UNVR - Earnings call transcript Q1 2021

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Operator

Good morning, ladies and gentlemen and welcome to Univar Solutions First Quarter 2021 Earnings Conference Call. My name is Michelle and I will be your host operator on this call. Currently all participants are in a listen-only mode. After the presentation we will conduct a question-and-answer session. [Operator Instructions]. the Kos, to Relations Vice at Solutions. turn today's host and now Univar Heather call, President will meeting your over for Communications I of Investor Heather, go ahead. please

Heather Kos

first morning. to good and call you Univar Thank Solutions webcast. and quarter Welcome earnings

supplemental are President quarter our Vice financial and Chief Alexos, Chief results released ended our the Financial our XXXX slide call. been to website which corporate website. Officer. for with should univarsolutions.com Jukes, a Executive has our to posted Joining David today's presentation President first and and March The Officer; XX, today be at Nick we the go call viewed earnings and also presentation slide Executive on along Last posted with release, Friday,

as to release on supplemental will the which summarized measures for most we X, measure certain earnings and financial can GAAP financial in call, find reconciliation refer you Slide our directly the During a to presentation. non-GAAP this slide comparable

on SXX first then business you see will our referenced progress the inherent financial such update risks in with our the X, see we expectations and will close agenda for Nick David future Nexeo X, highlights the are strategy. for are the risks not integration will will will with future. for uncertainties current they market Slide start trends, uncertainties the and more and about call. forecasts through of filings On our business expectations and Please and outlook, guarantees and involve while make and summary on and/or future. forward-looking walk estimates, the Slide performance. David end our statements our reflect quarter All projections, our and our SEC for As estimates, they a of statements detailed

questions. opening your I'll over David call to will turn that, remarks. for Following that, his now the take With we

David C. Jukes

executed global to thanks We're joining you, morning, evening our to Heather and good off dislocation good proud a the building start of as the and integration quarter focus priorities momentum to the good by advance exacerbated excellence and off XXXX our and paying our really the everyone weather U.S. the overcoming for We're the complete on strategic activities. I'm in Thank balance conditions strong this team is and supply we good call. in operational demand and severe afternoon, how Nexeo

improved as exceptional results reflects our our contributed members together. adjusted EBITDA adjusted our dedicated highlights did over supplier just a of all to million. of strategy grow successful to $XXX liquidity our strength strong and the The the extensive million with performance QX QX of of $XXX team have efforts network, we customer ability are; and an Our of Key we an and distribution from execution operating the EBITDA market continued extraordinary share the agility. through quarter growing relationships,

As prior our one business effects to on headline cost would program executed our sales core but our down and growth in year, management. deliver our and divestiture agriculture continue we of wholesale versus was expect, business the well given Canadian

Canada year. only with our our improvements Mexico the million on savings another business win-loss SXX sales highest for with $XXX Distrupol with the We in improved committed ending performance USA, divestiture. the track quarter counts with and and originally the customer our streamlining our in sequential ratio a program, advanced our complete net We and is in work we integration to. outstanding Nexeo Our are of

channels registered XX/X capabilities. investments of with to bearing digital our customers U.S. self-service utilize e-commerce able XX% and on fruit, our are Our approximately now

around we down needs customers strengthened market sales our and difficult past freeze market. already capabilities. elsewhere. in as in disruption to new launched over global expected the our February in while materials, Canal have U.S. were sales were year XX% caused tracking X%, Additionally, along and The recently the specialty unprecedented doubling provide in business supplier the we transportation customers are in annualized digital with were deep businesses of X%. we March been a who deliver January of utilizing the globally as verticals, most let our supply down circumstances, as raw authorizations existing up February parts exited the the customers continental And in with million given chemistries despite certain increase to in of as Understandably, well in blockage the either XXXX, of again, activity Once do see new were or and security particularly resurgence profit. Europe. March, world, X%, $XX with Texas delivered sales Brazil COVID-XX well divested gross in on globally in down in We able Suez support supply during position and

tight saw as construction, material automotive in demand solutions lubricants, The case, general maintenance supply applications coatings. demand consumer industrial in with as double-digit market. strong first manufacturing Lubricants growth increasing quarter continued of and combination the in and automotive, our a are The industrial sales well performance industrial strong case business from business seeing and benefited within cleaning.

