Strong Results For Valvoline’s Quick Lubes Unit

Valvoline Inc. saw its Quick Lubes segment sales increase by $35 million, or 22.7 percent, to $189 million in the fiscal first quarter ended Dec. 31, 2018. Same-store sales were up 9.8 percent overall, with company-owned shops up 9.9 percent and franchised shops up 9.8 percent.

According to management, the same-store sales growth came from an increase in both transactions and average ticket. Marketing investments made in customer acquisition and retention programs drove higher transactions, while pricing actions and premium mix led to higher average ticket, according to Valvoline.

Quick Lubes segment EBITDA rose 12.2 percent to $46 million, attributed to increased same-store sales and the addition of 162 net new shops compared to the prior year.

The Quick Lubes business ended the quarter with 1,301 total shops (both company-owned and franchised). For the fiscal year ending in September 2019, management is calling for 27 to 32 new company-owned shops and 60 to 70 new franchised locations.

Same-store sales are forecast to increase between 7 percent and 8 percent.