Quarterly Sales and Income up for Universal

Universal Corp. reported sales and other operating revenue of $350 million in the three months that ended June 30, 2021, up 11 percent over that reported in the comparable 2020 quarter. Operating income was up 24 percent to $10.6 million. On an adjusted basis, operating income increased 190 percent to $12.6 million. The company’s gross profit margin was up 80 base points to 17.8 percent.

“We are off to a good start for fiscal year 2022,” said George C. Freeman, III, chairman, president and CEO of Universal, in a statement. “Results for our tobacco operations segment improved on higher African carryover tobacco shipments and a favorable tobacco product mix in the three months ended June 30, 2021, compared to the three months ended June 30, 2020. Our ingredients operations segment, which includes our October 2020 acquisition of Silva International Inc., delivered very strong performance in the three months ended June 30, 2021.

“It is exciting to begin to see the positive outcome from our capital allocation strategy, which we put in place in May 2018 with the goal of ensuring that we are well positioned for the future. Investments in our tobacco business have enabled us to expand the supply chain services we provide our customers and to create footprint rationalization efficiencies, and we are seeing the returns from those investments in our results.”

Freeman said Covid-19-related vessel and container shortages had created logistical restraints for many industries, but the company was not yet able to determine what, if any, impact those constraints would have on shipment timing or its results.

“We are continuing to monitor these and other pandemic-related conditions which affect our operations,” he said.