Valvoline Inc. reported its fourth quarter and fiscal year 2024 financial results on November 19, 2024, showcasing strong top and bottom-line growth. For Q4 FY24, net revenues increased 12% year-over-year to $435.5 million, with system-wide same-store sales (SSS) growing by 5.4%. Adjusted EBITDA for the quarter rose 14% to $124.1 million, reflecting continued operational strength.
Fiscal year 2024 concluded with net revenues of $1.619 billion, an increase of 12% from the prior year, and adjusted EBITDA growing 17% to $442.6 million. The company achieved its 18th consecutive year of system-wide SSS growth, reaching 6.7% for the full fiscal year. Valvoline's network expanded by 158 net new stores, bringing the total system-wide count to 2,010 locations.
For fiscal year 2025, Valvoline provided guidance projecting system-wide SSS growth of 5.0% to 7.0% and 160 to 185 net new store additions. The company anticipates net revenues between $1.67 billion and $1.73 billion, and Adjusted EBITDA in the range of $450 million to $470 million. This outlook reflects confidence in the business model and strategic initiatives, despite a material weakness in internal controls over financial reporting related to an ERP system implementation, which is actively being remediated.
The company also announced plans for $230 million to $250 million in capital expenditures and $40 million to $70 million in share repurchases for fiscal year 2025. The guidance for net revenues implies 10% to 14% top-line growth when adjusted for the impact of refranchising transactions. These financial targets underscore Valvoline's focus on compounding growth and capital-efficient expansion.
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