Our us by bespoke differentiated beauty skin supplier value consumer America. hair where applications demand business solutions partnerships North a and strong our We're care allow seeing to business personal customers. saw formulations and care provide in our with double-digit sales and especially to growth led strong

in continues to especially was manufacturing business chemical see manufacturing sales Our strong growth industrial and and industrial applications. general

chemistry ability us during has QX. our while to organic the customers supported in security supply to with segments scale extensive growth these enables leverage portfolio our provide Our

our seeing the for improvements Although had may upside the energy this year-over-year of we an present of year. are now sequential remainder declines within we and quarter fourth and some refining

down and our quarter, and our and $XXX and business year expect the shortages expand industrial full airline XX%, chemical strong. expectation, in Nick of strongly disruptions rate guidance was XXXX quarter where EBITDA $XXX we the remains which waste to still at $XXX million Our manufacturing production adjusted we a shortly. microchip to free to cash million largely within ahead above still flow automotive managed are range than net double-digits $XXX related services That to due of programs. business we recycling will sectors In conversion starting grow guidance fundamentally better previous and raising with million to with providing upon the million second streams

integration have believe actions we completion the final and taking XXXX, of imminent us to the positioned through stages are the Beyond and business we the Nexeo sustainable in for streamline Canada our Mexico success. further

deliver people, tools, the will right strategy expect position the and products, solutions shareholder us have value innovative that and value. We suppliers deliver we customers that to will and it

over some closing results will turn Then share thoughts. Nick. to outlook. me I let through walk will the He first you quarter call Now, and our

Nicholas W. Alexos

and constant and reported Solutions Thank an for X.X% I a Hello solid morning all. financial you basis our to of good results, pleased you, to rest the am the business outlook on on David. Sales and activities, share on QX year. a currency were X.X% updated provide Univar basis. down update

Agriculture basis. million recovery partially Gross was February relatively Excluding the across the prior down reflects flat from by results shutdown currency basis. constant the to depreciation currency and offset U.S., XXX.X financials, on flat exclusive on and all of profit year constant seen headwind by March in prior net X.X% Canadian higher a This in and of sales year which geographies. in versus a business were X.X% strong we estimate energy the were

by well increased Our XXX market XX.X%, driven basis chain. due as end the inflation and mix, favorable price in impact primarily points to as of to the product by gross disruption supply margin chemical

the energy inflation price businesses, in First due mix disruption Ag driven by basis. the quarter adjusted realization increase net was growth of EBITDA Adjusting Canadian to a currency offset chemical and was product and Nexeo by the on of chain, was primarily headwinds. constant a the XX.X% for higher supply basis. constant by the currency XXX.X million February XX.X% synergies The partially on XX.X% year-over-year

last and a adjusted may conversion by As substantially environmental year quarter. XXX in you also points higher our basis a were we charge. margins have the Correspondingly, higher result, as improved ratio did recall, EBITDA

year for companies. the Moving tables at prior to The earnings expenses, will pro the the and cash slide. bonuses share, expense while highlighted and benefit pension in uses adjustments related March, changed year are profit, year taxes in higher selling EPS XX.X high XX.X and prior core with million calculation for The back EPS. to payroll adjusted the basis year, of in per strong adjusted capital. sale retirement expense, the income flow previous earnings a compared are on is payments administrative methodology and operating period. believe in cash gap of flow easy planning we at reporting We in the higher the prior forma change notable first the which partially the reflects warehouse gross from our Adjusted free share year. on increase $X.XX offset reconciliation certain the highlighted between drove of adjusted the which along of to prior and as factors the versus use on that higher in GAAP most prior XXXX, in Operating we lower this comparability expense. was also primarily the use a sales enhances a I up net net or with amount These, comparability. accompanying was quarter, with Beginning quarter would the networking X, future, the on $X.XX higher a in cash peer loss to $X.XX net narrow and amortization due increased due of primarily such better and adjustments to by pick Slide Primary limit million the timing cash and certain QX income. of business end of release exclusion of results per other in

