- Earnings call transcript Q3 2022

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Operator

Hello, everyone, and thank you for joining the Univar Solutions’ Third Quarter 2022 Earnings Conference Call. My name is Darius, and I will be the operator for today. [Operator Instructions] I now have the pleasure of handing you over to your host, Heather Kos. Please go ahead.

Your line is now open.

Heather Kos

morning. good and you, Thank Welcome to Call Webcast. Quarter Solutions’ Third Earnings and Univar

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

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

performance. As forward-looking. we referenced our such and I’ll over of his filings remarks. not guarantees for outlook, forecasts more statements future. future. while the that, summary expectations of estimates, our the and turn estimates, are involve And statements current they projections, about All on for our they inherent for the and for X, and/or are business uncertainties the make Slide SEC risks Please uncertainties see detailed risks expectations in With a to our future David call now our and opening reflect

David Jukes

afternoon, evening everyone, to good good and joining and morning, Good our for Heather. call. you, Thank thanks

slightly going you different are earnings a with. to leave to messages and we’re to X take This want quarter, there approach call, I our

we have Firstly, fundamentally over transformed years, the company. last X our

deliver record to in on well XXXX. we’re track Second, results

high-performing, life consumer a critically and a industrial chemistry-agnostic important, we serving of markets. service sciences, diverse end range Third, provider, are

over year. chemical and we’re guidance and third Nick. for full our results producer. Nick? our quarter the to a for it He will let first, confident not our also XXXX in me talk will through fourth, hand are you We beyond. But future And affirm

Nick Alexos

share to financial I Univar results. Solutions’ strong am Thank pleased you, David. QX

of capital detailed expenditures an quarter quarterly schedules of was the million, was higher to the in the income. annualized, adjusted with prior in capital than as investment which impact to to Cash prior earnings working Net the share $XXX appendix, investments. XX.X% in the from quarter, per prior in increase quarter. our the mix and period, for inventory good diluted due in net of net as primarily were operations quarter line higher inflationary third ensure For $X.XX ROI sales from working supply million was the $XX at customers. $X.XX year reflect high reliability further Capital needed our as of reflecting well a year’s

of XX.X% for by And our utilization. since returned net to goal ratios $XXX was over was up on at from discipline program ROIC QX. the which are our Our X.Xx, just better gross also debt in on stands around X.Xx geographies, performing Sweetmix currency planned. Across quarter, corresponding of within basis, asset performance and profit basis to the our now XX%. primarily currency the These XX% year pricing constant $XXX last and shareholders leverage our repurchase volatile profit and X.Xx. million LATAM’s up is a share gross acquisition, than all totaling of net cash constant further driven results were were of quarter sales higher strong benefited through the markets. efficient result million a Sales a the during

were from stock were EBITDA by headwinds. constant to regions margins. higher most leverage margins outbound XX% Adjusted roughly margins as by by growth by million EBITDA currency offset primarily despite impacted lower the margins partially as EMEA’s WS&A. declined higher As increased freight was and the basis, currency lower handling profit profit. anticipated, up throughout in on were profit was gross gross of a LATAM’s Gross nonrecurring lower for margins million and being operating $X well EBITDA abate. driven higher Canada $XXX U.S. higher due flat profits profit due to gross WS&A. in as

last During U.S. the quarter, of inflation, of remnants effects adverse by we the price offset a benefited from the currency strong partially dollar.

to in on the concerns ongoing resilient saw X Ukraine. sales Moving recession performance the in our in We trends geographic conflict and despite a financial U.S. a segments. of

we our market our our suppliers. technical supplier focus as design us we are saw the inorganics, metalworking Industrial helped & and robust Latin partnerships Ingredients Within of both customers continues saw resilient sellers gain lubricants Household have Chemicals pricing in helping and Our Services growth for saw Sciences, gains our today In mining, supplier and driving exclusive value expand and channel energy, growth & In and to water customers for and Personal Canada well on focused our within new improving dampening products sustained Care demand our as and with partnerships sentiment presence. and force fluids, we equipment, channel, heavy-duty are new due solvent and Cleaning, tomorrow. formulate and discipline. Food Pharma strong share Specialties as of technical for focused to have America in along treatment. future. teams growth seeing automotive despite we high-quality formulations and customers as authorizations as of Life sales In a ingredients that the medicines grew are

shortages. after We’re also manufacturing period returns seeing microchip extended automotive in of growth an as services

