Valvoline Inc. reported a significant increase in financial performance for the three months ending December 31, 2024, with net revenues reaching $414.3 million, an 11% increase from $373.4 million in the same period last year. The company's operating income surged to $143.8 million, compared to $62.8 million in the prior year, while net income rose to $91.6 million from $31.9 million. This resulted in diluted earnings per share of $0.71, up from $0.24 a year earlier. The growth was primarily driven by a combination of same-store sales growth of 8.0% and the addition of 155 net new stores.
The financial results reflect a notable improvement in gross profit, which increased by 13.4% to $152.9 million, attributed to higher transaction volumes and an expanded customer base. Valvoline's strategic refranchising initiatives also contributed to this growth, as the company recognized a gain of $73.9 million from the sale of 39 company-operated service center stores. However, selling, general, and administrative expenses rose to $82.8 million, reflecting investments in technology and marketing to support business scaling.
Operationally, Valvoline's total system-wide store count reached 2,045, with 932 company-operated and 1,113 franchised locations. The company reported a 13.5% increase in system-wide store sales, totaling $820.3 million. The increase in customer engagement was further evidenced by the growth in average ticket size, driven by a higher penetration of non-oil change services and premium offerings. The company continues to focus on expanding its retail footprint and enhancing service offerings to meet evolving customer needs.
Valvoline's balance sheet showed total assets of $2.35 billion, with total debt decreasing to $1.03 billion from $1.09 billion in the previous quarter. The company maintained a strong liquidity position with cash and cash equivalents of $60.0 million. Looking ahead, Valvoline aims to leverage its growth strategy to enhance shareholder value, focusing on operational efficiency and expanding its market share. The company anticipates continued growth in its core business, supported by strategic investments and refranchising efforts, while managing its capital allocation to ensure financial stability.
About VALVOLINE INC
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