Univar with Adjusted EBITDA Growth in U.S. and EMEA, but Setback in Canada
Global chemical distributor Univar Inc. (Downers Grove, IL – United States) earlier this week reported the financial results for the third quarter 2018. Consolidated net sales were US$ 2’130.7 mn, up 4.0% (+6.2% at constant currency) compared with US$ 2’048.7 in third quarter 2017. Adjusted EBITDA came in at US$ 157.3 mn, up 5.2% (+8.2% at constant currency) from the US$ 149.3 mn realised in the third quarter of last year.
Univar said the Adjusted EBITDA for Europe, Middle East Africa (EMEA) increased by 15.2% (+20.7% at constant curreny) to US$ 35.6 mn, followed by an 10.0% (+10.0% at constant currency) increase for the U.S. to US$ 99.4 mn. Canada and the Rest of World (ROW) segment both declined by 23.8% (-17.9% at constant currency) to US$ 19.2 mn and by 2.2% (+12.9 at constant currency) to US$ 9.1 mn respectively. The former was negatively impacted in the Agricultural market by adverse weather and a temporary major plant shutdown at a key customer in Western Canada, the latter by adverse currency effects, Univar said in a statement.
Overall this resulted in a net income of US$ 49.6 mn, or US$ 0.35 per diluted share, which compares with US$ 38.9 mn, or US$ 0.28 per diluted share, in the third quarter of the prior year 2017. GAAP earnings per share increased 25.0% to US$ 0.35 per share (compared with U$ 0.28 per share in Q3 of 2017. Based on the growth in Adjusted EBITDA and a reduction of debt by US$ 361 mn, Univar was able to reduce the Leverage Ratio to 3.9x from 4.6x at the end of September 2017.
Univar said the company is revising its outlook for the full year 2018 to a high single-digit growth of Adjusted EBITDA and Adjusted Earnings per Share of approx. US$ 1.60.
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Source: Univar press release
HGE – DCG / 07.09.2018