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Sep 30, 2024
Valvoline Q4 2024 Earnings Report
Valvoline's Q4 2024 financial results were reported, showcasing growth in sales and earnings.
Key Takeaways
Valvoline Inc. reported a 12% increase in sales from continuing operations to $436 million, driven by a 5.4% system-wide same-store sales growth. Reported income from continuing operations increased by 19% to $89 million, with EPS up by 26% to $0.68. Adjusted EBITDA grew by 14% to $124 million, and adjusted EPS increased by 18% to $0.46.
Sales from continuing operations grew by 12% to $436 million.
System-wide same-store sales increased by 5.4%.
Reported income from continuing operations rose by 19% to $89 million.
Adjusted EBITDA increased by 14% to $124 million.
Valvoline
Valvoline
Forward Guidance
Valvoline anticipates continued growth in fiscal year 2025, driven by same-store sales growth and network expansion. Taking into account the refranchising transactions, the company expects sales to grow by 10% to 14%, reaching $1.67 billion to $1.73 billion, and adjusted EBITDA to be between $450 million and $470 million.
Positive Outlook
- Same-store sales growth of 5.0% to 7.0%.
- Network growth of 160 to 185 stores.
- Top line sales to grow by 10% to 14% to $1.67 billion to $1.73 billion.
- Adjusted EBITDA of $450 million to $470 million.
- Resilient and differentiated business model.
Challenges Ahead
- Refranchising transactions represented about $100 million of revenue and $24 million of adjusted EBITDA in fiscal year 2024.
- Share repurchases subject to market conditions.
- Outlook for adjusted EBITDA and adjusted EPS are non-GAAP financial measures that are expected to be impacted by items affecting comparability.
- Valvoline is unable to reconcile these forward-looking non-GAAP financial measures to the comparable GAAP measures estimated for fiscal 2025 without unreasonable efforts.
- A material weakness in internal control over financial reporting continued to exist as of September 30, 2024.