million XXX capital Nexeo in normalized cash XX year. asset full for ample at integration flow lines levels XX were and based of million. Capital related on expenditures We and quarter maintain and liquidity credit the our million. liquidity working still with we under However, the of were for total million availability XXX do expenses plan including cash expect

quarter stands at X.X was XX.X% ROIC for and Our leverage times. the

we operating and the the to business. decline and recovery benefiting have lower in improved synergies divestment demand of able to divestments. provide agricultural leverage exit lower prior and improvement and an sales year-on-year In flat impacts, in from the businesses. here were of Adjusting Canada. for commodity the expanded lower roughly the in the synergies upstream and geographies mix March, the and segment. strong business. was LATAM to the appendix. improve Jan both costs inflation sales period. exit February, in price in due continued and the our agricultural decline of margins March the to by due organic the agriculture price the costs issues chemical the a reflect the aggregated by chemical also favorable wholesale figures to reporting net U.S. particularly WS&A chain well in the these key as gross the margins year-over-year adjusted in all sales in to the exit impacts the for four the Quarter product further benefited saw in higher Gross gross were we're X, demands primarily expect board, again and a as to the in and benefited margins capture higher U.S. disruptions supply across in from quarter these from continue year-over-year and results a sales EMEA margins over from of improved energy Gulf to metrics segments grow product Slide due We beginning the margins and On divestment chain. we strong due in environmental to saw EBITDA as rising declined storm across Canada's aided supply by early U.S. across the profit. maintain we the impact mix as EMEA integration year and segments the bulk detail LATAM inflation. Canada, business, prices absence also adjustments of due all Canada margins. WS&A from

of out XXXX. in strategies confident the ability on on quarter our in we to remain to execute Moving first coming X, Slide our

which As approximately adjusted year. million XX on of business, discussed and XXXX this in last Services April million quarter, EBITDA of QX earnings Distrupol our from which XXX Xst the included Agriculture closed Canadian closed

XX did essential in received we which a benefit end demand million We of in XXXX. market from XXXX, not expect also had

XXXX Moving and guidance. on XXXX factors the to affecting of outlook some a key

we our chemical let's million, XXXX our of the our outlook. price We inflation expect is for to these will supply in production revised an in Agriculture also embedded fiscal QX, to stronger XXXX for Wholesale midpoint guidance. American benchmark. expect we guidance. year higher our million than with of expect XXXX chemical QX and pricing QX half, performance. we flow next working net European of is million plus in will million product all the in we continued to our industries drive XX full year expectations initial liquidation demand market consensus in addition volumes, XXX result million adjusted to Slide using to synergies along net XX a XXX as million, XXXX, the year which share adjusted for from expected some Through early continuing robust prior is expect have due in customer exiting the at On XXXX. of EBITDA capital along of as mix range to million disruption our is guidance although increase of general In our XXXX, faster of the XX business growth of XX, growth overall XXX grow rate by from North the Guidance continued the a in highlights economic received broad with economies to payables we the focus U.S. June our Distribution XXXX anticipate XXX million which related proceeds chain, back EBITDA X% in industrial Net and to drive XX to our reopening results. expected for from review cash normalize, Canadian businesses of our the XX and net the million good Accounting assuming the

