Univar Inc (UNVR) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $63 million, or $ 0.46 a share in the quarter, against a net profit of $12.10 million, or $0.09 a share in the last year period.
Revenue during the quarter dropped 9.36 percent to $1,999.70 million from $2,206.30 million in the previous year period. Gross margin for the quarter expanded 149 basis points over the previous year period to 21.91 percent. Operating margin for the quarter stood at negative 3.25 percent as compared to a positive 4.07 percent for the previous year period.
Operating loss for the quarter was $65 million, compared with an operating income of $89.70 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $145.90 million compared with $156.20 million in the prior year period. At the same time, adjusted EBITDA margin improved 22 basis points in the quarter to 7.30 percent from 7.08 percent in the last year period.
“Despite the difficult comparison in upstream oil and gas and an overall sluggish economy, our performance in the third quarter was slightly better than expected,” said Steve Newlin, president and chief executive officer. “While we have much work to do, we are starting to see some early signs of execution gains. We are cautiously optimistic that we may be turning a corner towards growth in the coming quarters"
Operating cash flow improves
Univar Inc has generated cash of $224.20 million from operating activities during the nine month period, up 17.26 percent or $33 million, when compared with the last year period. The company has spent $118.20 million cash to meet investing activities during the nine month period as against cash outgo of $153.10 million in the last year period. It has incurred net capital expenditure of $61.80 million on net basis during the nine month period, down 36.29 percent or $35.20 million from year ago period.
The company has spent $46.60 million cash to carry out financing activities during the nine month period as against cash outgo of $14.20 million in the last year period.
Cash and cash equivalents stood at $267.10 million as on Sep. 30, 2016, up 42.53 percent or $79.70 million from $187.40 million on Sep. 30, 2015.
Working capital declines
Univar Inc has witnessed a decline in the working capital over the last year. It stood at $964.60 million as at Sep. 30, 2016, down 10.75 percent or $116.20 million from $1,080.80 million on Sep. 30, 2015. Current ratio was at 1.72 as on Sep. 30, 2016, down from 1.78 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 19 days for the quarter from 45 days for the last year period. Days sales outstanding went up to 58 days for the quarter compared with 55 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 46 days for the previous year period. At the same time, days payable outstanding went up to 61 days for the quarter from 57 for the same period last year.
Debt remains almost stable
Univar Inc has recorded a decline in total debt over the last one year. It stood at $3,127.70 million as on Sep. 30, 2016, down 0.85 percent or $26.70 million from $3,154.40 million on Sep. 30, 2015. Total debt was 55.88 percent of total assets as on Sep. 30, 2016, compared with 54.20 percent on Sep. 30, 2015. Debt to equity ratio was at 3.63 as on Sep. 30, 2016, down from 3.70 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
