Univar with Sales and Profit Growth driven by Sales Force Effectiveness and Favourable Product / Market Mix
Global chemical distributor Univar Inc. (Downers Grove, IL – United States) has reported the financial results for the second quarter 2018. Consolidated net sales were US$ 2’372.6 mn, up 5.6% (+3.6% at constant currency) compared with US$ 2’247.0 in second quarter 2017. Adjusted EBITDA came in at US$ 173.1 mn, up 9.2% (+7.3% at constant currency) from the US$ 158.5 mn reported for the second quarter of last year.
Univar said the Adjusted EBITDA for Europe, Middle East Africa (EMEA) increased by 17.3% (+10.5% at constant curreny) to US$ 40.1 mn. The U.S. posted an 5.9% (+5.9% at constant currency) increase, bringing the number up to US$ 97.2 mn. Canada declined by 5.2% (-8.8% at constant currency) to US$ 34.6 mn. The Rest of World segment almost doubled at +85.7 % (+98.0 at constant currency) to US$ 9.1 mn. Canada was negatively impacted in the Agricultural market by adverse weather, which offset strong growth in Industrial Chemicals, Univar said in a statement. The Rest of World segment benefitted from a strong performance in Brazil and Mexico and also reflects the effects of the acaquisition of Tagma in Brazil (announced in September 2017).
Overall this resulted in a net income of US$ 56.1 mn, or US$ 0.40 per diluted share, which compares with US$ 31.3 mn, or US$ 0.22per diluted share, in the second quarter of the prior year 2017. GAAP earnings per share increased 17.5% to US$ 0.47 per share (compared with U$ 0.40 per share in Q2 of 2017. Based on the growth in Adjusted EBITDA and a reduction of debt by US$ 143 mn, Univar was able to reduce the Leverage Ratio to 4.0x from 4.7x at the end of June 2017.
Univar said the company reaffirms its guidance for the full year 2018 at a low double-digit growth of Adjusted EBITDA and Adjusted Earnings per Share in a range of US$ 1.65 to 1.85.
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Source: Univar press release
HGE – DCG / 04.08.2018