flow Consequently, and million. from XX% not to sales, despite our the net of up to adjusted be year, will are to Nexeo the capital expected annualized in which QX. use our above and competitiveness. slightly of net through projects is XXX free XXX plan current integration efficiencies QX. forecast with initiatives accruals timing of to Our to working in of working Final working expenses for Net million resulting expected be expenditures other our invest [ph] XXX high for cash rest of line continue to higher capital capital year. to cash net up to flow net in And in line in expected that midpoint the in our ROI guidance XXXX, the yield to positive XX%. of expenses, included with sales offsetting EBITDA the of cash XX level be million are planned million increase use target being to capital your in the XX quarterly cash XX% million to free we're targeting end above of a guidance planned Cash at conversion are flow of is

last worked teams a with is very our cash further and to year times cash pleased challenging against a times we've Nexeo Excluding we end normalized ratio throughout. net provided guidance February divestments any of in divestment X.X no further credit had final target $XX that year, million of take XXXX, -- XX%. of X.X all and progress acquisitions. very excess our the numbers I'm of the or environment, line leverage free very XXX integration range the These exclude SXX SXX in good uses million, account free expected expenses with well liquidity proceeds flow we would and XXX start now a of and cash million the from Net be exceeding ample objectives. our of for conclusion, cash by of our course proceeds cash flow into conversion be made to In in the

continuing rate XXXX our are by a to the plans adjusted details margin on achieve and fall. bridge to end the EBITDA of this run to XXXX X% more We provide we of to implement margin David? XXXX intend

David C. Jukes

Nick. Thanks,

quarter, milestones including As the during activities I game several and integration the delivered million into of we're stated moving of previously cost end $X on integration delivering synergies. successfully

our in $XX and single early completed system is highlights to of to SAP platform. to synergies of on ERP achieve quarter, migration million USA the include benefits $XX expect goal we're this operating beginning from year. already to the realize the a We Other million modern

and remains of XXXX. to SAP track second Our Canada half for migration on Mexico the

for two Since plan to the XX, finalized expect total consolidation sales real of million. we further estate XXXX, $XX continued and of bringing cash site quarter, close total cash our closing Our approximately million. proceeds nine in We to branches with in branches year. have closures approximately sale generated pre-tax proceeds the sites this $X three

realized yielded EMEA are million anticipated in $X in April EMEA a as on gross further we our proceeds. expect investments $XXX Distrupol we sales in asset sold still on to Plastics $XXX gross have we to SXX, million in and Moving proceeds. up to Xst. targeting QX, million to In date approximately deliver from business total

We this have next. later until divestments now paused our early year remaining or

cash to of with the delivering markets The of a globalization Industrial verticals end Solutions customers combination consistent, strength regional We're advantaged to of actually Our our to ratings commitments and sellers of we flow and driver times. and to proceeds leverage agencies, approach also solid issuer has and our and sales business force and capability a our making S&P and and April. business in by of recognized strategic cash of the Moody's leverage the upgrade initiatives our been and our in below approach meet as platforms. to Consumer growth. the will corporate progress expected flow This let improvements our strategy SXX year-end, both is and maximize by expect expansion reduce network strong and remains debt to X.X we our differentiated key first technically times fund divestiture specialty our the digital our three technical net rating through

verticals our allowing to committed these is partnerships expand and Our investments in build us strong expertise and globally. supplier them on

global consistency, attracts unabated each expected Over with and accelerate annual deliver million to our the and value now consistently supplier commitment number delivered has a omni-channel customer digital they leader as in of expanding are leading being approach, along technical last approximately leadership, gross technical continue support our we recognition And a solutions growth. bring, their customers our to thousand are new partners XX organization digital and a the which to $XX a ingredient continues sensors, webinars, over our months, partnerships These how products doubled to capabilities of quarter. our profit. chemical

platform the is time pricing increase as well Shop.UnivarSolutions.com this enabling choose. We've through increase fully in advantage. be and further whatever quarter-over-quarter competitive they time and the for release Our without Shop customers at enhanced capabilities, The X% an downloads search, as, search digital results, delivering expect commerce next day to continued source, will to select, a login. night give source document and self-serve QX sustainable a XX% in or first transparent seen of in orders and of due

