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Dec 31, 2021
Valvoline Q1 2022 Earnings Report
Valvoline's first quarter results were reported, with sales increasing and earnings per share showing growth.
Key Takeaways
Valvoline reported a 31% increase in sales to $858 million. Net income remained flat at $87 million, while adjusted EPS increased by 12% to $0.48. The company returned $54 million to shareholders through dividends and share repurchases.
Net income of $87 million was flat and EPS of $0.48 increased 2%.
Adjusted EPS of $0.48 increased 12% and adjusted EBITDA of $156 million improved 5%.
Sales grew 31% to $858 million.
Returned $54 million in cash to shareholders via dividends and share repurchases.
Valvoline
Valvoline
Forward Guidance
Valvoline reaffirmed its guidance for fiscal year 2022, expecting exceptional topline growth and solid improvement in adjusted EBITDA. Same-store sales are expected to moderate due to strong prior-year comps.
Positive Outlook
- Reaffirming sales growth of 19-21%.
- Maintaining Retail Services system-wide store additions of 110-130.
- Keeping Retail Services system-wide SSS growth at 9-12%.
- Adjusted EBITDA remains at $675-$700 million.
- Free cash flow stays at $260-$300 million.
Challenges Ahead
- Expect same-store sales to moderate as we compare against strong comps in the prior year.
- Navigating short-term supply-chain challenges.
- Adjusted effective tax rate is expected to be 24-25%.
- Capital expenditures are projected to be $180-$200 million.
- Valvoline is unable to reconcile these forward-looking non-GAAP financial measures to the comparable GAAP measures estimated for fiscal 2022 without unreasonable efforts.