Back to top

Image: Bigstock

Univar (UNVR) Enters Into Deal With Kalsec, Boosts Portfolio

Read MoreHide Full Article

Univar Solutions Inc. (UNVR - Free Report) recently broadened its Ingredients & Specialties (I&S) portfolio through a new exclusive distribution agreement with Kalsec, Inc. in Mexico. Post the signing of the deal, Univar will become the sole and exclusive distributor of Kalsec products in Mexico, including their Taste and Sensory Solutions, Colors and Food Protection business units.

The partnership with Kalsec is expected to help Univar deliver on its Environment, Social, and Governance (ESG) objectives through responsible product sourcing and long-term supplier partnerships. Kalsec meets the highest verified standards of sustainability, social responsibility, innovation and community engagement as one of only 4,000-plus businesses certified as a B Corporation. This deal is expected to bring new representation in Mexico markets for Univar.

Kalsec's products are derived from natural herbs, spices and vegetables and are converted into easy-to-use liquid extracts. Its expertise and resources include a range of natural, innovative products and solutions to meet the issues faced by food and beverage producers worldwide. The inclusion of Kalsec’s innovative products brings a variety of ingredients to Univar’s leading specialty portfolio for food and beverage manufacturers at the cutting edge of the industry and culinary trends.

Shares of Univar have gained 3.1% in the past year against a 13.3% decline of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

In its last earnings call, Univar stated that it expects adjusted EBITDA for second-quarter 2022 to be $270-$290 million. For 2022, adjusted EBITDA is projected to be $1,000-$1,050 million. The guidance considers anticipated continued strong business conditions, market share growth and benefits from net synergies from the Nexeo acquisition.

The company also projects net free cash flow for 2022 in the range of $400-$450 million.

Univar benefits from market share gains, operational execution, cost minimization and a robust liquidity position. Chemical price inflation and higher industrial demand also contribute to its top-line growth. Univar also focuses on cost-cutting, expense management and productivity actions, helping the company minimize operational costs and boost margins.

 

 

Zacks Rank & Key Picks

Univar currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Allegheny Technologies Inc. (ATI - Free Report) , Cabot Corporation (CBT - Free Report) and Nutrien Ltd. (NTR - Free Report) .

Allegheny has a projected earnings growth rate of 1,076.9% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 40.4% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 5.8% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 9.3% over a year.

Nutrien has a projected earnings growth rate of 174.6% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 30.7% upward in the past 60 days.

Nutrien’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 5.8%. NTR has gained 34% in a year. The company flaunts a Zacks Rank #1.
 


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


ATI Inc. (ATI) - free report >>

Cabot Corporation (CBT) - free report >>

Univar Solutions Inc. (UNVR) - free report >>

Nutrien Ltd. (NTR) - free report >>