Our continues growth ChemCentral.com frills both transacted of business amount customers no through a and number the channel of in to site. new give

expanding on building second UK the available this success quarter. and and and Canada, are We Brazil CHEMCENTRAL in are the France the U.S., products the and to in taking

excited sites, to customer ultimately Netherlands. is and our and time and the digital effort, business investments to scale do all on integrating the maximize with directly operations, processes business of near real of our chain distribution sending is our more and and us just what what We're levels live easier into for the results about in the leveraging center SXX has connected suppliers customers and ever pilot us. a This thus SAP, inefficiencies. part As it it eliminating Altogether, gone could tank paper and of complex our block into one to visibility active first provides digital asset do and designed of far partners. strategic approach effectiveness our centric data for making for our

while safe, even EBITDA questions before keep our we our strong delivered and purpose help to and exceptional to QX So your summarize, fed, realizing times. liquidity we come to during and communities clean healthy, challenging adjusted

increasingly evaluation of gaining drive company's market believe stay healthy collective safe and to growth. our and customer recovery, return focus remains you organic opportunity strategic we efforts do shareholders. anticipated remain the our to center needs take million shareholder capital we We $XXX raised in opportunities, working times We high million XXXX well and It's excellence. The years customers. to firm very year-end million through inorganic selective cash our by now from net digital acquisitions next adjusted committed becoming in least of your advantage, have investments improve year million. track year Thank of every and to the attractive the these is global leverage, quarter to SXX and full see X.X XXXX. the ended net the time program will metric $XXX made priorities, by on and combination to that in at use our and cash full the with cash believe the is $XXX to we of in There a functional furthering year-end at is liquidity. value cash please questions. decrease are for to will achieve we advantage all progress and growth with growth. guidance We're proceeds, synergies and and open We're our $XX our working are and your significant million up towards beyond. on momentum, attention, deliver lower $XXX on with fund other our and program ROI at momentum both maintaining that free on our We for capital That control to right enhanced committed greater EBITDA EBITDA XXXX working. We of on X% at maintain to. to we putting it tracking investing to strategy flow delivering and integration that by which and The capture value. plenty of position divestment deliver margins bolt in We XX% through of plans conversion management capital leverage options, of

Operator

[Operator you. Thank Instructions].

question comes Research. Kevin McCarthy from from Vertical first Your

open. line Your is

Cory M.

some M. your was X.X%. for the the forecast This curious, through XQ rest morning. as is In regional both maybe in and some that maybe the margin the Kevin. to of Hi, forward at and puts I'm first relates on good of takes Cory basis a of it drove talk you for impressive EBITDA EBITDA what the your quarter, and can year?

David C. Jukes

morning, good Hi, Cory.

US are happy see I and think, We is foremost, to mean, do think program I the in which in the spoke really middle I our to that. of big, grow working SAP and getting supporting behind it agility, it's exciting February was commitments us and that that first to big strategy allows hit a the year. deal SXX of really and those our we operating last

share we've a through what is some that distribution time. allowed network advantaged very our and us difficult market to Now, seen has gains clearly do

the quarter. seen think And, some year. seen then, there's dislocation. we've we sell we us growth. has into in a of most which the that remarks higher have the half little bit improvement, we addressed price think continue products specialty we And first through that to of We the seen mix that margin in yes, will that a that's some as that be go I I think the the We've been But second helped and the abate prepared chemical driven portfolio [ph] The inflation. portfolio.

Cory M.

of same about the way price chemical down think as on may, I the impact half, rate how we at if sort that? should And we like to unwinds, sounds it should expect or in second inflation margins the back it Understood.

