Valvoline Inc., a leading supplier of premium-branded lubricants and automotive services, has reported financial results for its first fiscal quarter ended Dec. 31, 2020.
“Our strong results in Q1 mark a great start to the fiscal year and continue to demonstrate the resiliency and adaptability of our business,” said CEO Sam Mitchell. “We delivered this impressive performance while remaining focused on the health and safety of our employees, customers and business partners.
“Profitability improved across all segments versus last year. Quick Lubes operating income growth of 13% and EBITDA growth of 21% were driven by strong top- and bottom-line performance and robust unit additions. Core North America’s operating income and EBITDA were each up 2% demonstrating continued resilience in the current challenging environment. Broad-based top-line growth and margin improvement led to a 70% increase in International operating income and a 64% increase in segment EBITDA.
Mitchell continued, “We also returned $81 million in cash to shareholders in the quarter including dividends, which increased by 11%, and the completion of $58 million in share repurchases. Our dividend and share repurchases demonstrate the confidence that management and our Board have in the ongoing cash generation of the business.”
First-Quarter Results
Reported first-quarter 2021 net income and EPS were $87 million and 47 cents, respectively. These results included $10 million (6 cents per diluted share) of after-tax net income primarily related to pension and other post-employment benefit (OPEB) impacts. Reported first-quarter 2020 net income and EPS were $73 million and 39 cents, respectively. These results included after-tax income of $7 million (4 cents per diluted share) primarily related to pension and OPEB impacts.
First-quarter 2021 adjusted net income and adjusted EPS were $77 million and 41 cents, respectively, compared to adjusted net income of $66 million and adjusted EPS of 35 cents in the prior-year period. Adjusted EBITDA in the quarter was $145 million, a 21% increase compared to the prior-year period.
Outlook
“Fiscal 2021 is off to an outstanding start with record first-quarter profitability,” said Mitchell. “While COVID-19 remains a headwind to miles driven, our business continues to perform well, and we remain focused on global growth.
“We are reaffirming our full-year guidance, including low-double digit growth in adjusted EBITDA. Strong performance in Quick Lubes and International is expected to offset any short-term margin pressure from higher raw material costs.
“We expect to continue delivering durable growth and setting the pace in superior customer experience as we execute our long-term strategy of building a more service-driven business in an increasingly vibrant automotive aftermarket segment.”
