Valvoline Inc. reported financial results for its second quarter of fiscal 2024*, which ended March 31, 2024.
Following are highlights, according to Valvoline:
- Sales from continuing operations of $389 million grew 13%, driven by system-wide same store sales (SSS) growth of 7.7%
- Reported income from continuing operations of $43 million grew 32% and earnings per diluted share (EPS) of $0.33 increased 74%
- Continuing operations adjusted EBITDA of $105 million increased 21% and adjusted EPS of $0.37 increased 61%
- Net store additions in the quarter totaled 38 (14 franchised and 24 company-operated) bringing total system-wide stores to 1,928
- Updating guidance to narrow the range for certain key metrics
Continuing Operations – Operating Results:
“The second quarter saw growth of 7.7% in system-wide same-store sales, while adjusted EBITDA increased 21%,” said Lori Flees, president & CEO. “We delivered network growth of 38 net store additions this quarter, 14 of which came from our franchise partners.”
Flees continued, “We also repurchased $40 million of shares in the second quarter which completes the $1.6 billion share repurchase authorization. This fulfills our commitment to return a substantial amount of the net proceeds from the sale of the Global Products business to shareholders.”
Balance Sheet and Cash Flow
- Cash and cash equivalents balance of $495 million; total debt of $1.6 billion
- Year-to-date continuing operations cash flow from operations of $92 million and free cash flow of $5 million
- Returned cash to shareholders via share repurchases of $40 million during the second quarter and $212 million year-to-date, which completes the $1.6 billion share repurchase authorization
- Included in net interest expense is income of $4 million and $12 million earned during the quarter and year-to-date, respectively on invested net proceeds from the sale of the Global Products business
Outlook
“In the first half of the year, we have delivered strong profit growth thanks to the hard work of our team and franchise partners. Our team’s commitment to employee training and retention has allowed us to continue to drive the core business toward its full potential through a focus on improving delivery of additional services and management of labor costs,” Flees added. “With the first half of the year behind us, we continue to expect strong year-over-year performance despite lapping a strong second half of fiscal year 2023. Accordingly, we are updating our guidance to narrow the range across a few key metrics.”
Valvoline will host a live audio webcast of its second quarter fiscal 2024 conference call, May 8, 2024, at 9 a.m. ET. The webcast and supporting materials will be accessible through Valvoline’s website at http://investors.valvoline.com.
*All comparisons in the above information are made to the same prior-year period unless otherwise noted, according to Valvoline.