Universal Corporation appointed Steven S. Diel as senior vice president and chief financial officer, effective April 1, succeeding Johan C. Kroner, who will remain with the company as a senior vice president through July 1, to support the transition. Diel, a Universal executive since 2018, brings more than 25 years of experience in finance, corporate development, and strategy, most recently serving as vice president and CFO of Universal Ingredients, and previously leading acquisitions totaling more than $350 million that helped establish the company’s ingredients segment. Chairman, president, and CEO Preston D. Wigner said Diel’s promotion reflects confidence in his financial leadership and strategic execution as Universal seeks to strengthen performance and drive long-term shareholder value.
Category: Business & Finance
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Universal Posts Nine-Month, Q3 Results
Universal Corporation reported “solid results” for the nine months and third quarter ended December 31, 2025, supported by continued strength in its tobacco operations despite softer overall volumes and headwinds in its ingredients business. Nine-month revenue declined 2% to $2.2 billion, and operating income fell 3% to $183 million, reflecting lower tobacco sales volumes and higher fixed costs, although customer demand for most tobacco styles remained firm and third-party processing volumes increased. Third-quarter revenue dropped 8% to $861 million, with operating income down 21% to $82 million, driven by reduced tobacco shipments and inventory write-downs, while the ingredients segment faced tariff pressures, weaker consumer-packaged-goods demand, and higher depreciation costs. The company also strengthened liquidity through a refinancing and expansion of its revolving credit facility and highlighted sustainability progress, including a significant increase in renewable electricity use and continued farmer engagement across its global supply chain.
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PMI Reports $40B in Revenue, Including 42% from Smoke-Free Products
Philip Morris International reported strong 2025 fourth-quarter and full-year results, driven largely by the continued expansion of its smoke-free product portfolio. The company recorded more than $40 billion in annual net revenues, including nearly $17 billion from smoke-free products, which accounted for 41.5% of total net revenues. Smoke-free shipment volumes rose 12.8% for the year, with PMI’s products now available in 106 markets and used by an estimated 43 million adult consumers. IQOS maintained a dominant position in heat-not-burn, holding about 76% global category share, while nicotine pouch brand Zyn continued rapid growth, particularly in the U.S., where shipment volumes reached 794 million cans for the year.
PMI’s combustible business remained stable despite expected volume declines, supported by pricing strength and productivity improvements. Marlboro reached a record 11% global category share, while total company shipment volumes remained flat as growth in smoke-free products offset cigarette declines. The company also reported strong performance across multiple regions, including double-digit heated tobacco growth in Europe and sustained category leadership in Japan, where heat-not-burn products now exceed 50% of total nicotine offtake in several major markets.
Looking ahead, PMI expects continued momentum, forecasting 2026 adjusted diluted EPS growth of 7.5% to 9.5% excluding currency effects. The company also introduced 2026–2028 targets calling for 6% to 8% organic net revenue growth and 9% to 11% adjusted EPS growth, driven primarily by high single-digit to low-teens expansion in smoke-free product volumes.
In response to the financials, Morgan Stanley said it expects a modest negative market reaction to PMI’s fourth-quarter results and forward guidance, which were largely in line with expectations following the stock’s strong rally since December.
“On balance, 4Q results were broadly in line, and guidance looks reasonable, but is unlikely to settle the debate around the stock,” Morgan Stanley wrote. “Bears continue to point to a 2H-weighted year with headwinds from IQOS competition and excise tax increases in Japan, the flavor ban in Poland, and continued competition in U.S. nicotine pouches. Bulls point to PM delivering the best mid-term growth in large-cap CPG despite these known headwinds. We are [rating the stock] Overweight, and continue to expect growth to reaccelerate in 2H as these headwinds dissipate, and for US Zyn trends to improve with the likely FDA authorization of Zyn Ultra.”
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KT&G Reports Record Numbers on 10% Growth
KT&G reported record financial performance for 2025, with fourth-quarter consolidated revenue rising 10.1% year over year to KRW 1.7 trillion ($1.2 billion) and operating profit increasing 17.1% to KRW 248.8 billion ($169.2 million). In financials released today (Feb. 5), the company said full-year revenue grew 11.4% to a record KRW 6.58 trillion ($4.5 billion), while operating profit climbed 13.5% to KRW 1.4 trillion ($918 million), or KRW 1.4 trillion ($965.6 million) on an adjusted basis excluding one-time labor costs. The company attributed the results to structural reforms and global competitiveness initiatives implemented under CEO Kyung-man Bang, with its global cigarette business delivering record revenue, volume, and operating profit. International cigarette revenue rose 14.6% to KRW 1.9 trillion ($1.3 billion) and, for the first time, accounted for 54.1% of total cigarette revenue, supported by volume growth and strategic pricing actions.
KT&G’s next-generation product (NGP) segment also expanded, with revenue increasing 13.5% to KRW 890.1 billion ($605 million) and stick volumes reaching 14.8 billion units. The company signaled a broader NGP strategy beyond heated tobacco, including portfolio diversification into nicotine pouches following its acquisition of Another Snus Factory. Management emphasized that NGP expansion is intended to complement core combustible operations while strengthening long-term tobacco category competitiveness across domestic and international markets.
Looking ahead, KT&G outlined 2026 growth targets supported by a KRW 2.4 trillion ($1.6 billion) capital investment program aimed at expanding global manufacturing capacity, including new facilities in Kazakhstan and Indonesia. The company expects these investments to support cost reductions, pricing optimization, and business model diversification through OEM and licensing partnerships. KT&G is targeting revenue growth of 3% to 5% and operating profit growth of 6% to 8% while maintaining a total shareholder return of at least 100%, supported by a dividend payout ratio of 50% or higher and potential share repurchases.
