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Univar (UNVR) Expands BOAI NKY Pharma Deal, Boosts Portfolio

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Univar Solutions Inc. recently expanded its distribution agreement with BOAI NKY Pharmaceuticals Ltd. The latter is a global leader in polyvinylpyrrolidone (“PVP”) and VP/VI chemistry to distribute polymer products in Europe.

Univar Solutions’ customers across Europe will now have access to BOAI NKY Pharma’s specialty polymers, used as dye-transfer inhibitors in liquid and powder laundry detergents.

The collaboration is expected to further advance future innovations and technology in the laundry detergents space. The product portfolio under the deal includes specialty polymers (dye transfer inhibitors) for liquid and powder detergent formulations, including Nokesho 55L30W, Nokesho 55 Powder and Nokesho 55 Granules.

Univar Solutions was chosen as the first NKY distribution partner for this product range in central, western and southern Europe. This expanded deal will provide consumers with more access to specialty cleaning ingredients and comprehensive technical innovation and sourcing support.

Shares of Univar have gained 10.9% in the past year against a 12.5% decline of the industry.

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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 in the band of $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 is benefiting 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 remains focused on cost-cutting, expense management and productivity actions, helping the company minimize operational costs and boost margins.

 

Zacks Rank & Other Key Picks

Univar currently sports a Zacks Rank #1 (Strong Buy).

Some other top-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 1,030.8% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 40% 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 2.6% in a year and currently sports a Zacks Rank #1. 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 29.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 12.1% 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 11% 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 41.1% in a year. The company flaunts a Zacks Rank #1.


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