our and seeing local offer Finally, leverage the capitalize with footprint. is distribution scale, customers carbon ability a share our gain in our core to of provide our we U.S. as reduced on business strong reliability supply,

level trends, stabilization. slowdown, price FX a destocking of seasonal year of of continuation the Our and normal rest the reflecting assumes outlook continued current with an our chemical rates, the economic for inflation

because share have planning continue to market well otherwise several these Although to grow last we periods. are our for execute we of as factors, for moderate to margins and expect we the

a for to EBITDA for full midpoint of is performance in $X.XX the QX previous guidance, year million billion. with $XXX in of line implies our adjusted million, result, which is As which range guidance a $XXX

year-end review working sales. of highlights patterns, cash seasonal source XX.X% typical on we Let’s outlook. the targeting working be the capital Based the quarterly XXXX XXXX, to are By capital of our fourth annualized of net in cash XX% to is a of net some flow expected of quarter.

However, the business year use due to full growth. will be the a year-over-year

tax full level Our unchanged, remains is NOLs. versus which earnings XXXX guidance of taxable year due for a the to runoff year last and higher

mix $XXX continue for estimated Consequently, million our million, cash is XXXX. our expecting XX% XX% be approximately free capital geographic we net earnings, approximately of XXXX tax rate And year full the a the to effective flow we’re from adjusted Given EBITDA. XX% the is expenditures range. in expect to of $XXX to for conversion which

quarter, announcements our share our more buyback as bringing a repurchases our this earlier, with to to allocation than As next share to our initial of of Along capital completed totaling million, authorization, Board mentioned us strategy. expand part authorization. $XXX XX% our $XXX implement year we plan to continues early million dividend

We beyond. are outlook deliver full David? for are execution and our and and in confident the preparing XXXX to year in ourselves XXXX

David Jukes

Thanks, Nick.

macroeconomic X the the transformed foundation for well provides have past stronger with ability years, growth as fundamentally which dynamic the long-term as environment. the a company, successfully Over we to us navigate

buy like deleveraged reduced what We and time, America cyclical resilience leadership in done successfully of our end digital and market on to visibility markets, and We Specialties, make of in from in our of performance. Ingredients growth geographies reminder the which is hard label a improved proxy And we’ve delivered volume provided highly agriculture M&A our through COVID. through net Distribution and in we’ve company service serve, for a back and good and to cash diversity a time established markets billion and of clean just $X margin exposure complex over isolate solidified sustained & a that our in customers suppliers balance XXXX, ever our products range we’ve a we our still profile. during As migration and adjusted acquisition the downturns energy. to promised foods. and is proven and with clean growth EBITDA business, deceptively leadership used perfect North not to shares. Today, we’re diverse Because solutions of while in metric. alone which largest water and integrated a customer-centric can suite in completing have deliver value-added tools. synergies sheet, the free We’ve we completed serving flow, space, it digital overall delivered we’ll positive tuck-in SAP opportunistically

tell Reliability, accuracy, business customers objective, growth markets, and that In safety, Order on-time and is can customer what most: key value: focus indicators. us in continue metrics support, sustained technology-based of are performance. The safety, is they X of improvements and in things pricing. satisfaction, the prices intrinsic us metrics us addition growth make largely to gives as value serve In chemical areas, measurable, tell future they on want we customers and solutions. from ESG services our innovative competitive our derived independent we our This is delivery, to using confidence these technical

provides of to the macroeconomic to effects dynamic some navigate against positions continue business transformed more us and the well installation Our environment, downturn. specifically, an of economic

in ingredients the healthy, us need clean we industry us communities the circumstances, macroeconomic stay of economic well uncertainty. at broadly, to essential positions fed, and terms Looking our the help nature provide Whatever them chemicals the will of safe.

from U.S. footprint us near-shoring in reindustrialization our on and helps trends us in In advantaged a severe and downturn position addition, North Europe. America buffers and capitalize

recessions, have proven we As services, our distributor, as provider, as price customers and the environment core us through providing a cost and and end variability ever in have as recessionary before. manage successfully our of diversity time competencies And opportunity breadth again. well to we our engineering. is enable today, so products of and than a which And better attributes solution These we navigating we the for and scaled lower reliability volatility, value-added connect do one through a given markets. can suppliers

have and those Day not, intrinsic This XX% financial in to XXXX. laid and guidance, of perspective and FX a free to conversion. our firm that cash schedule, intention Investor broadly improved Europe belief our to a year share but a assumed EBITDA our through ability things has full Since economy. goals want since in $XXX recession giving do rates flow including some value XXXX million perspective. although ahead goals provide profitable And our on today’s we changed, in not modest our time, protect I we’ve net stated win the of late U.S. out deliver whilst rates, flat adjusted XXXX, at financial XXXX During

