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Jun 30, 2022
Valvoline Q3 2022 Earnings Report
Reported strong growth driven by demand and pricing actions, with increased sales and adjusted EBITDA.
Key Takeaways
Valvoline reported a 21% increase in sales, reaching $957 million, driven by strong demand and pricing actions. Net income grew 2% to $99 million, and adjusted EPS improved 5% to $0.58. The company updated its full-year guidance for adjusted EBITDA to $670 to $680 million and adjusted EPS to $2.07 to $2.15.
Net income increased by 2% and EPS increased by 4%.
Adjusted EPS improved by 5% and adjusted EBITDA increased by 4%.
Sales grew by 21% due to strong demand and pricing actions.
Global Products sales are to be sold to Aramco for $2.65 billion in cash.
Valvoline
Valvoline
Forward Guidance
The company expects inflationary pressure to impact profitability in Q4 but maintains a strong outlook for fiscal 2022. Adjusted EBITDA is anticipated to be between $670 million to $680 million, representing 7% growth on a consolidated basis.
Positive Outlook
- Share gains
- Pricing actions
- Strong execution
- Compelling opportunities to drive shareholder value
- Evolution to a powertrain agnostic service provider
Challenges Ahead
- Inflationary pressure continuing
- Impacts to profitability in Q4
- Raw material inflation
- COVID-19 challenges, particularly in China
- Geopolitical disruption