Earnings Review and Free Research Report: Univar Reported Better Than Expected Earnings Result

Research Desk Line-up: Valhi Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Univar Inc. (NYSE: UNVR), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=UNVR, following the Company’s announcement of its financial results on August 04, 2017, for the second quarter fiscal 2017. The Company’s adjusted EBITDA increased 8.6% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Chemicals – Major Diversified industry. Pro-TD has currently selected Valhi, Inc. (NYSE: VHI) for due-diligence and potential coverage as the Company reported on August 08, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Valhi when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on UNVR; also brushing on VHI. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=UNVR

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Earnings Reviewed

For three months ended June 30, 2017, Univar’s revenue decreased 0.7% to $2.25 billion on a y-o-y basis from $2.26 billion in Q2 FY16. The revenue was below analysts’ expectations of $2.27 billion.

During Q2 FY17, Univar’s gross profit increased 4.7% to $466.4 million from $445.4 million in Q2 FY16. For the reported quarter, the Company’s gross margin increased 110 basis points to 20.8% of revenue from 19.7% of revenue in Q2 FY16.

During Q2 FY17, Univar’s adjusted EBITDA increased 8.6% to $160.9 million from $148.2 million in Q2 FY16. For the reported quarter, the Company’s adjusted EBITDA margin increased 60 basis points to 7.2% of revenue from 6.6% of revenue in Q2 FY16.

During Q2 FY17, Univar’s net income decreased 21.4% to $31.3 million on a y-o-y basis from $39.8 million in Q2 FY16. For the reported quarter, the Company’s diluted EPS decreased 24.1% to $0.22 from $0.29 in Q2 FY16. For the reported quarter, the Company’s adjusted diluted EPS decreased 2.9% to $0.34 from $0.35 in Q2 FY16. Adjusted diluted EPS surpassed analysts’ expectations of $0.31.

Univar’s Segment Details

USA – During Q2 FY17, the USA segment’s revenue decreased 1.8% to $1.19 billion from $1.21 billion in Q2 FY16. For the reported quarter, the segment’s gross profit increased 4.8% to $275.7 million on a y-o-y basis. For the reported quarter, the segment’s gross margin increased 140 basis points to 23.1% of revenue from 21.7% of revenue in Q2 FY16. During Q2 FY17, the segment’s adjusted EBITDA increased 10.6% to $92 million on a y-o-y basis. For the reported quarter, the segment’s adjusted EBITDA margin increased 80 basis points to 7.7% of revenue from 6.9% of revenue in Q2 FY16.

Canada – During Q2 FY17, the Canada segment’s revenue increased 1.4% to $492.4 million from $485.4 million in Q2 FY16. For the reported quarter, the segment’s gross profit increased 11.4% to $67.5 million on a y-o-y basis. For the reported quarter, the segment’s gross margin increased 120 basis points to 13.7% of revenue from 12.5% of revenue in Q2 FY16. During Q2 FY17, the segment’s adjusted EBITDA increased 16.8% to $36.8 million on a y-o-y basis. For the reported quarter, the segment’s adjusted EBITDA margin increased 100 basis points to 7.5% of revenue from 6.5% of revenue in Q2 FY16.

Europe, Middle-East, and Africa (EMEA) – During Q2 FY17, the EMEA segment’s revenue increased 0.8% to $463.7 million from $459.9 million in Q2 FY16. For the reported quarter, the segment’s gross profit increased 1.6% to $104.7 million on a y-o-y basis. For the reported quarter, the segment’s gross margin increased 20 basis points to 22.6% of revenue from 22.4% of revenue in Q2 FY16. During Q2 FY17, the segment’s adjusted EBITDA increased 10% to $36.3 million on a y-o-y basis. For the reported quarter, the segment’s adjusted EBITDA margin increased 60 basis points to 7.8% of revenue from 7.2% of revenue in Q2 FY16.

Rest of World – During Q2 FY17, the Rest of World segment’s revenue decreased 4.4% to $99.8 million from $104.4 million in Q2 FY16. For the reported quarter, the segment’s gross profit decreased 0.5% to $18.5 million on a y-o-y basis. For the reported quarter, the segment’s gross margin increased 70 basis points to 18.5% of revenue from 17.8% of revenue in Q2 FY16. During Q2 FY17, the segment’s adjusted EBITDA increased 16.7% to $4.9 million on a y-o-y basis. For the reported quarter, the segment’s adjusted EBITDA margin increased 90 basis points to 4.9% of revenue from 4.0% of revenue in Q2 FY16.

Balance Sheet

As on June 30, 2017, Univar’s cash and cash equivalents decreased 4.3% to $321.8 million from $336.4 million in Q4 FY16.

During Q2 FY17, the Company’s inventories increased 8% to $817.3 million from $756.6 billion in Q4 FY16. During Q2 FY17, the Company’s long term-debt increased 1.7% to $2.90 billion from $2.85 billion in Q4 FY16. During Q2 FY17, Univar’s adjusted cash provided by operating activities increased 46.8% to $165.0 million from $112.4 million in Q2 FY16.

During Q2 FY17, the Company’s conversion ratio increased 120 basis points to 34.5% from 33.3% in Q2 FY16. During Q2 FY17, Univar’s net debt to adjusted EBITDA ratio was 4.6x compared to 5.2x in Q2 FY16.

Stock Performance

On Wednesday, August 23, 2017, the stock closed the trading session at $27.83, slightly rising 0.25% from its previous closing price of $27.76. A total volume of 420.06 thousand shares have exchanged hands. Univar’s stock price soared 39.01% in the previous twelve months. At Wednesday’s closing price, the stock’s net capitalization stands at $3.91 billion.

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