Univar Inc. distributes commodity and specialty chemical products, and related services worldwide. It offers herbicides, fungicides, insecticides, seed, micronutrients, macronutrients, horticultural products, fertilizers, and feed; storage, packaging, and logistics services for crop protection companies, storing chemicals, feed-grade materials, and seed and equipment parties; and pest control products and equipment. The company also provides organic, inorganic, and polymer chemistries; enzymes, surfactants, solvents, dispersants, thickeners, bleaching aides, builders, chelants, alkalis, and other chemicals for the manufacturing of cleaning products; resins, pigments, solvents, thickeners, dispersants, and other additives; and epoxy resins, polyurethanes, titanium dioxides, fumed silica, esters, plasticizers, silicones, and specialty amines. In addition, it offers thickeners, emulsifiers, sweeteners, preservatives, leavening agents, and humectants, as well as texturizer and fat replacement products that include xanthan gum, locust bean gum, cellulosics, and guar gum; acidulants and alkalis; and supplements and related products. Further, the company provides chemicals and service, bulk chemicals, and specialty blended products for the energy sector; surfactants, emollients, emulsifiers, rheology modifiers, active ingredients, color, preservatives, and processing aids for the personal care industry; pharmaceutical ingredients and products, such as aspirin, ascorbic acid, caffeine, and ibuprofen, as well as excipients that include phosphates, polyethylene glycols, polysorbates, methylcellulose, stearyl alcohol, and stearates. Additionally, the company offers transportation and warehousing infrastructure, and chemicals and hazardous materials handling services. It distributes its products through warehouse delivery; direct-to-consumer delivery; and ChemPoint.com distribution platform. Univar Inc. was founded in 1924 and is headquartered in Downers Grove, Illinois.
Business Analysis of Univar
The Basic Materials Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Univar compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Univar to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Univar with an interactive chart.
- Revenue Growth: Univar reported a revenue growth of -10.1% year-on-year during 2016. Chemicals Industry grew at -4.1% in the same period
- COGS share of Revenues: As a percentage of revenue, Univar spent 78.6% of its total revenues on COGS. Chemicals industry average (COGS share of revenue) in the same period was 70.2%
- R&D share of Revenues: Univar R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Univar spent 14.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Chemicals industry average SG&A spending in the same period was 13.0%
- Inventory share of Revenues: As a percentage of revenue, Univar spent 9.4% of its total revenues on Inventories. Chemicals industry average Inventory spending in the same period was 14.6%
- Accounts Payable share of Revenues: As a percentage of revenue, Univar invested 10.6% of its total revenues on Accounts Payable (A/P) Chemicals industry average Accounts Payable investment in the same period was 12.6%
- Accounts Receivable share of Revenues: As a percentage of revenue, Univar invested 11.8% of its total revenues on Accounts Receivable (A/R). Chemicals industry average Accounts Receivable investment in the same period was 16.8%
- PP&E share of Revenues: As a percentage of revenue, Univar invested 12.6% of its total revenues on Property, Plants, and Equipments (PP&E). Chemicals industry average PPE investment in the same period was 52.9%
- Intangibles share of Revenues: As a percentage of revenue, Univar invested 26.3% of its total revenues on Intangibles. Chemicals industry average Intangibles investment in the same period was 31.4%
- Net Margins: Univar Net Margins in the year 2016 were -0.8%. Chemicals industry average Net Margins in the same period were 8.1%
Sector and Industry Association of Univar
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.
Univar is associated with Basic Materials Sector and Chemicals Industry.
Basic Materials sector is comprised of the following industries: Metal Mining; Coal Mining; Chemicals. The definitions for each of the industries is as follows:
- Metal Mining industry includes companies primarily engaged in mining, developing mines, or exploring for precious metals such as Gold, Silver, Platinum and base metals such as Iron, Copper, Aluminum, Lead, and Zinc. It also includes companies that manufacture alloys such as steel.
- Coal Mining industry includes companies engaged in the exploration for and/or mining of coal.
- Chemicals industry includes companies that produce and/or distribute commodity and specialty chemicals. The companies manufacture three general classes of products: (1) basic chemicals, such as acids, alkalies, salts, and organic chemicals; (2) chemical products to be used in further manufacture, such as synthetic fibers, plastics materials, dry colors, and pigments; and (3) finished chemical products to be used as materials or supplies in other industries, such as paints, fertilizers, and explosives.
Industry Ranking of Univar
With $8.1 billion revenues, Univar ranked number 11 of all the companies in the US Chemicals industry. There were a total of 66 public companies in the US Chemicals industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Chemicals industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.