Valvoline Inc. reported a 114% jump in operating income and a 12% increase in net sales revenue for the quarter ended Dec. 31, which is the first quarter of the company’s 2024 fiscal year.
Operating income from continuing operations for Lexington, Kentucky-based Valvoline reached $62.8 million for the quarter, compared to $29.3 million in same period of the previous fiscal year.
Net sales revenue rose to $373.4 million in the quarter, compared to $332.8 million, driven by system-wide same store sales growth of 7%. Net sales revenues are limited to sales at company-operated stories, in addition to royalties and other fees from independent franchised and Express Care stores.
“For the first quarter we delivered profitability results consistent with our expectations,” Valvoline President and CEO Lori Flees said in the company’s earnings news release. “We remain on track with our full-year guidance while continuing to make progress across our critical priorities of driving the full potential of our existing business, accelerating network growth, and expanding services to meet the needs of an evolving customer base and car parc.”
In March 2023, Valvoline completed the sale of its Global Products business, which includes engine oil sales, to Saudi Aramco. The transaction generated $2.4 billion of net proceeds and an after-tax gain of $1.2 billion. That deal was first announced in August 2022.
After the transaction, Valvoline began excluding Global Products from its earnings reports, instead comparing performance by the remaining business to prior results for the same operations. The only segment remaining is its Retails Services business, which consists of its oil change centers in the United States and Canada.