Valvoline Inc., a leading worldwide supplier of premium branded lubricants and automotive services, today provided a business update to give continued visibility into its performance during the COVID-19 crisis, including topline financial results for June 2020.
Preliminary June 2020 results include the following:
- Substantial sequential improvement versus May 2020
- Sales increases of 33%
- Lubricant volume increases of 32%
- Sequential sales and volume improvements across all segments
- Quick Lubes’ system-wide same-store sales (SSS) were positive for the month of June, with significant sequential improvement over May 2020
- System-wide SSS growth of 7.2% for June compared to the prior-year period
- SSS for company-owned stores grew 10.4% in June compared to the prior-year period
- SSS for franchised stores grew 5.0% in June compared to the prior-year period
- Total liquidity of nearly $1.3 billion as of June 30, 2020
Quick Lubes’ system-wide SSS sequential improvement was driven by both transactions and ticket, as miles driven trends improved and new customer growth continued. Shipments in Core North America were ahead of pre-COVID-19 levels for each week in June driven by improved performance in both retail and installer volumes. In the International segment, volume including unconsolidated joint ventures continued to improve across all regions and approached pre-COVID-19 trends, with China remaining at pre-COVID-19 levels.
“Preliminary June results continue to demonstrate the strength and resiliency of our business model with each segment again showing strong sequential improvement,” said Sam Mitchell, CEO. “The nondiscretionary nature of our preventative maintenance products and services and strong customer-focused execution are powering our results as miles driven continues to improve. While we continue to closely monitor recent COVID-19 trends, I remain encouraged about the outlook for the balance of the fiscal year given the same-store sales performance in June and the planned increase in marketing spending beginning in July.”