see U.S. million. If dollar would negative it of a the current at First, impact we levels, has stays appreciated around significantly. $XX

will if the that course, moves be reduced. impact way, other the Of FX dollar

the in some is a we there in If gone recession of recession historical whilst probability the have U.S., perspectives. moderate up. U.S., uncertain, has Second, still the

by of dipped free resilient we already XX%. has flow During performance economic downturn, a and much business in But robust as we’re around for Equally more I important, either XX% cash major be. conversion net or the target to to our diverse, increase, last X allocation more would generating cash reduction capital recessions, our stated, an investors. than debt used

guidance QX XXXX provide for on to formal expect our call. We earnings

Beyond revised to our adjusted XXXX, to in ability we’re EBITDA and XX%. GDP, above our X%, than growth adjusted believe ROIC continue future target our better in have margins deliver be over confident to and

plans in In addition, for in to continue to than our share program the an $X.XX X.Xx organic X.Xx greater we opportunistic our adjusted and leverage targeting EPS And M&A, based we’re growth, our on target expectations range. projected XXXX. buyback

will capabilities our reflects $X.X we company. as $XXX confidence billion continue to XXXX to of Our XXXX, in capital cash our we free From XXXX annum. capital well to flow. expenditures, expect generation which as generate of value believe cash our million the around be allocation per Net through approximately business long-term net in our strategy

As capital the commitment and over a serious shareholders. to along further business, a to our result, authorization years. returning dividend next share has we accelerated but $XXX approved $X million XXXX, only billion This, have X not our confidence a Board with share anticipated executed to buyback a demonstrates repurchase, in payments our run in

markets size acquisitions also and an a expect bolt-on for regions million and for to where synergistic growth, of are in opportunities target we year rationalization. believe there $XXX We average cost accretive cross-selling

new recent to more proving Our ahead be get of schedule realizing from and higher authorizations we acquisitions than suppliers already anticipated. and accretive extensive are planned are as benefits

to to before and summarize. your come we So questions

have we years, company, all the remarkable the expect and X deliver at results. center of last the XXXX do, the to we transformed Over customer putting

of selected strong available a through and opportunistic a position $XXX believe long-term we investments million With high-ROI are cash of acquisitions. our with we’re regardless believe $X.XXX fulfilling we in purpose in billion continue of value rather commitments communities. service free an to We’re our initiatives We net expect your healthy not our have deliver your authorization, our net chemistry-agnostic free and our EPS it shareholder XX% will to in confident with chemical solutions a repurchase XXXX, X%, our $X.XX deliver combination plan ASR. a fund to we to questions. than cash agility capital authorization We and producer, XX%, highly a have to conversion, than to ability flow operating adjusted greater of macro and and ability in you and launched new interest Please to ROIC that, for environment. open and people margin in EBITDA and to for Solutions. adjusted while attention use XXXX. greater safe. high-functioning And greater the and Univar deliver Thank of Through provider, we growth execute than up stay share flow

Operator

Laurent Instructions] Paribas. BNP comes from [Operator Our question from Favre first

Laurent Favre

first if talk I QX about much little to the bit that areas and called about destocking drop. to the you QX the was could QX over-earning between HX. how out had profit you trends more in compared essential million you is regarding expected My could the question and a think & talk wondering $XXX the price Ingredients And areas. you if Specialties normalization I for had,

David Jukes

high-performing survive all, we’ve into X the that the we’ve which and for years first the provider, macro, we’re position real in company mean, the think, a is, of company a put we last question. this proud what gives to to resilience it service thanks this of Laurent, to done way robustness us I and transformed I whatever the really over think.

