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Sep 30, 2020
Valvoline Q4 2020 Earnings Report
Valvoline reported strong Q4 and Fiscal Year 2020 results.
Key Takeaways
Valvoline's Q4 2020 results exceeded expectations, demonstrating the resilience of its business model. The company reported a net income of $122 million, a 4% increase in sales to $652 million, and an adjusted EPS growth of 15% to $0.46. Strong performance in Quick Lubes and Core North America, along with improved profitability in International, drove the positive results.
Net income increased to $122 million, a $95 million increase year-over-year.
Adjusted diluted EPS increased by 15% to $0.46.
Sales grew by 4% to $652 million.
VIOC system-wide same-store sales grew by 8.3%.
Forward Guidance
Valvoline expects to generate low double-digit growth in adjusted EBITDA for fiscal year 2021, driven by its diversified business model and the strength of its quick lubes segment.
Positive Outlook
- Substantial top- and bottom-line growth in Quick Lubes.
- Recovery from COVID-19 impacts and strong operational performance.
- Modest top-line growth in Core North America with stable retail channel performance.
- Significant top-line growth in International with continued recovery from COVID-19 impacts.
- New company store growth and acquisitions drive modestly higher capital expenditures.
Challenges Ahead
- Potential impact from future external events related to COVID-19.
- Possible additional state, regional, or country lockdown measures.
- Significant changes in driving trends.
- High-single digit profitability decline in Core North America driven by year-over-year price-cost lag impacts.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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