Univar Reports 2015 Fourth Quarter and Full Year Financial Results
24 February 2016
Higher margins and productivity gains offset market headwinds
Full Year 2015 Highlights (Versus 2014)
- Adjusted EBITDA declined 6.5 percent from $641.7 million to $600.1 million, but was essentially flat on a currency neutral basis as the benefit of productivity gains and higher margins largely offset lower demand in upstream oil and gas markets.
- Net income of $16.5 million was up from a net loss of $20.1 million.
- Net sales decreased 13.4 percent from $10,374 million to $8,982 million, primarily reflecting a 6.3-percent decrease from foreign currency translation and a 7-percent decline in volumes.
- Net cash provided from operating activities increased from $126.3 million to $356.0 million due to lower net working capital and interest payments, as well as productivity improvements. Adjusted Operating Cash Flow increased from $386.4 million to $632.0 million.
- Gross margin increased 140 basis points to 20 percent driven by focused margin management and product mix improvements. Adjusted EBITDA margin increased 50 basis points to 6.7 percent.
- Completed several bolt-on acquisitions, including four in the fourth quarter, which provide future growth opportunities in specialty products and services.
DOWNERS GROVE, Ill. – February 24, 2016 – Univar Inc. (NYSE: UNVR) (“Univar”), a global chemical distributor and provider of value-added services, announced today its financial results for the fourth quarter and fiscal year ended December 31, 2015.
“Strong earnings growth outside of the upstream U.S. oil and gas market, combined with higher margins and strong cash flow, demonstrate our ability to execute well against our strategic priorities in a sluggish macroeconomic environment,” said Erik Fyrwald, President and Chief Executive Officer. “Lower demand in upstream oil and gas, however, offset our achievements. For the year, we delivered Adjusted EBITDA on a currency neutral basis essentially flat with the prior year.”
For the full year, gross margin percentage increased by 140 basis points through year-over-year growth in higher-margin products and services, as well as pricing and product mix improvements. Adjusted EBITDA margin increased 50 basis points to 6.7 percent. The company also generated $632.0 million in Adjusted Operating Cash Flow, up $245.6 million, or 64 percent, from lower working capital.
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Founded in 1924, Univar is a global distributor of specialty and basic chemicals from more than 8,000 producers worldwide. Univar operates more than 700 distribution facilities throughout North America, Western Europe, the Asia-Pacific region, and Latin America, supported by a global network of sales and technical professionals. With a broad portfolio of products and value-added services, and deep technical and market expertise, Univar delivers the tailored solutions customers need through one of the most extensive chemical distribution networks in the world. Univar is Chemistry DeliveredSM.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “comfortable with,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
FOR ADDITIONAL INFORMATION
Scott C. Johnson