Universal Corp. reported net income of $25.87 million for the six months that ended on Sept. 30, up from $14.78 million in the first six months of 2020. Operating income was $40.42 million, compared with $24.88 million in the comparable period last year. Sales and other operating revenues came to $803.98 million, against $692.84 million in the 2020 period. Operating income from tobacco operations jumped 52 percent to $35.8 million.
“I am pleased with our results for the first six months of fiscal year 2022,” said George Freeman III, chairman, president and CEO of Universal Corp in a statement. “Our tobacco operations have continued to perform well, and our ingredients operations, which include our October 2020 acquisition of Silva International, Inc., are making solid contributions to our results.”
“In the six months ended Sept. 30, 2021, tobacco operations results improved on a favorable product mix consisting of a higher percentage of lamina tobacco and fewer carryover sales of lower margin tobaccos, compared to the same period in the prior fiscal year.
“In addition, our uncommitted inventory level of 11 percent of tobacco inventories at Sept. 30, 2021, was significantly below our uncommitted inventory level of 16 percent of tobacco inventories at Sept. 30, 2020. At the same time, we continue to have logistical challenges related to worldwide shipping availability stemming from the ongoing Covid-19 pandemic.
“To address these challenges, we are working closely with our customers to accelerate tobacco shipments in some origins where vessels and containers have been available while diligently managing slower tobacco shipments in origins with reduced container and vessel availability.”