UNIVERSAL CORP /VA/ SEC 10-Q Report

Universal Corp /VA/, a leading global tobacco company, has released its Form 10-Q report for the third quarter, showcasing robust financial and operational performance. The report highlights significant growth in key financial metrics and outlines strategic business initiatives that are expected to drive future growth.

Financial Highlights

• Sales and other operating revenue: $710.8 million, an increase of 11% compared to the same quarter last year, driven by improved performance in the Tobacco Operations segment.
• Cost of goods sold: $567.6 million, up by 12% due to higher tobacco sales prices and larger, higher quality, and better yielding African crops.
• Gross profit margin percentage: 20.1%, a decrease of 50 basis points from the previous year, reflecting changes in cost structure.
• Operating income: $68.7 million, an increase of 24% from the previous year, primarily due to strong performance in the Tobacco Operations segment.
• Net income attributable to Universal Corporation: $25.9 million, a decrease of 8% compared to the previous year, impacted by restructuring and impairment costs.
• Diluted earnings (loss) per share: $1.03, a decrease of 8% from the previous year, reflecting the changes in net income.

Business Highlights

• Revenue Segments: The Tobacco Operations segment saw a 14% increase in revenues, driven by strong customer demand, higher average sales prices, and larger, higher quality crops from Africa. The Ingredients Operations segment experienced a 4% decrease in revenues due to customer pressure from the inflationary environment impacting demand and pricing.
• Geographical Performance: The Tobacco Operations segment benefited from larger, higher quality, and better yielding crops in Africa, contributing to the segment's improved performance. The demand for tobacco in this region remained strong, with accelerated shipment timing requested by certain customers.
• Sales Units: The Tobacco Operations segment reported an approximately 17% increase in the average sales price of tobacco, reflecting strong customer demand and better crop yields. Uncommitted tobacco inventory levels remained low at about 10% as of September 30, 2024.
• New Production Launches: The company expects its newly expanded ingredients facility to support increases in production and meaningfully contribute to fiscal year 2026 results, indicating a strategic focus on expanding production capacity to meet future demand.
• Future Outlook: The company anticipates continued strong performance in the Tobacco Operations segment due to sustained customer demand and favorable crop conditions. Additionally, the expanded ingredients facility is expected to enhance production capabilities and contribute significantly to future results.

SEC Filing: UNIVERSAL CORP /VA/ [ UVV ] - 10-Q - Apr. 21, 2025