Univar’s healthy first half

PIECE OF THE PIE

RESULTS • UNIVAR IS ON TRACK TO ACHIEVE EBITDA OF MORE THAN $1BN IN 2022 AFTER A STRONG SECOND QUARTER, AND IS CARRYING ON WITH ITS STRATEGIC EXPANSION PLANS

UNIVAR SOLUTIONS HAS recorded secondquarter net income of $162.9m, up 6.3 per cent compared to the same period last year, with adjusted EBITDA rising from $197.5m to $291.6m. “The outstanding results we have delivered for eight straight quarters demonstrate the sound execution of our strategy of putting the customer at the centre of all we do, supported by continued excellent operational execution by our dedicated and talented team,” says David Jukes, president/CEO.

“Looking forward, we remain focused on the execution of our strategy and delivering market share growth both organically and inorganically,” Jukes adds. “We are confident in our ability to capitalise on evolving global trends as we leverage our asset base, extensive private transportation fleet, digital capabilities, and long-standing commitment to our ESG goals.”

Univar now expects full-year adjusted EBITDA for 2022 to come in at around $1.04bn to $1.08bn, compared to a shade under $800m in 2021 and well above the $860m-$890m range expected at the start of the year.

Financial performance was much stronger in the Americas, with the US and Latin America divisions both posting revenue growth in excess of 30 per cent and Canada of 25 per cent. These gains, Univar says, were a result of “pricing discipline in inflationary markets and market share gains”, although there was also a boost in Latin America following the acquisition of Sweetmix in Brazil in December 2021. Gross profit growth in all divisions was held back somewhat by input cost inflation. STICK TO THE PLAN Since the end of the second quarter, Univar Solutions has continued with its path of organic and acquisition-based growth. In early August it acquired Vicom Distribución Productos Quimicos, a leading regional specialty chemicals distributor in Spain and Portugal. The acquisition boosts Univar’s CASE portfolio while augmenting its presence in Europe with more sustainable options.

“I am delighted to welcome the Vicom team to the Univar Solutions family,” says Nick Powell, president of Global Ingredients & Specialties at Univar. “Vicom advances our strategic growth priorities by deepening our ability to offer market-leading ingredients, specialty chemicals and solutions to our customers. With a highly knowledgeable sales organisation, strong partnerships with both new and existing Univar Solutions suppliers, and a proven track record of service excellence, Vicom is a highly complementary fit and will add even more value to our customers as we expand our solution offerings to meet trends and drive sustainable options as we continue growing together.”

Teresa García, president of the board of Vicom, adds: “We are very excited to join Univar Solutions to offer our customers an even broader portfolio of critical solutions for their applications. We share a deep commitment to customer service through an enhanced experience, and I am confident we have a very bright future ahead as part of Univar Solutions.”

Univar has also expanded its agreement with Calumet Specialty Products to cover the distribution of its range of naphthenic and paraffinic base oils throughout Europe in both packed and bulk forms. “Univar Solutions’ dedicated sales and technical network ensures it can offer deep knowledge of the lubricants and metalworking fluids markets combined with best-in-class supply chain and logistics,” explains John Soanes, Calumet’s international sales director. “Univar Solutions is well-positioned to provide European customers with a total solution for optimising formulations, addressing key performance challenges and reducing supply complexity. We are delighted to work with Univar Solutions across several markets with an expanding range of Calumet specialty products.” www.univarsolutions.com