David C. Jukes

we mean, margins, carefully impact nothing out. pricing like but to in it always manage the the that incredibly expect think would we I are marketplace. sure I to make I on way competitive

in wouldn't news second story expect And bad a so half. I the

Nicholas W. Alexos

we EBITDA margins only year. to the think that is last versus our overall than I of it that And year leverage better would reductions in benefit year of is thing you're through, WS&A. operating some Cory our margin be this cost The some prior drops as expecting Yeah, given add Nick. are seeing I

our this year-over-year there a see we as So in you improvement surmised, year. do margins factors, net-net of are but lot

Cory M.

Excellent, thank much. you very

Operator

next And Laurence from Alexander your from question come will Jefferies.

is open. line Your

Laurence Alexander

by Good you can lines morning. region can Two on are gains One gains, product acquisitions secondly, characterize pronounced? most pipeline share where versus specialty the characterize commodity questions. share the currently? the you And of bolt-on or

David C. Jukes

Sure, good Laurence. morning

down think successfully I business to gains differentiated well think as able the I area piece. competitors certainly we're we customers the And from and specialty across mean, support getting winning and were in in as right the I small first and who of new more on But helps think, that authorizations, some the doubling very were quarter improvement we're share that let does that specialty elsewhere I products. very because large in commoditized drive of mix. was as it's and portfolio commoditized, it products. significant supplier

So much the board. we're right seeing in I Pipeline, me. I sorry, stages question, across we're the it think forgive of very pretty early mean, second your that.

objectives, the to to we now And meet below start Our first X.X down. focus about times. is get to to leverage strategy. of X capital think going and beat SXX is we're our allocation the which get our leverage I'm very that to excited down

be don't it'll I want because the acquisitions lots buying we pipeline into and very a people expand to up are anyone through bolt going a pipeline careful starting geography, will address. on our isn't companies building But we we're think off we at to our case. capabilities that think us looking but build to that can enhance that want that So and suddenly to we're We of or add new rush start technical process.

Laurence Alexander

Thank you.

Operator

Koort Your next will question from come Sachs. Goldman from Bob

open. Your is line

Robert Koort

about just of the Is the across the versus think it would the was the that here you in a of better storm good relative you had guess morning. much, function we perhaps, EMEA, I or maybe and reopening North have the to Thank should thought One, relative U.S. U.S. a how cadence very pond between America? performance in

David C. Jukes

good were Bob. a we things morning, well. think that, to in affected couple as firstly, And the I by U.S. of storm We the Yes, remember

gone. did closed. get of a some we you many And, down sites them in February our sales also of gone, impact back could that some in So XX number those some for March, have to were of have our customers and up which sales of did days,

quarter Second thing platform. the very moving that first SAP of we final the in were on on U.S. is, focused the SAP to still and stage

first but midmonth have still clearly So the And quarter. Is forget built quarter the $X the around as That's in But do North helped really that's in exited pricing was in March, see million. that can still work? first that and in impact forward. will both into I you will in good to think a it acceleration against don't I a us have strategy very our certainly starts the successfully, January, America mean, to of headwind in quarter year-on-year. going energy growth be forecast February. we an we

Robert Koort

Got the then coming the given pattern conservatism pricing and little tone volumes guess the or something half, there should of Is we implied in, about that for business of back and you I suggest maybe seasonality just deceleration. the second is quarter a then or what about think the some in on guidance and half? second implied maybe

David C. Jukes

Sure.

there touch consider. some about always factors but there again So, be a are of to conservatism will us,

second second, in we've Distrupol is first the Firstly, it me, excuse the that’s the half the half. versus of sale impacts got in in the

always weakest is QX We have quarter. -- our

some expect down what we'll open but So, up that's probably see volume some softening normally earlier And, quarters. million we'd XX price, economies in we how in in on again. expect the increase as

that it's much of there. there balance So in is how

Robert Koort

much. Got you, thank very you

Operator

come Bank. from Deutsche next from question will David Begleiter your And

Your line is open.

