Free Post Earnings Research Report: Univar’s Sales Jumped 8.0%; Adjusted EPS Soared 44.8%

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LONDON, UK / ACCESSWIRE / June 18, 2018 / If you want access to our free earnings report on Univar Inc. (NYSE: UNVR), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=UNVR. The Company reported its first quarter fiscal 2018 operating and financial results on May 10, 2018. The specialty chemicals Company outperformed top- and bottom-line expectations, and also raised its earnings guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Earnings Highlights and Summary

For the quarter ended March 31, 2018, Univar's consolidated sales increased 8.0% to $2.16 billion compared to $2.00 billion in Q1 2017. The Company's revenue numbers exceeded analysts' estimates of $2.14 billion.

During Q1 2018, Univar's gross profit rose 10.7% to $486.6 million compared to $439.4 million in Q1 2017, primarily due to improvements in the Company's sales force effectiveness, change in product and market mix, chemical price inflation, and favorable foreign currency impacts.

For Q1 2018, Univar's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) grew 18.9% to $166.3 million from $139.9 million in Q1 2017; and its adjusted EBITDA margin expanded 70 basis points (bps) to 7.7%, reflecting a higher gross profit, an effective cost management and operating leverage despite increasing investments in sales force, operational, and digital initiatives.

Univar reported a net income of $65.4 million, or $0.46 per share, in Q1 2018 compared to $22.6 million, or $0.16 per share, in Q1 2017. The Company's adjusted earnings per share (EPS) soared 44.8% to $0.42 from $0.29 in the prior year's same quarter, exceeding Wall Street's estimates of $0.38.

Segment Results

During Q1 2018, Univar's USA segment's sales jumped 4.6% to $1.20 billion on a y-o-y basis, and its gross margin increased 40 bps to 23.2%, as a result of improved sales force execution, mix enrichment, and a net benefit from miscellaneous operating items. The segment's adjusted EBITDA increased 12.2% to $91.2 million, the fifth consecutive quarter of growth. The USA segment's adjusted EBITDA margin expanded 50 bps to 7.6% in Q1 2018, reflecting a higher gross margin and operating leverage to the bottom-line from strong expense management.

For Q1 2018, Univar's Canada segment's sales rose 2% to $313.4 million, while its gross profit advanced 170 bps to $62.4 million, driven largely by a change in product and market mix. The segment's adjusted EBITDA increased 19.9% to $29.5 million, and its adjusted EBITDA margin expanded 140 bps to 9.4%, as a result of a strong performance in the Company's Industrial Chemical business, a strength in Western Canada, a tight operating expense management, and the benefit of favorable foreign exchange rates.

Univar's Europe, Middle-East, and Africa (EMEA) segment posted sales of $538.6 million in Q1 2018, reflecting a growth of 22.5% versus the year ago comparable period, while its gross profit surged 22.2% to $124.0 million. The segment's adjusted EBITDA increased 32.6% to $44.7 million, due to a double digit growth in Focused Industries, a solid growth in Local Chemical Distribution, as well as favorable foreign exchange rates.

During Q1 2018, Univar's Rest of World segment's sales edged up 0.7% to $101.6 million, while its gross margin improved 230 bps to 21.0%. The segment's adjusted EBITDA grew 16.4% to $7.8 million, driven by a growth in Brazil and Asia/Pacific.

Financial Position

During Q1 2018, Univar's capital expenditure was $16 million, lower than the $21 million that the Company spent in Q1 2017. The Company plans to spend roughly $115 million in capital expenditure in FY18. Univar's pension contributions were $9 million in Q1 2018 compared to $7 million in Q1 2017.

As of March 31, 2018, Univar's net debt end was $2.6 billion, reflecting a decrease of $146 million from March 2017. The Company's total liquidity remained strong at $817 million. Univar's cash interest coverage of 4.8x trailing 12-month cash interest improved significantly from 3.8x in the year ago corresponding period.

Outlook

For the full fiscal year 2018, Univar announced that it remains on track to deliver a low double-digit growth in adjusted EBITDA, while the Company raised its adjusted EPS forecasts to be in the range of $1.65 and $1.85.

For the second quarter of the fiscal year 2018, Univar expects a high single digit adjusted EBITDA growth.

Stock Performance Snapshot

June 15, 2018 - At Friday's closing bell, Univar's stock slightly climbed 0.62%, ending the trading session at $27.74.

Volume traded for the day: 618.26 thousand shares.

Stock performance in the last month – up 0.25%

After last Friday's close, Univar's market cap was at $3.99 billion.

Price to Earnings (P/E) ratio was at 17.33.

The stock is part of the Basic Materials sector, categorized under the Chemicals - Major Diversified industry.

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