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Univar (UNVR) to be Tata NQ's Distributor for Prebiotic Fibers
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Univar Solutions Inc.’s subsidiary, Europe, Univar B.V., recently formed a new distribution agreement with Tata Chemicals Ltd. for its range of prebiotic dietary fibers, Fossence and Gossence. These are used in the food, beverage and nutraceutical industries across Europe, Turkey, Egypt and Russia.
Fossence and Gossence are developed by Tata NQ, the Nutrition Sciences division of Tata Chemicals Ltd, with the help of its proprietary fermentation technology, and are used in food and beverages, infant and chilled food powder, dietary supplements and health foods. The digestive health ingredients are a new addition to Univar’s Ingredients and Specialties portfolio. These are expected to provide enhanced functional ingredient options to food, beverage and nutraceutical manufacturers in the regions, allowing them to align with the latest health, wellness and nutritional trends.
Univar is enthusiastic about the deal as it hopes to further facilitate its strong customer base across Europe, Turkey, Egypt and Russia. Its renowned portfolio of ingredients, top-class service, in-depth industry expertise and a network of innovative test kitchens can be leveraged to serve the customers.
Tata Chemicals is optimistic that the partnership will benefit its customers in the EMEA market by ensuring quicker access, shorter lead times and exceptional customer service. The company’s ingredients portfolio, which is manufactured using its patented whole-cell fermentation technology, caters to the needs of today’s health-conscious customers by delivering prebiotic health benefits. With Univar as its partner, it aims to strengthen its long-standing global legacy.
Univar shares have gained 51.3% over the past year compared with the industry’s 15.4% rise. The company’s estimated earnings growth rate for the current year is pegged at 55.2%.
Image Source: Zacks Investment Research
The company, on its third-quarter call, stated that it expects adjusted EBITDA for fourth-quarter 2021 to be in the range of $180-$190 million. It also raised its guidance for adjusted EBITDA to the band of $770-$780 million from the previously expected range of $705-$725 million for 2021. Its adjusted EBITDA was $635.8 million in 2020. Forecast for net free cash flow for the year has been lowered to the band of $200-$210 million from the previously expected $280-$300 million.
Univar expects continued strong business conditions in the fourth quarter, which has two and a half less billing days than the third quarter. Its guidance has taken this into consideration. The company is optimistic about its prospects for full-year 2021 as it has made great strides in its strategic priorities.
Moreover, its board has approved a share repurchase program authorizing it to buy back up to $500 million of its outstanding common stock over the next five years. It also forecasts continued strong liquidity and the majority of its debt obligations to mature in 2026 and beyond.
Under the S22 Program, the company is focused on improving adjusted EBITDA margins to 9% by the end of 2022 and expects to reduce leverage to 2.6x or lower by the end of 2021. Additionally, it expects to achieve the targeted $120 million in annual net synergies from the Nexeo acquisition by early 2022.
AdvanSix has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for the current year has been revised 14.1% upward over the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in all the four trailing quarters with an earnings surprise of 47%, on average. ASIX’s shares have also surged 124.7% over a year.
Chemours has an expected earnings growth rate of 105.1% for the current year. The Zacks Consensus Estimate for the current year has been revised 10% upward over the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in all the four trailing quarters with an earnings surprise of 34.24%, on average. CC’s shares have risen 20.4% over a year.
Celanese has an expected earnings growth rate of 139.7% for the current year. The Zacks Consensus Estimate for the current year has been revised 9.1% upward over the past 60 days.
Celanese beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters and pulled off an earnings surprise of 12.7%, on average. Shares of CE have rallied around 22.4% over a year.
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Univar (UNVR) to be Tata NQ's Distributor for Prebiotic Fibers
Univar Solutions Inc.’s subsidiary, Europe, Univar B.V., recently formed a new distribution agreement with Tata Chemicals Ltd. for its range of prebiotic dietary fibers, Fossence and Gossence. These are used in the food, beverage and nutraceutical industries across Europe, Turkey, Egypt and Russia.
Fossence and Gossence are developed by Tata NQ, the Nutrition Sciences division of Tata Chemicals Ltd, with the help of its proprietary fermentation technology, and are used in food and beverages, infant and chilled food powder, dietary supplements and health foods. The digestive health ingredients are a new addition to Univar’s Ingredients and Specialties portfolio. These are expected to provide enhanced functional ingredient options to food, beverage and nutraceutical manufacturers in the regions, allowing them to align with the latest health, wellness and nutritional trends.
Univar is enthusiastic about the deal as it hopes to further facilitate its strong customer base across Europe, Turkey, Egypt and Russia. Its renowned portfolio of ingredients, top-class service, in-depth industry expertise and a network of innovative test kitchens can be leveraged to serve the customers.
Tata Chemicals is optimistic that the partnership will benefit its customers in the EMEA market by ensuring quicker access, shorter lead times and exceptional customer service. The company’s ingredients portfolio, which is manufactured using its patented whole-cell fermentation technology, caters to the needs of today’s health-conscious customers by delivering prebiotic health benefits. With Univar as its partner, it aims to strengthen its long-standing global legacy.
Univar shares have gained 51.3% over the past year compared with the industry’s 15.4% rise. The company’s estimated earnings growth rate for the current year is pegged at 55.2%.
The company, on its third-quarter call, stated that it expects adjusted EBITDA for fourth-quarter 2021 to be in the range of $180-$190 million. It also raised its guidance for adjusted EBITDA to the band of $770-$780 million from the previously expected range of $705-$725 million for 2021. Its adjusted EBITDA was $635.8 million in 2020. Forecast for net free cash flow for the year has been lowered to the band of $200-$210 million from the previously expected $280-$300 million.
Univar expects continued strong business conditions in the fourth quarter, which has two and a half less billing days than the third quarter. Its guidance has taken this into consideration. The company is optimistic about its prospects for full-year 2021 as it has made great strides in its strategic priorities.
Moreover, its board has approved a share repurchase program authorizing it to buy back up to $500 million of its outstanding common stock over the next five years. It also forecasts continued strong liquidity and the majority of its debt obligations to mature in 2026 and beyond.
Under the S22 Program, the company is focused on improving adjusted EBITDA margins to 9% by the end of 2022 and expects to reduce leverage to 2.6x or lower by the end of 2021. Additionally, it expects to achieve the targeted $120 million in annual net synergies from the Nexeo acquisition by early 2022.
Univar Solutions Inc. Price and Consensus
Univar Solutions Inc. price-consensus-chart | Univar Solutions Inc. Quote
Zacks Rank & Other Key Picks
Univar currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks from the basic materials space include AdvanSix Inc. (ASIX - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and The Chemours Company (CC - Free Report) and Celanese Corporation (CE - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for the current year has been revised 14.1% upward over the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in all the four trailing quarters with an earnings surprise of 47%, on average. ASIX’s shares have also surged 124.7% over a year.
Chemours has an expected earnings growth rate of 105.1% for the current year. The Zacks Consensus Estimate for the current year has been revised 10% upward over the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in all the four trailing quarters with an earnings surprise of 34.24%, on average. CC’s shares have risen 20.4% over a year.
Celanese has an expected earnings growth rate of 139.7% for the current year. The Zacks Consensus Estimate for the current year has been revised 9.1% upward over the past 60 days.
Celanese beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters and pulled off an earnings surprise of 12.7%, on average. Shares of CE have rallied around 22.4% over a year.