Katherine Griffin

David. Katherine is on This morning. Griffin good for Hi,

just earlier I on to question, an of first wanted kind question. follow-up So

in QX and material you were So Yori going to that from how unusually the you what costs. called you to [ph] benefit I'm would speak some trend that to out due there can that and size curious, forward? just QX maybe in expect was high raw inflation

David C. Jukes

Sure, to year, last in did product portfolio. I difficult increases. it's I looking steel we're way right quantify the we're the look, I at is and looking we think that for mean, at increase mean us across because to spread And, transport the

to that quite the of did time the to end So quantify markets. focus we it's some narrow very on last difficult with and year this the essential in way products

what our where where share the we operating the that's us. and and our have integration the drives portfolio I year. about much is now and through starting grow our right improve confident see our our rest good strategy market now, is pretty now to are improving. we is mix you that working. that to agility should think And some across performance the We're thing take headed we're behind share of the ability We're very

Katherine Griffin

downward comments Great, price the then versus just headwind on the about prices, like that secondly, higher Can with between inflation? thanks. the of what aspect talk chemical the in curious the chemical chemical on it squares probably is commodity And difference sort and quarter. both pressure how you on commodity prices

David C. Jukes

my I think Well, excuse I got me, this morning. was, I a yeah, frog throat Kathy, in mean, it

those benefit I to of think commodities get some start starting And see now we're in the think, and come to thing. from I first it those. bulk months year-on-year in a couple was back price

what you're looking year-on-year of thing, of year. a point couple in months So that's in first the time at a year-on-year the thing

Katherine Griffin

thank Okay, you.

Operator

[Operator Instructions].

Fargo. Your next from comes question from McGinn Michael Wells

Your line open. is

Michael McGinn

the to I cash quarter. If pull can the EBITDA versus flow Good Hey, back through. good go morning everybody. free

the of quick So, the midpoint envelope flow XX suggest of EBITDA cash up the would just math, versus free would of the be midpoint up XX. some the back

like So color the ERP XX points given pull than first previously any supply half simply better in the something how structure, be versus there benefits, capital half, working was is it there second different potentially there or would through chain great? is the tight expecting, is were the you the what

Nicholas W. Alexos

Yes, big sorry, morning. QX the did thanks I Kevin, use Michael. working the was see looking wrong Michael, capital. Yeah. cash for call. Good a I'm in at Michael, of name.

also the liquidated And through get overall ratio our then back the as to of which, Some the back getting in we an end year. the of that lower we business, expect summer. do said level. is we QX Canadian as the And a improvement was volume has

are cash or swing conversion we back half through the that flow pretty an the numbers in might puts have year. million million a and So good working overall, end capital the expecting But percentages the Otherwise, takes way. $XX we're of of one small year. in expecting improvement $X

Michael McGinn

to the business mode capital then one allocation two something Is in of is great. earlier just call? it were alluding you this were to left get or talking divestiture you switch of Okay, to and to kind that one -- the XXX you And then the proceeds, that incremental or you businesses target. kind the

Nicholas W. Alexos

they businesses on the perhaps the get not year we're revised that and as early get or hope into those that are issues the Yeah, in factored in later assets but those, given we we we to being next very defer We've year. not of to internal timetable. and times those small or And X.X are, assets terms to completed frankly leverage. to some what specific decided external

David C. Jukes

can get have nothing already. we Michael to of and we as us said anything levered sell sold commitments you to fair is that. our times three There's below for think, say our and it's large that without else I significant first SXX sell

So that's pausing. we're why

Michael McGinn

Noted.

do kind probably square million your expense rate, guidance, quarter to pay level were this you interest any down down but million interest this? $XX about way with to base you it smaller, is per of that doing up XXX could you I a other think if if to maybe -- debt without So additional couple divestitures, divestitures of per that can quarter, push down pay the

Nicholas W. Alexos

EBITDA next and few that impact Yeah, I range. the flow, and few that roughly that cash quarters. in use have the we're meaningful target. given will on not are Any QX. to next divestitures And our additional the come mean add would deleveraging page reported be goal will per numbers. Put the at would XXX% million the be just quarters the through aside cash divestitures looking to that over any XX XX

Michael McGinn

color. Got the it. Appreciate

Nicholas W. Alexos

Sure.

