Univar’s Growth in USA and EMEA partially offset by Canada and ROW
Global chemical distributor Univar Inc. (Downers Grove, IL – United States) last Friday reported the financial results for the fourth quarter 2018. Consolidated net sales were USD 1’971.2 mn, up 0.6% (+2.9% at constant currency) compared with USD 1’959.2 in fourth quarter 2017. Growth in the USA and the EMEA (=Europe, Middle East & Africa) region was partially offset by declining sales in Canada and the Rest of World region. Adjusted EBITDA came in at USD 144.0 mn, down 2.4% (+1.1% at constant currency) from the USD 146.1 mn realised in the fourth quarter of last year. EBITDA growth in the USA and EMEA region was lower than the decline in Canada and the Rest of World region.
Overall this resulted in a net income of USD 1.2 mn, or USD 0.01 per diluted share, which compares with USD 27.0 mn, or USD 0.19 per share, in the fourth quarter of the prior year 2017. The reduced net income in the current year fourth quarterincludes a non-cash pension mark-to-market loss of USD 34.2 mn (USD 0.18 per share) and a USD 15.1 (USD 0.09 per share) charge for aquisition and integration related expenses. Based on the growth in Adjusted EBITDA and a reduction of debt by USD 169.8 mn, Univar was able to reduce the Leverage Ratio to 3.5x from 4.1x at the end of December 2017.
For the full year 2018 Univar posted sales of USD 8’632.5 mn, up 4.6% (+4.1% at constant curreny) from USD 8’253.7 mn in 2017. With USD 4’961.0 mn (+6.5%) the USA remained the largest region, followed by EMEA and Canada with USD 1’975.7 mn (+8.3%) and 1’302.3 mn (-5.0%), respectively. The Rest of World also saw a decline in sales at USD 393.5 mn (-2.6%). Gross Profits were USD 1’128.3 mn (+5.2% / GP-margin 22.74%) for the USA, USD 454.1 mn (+9.7% / GP-margin 22.98%) for EMEA, USD 231.5 mn (-2.6% / GP-margin 17.78%) for Canada and USD 86.2 mn (+5.5% / GP-margin 21.91%) for the Rest of World region, resulting in a total of USD 1’900.1 mn (+5.2% / GP-margin 22.01% on average). Total Consolidated Adjusted EBITDA was USD 640.4 mn, up 7.8% (/.6% at constant currency), reflecting an EBITDA-margin of 7.42%. This is up 23 Bps from the 7.19% EBITDA-margin reached in 2017). Net income for 2018 was USD 172.3 mn or USD 1.21 per share. This compares with USD 119.8 mn or USD 0.85 per share for 2017. Adjusted Earnings were USD 1.62 per share, up 16.5% from the USD 1.39 per share in the year before. At the end of Q3-2018 Univar had publisheed aguidance for Adjusted Earnings per Share of approx. USD 1.60.
Despite a “continued softness in global industrial markets” at least in Q1-2019, for the full year 2019 Univar expects, on a standalone basis, to generate an Adjusted EBITDA “roughly equal to its results for 2018 of USD 640.4 mn”. The company also expects a significant increase in Cash Flow. Upon closing of the pending Nexeo Solutions, Inc. acqusition, it will issue a pro-forma 2019 guidance for the combined entities, Univar said.
Fore further details see the following link:
Source: Univar press release
HGE – DCG / 11.02.2019