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Tag: tobacco operations

  • Universal Reports Lower First-Half Fiscal 2027 Earnings

    Universal Reports Lower First-Half Fiscal 2027 Earnings

    Universal Corp. reported second-quarter fiscal 2027 net income attributable to the company of $12.6 million, down 63% from $34.2 million a year earlier, as revenue fell 18% to $621.8 million. For the six months ended Sept. 30, revenue declined 15% to $1.15 billion, while net income fell 82% to $7.6 million. Tobacco Operations revenue decreased 19% in the quarter to $534.3 million, while operating income fell 33% to $43.9 million. For the first half, tobacco revenue declined 17% to $971.5 million, and operating income dropped 53% to $47.4 million.

    Universal attributed lower tobacco sales volumes to a delayed market cycle and oversupply conditions, particularly for flue-cured and burley tobacco, as well as later customer commitments and shipping instructions in Africa and Brazil. Tobacco sales volumes fell 18% in the first half, while uncommitted inventories stood at 19% at Sept. 30, within the company’s target range. Universal expects shipments to be heavily weighted toward the second half of fiscal 2027, with CEO Preston Wigner saying customer commitments remain in line with full-year sales plans.

  • 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.