NYSE$VVV

Valvoline Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Valvoline's Q2 2023 results reflected a focus on its retail platform after completing the sale of its Global Products business, with sales and earnings growth driven by strong same-store sales and strategic store expansion.

Valvoline reported a 16% increase in sales from continuing operations to $344.5 million and a 43% increase in income from continuing operations to $32.9 million. Adjusted EPS increased by 64% to $0.23, and adjusted EBITDA grew by 26% to $87.1 million. The company added 35 net new stores, bringing the total system-wide store count to 1,781, and system-wide same-store sales increased by 13.5%.

  • Completed the sale of the Global Products business for $2.38 billion net proceeds.
  • Announced intention to commence a tender offer for up to $1 billion of Valvoline common stock.
  • Sales from continuing operations increased by 16%, with system-wide same-store sales growing by 13.5%.
  • Net store additions totaled 35, expanding the system-wide store network to 1,781 locations.

Headline financials

Total Revenue

$345M

Previous: $886M-61.1%
EPS (adj)

$0.23

Previous: $0.48-52.1%
Company-operated stores

832

Previous: 757+9.9%
Franchised stores

949

Previous: 904+5.0%
Capital Expenditures

-$79.4M

Previous: -$67M-18.5%
Free Cash Flow

$1.15B

Previous: $14M+8099.3%
Net Income

$1.23B

Previous: $81M+1415.2%
Operating Income

$61.2M

Previous: $117M-47.7%
Gross Profit

$127M

Previous: $250M-49.3%
Cash & Equivalents

$2.33B

Previous: $118M+1878.4%
Total Assets

$4.28B

Previous: $3.25B+31.8%
Stock-Based Comp

$2.5M

Previous: $3.8M-34.2%

Revenue & EPS history

Valvoline · Revenue · Quarterly

$345M

Q2 2023-61.1%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

Valvoline expects the margin improvement seen in Q2 to continue in the back half of the year and remains on track to meet its FY23 targets. The company is focused on driving growth of the new Valvoline through expanding the network and evolving with the car parc.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.3%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+0.6%

Avg return

30 days after

48%

20 / 42 earnings

Positive

+12.3%

Q2 2023

Best reaction

-21.2%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+4.8%-4.1%+4.6%
Q1 2026+8.1%+11.1%+5.9%
Q4 2025-2.6%-3.3%-6.0%
Q2 2025-1.8%+0.9%+6.0%
Q1 2025+7.4%+8.8%-4.6%
Q4 2024-9.1%-8.9%-14.3%
Q3 2024-7.5%-9.3%-8.4%
Q2 2024-5.1%-5.4%-7.4%
Q1 2024+7.0%+10.4%+21.1%
Q4 2023+8.3%+14.6%+16.8%
Q3 2023-4.8%-5.4%-6.4%
Q2 2023+12.3%+12.0%+8.3%
Q1 2023-4.4%-3.1%-4.1%
Q4 2022-0.1%+1.2%-3.6%
Q3 2022-7.5%-5.9%-6.6%
Q2 2022-8.4%-1.2%+14.1%
Q1 2022+4.1%-1.4%-9.3%
Q4 2021-1.5%-2.0%-1.9%
Q3 2021-0.7%-2.9%-2.2%
Q2 2021+7.9%+9.1%+14.1%
Q1 2021-2.0%-0.2%+4.1%
Q4 2020+5.6%+8.8%+21.2%
Q3 2020+1.9%+5.9%+0.6%
Q2 2020+0.5%-0.3%+17.8%
Q1 2020+3.9%+8.0%-7.3%
Q4 2019+4.4%+7.2%+1.8%
Q3 2019+6.7%+7.1%+11.4%
Q2 2019-6.9%-2.7%-5.7%
Q1 2019-21.2%-18.0%-18.6%
Q4 2018-6.6%-1.4%+1.1%
Q3 2018-7.0%-4.6%-4.7%
Q2 2018+3.4%+6.4%+2.0%
Q1 2018-2.8%-0.8%+0.5%
Q4 2015-2.0%-1.4%-1.6%
Q4 2017-0.4%-3.0%+3.3%
Q3 2016+0.0%-0.8%-2.0%
Q3 2017+0.6%-1.5%-6.1%
Q2 2016+0.1%+0.7%-0.2%
Q2 2017-0.3%-2.5%-3.0%
Q1 2016+2.0%-0.2%-2.4%
Q1 2017+5.6%+3.3%+1.3%
Q4 2016-4.8%-9.1%-4.0%
Q3 2015
Q2 2015
Q1 2015

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