In in QX, QX, that of there in quarter. seeing stock destocking. seasonality of mentioned, usual element degree the And the we Ingredients had We expect think Chemicals of days the I at plus in of we less see last QX, covers are X profits QX. which nonrecurring We the going In but margins, we and of QX. terms Services of Nick as had the don’t also the business. will think those in any contributes, had business. remnants we the a in covers on & we through which quarter than destocking & is that the an moment, Specialties business sides both It last trading

Laurent Favre

still that exposure Ingredients of risk. From Or is X% I And in to & in ask you Specialties a mean, would the standpoint, U.S.? target, maybe side. got Europe it’s more also same that margin is at at issue is you’ve say EBITDA terms if XXXX. more your the region? geographical European is can the Europe where downside obvious it the the the to I on But time, some

David Jukes

downturn. robust Europe in area, business and No, through set And target, our a very more water, Sciences that XX% a I mean, than clean we’ve that you’re food, our a we’re clean makes clean in targets in through the proportion by we’re think right still all $X.XX has downturn. People XXXX. very medicines ROIC, X% the confident Better which out. high EPS the confident in Life I need

So And in to we a lot against unrivaled in have, downturn with see the in that. reindustrialization market any U.S., of strength we that course, energy feel Europe. transition, in And U.S. the about an buffer near-shoring. of good very do footprint asset really, to us fortunate market

Laurent Favre

in. last one squeeze to just And

I’m those was Can margin, talk X% improve wondering in I talk about you which the that you in the On is to that if just your XXXX, level were what below measures? I’m can QX control QX about X%. of below cognizant think from X%. you

David Jukes

good the higher it’s relatively in that payments seasonality quarter. margins mean, and proxy compressed not the and as are I bonus QX, destocking by Sure. a really,

support we in margins. we think still think XXXX, I that can our

which in where a of trend the seasonality is a for great have and million of we mix think We the the value We year. and still to capture QX proxy But business I&S C&S destocking. our at is because not program, our QX expect do most business. positive looking $XX I all, between have

Operator

Our comes Credit question Suisse. John from next from Roberts

John Roberts

$X.XX-plus Congrats is just out, much above bolt-ons? much big to you XXXX do target a build on is think how a current will help us share quarter. organic bridge repurchase? How much in consensus. there, growth? is that well a but be How from will way EPS long nice you Could buckets, be

David Jukes

the XXXX question. the Thanks mean, this of about out. is Yes, for a But way I our deliver incredibly confident ability generation business. look, also cash to we’re and

that $X.XX, half we in that where from bridging of share Just to repurchases. about are today is

The piece is other then and growth. organic in inorganic

buckets. those it’s so X And of kind of in kind

John Roberts

decline anymore. XX% And I’m just like they’ve your how then mix and maybe biggest give much the All thinking not much the kind about a between about of metrics changes ag past EBITDA. parametrize you so recessions, on some percent you peak-to-trough just of the Can caustic in is talked or Energy down in there Maybe us as in right. gone the them is smaller. like business, forth? something then.

David Jukes

resilient, are robust during X, we business much we the Look, Sure. last more today than a X downturns. X, were

about our think XX%, probably business back. way energy XX% you something like of If energy, was

Now Ag business. it’s less X% our than X. X%. it’s of Today, X%, was

Sciences, is X/X water are Solutions like clean. Industrial us our to our caustic keep space. over that And Life are clean, so we keep now required business -- Products of in

our us a and products period. thing next healthy, downturns say which whatever are And and it’s we’re And we the much chemistry-agnostic. is help what take recent important not so that necessarily that’s clean safe. That’s end macro the resilient. to from we the communities robust chemistry. learned more keep markets through It’s really the we fed, why the we’ve environment, supply serve, And

Operator

comes next question UBS. from from Our Joshua Spector

Joshua Spector

comments downside scenario. talked on capture a additional you in So value about in ‘XX, your opportunity

be levers those what pull to earnings potentially you what downside. have how view and could you to as curious meaningful relative Just

David Jukes

I for last programs look that in investments back we we’ve start thanks made couple the have Josh, the A office the of in are benefits to question. transportation. those in from place we we digital how of large to the over value-capture. They’re Look, already really as at think drive part the years. arena

we achieve big of that or are without a have out of very RIF about anything costs lot variable. our of the So confident those ordinary, A doing to a feel base. pretty don’t like asset our nature. We fixed ability anything

cost quickly. management our here a have pretty which can We have asset-light, downturn the been a lived are And team means last through our downturns. relatively several. we through variabilize we that in that experience several That’s

us. So for it’s new not thing a

Joshua Spector

Okay. And I there mean, the what here, without, some gains the mean, $XXX about puts negative I next and talked adders if you’re the share close risks million. I looking of second guess, I in guess, in for we the Like in positive businesses, there guidance mix getting to to should the Obviously has you FX explicitly destocking there. I half effect. and we are year, are that mean, and the at? be what other annualize takes?

