Univar with Adjusted EBITDA Growth in all Geographic Segments
Global chemical distributor Univar Inc. (Downers Grove, IL – United States) last week reported the financial results for the quarter ended 31. March 2018. Consolidated net sales were US$ 2’158.0 mn, up 8.0% (+3.8% at constant currency) compared with US$ 1’998.8 in Q1-2017. Adjusted EBITDA came in at US$ 166.3 mn, up 18.9% (+13.9% at constant currency) from the US$ 139.9 mn realised in Q1 of last year. The Adjusted EBITDA Margin expanded 70 basis points to 7.7%, reflecting “higher gross profit, effective cost management and operating leverage despite increasing investments in sales force, operational and digital intiatives” Univar said in the announcement.
Univar said the Adjusted EBITDA for Europe, Middle East Africa (EMEA) increased by 32.6% (+16.3% at constant curreny) to US$ 44.7 mn, followed by an 19.9% (+14.6% at constant currency) increase for Canada to US$ 29.5 mn and the Rest of World (ROW) segment improving by 16.4% (+13.4% at constant currency) to US$ 7.8 mn. Univar’s largest segment, the USA segment came in last, at a 12.2% increase to US$ 91.2 mn.
Overall this resulted in a net income of US$ 65.4 mn, or US$ 0.46 per share, which compares with US$ 22.6 mn, or US$ 0.16 per share, in the first quarter of the prior year 2017. Adjusted earnings per share increased 44.8 percent to US$ 0.42 per share (up from U$ 0.29 per share in Q1 of 2017). Reflecting growth in Adjusted EBITDA and a reduction of debt by US$ 146 mn, Univar was able to reduce the Leverage Ratio from 4.9x to 4.2x.
In its outlook for the full year 2018 Univar said the company “remains on track to deliver low double digit growth in Adjusted EBITDA and is increasing its outlook for Adjusted Earnings per Share to a range od US$ 1.65 and 1.85.”
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Source: Univar press release
HGE – DCG / 14.05.2018