Operator

Byrne Oh, presenters I have in. in of America. Steve to no the over back for questions a do have queue. we the pop turn closing from remarks. further call I Bank

Your line is open.

Luke Washer

Steve. on Apologies. regional again. that ask morning. first little is and were you Luke for they the strong good about quite Washer upon I In Hi, quarter your to wanted touched margins This I know a anything United is anything or doing of perhaps ex-U.S. you're that? the more seeing shift like driving in there margins kind product implement or higher mix you is States or but this that the that would bit,

David C. Jukes

Yeah, first thing world. commodity is America portion I mean, products, the chemical rest hi Luke. than Look, I larger North has of think those of the a products bulk so the that

down And so the margin comparatively. that will drive

our has differentiated more percentage LATAM chemistries a and of portfolio. of business its business EMEA those Our as

that And it. helps so

have price, drive effectiveness, do we to drive to global drive Now, force programs management. margin sales to

you and take the specialty every solutions of business around consumer and industrial some the of deliver the we as got North American markets, consistently in LATAM solutions the end best we or globalized that in business bulk in business. EMEA learnings to the But look global commodities, have do operate business the fundamentally, a commodities U.S. those the We in. from parts of proportion the bigger or than you've all

Luke Washer

that really be has for of share picked that. the of Thanks you seeing to authorizations chain have adding digital allowed to helpful? Great. some capabilities there is customers. you supply your up value that either your of a would and around function that more that about adding value past talk kind And more, seem really is market through more recently the recent platform, are to you or is we're supplier digital one detail anything to I guess the maybe and it just in new of take disruption the seeing

David C. Jukes

those capabilities global on model, digital Nick last solutions the very at is and we integration those North some are started a that reach I and portfolio, I if that's that the of particular, as the we specific look Sure. and business that and I to connect those finding at we coupled secondly, is put focus And to firstly we've And new growth. drives year their think, few solutions in all having America industrial very starting led the our it get more in customer also think market drive the attractive mean, behind is by to attractive you us and consumer Suppliers do. focus globally mean, Powell, specialty driving I in focus share. U.S. or us things. business our more that center with that, share does there's a to a mean on can authorizations. the customer ability

they and we dislocation thin Now, network turn to a strong in us at a and is can time have marketplace, portfolio we and thick there because really great And through can't. when when great clearly support done a relationships. do the supplier is customers and others what have them

that share helps so And some drive gains. market

keeping focus sure with those is of stay Our now customers they us. making and hold

continue found. literally investments our XX% And buy model bringing hundreds to are in in capabilities, of are something, certainly But do us increase downloads it. if brand new buy new just customers wouldn't digital to in concern for from, easier customers will we from. XX customers, does customers now Our we have and that to some attracting easier otherwise about it's is our shop making and

the feeds share all that into So gain.

to supported choose us So that leveraging focus have for to. this then with to all stick compelling more is really, things we digital suppliers digital, tools much very focused of easy there's or sellers solution the it have around to to the either with operating the with and that agility a specialty help And very we on turn us. customers and I making better that and range ERP can a us But sensors to point products for buy having having modern from. platform now by be focused

Luke Washer

you. thank Great,

Operator

back remarks. will to closing I in presenters questions further call over have the queue. no for turn I the

Heather Kos

time your Univar for in and for and your you gentlemen Thank interest today, ladies Solutions.

have This any you questions, team. today's follow-up If reach conclude does out the call. please to Investor Relations

Operator

everyone for us you today. call. Thank concludes This joining conference today's

may disconnect. You now

Univar Solutions (UNVR) 10 May 212021 Q1 Earnings call transcript