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Universal Announces 3Q Conference Call
Universal Corporation announced it will release results for its fiscal third quarter 2026 before market open on February 9, followed by a conference call and webcast at 5 p.m. ET. The company will host the call in listen-only format via its website, with a replay available online through May 9, and by phone through February 23.
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Vietnam Sets Tobacco Import Quota at 79K Tons
Vietnam’s Ministry of Industry and Trade issued Circular No. 04/2026/TT-BCT setting the 2026 import tariff quota for raw tobacco at 79,199 tons, with the measure taking effect on March 15. The quota applies to raw tobacco under HS code 2401. It will be allocated through an import permit system to traders holding valid licenses for cigarette production or tobacco material processing, provided the imported material is used for domestic cigarette manufacturing. Allocation will be carried out in line with existing foreign trade management regulations, with permits issued under Decree No. 69/2018/ND-CP and Circular No. 12/2018/TT-BCT.
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Indian Motorcycle Premium Cigars Enter France
Indian Motorcycle Premium Cigars, produced under licence by Phil S. Zanghi III, launched in France under an exclusive distribution agreement with Volutes et Vitoles, according to Halfwheel. The cigars, manufactured at the De Los Reyes factory in the Dominican Republic and available in three blends, went on sale in the French market last week, marking their first availability in the country. Zanghi described France as a key global premium cigar market and said the partnership with Volutes et Vitoles is intended to strengthen brand presence and support expansion across all Indian Motorcycle cigar lines in the region.
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Swedish Match Closing Richmond Office
According to a letter to the Commonwealth of Virginia, Swedish Match will be closing its Richmond office April 17, offering the majority of employees the opportunity to relocate to a location aligned with their role and function. Virginia Business magazine reported yesterday (Feb. 2) that Thomas G. Hayes, president of Swedish Match North America, sent a letter last week notifying Virginia Works of the imminent closure as part of a larger restructuring by its parent company, Philip Morris International.
In November 2025, PMI announced plans to restructure in 2026, dividing into two main business units, PMI International and PMI U.S.—along with Aspeya, its wellness business—as it continues to expand its smoke-free portfolio. In a statement, PMI said the Richmond closing is related to changes in its U.S. geographical footprint.
“This decision was not made lightly, and we recognize the impact it will have on our employees and the local community,” the company said. “Centralizing key capabilities and functions in strategic location hubs will help us operate with greater speed, agility, and consumer focus—driving momentum behind our category-redefining brands, ZYN and IQOS as we work to accomplish a smoke-free America.”
Headquartered in Stockholm, Swedish Match AB employs about 1,300 people in the United States. “According to Hayes’ letter, employees of PMI subsidiaries and affiliates Triaga Retail, PMI Global Services Unit, Swedish Match Cigars, Swedish Match North America, and Pinkerton Tobacco Co. are impacted,” Virginia Business reported.
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BAT CEO Talks Investment in Italy
British American Tobacco CEO Tadeu Marroco was recently in Rome meeting with stakeholders, and spoke with Milano Finanza about how the company views Italy as a strategically important market, citing its stable regulatory and taxation framework, strong supplier base, and growing adoption of next-generation products, which now account for around 45% of BAT’s Italian revenue compared with 18% globally.
“Italy represents one of the most strategic markets for BAT and [is] one of the countries in which the group can concretely realize its vision for the future,” he said. “From Italy, we continue to buy tobacco up to 15 thousand tons, which will be purchased in the three-year period 2026-2028, supporting over 400 small and medium-sized enterprises that employ 6,000 people.”
Marroco said BAT is reinforcing its European innovation and production footprint through its Trieste Innovation Hub, where the company is investing €500 million through 2027 to expand non-combustible product manufacturing. The facility is expected to reach full capacity with 16 production lines and generate employment growth linked to BAT’s broader supply chain investments, including continued tobacco sourcing agreements supporting domestic agriculture and SMEs. The company maintains its target of deriving 50% of global revenue from smoke-free products by 2035, while also navigating regulatory complexity and illicit market growth in key regions, which BAT argues can hinder innovation and undermine public health and fiscal outcomes.
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PM India Fighting Illicit Trade with Intelligence
Illicit cigarettes are not a new problem in India, but they are one that continues to grow, Navaneel Kar, managing director of Philip Morris India, told Statesman News Service. According to Euromonitor International, India is now the fourth-largest market for illegal cigarette consumption in the world after China, Brazil, and Pakistan. To get an idea of how big the problem is, Kar said PM India carried out a large intelligence-gathering exercise in 2025 that covered more than 3,000 shops across 10 states. By also engaging with more than 50 government stakeholders, the goal was not just observation but building reliable intelligence that could, in turn, support enforcement agencies and policy discussions.
Public reports indicate enforcement agencies seized smuggled cigarettes worth about ₹600 crore ($7 billion) in FY25, with data from the Directorate of Revenue Intelligence showing the North-East as the largest hub for seizures, followed by Maharashtra–Goa, Tamil Nadu, and West Bengal.
PM India said it is supporting the government’s rollout of a Track & Trace system for tobacco products, drawing on global experience from markets where digital tagging of cigarette packs is used to improve supply-chain visibility and curb illegal trade. The company also “supported capacity-building efforts for over 145 officers from customs and tax departments,” according to Stateman News Service.