David Jukes

not we’ll we’re and at moment, that guidance February. giving right, do the in you’re Well,

I authorizations we’re you look targets to seeing our it is gain and supplier the those at Day Investor business. seeing share we about are driving gain, said share more our we through. what product new we think come set us, that and across about and if at It is out there,

reasonable that M&A, selective So the get you well. incredibly a to business that of of lot because executing number. top some seeing positives on and just there’s Add very we’re a we’re in can

Operator

comes Kevin McCarthy Vertical question Partners. Our from Research from next

Cory Murphy

ASR for it is repurchases? leave for expect pace after curious, the there the share Murphy capital completed, allocation, the And This of what now. we as to for Kevin. I Cory on should it was I’ll is relates

David Jukes

you approved. billion Board the should that X mean, buyback -- the the ratable I you be authorization for really Thanks $X share now And across there’s see has think should years. question. I

Cory Murphy

the something able you’re of at if repurchases share and million. And back $XXX the expecting as to have dividend you’re or going that do CapEx shares, time? would annual Or not grow same comes off the you Okay. buying to a maybe of of put to follow-up, all $XXX Are million able up you forward? be as you and acquire, spend M&A

Nick Alexos

Nick. Cory conversion is that say, would -- talked net flow cash I Yes. XX% about it’s we of free The CapEx.

So from CapEx deducted is that. already the

use, That we’ve David free ability we about spoken XX% whatever a affords So do you flow. mentioned, buyback to cash have as as as a share EBITDA ratably, well our dividend.

availability of under up have bank end would cash end the we our we as would flow at or M&A, addition, financing existing In year. the

flow our So of all of of as outlined the we’ve the with done the that and business lines. be cash can credit expected availability free

Operator

Next from David Deutsche from Begleiter question Bank. is

David Begleiter

David.

in to resources but thinking variable, given that cost footprint or new forward? the forth region. permanent Some your are actions companies costs that begun you asset have pushing region less Europe dynamic changes I very about are in announce know going in

David Jukes

assets David, tight, was about I Life have efficient European pretty business thanks in a our our or We of on. network some and kind of something -- ago. for space. assets. since It’s Europe specialty business. a years the very did I there that’s there our we half it’s It’s is question. that our high-performing in than something good, there, business And when Sciences rationalized half carried then, More business, of

So that’s pretty asset-light.

footprint. years, to about I so. European think continue the we’re continued that do in our don’t major and We’ve over footprint So we’ll manage several to restructuring thinking

David Begleiter

destocking worse It pretty like, is sounds from severe. QX, season? in just And is than this typical companies, good. Very it other

David Jukes

it that segments, customers we’re is, is. a I much down about Yes, lower this is. we people the buying we’re we it to ordering quarter, mean and what for us, shorter more if last we’re volumes. it we from today seeing think seeing, I more visualize time tomorrow. Yes, seeing transactions, talked people also think but certain are line. so buying And on what

That’s the marketplace. in the stocks their driven uncertainty managing down. So people are really by

than more tape. the the is QX expect for dipping it little normal a you’d So for severe

Operator

Byrne Bank Steve comes of question next from America. The from

Unidentified Analyst

it gross My more would C&S, costs margins And Hoffman do has the but I&S is, Byrne. development Rob be reasonable in to I&S and is on assume business? EBITDA commercial for question how that Steve margins is This higher businesses? compare between than first X the

David Jukes

our you regionally, how brought businesses that’s out. we know, As we report

So some we indications at regional last disclose don’t year, we That’s separately. separate did are but we We report generically view the what those give how Day Investor and and margins like business. geographical segment. our by

Unidentified Analyst

follow-up. and products? just of Understood. focus organization mean, guess a has all-Univar regional and quick a changed years having commercial selling fraction in And affected What the few I business specific I is how growth? line that your sales versus last

David Jukes

through Well, a out. again, I Chemicals XX-XX, not dedicated Ingredients Certainly, I focus keep built having would ingredients us in of delivered industry right We’ve they’re we’ve and those occasions, the to the Services business. something on markets, lower-cost imagine them have think competitive. pharma expertise growth we a or what Specialties & or like through explained signaled now, engineering formulations, and number that of allows on for of over but these done verticals care I’m number has food that tremendous sure to we’ve dedicated beauty help cost foodology business, XX% do customers is, exactly because last through when and the several the it’s & looking XX% years.

technical organization, specialty key growth So driving dedicated commercial to having organization, is organization, in that verticals. those support

Operator

question next from The Barclays. Michael from comes Leithead

Michael Leithead

on another good Congrats quarter.

and anyway. to but wanted I up follow yet, on to ask you’re I would appreciate I formal giving try not just I ‘XX, guidance First, figured

about talked originally million David, I think, you EBITDA ‘XX. in $XXX

forward brought ‘XX. You that to

probably is look all Now negative you’re slides, FX fair. saying macro slightly your which if is the worse, at and $XX I is million

is EBITDA. point low So Is $XXX XXXX good it in for somewhere that million starting like a feels the logical?

