Strong Start for Universal in Fiscal 2025

Universal Corp. reported net revenue of $597.1 million for the first quarter of its fiscal year 2025, up by approximately 15 percent for both its tobacco and ingredients operations segments. Operating income was $17.2 million, up 56 percent compared to the same quarter last fiscal year.

The revenue increase in the tobacco operations segment was driven by higher sales volumes and prices. “Coming out of an exceptional fiscal year 2024, we benefited from continued strong demand from our tobacco customers,” said Universal chairman, President and CEO George C. Freeman III in a statement.

“We believe this demand will continue to support solid results for the segment for fiscal year 2025. Our strategic decisions to accelerate tobacco crop purchasing allowed us to secure our contracted tobacco in certain dynamic markets, which has positioned us well to meet customer demand. As in previous fiscal years, we expect that tobacco shipment timing and related revenue recognition will be more heavily weighted toward the second half of our fiscal year 2025.

“Our uncommitted tobacco inventory levels at June 30, 2024, remained low at about 13 percent, and we believe that global leaf tobacco remains in an undersupply position. Looking ahead, we expect that recent elevated green tobacco prices will incentivize farmers to increase planting for the next season, potentially leading to more balanced markets in the coming years.”