Univar Solutions shows Growth in USA and LATAM, partially offset by Decline in Canada and EMEA
Global chemical distributor Univar Inc. (Downers Grove, IL – United States) yesterday reported the financial results for the fourth quarter 2019. Consolidated net sales were USD 2’155.0 mn, up 9.3% (+9.8% at constant currency) compared with USD 1’971.2 mn in fourth quarter 2018. Growth in the USA of 16.6% and particularly in LATAM (= Latin America) of 36.4%, driven mostly by the Nexeo acquisition, was partially offset by declining sales in Canada (-3.1%) and the EMEA (=Europe, Middle East & Africa) region (-7.5%). Univar attributes the decline in sales mostly to chemical price deflation, which also dampened growth in the USA and LATAM.
Adjusted EBITDA came in at USD 158.8 mn, up 10.3% (+11.3% at constant currency) from the USD 144.0 mn realised in the fourth quarter of last year. EBITDA growth was particularly strong in LATAM at +47.9%, followed by the USA at +15.6%. Canada improved EBITDA by 5.1% while EMEA was almost falt at +1%.
Overall this resulted in a net loss of USD -55.1 mn or earning per diluted share of USD -0.33, which compares with net income of USD 1.2 mn and earnings per diluted share of USD 0.01 in the fourth quarter of the prior year, respectively. Adjusted net income was USD 50.5 mn, compared to USD 47.5 mn in Q4-2018 and adjusted earnings per diluted share decreased to USD 0.29 in the quarter from USD 0.33 in the fourth quarter of the prior year.
During the fourth quarter Univar was able to reduce the Leverage Ratio to 3.3x from 3.5x at the end of December 2018. Drivers were a strict net working capital management, the proceeds from the divestment of the Environmental Services business and certain real estate sales, Univar Solutions said.
For the full year 2019 Univar posted sales of USD 9’286.9 mn, up 7.6% (+9.3% at constant currency) from USD 8’632.5 mn in 2018. With sales of USD 5’828.5 mn (+17.5%) the USA remained the largest region, followed by EMEA and Canada with USD 1’785.5 mn (-9.6%) and 1’217.8 mn (-6.50%), respectively. Also LATAM saw growth in sales at USD 455.1 mn (+15.7%).
Gross Profits were USD 1’377.8 mn (+22.1% / GP-margin 23.64%) for the USA, USD 424.9 mn (-6.4% / GP-margin 23.80%) for EMEA, USD 233.7 mn (+1.0% / GP-margin 19.19%) for Canada and USD 104.4 mn (+21.1% / GP-margin 22.94%) for the LATAM region, resulting in a total of USD 2’140.8 mn (+12.7% / GP-margin 23.05% on average).
Total Consolidated Adjusted EBITDA was USD 704.2 mn, up 10.0% (11.9% at constant currency), reflecting an EBITDA-margin of 7.59%. This is up 17 Bps from the 7.42% EBITDA-margin reached in 2018. Net loss for 2019 was USD 100.2 mn or USD 0.61 per share. This compares with a net income of USD 172.3 mn or USD 1.21 per share for 2018. Adjusted net income was USD 231.6 mn, equivalent to to adjusted earnings of USD 1.62 per share (on 165.0 mn sahres), down from the USD 1.62 per share in the year before (based on 142.2 mn shares), which resulted from an adjusted net income of USD 230.2 mn in 2018.
For Q1-2020 Univar Solutions expects to generate an Adjusted EBITDA in the range of USD 150 to 160 mn. For the full year 2020 that range was given at USD 700 to 740 mn, assuming “continued weak end markets and a challenging competitive environment in the first half of the year.”
Fore further details see the following link:
Source: Univar press release
HGE – DCG / 28.02.2020