Valvoline Inc. has announced its financial outcomes for the first quarter of fiscal 2024, which concluded on December 31, 2023. The company reported a 7.1% increase in system-wide same-store sales, highlighting a positive start to the fiscal year. The company also grew its Valvoline Instant Oil Change (VIOC) network by adding 38 stores in the quarter, with half of these being franchised locations. In addition, Valvoline continued its shareholder return strategy by repurchasing over $170 million of its stock, with $40 million remaining under the current authorization.
Financial highlights from the quarter include a 12% increase in net revenues to $373.4 million, a 114% jump in operating income to $62.8 million, and a 26% rise in income from continuing operations to $33.9 million. Earnings per share (EPS) saw a significant increase of 73% to $0.26, with adjusted EPS up 81% to $0.29. Adjusted EBITDA rose by 23% to $90.2 million.
The quarter also saw an increase in system-wide stores to 1,890, including 895 company-operated stores and 995 franchised stores. System-wide same-store sales (SSS) grew by 7.1% year-over-year.
On the balance sheet, Valvoline reported a cash and cash equivalents balance of $540 million, with total debt standing at $1.6 billion. Cash flow from continuing operations was $22 million, with free cash flow at negative $20 million. The company also highlighted the return of $171 million to shareholders through share repurchases.
Looking ahead, Lori Flees, CEO and director of Valvoline, Inc., said she remains optimistic about the company’s direction, stating, “For the first quarter we delivered profitability results consistent with our expectations. We remain on track with our full-year guidance while continuing to make progress across our critical priorities of driving the full potential of our existing business, accelerating network growth, and expanding services to meet the needs of an evolving customer base and car parc.”
The company uses various key business measures to track performance, including store counts and SSS, with management believing these metrics are useful in evaluating operating performance. Net revenues include sales at company-operated stores and royalties and fees from franchised and Express Care stores, with system-wide and franchised SSS, store counts, and total system-wide store sales providing insights into market position and performance. For more information, click here.
