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  • Universal Reports Strong First-Half 2026, Announced Dividend

    Universal Reports Strong First-Half 2026, Announced Dividend

    Universal Corporation reported a 3% rise in revenue for the first half and 6% growth for Q2 FY2026, driven by higher tobacco processing volumes and stronger ingredient sales. Operating income rose 18% in the first half to $102 million, though it declined 2% in the second quarter to $68 million, reflecting product mix and currency impacts. Net income increased 64% year-over-year to $43 million.

    The Tobacco Operations segment posted a 2% revenue increase to $1.16 billion, with stronger processing volumes and earlier shipments. Ingredients Operations revenue grew 11% to $184 million, supported by continued demand for value-added products despite higher fixed costs and soft consumer demand.

    CEO Preston Wigner said Universal delivered “strong operational performance” and remains “well-positioned to capitalize on growth opportunities” in both tobacco and ingredients businesses. The company also advanced its sustainability goals, expanding solar power use across multiple sites as part of its transition to renewable energy.

    Universal’s board of directors also declared a quarterly dividend of $0.82 per share on the shares of the company, payable February 2, 2026, to shareholders of record at the close of business on January 12, 2026.

  • Farmers Encouraged to Focus on Quality

    Farmers Encouraged to Focus on Quality

    Tobacco farmers in Zimbabwe have been encouraged to prioritize crop quality in order to combat expected price decreases, according to The Herald.

    The 2025 tobacco marketing season is expected to see an increase in production due to favorable weather conditions, expanded hectarage, and an increase in farmers. However, the anticipated increase in supply along with other global market dynamics are expected to put downward pressure on prices, especially for middle-grade to low-grade leaf.

    “China, the world’s largest tobacco producer and consumer, continues to show strong demand for top-end grades, which may help stabilize prices for high-quality tobacco,” said Tapiwa Masedza, a tobacco trading expert.

    “While the increased production is a positive development, farmers must brace for potential price declines,” Masedza said. “To mitigate these challenges, we emphasize the importance of improving crop quality through better handling, curing, and presentation. Mixing grades in bales, excessive moisture, and moldy tobacco can lead to discounts or rejections, ultimately affecting profitability.

    “In the long term, farmers are encouraged to invest in energy-efficient curing infrastructure, adopt precision farming techniques, and implement improved agronomic practices.

    “These measures can help reduce operating costs, enhance yield, and ensure better returns despite fluctuating prices.”

    The Tobacco Industry and Marketing Board is developing a new price matrix for contract tobacco sales in order to establish a more representative minimum price for the marketing season. The new system is expected to be implemented in the upcoming selling season beginning April 5.

    Under the new system, the day’s minimum price will be based on the previous day’s average price of all tobacco sold, at auction and through contract, across all grades.

    Tobacco is Zimbabwe’s largest single foreign currency earner following gold.

  • Zimbabwe Sales Volumes Down

    Zimbabwe Sales Volumes Down

    Photo: Taco Tuinstra

    Zimbabwean farmers have sold 102.3 million kilograms of tobacco worth $305.2 million to date—17 percent less than in the comparable period last year, according to the Tobacco Industry and Marketing Board.

    Of the tobacco sold to date, 95.3 million kg were sold through the contract system while the rest was traded at auctions.

    The average price thus far has been $2.98 per kg, up 10.53 percent from last year’s price of $2.70 per kg.

    The tobacco being sold this year was grown under challenging weather conditions, characterized by late and erratic rains.

    Industry officials expect the country’s farmers to harvest 210 million kg of tobacco this year, down from 250 million kg harvested in 2021.