Valvoline Inc. (NYSE:VVV) Q1 2023 Earnings Call Transcript

Mike Harrison: Yes. I guess what I was trying to get at is understanding how the improvement in non-oil change revenue, compared to the pricing that you got overall, including oil changes.

Mary Meixelsperger: Yes. So if you look at our overall comps, we said just over 60% of the comp was driven by pricing changes. And we saw a more significant impact from ticket overall. So I would tell you the non-oil change revenue was worth between 2% and 3% of our comp increase.

Mike Harrison: Perfect. And then the other question I had is with regard to the global product sale. It sounded like you’re still waiting for a couple of pre-closing conditions to get passed. And I guess, I wanted to understand if those are internal pre-closing issues that you’re working through or if they are related to government approvals or other third-party approvals? And I guess, any additional precision that you can provide on the timing? I feel like we’re in early calendar €˜23. So just trying to understand if the timing is imminent or if you’re guiding more towards first half of ’23?

Sam Mitchell: First of all, there are no barriers to close, and we’re continuing to make good progress. And we are really down to just a handful of regulatory approvals that need to come through. And so largely external. And based on our understanding of expected timing, where we continue to be very confident in the guidance that we’ve given that we will close in the early part of calendar 2023.

Mike Harrison: Alright, understood. Thank you very much.

Operator: As we have no further questions. I’ll hand back to the management team for any concluding remarks.

Sam Mitchell: All right. Thank you. I appreciate everyone listening in today. We are really confident about the performance in the business, the strength of the consumer, our customers and the trends that we’re seeing in our businesses. We enter our second quarter and look at the trends for the back part of the year. And as we’ve stated, we’re confident in the incomplete in the sale in the early part of 2023 of global products, and that will set up the new Valvoline for what will be an exciting year for us. Actions have been taken to address some of the margin shortfall in Q1. And so that, again, gives us confidence along with the consumer trends that we are going to have an excellent year. So again, thank you for your participation today.

Operator: This concludes today’s call. Thank you very much for your attendance. You may now disconnect your lines.