 2025, Valvoline expects to continue compounding growth through same-store sales of 5.0% to 7.0% and network growth of 160 to 185 stores. The company anticipates top-line sales to grow by 10 to 14% to $1.67 billion to $1.73 billion and deliver $450 million to $470 million of adjusted EBITDA.

In terms of internal controls, the company reported material changes in its internal control over financial reporting following the sale of the former global products reportable segment and the implementation of a new ERP system. While progress has been made to remediate control deficiencies, a material weakness continued to exist as of September 30, 2024.

Valvoline will host a live audio webcast of its fourth quarter fiscal 2024 conference call on November 19, 2024, at 9 a.m. ET.

The market has reacted to these announcements by moving the company's shares -7.1% to a price of $39.31. If you want to know more, read the company's complete 8-K report here.

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