Valvoline Inc. Reports Strong Fiscal Year 2024 Growth

Valvoline Inc ( (VVV) ) has released its Q4 earnings. Here is a breakdown of the information Valvoline Inc presented to its investors.

Valvoline Inc., a prominent player in the preventive automotive maintenance industry, operates over 2,000 service centers across North America, providing a quick and trusted service experience. The company has reported a notable financial performance for the fourth quarter and fiscal year 2024, with sales reaching $1.6 billion, marking a 12% increase from the previous year. This growth was largely driven by a 6.7% rise in same-store sales and a 9% increase in store count to a total of 2,010 locations. Valvoline’s adjusted EBITDA also saw a significant rise of 17% to $443 million, reflecting improved operational efficiency with an adjusted EBITDA margin improvement of 100 basis points to 27.3%. Additionally, the company returned $227 million to shareholders through share repurchases. Key highlights from the fourth quarter include a 12% sales increase to $436 million, boosted by 5.4% same-store sales growth despite challenges like the Crowdstrike outage and hurricanes. The company also continued its expansion efforts with 49 new store additions and refranchised several locations to enhance its market presence. Looking ahead to fiscal year 2025, Valvoline aims to sustain its growth trajectory with projected same-store sales growth of 5.0% to 7.0% and plans to add 160 to 185 new stores. The company expects its top line sales to increase by 10% to 14%, reaching between $1.67 billion to $1.73 billion, while adjusted EBITDA is anticipated to be between $450 million and $470 million. Valvoline remains committed to leveraging its business model to achieve durable and profitable growth.