Tag Archives: Q1-2020

Univar Solutions reports Q1-2020 Results

U.S. based Distributor shows Growth in all Regions except EMEA and is pleased with its Performance

Global chemical distributor Univar Inc. (Downers Grove, IL – United States) yesterday reported the financial results for the first quarter 2020. Consolidated net sales were USD 2’211.2 mn, up 2.4%  (+3.6% at constant currency) compared with USD 2’160.0 mn in Q1-2019.  Growth in the USA of 3.8%, Canada of 4.4% and particularly in LATAM (= Latin America) of 12.9%, was partially offset by declining sales in the EMEA (=Europe, Middle East & Africa) region (-4.8%). Univar attributes the growth in sales partially to the effects of the Nexeo acquition, but also to a higher demand for products in what the group calls “essential end markets” (= “products and services that are esssential for maintaining clean drinking water, waster water treatment, home, industrial and health care facility sanitization, and that are used in the manufacturing of food and pharmaceuticals”).  

Adjusted EBITDA came in at  USD 161.6 mn, up 0.9% (+2.6% at constant currency) from the USD 160.1 mn realised in the first quarter of last year. EBITDA growth was particularly strong in LATAM at +45.6%, followed by the Canada at +25.8. Int he USA profit was essentially flat at -0.5% while EMEA showed a decline at -4.3%.

Overall this resulted in net earnings of USD 55.9 mn or earning per diluted share of USD 0.33, which compares with net loss of USD 63.9 mn and earnings per diluted share of USD -0.43 in Q1-2019, respectively. Adjusted net income was USD 52.3 mn, compared to USD 49.7 mn in Q1-2019  and adjusted earnings per diluted share decreased slightly to USD 0.31 in the quarter from USD 0.33 in the first quarter of the prior year.

The Leverage Ratio increased to 3.7x at the end of March 2020, up from 3.3x at the end of December 2019, but lower that the 3.9x posted on 31. March 2019. Drivers were a sesonal increase in working capital, partially offset by “working capital efficiency”, Univar Solutions said. Capital expenditure plans have been reduced, from a previously anticipated level of USD 120 to 130 mn to a range of USD 95 to 115 mn. Univar stated that is has sufficient liquidity of ca. USD 750 to 800 mn in cash and available lines of credit at the end of Q2-2020. This position is expected to increase by end of the year.  The company also stressed that it has no significant debt maturities until 2024 is in full compliance with its credit agreements. 

Univar has withdrawn its full year guidance for Adjusted EBITDA a few weeks ago. The company plans to provide an update “as appropriate”, once it has obtained greater clarity regarding the impalications of COVID-19 and the impact this pandemic will have on its future business. It is monitoring the situation and will take expense reduction measures beyond some already initiated, if needed. 

Fore further details see the following link:

https://investors.univarsolutions.com/investors/investor-news/investor-news-details/2020/Univar-Solutions-Reports-Solid-2020-First-Quarter-Financial-Results-Maintains-Strong-Balance-Sheet-and-Liquidity/default.aspx

Source: Univar press release

HGE – DCG / 12.05.2020

Brenntag reports solid Q1-2020 Results and makes Progress on Holistic Analysis of Business

Operating Gross Profit and Operating EBITDA increase despite flat Sales

Global chemical distributor Brenntag AG (Essen, Germany) has published the Q1-2020 results, showing increases in Operating Gross Profit of 8.3% (7.1% on  a constant currency basis) from EUR 688.2 mn in Q1-2019 to EUR 745.2 mn and Operating EBITDA of 10.1% (8.7% on a constant currency basis) from EUR 238.8 mn in Q1 of the previous year to EUR 263.0 mn. Sales was “flat” at EUR 3’206.1 mn, +0.7% (-0.3% on a constant currency basis), not really different from the EUR 3’182.3 mn realised in Q1-2019. 

Profit before tax was up 8.9% at EUR 156.6 mn, Profit after tax up 9.3% at EUR 115.0 mn This results in earnings per share attributable to Brenntag shareholders of EUR 0.74 per share (up from 8.8% from EUR 0.68 per share). Working capital decreased slightly to EUR 1’752.8 mn (down from EUR 1’767.7 mn at the end of  2019). At a level of EUR 161.5 mn, free cash flow was down slightly from the EUR 166.3 mn realsied in Q1-2019.

In EMEA the company experienced a good quarter with increased demand, as most of the company’s customers were able to maintain business operations, despite COVID-19 related issues. Sales were up 3.3% as reported and on constant currency basis to EUR 1’391.9 mn. On the Operating EBITDA level, the EMEA region increased by 20.9% as reported to EUR 406.3 mn (+21.2% on a constant currency basis).

