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Valvoline Inc. (VVV-0.71%) has submitted its 10-K filing for the fiscal year ended September 30, 2024.
The filing reports net revenues of $1.619 billion, a 12.2% increase from the previous year. The growth is attributed to higher transaction volumes, increased average ticket, and continued expansion of service center stores.
Operating income for the year was $367.2 million, up from $247.2 million in the previous year. This increase was driven by strong top-line growth and operational efficiencies.
Net income from continuing operations was reported at $214.5 million, compared to $199.4 million in the prior year. The increase in net income was primarily due to improved operating income.
The company reported a gross profit of $618.8 million, representing a gross profit margin of 38.2%, up from 37.7% in the prior year.
Valvoline's system-wide store sales reached $3.104 billion, with system-wide same-store sales growth of 6.7%. The company added 158 net new stores, bringing the total to 2,010 service center locations.
The company disclosed a material weakness in internal control over financial reporting due to the implementation of a new ERP system. Remediation efforts are underway to address the identified deficiencies.
Valvoline's cash and cash equivalents stood at $68.3 million as of September 30, 2024, with total debt of $1.1 billion. The company has a remaining borrowing capacity of $346.8 million.
The filing also highlights the completion of the sale of its former Global Products segment, with post-sale activities including a long-term supply agreement with the buyer, Aramco Overseas Company B.V.
Valvoline continues to focus on expanding its retail service footprint and enhancing customer experience through service innovation and operational efficiencies.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Valvoline Inc. annual 10-K report dated November 22, 2024. To report an error, please email earnings@qz.com.