David Jukes

service high-functioning a crystal us you the ball we’re resilient we’re trying than macro for makes a ability manage have provider, very about chemistry-agnostic, serving thanks guidance, And to what delivers. said, range math is Mike, we’re me mean, very the about robust. positioned macro, which What I’m sense. for as and I to question. well to which the I get clearer I your do. thanks to have not confident confident marketplace, have. whatever makes to I our no can’t going confirm execute. of we But is very diverse control But and

Michael Leithead

it. then, And Got working just Makes Fair enough. capital. Nick, on sense.

back up $XXX can I million How get do think roughly about going to end this it’s that year, of to much headwind. year? you think be next

Nick Alexos

Yes. next a you on pricing where a slight on year. cash year, basis could up think working positive A would year-over-year it our we number year depends where stable, of pricing expect stays if next end But capital we being. up lot that flow be versus would positive this end

Operator

question Sachs. comes Fischer Duffy next from from The Goldman

Duffy Fischer

First of question the allocation impact suppliers giving the around big is that are just you.

one as you salespeople ago, business now some on to less claw So may hand, busy to farmed out their they’ve are argue, were that they you. could year a back they try than

sales other the On their hand, are low.

can So that how of if you this? pick get you them, this like up rates. when like volumes, or Or In times Do things you operating generally? sell play distress stuff allocation for that their helps allocation? down out slow does do generally lose

David Jukes

changed. appreciate their back. strong incredibly and our we kind level that product the ought really X welcome have ought as been of that have supply tight, their to the moments customers’ different and the relationships, through the mean, with easily buying sales address support. a channel well I own of and And their us also, have markets is means people worked managed. thanks last And and they about look And Duffy, strategy tomorrow, because base. that suppliers People really, value channel I for for be their direct cost when are really moment really not are did. what a support patterns something ago, a service through mentioned distribution years typically they very are a and few really they But than when busy. never say question, channel. today and very we and that think busy. can I are have what producers ease buying go to bit, important at would busy, that the ones sellers sure business I I’m Typically, their up their to little know they’re buying the not than less very channel proportion certainly is

relationships. we really supply strong The number So relationships, we But we really to with Specialties supplier continues rise in confident have of & that Ingredients vertical. good authorizations our our suppliers. have feel very through new relationships

valued and bring what they the can partner value a are We we marketplace for channel to them. them, for

Duffy Fischer

And then the trying take more QX, maybe just understand at to QX. shot X

forecasting out X was drop cleans look drop you QX The all if up you this into at think ‘XX. about last and at that $XX to QX the that kind million. back more, abnormal When about I is the million, look you’re of abnormalities So when do quarter-over-quarter average Just years, trying stuff the is worst of the the drop $XX make your bridge and that the midpoint, of into discrete January, that you then last been kind going and for than next ‘XX? of year? part kind to look in the X QX early bleed means the to understand years, it’s significantly into is pieces that what worse in QX? Or is February,

David Jukes

Sure.

So a things. of couple

Firstly, we’re other of XXXX. our to ability much we’re very capital That’s return and to buybacks in to why execute confident shareholders. about so committing share to

Ag. and Duffy, we the QX look back on X last If had in an you there a was remember, seasonal business, in as years, you Ag spike

back look X And a comparison over to so years. it’s not great

of year, have If you look couple on. this at a things we going

variable versus QXs. destocking, well destocking, be across of the as We large previous level will ratably will we have compensation, Plus, that abnormally an we in as which elevated seasonality. which inevitable have year, QX have

QX we the business But remember, energy it. anymore. anymore. years Ag divested was have don’t of have and because business anymore. to the that So spike there the you always that great in have for an following Ag with at comparing which a business see But it we we don’t We us have over X presales last just year, look isn’t to don’t really granularity bigger

Operator

appears you Investor Instructions] moment. go no VP, I questions hand now this Please at to It it have Heather back and [Operator will Kos, Communications. ahead. Relations

Heather Kos

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

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

Operator

joining. concludes you This call. Thank today’s for

disconnect now lines. your may You

Univar Solutions (UNVR) 2 Nov 222022 Q3 Earnings call transcript