North America remained difficult territory for the company. The region even reported an decrease of the Operating EBITDA, -1.7% to EUR 110.1 mn (-4.6 % on a constant currency basis). Sales were down -2.5% (-5.2% on a constant currency basis) to 1’146.5 mn. Despite positive trends in some industry segement, Oil & Gas with it’s “clear declines in business” drove earnings down, the company said.

Latin America reached an Operating EBITDA of EUR 13.8 mn, up 20.0% as (+25.1% on a constant currency basis), despite  what Brenntag described as “a continued volatile and difficult market environment” in the region”. Sales in the region were EUR 217.1 mn, up 3.1% or 6.4% on a constant currency basis.

Asia Pacific contributed an Operating EBITDA of EUR 26.3 mn, up 22.3%  (+20.1 % on a constant currency basis) This increase is due in particular to the acquisition of Tee Hai Chem Pte. Ltd., closed during 2019, Brenntag said in the statement. 

As Brenntag said earlier in the year, it is currently examining its internal structures, processes and organisational forms along the value chain, where it sees potential for improvement in harmonisation and standardisation. This initiative, dubbed “Project Brenntag” is making good progress, the CEO later said in the earnings call.

Source: Brenntag press release, earnings call and quarterly report; DistriConsult analysis

HGE – DCG / 08.05.2020

IMCD’s EBITA Growth continues in Q1-2020

Acquisitions contribute significantly to Revenue Growth at IMCD

Specialty Chemicals distributor IMCD N.V. (Rotterdam, The Netherlands) reported data for Q1-2020 earlier this week. Sales (or revenues as IMCD calls it) were EUR 748.8 mn, up 6% from EUR 704.8 mn in the same period of 2019 (+6% on a constant currency basis). IMCD said with 5%, the growth comes from mainly from the effect of acquisitions  concluded in 2019 and Q1-2020, and 1% from organic growth.

Gross Profit increased by 12% to EUR 176.4 mn (+12% on a constant currency basis), equivalent to 23.6% of sales, up from 22.4% in Q1-2019. Operating EBITA increased by 11% to EUR 70.9 mn (+11% on a constant currency basis) . This represents a return on sales of 9.5% (compared to the 9.0% realised in Q1 of the previous year), and a conversion marging (= Operating EBITA as percentage of Gross Profit) of 40.2% (virtually uncahnged from 40.2% in Q1-2019).

The resulting in Cash Earnings per Share (i.e. before amortisation) were  EUR 0.94 per share, an increase of  13% when compared with the result for Q1-2019 at EUR 0.83 per share. Free cash flow was EUR 33.3 mn, a decrease of 26%, from EUR 45.0 mn in Q1-2019. This also led to a  small increase of reported debt by EUR 6.4 mn to a total of EUR 741.6 mn (compared to a total of EUR 735.2 mn at the end of 2019). The Net Debt / Operating EBITDA ratio at the ened of March remained constant at 2.8, when compered with 31. December 2019.

In view of the ongoing COVID-19 crisis and its unpredictability, with severity of the effects on global economy yet unknown, IMCD said it was unable to quantify the impact on the company’s results in the coming months and for the rest of the year 2020.

The original press release, which also provides a breakdown by geographic region (or Operating Segment in IMCD’s terminology) can be accessed via the link below: https://www.imcdgroup.com/sites/default/files/PRESS%20RELEASE_IMCD%20reports%2011%25%20EBITA%20growth%20in%20the%20first%20three%20months%20of%202020_1.pdf

Source: IMCD press release

HGE / DCG – 24.04.2020

IMCD brings Q1-2020 Update forward to mid-April and postpones AGM

General Meeting of Shareholders planned for 07. May is being postponed

Specialty Chemicals distributor IMCD N.V. (Rotterdam, The Netherlands) today announced that the group will bring foward its Q1-2020 trading update by more than two weeks to 20. April 2020, publication will take place before market opening. There will be an analyst conference call with the CEO and the CFO later in the day.

 

The group will also postpone its General Meeting of Shareholders, which was originally scheduled for 07. May 2020, due to the developments triggered by the global COVID-19 pandemic. A new date will be announced at the time of the trading update, IMCD said.

 

IMCD also said it did not observe a material adverse impact on its first quarter results caused by COVID-19. With the situation developing rapidly, and the duration of the COVID-19 crisis being unpredictable, the company said “it is difficult to quantify the impact in the months to come. IMCD continues to monitor market conditions and the impact of COVID-19 on its business closely.”

 

Source: IMCD press release

 

HGE / DCG – 07.04.2020