Univar Solutions notes lower Demand in global industrial End Markets
Global chemical distributor Univar Solutions Inc. (Downers Grove, IL – United States) yesterday reported the financial results for the fourth quarter 2020. Consolidated net sales were USD 2’035.4 mn, down 5.5% (-1.5% at constant currency) compared with USD 2’155.0 mn in fourth quarter 2019, as the overall global demand conditions were “challenging”. The picture for the various geographic regions was mixed. The USA were down 9.5% at USD 1’224.9 mn. The EMEA (=Europe, Middle East & Africa) region achieved nominal sales growth of 2.1% and came in at USD 427.8 mn (-3.0% at constant currency). Canada recorded a small nominal sales growth of 0.9% to a level of USD 258.5 mn, despite the exit from wholesale Agriculture distribution (-0.6% at constant currency). In LATAM (= LAtin America) nominal sales were down 1.4% at USD 124.2 mn, but up 9.1% at constant currency.
Adjusted EBITDA came lower than in the same quarter last year at USD 146.4 mn, a decline of 7.8% (-7.5% at constant currency). When adjusted for the divestment of the Environmental Services (“ES”) business unit, the change was -4.9% nominally and -4.6% at constant currency. All regions posted a nominal decline and except for LATAM also a decline at constant currency.
Overall this resulted in a net loss of USD -33.7 mn or earning per diluted share of USD -0.20, which is loer than the net loss of USD -55.1 mn and earnings per diluted share of USD -0.33 in the fourth quarter of the prior year, respectively due to lower taxes, partially ofset by losses on the sale of the Canadian Agricultural services business. During the fourth quarter Univar was able to reduce the Leverage Ratio to 3.5x from 3.8x at the end of Q3-2020.
For the full year 2020 Univar posted sales of USD 8’265.0 mn, down 11.0% (-10.3% at constant currency) from USD 9’286.9 mn in 2019. With sales of USD 5’006.2 mn (-14.1%) the USA remained the largest region, followed by EMEA and Canada with USD ‘1’697 mn (-5.0%) and 1’110.0 mn (-8.8%), respectively. LATAM was more stable with sales at USD 451.0 mn (-0.9%).
Gross Profits were USD 1’258.3 mn (-8.7% / GP-margin 25.1 %) for the USA, USD 425.8 mn (+0.2% / GP-margin 25.1%) for EMEA, USD 215.1 mn (-8.0% / GP-margin 19.4%) for Canada and USD 103.0 mn (-1.3% / GP-margin 22.8%) for the LATAM region, resulting in a total of USD 2’002.2 mn (-6.5% / GP-margin 24.2% on average).
Total Consolidated Adjusted EBITDA was USD 635.8 mn, down 9.7% (-8.4% at constant currency), reflecting an EBITDA-margin of 7.69%. This is up 11 Bps from the 7.58% EBITDA-margin reached in 2019. Net income for 2020 was USD 52.9 mn or USD 0.31 per share. This compares with a net loss of USD 100.2 mn or USD -0.61 per share for 2019. Adjusted net income was USD 211.9 mn, equivalent to to adjusted earnings of USD 1.25 per share (on 169.8 mn sahres), slightly down from the USD 1.40 per share in the year before (based on 164.1 mn shares), which resulted from an adjusted net income of USD 231.6 mn in 2019.
For Q1-2021 Univar Solutions expects to generate an Adjusted EBITDA in the range of USD 150 to 160 mn (compared to USD 161.6 mn in Q1-2020). For the full year 2021 that range was given at USD 630 to 650 mn, despite that in Univar’s view “the exact timing of the economic recovery is uncertain”. These numbers also reflect planned divestments.
Fore further details see the following link:
Source: Univar press release
HGE – DCG / 25.02.2021