Valvoline Inc. has recently released its 10-K report, providing insights into its financial performance and operations. The company is engaged in the operation and franchising of vehicle service centers and retail stores in the United States and Canada, offering fluid exchange, parts replacement, and safety services for various types of vehicles. Valvoline operates and franchises over 2,000 service center locations through its Valvoline Instant Oil ChangeSM (“VIOC”) and Valvoline Great Canadian Oil Change (“GCOC”) retail locations and supports nearly 270 locations through its Express CareTM platform.
In fiscal 2024, Valvoline reported a 12% growth in net revenues, reaching $1.62 billion. Operating income from continuing operations amounted to $367.2 million, representing a 33% increase. The company's diluted earnings per share (EPS) grew by 33%, reaching $3.1 billion. System-wide store sales reached $226.8 million, and Valvoline returned $282.9 million to shareholders through share repurchases. The company generated $2.01 billion in cash flows from operations. Valvoline ended the fiscal year with 2,010 system-wide stores, reflecting an 8.5% annual growth, and achieved 18 years of consecutive system-wide same-store sales growth.
Over the past five fiscal years, Valvoline's net revenues and adjusted EBITDA have shown significant increases, driven by strong system-wide same-store sales growth, increased transactions, higher average ticket, and continued non-oil change penetration, as well as acquisitions and overall store expansion. Income from continuing operations has also followed an upward trend, with the exception of fiscal 2022, where the decrease was primarily driven by a loss due to the remeasurement of pension and other postretirement plans, as well as higher separation-related expenses in connection with the planning and evaluation of the separation of the company’s businesses that ultimately culminated in the sale of Global Products.
In fiscal 2024, Valvoline achieved its 18th consecutive year of system-wide same-store sales growth, with 158 net store additions to the system. The company reported a 12.2% increase in net revenues, driven by improvements in volume, mix, and pricing. System-wide same-store sales growth increased by 6.7%, primarily driven by higher non-oil change penetration, pricing adjustments, and premiumization. The company also achieved an 8.5% increase in system-wide store count, contributing to net revenues and volumes through the addition of 158 net new stores.
Valvoline's gross profit improved by 13.6% year-over-year, driven by strong top-line growth from higher transaction volumes, increased average ticket, and continued store expansion. The company achieved an operating income of $367.2 million, representing a 48.5% increase, and an adjusted EBITDA of $442.6 million, reflecting a 16.5% growth.
As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $38.57. For more information, read the company's full 10-K submission here.
