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Mar 31, 2024
Valvoline Q2 2024 Earnings Report
Valvoline's Q2 2024 financial results were released, showing growth in system-wide same-store sales and net store additions.
Key Takeaways
Valvoline Inc. reported a 7.7% increase in system-wide same-store sales and added 38 net new stores in the second quarter of fiscal year 2024. The company's sales from continuing operations grew by 13% to $389 million, and adjusted EBITDA increased by 21%.
System-wide same-store sales grew by 7.7%.
Net store additions totaled 38, bringing the total system-wide stores to 1,928.
Sales from continuing operations increased by 13% to $389 million.
Adjusted EBITDA from continuing operations increased by 21% to $105.1 million.
Valvoline
Valvoline
Forward Guidance
Valvoline updated its fiscal year 2024 outlook, narrowing the range for key metrics, expecting strong year-over-year performance.
Positive Outlook
- System-wide SSS growth is expected to be between 6-8%.
- Net revenues are projected to be $1.6-$1.65 billion.
- Adjusted EBITDA is anticipated to be $430-$455 million.
- Capital expenditures are expected to remain unchanged.
- Adjusted EPS is projected to be $1.45-$1.65.
Challenges Ahead
- The company plans to report a material weakness related to the implementation of a new enterprise resource planning system.
- The implementation impacted information technology general controls.
- The company is unable to reconcile forward-looking non-GAAP financial measures to comparable GAAP measures without unreasonable efforts.
- The company is currently unable to predict the type and extent of certain items that would impact GAAP measures in fiscal 2024.
- There is an expectation of lapping a strong second half of fiscal year 2023.