Universal Corporation reported weaker fiscal first-quarter 2027 results, with revenue falling 12% year over year to $523.8 million as lower tobacco sales volumes and prices offset stable customer demand. The company posted an operating income of $2.3 million, down 93%, and a net loss of $5 million, or $0.20 per share, compared with net income of $8.5 million a year earlier. Chairman and CEO Preston Wigner said results reflected slower tobacco purchasing activity as customers assessed oversupply in flue-cured and burley markets, while the ingredients business continued to face weak consumer demand and high operating costs.
Tobacco segment revenue declined 13% to $437.1 million, with operating income dropping 90% to $3.5 million due to lower carryover crop sales, an unfavorable product mix in Asia, and weaker pricing. Ingredients revenue slipped 3% to $86.7 million and posted a $700,000 operating loss as inflation, supply constraints, tariff volatility, and high fixed costs at its expanded Lancaster facility continued to pressure performance. Despite the weak quarter, Universal said customer commitments remain in line with its fiscal 2027 sales plan, tobacco shipments are expected to accelerate in the second half of the year, and the company ended the quarter with approximately $1.1 billion in available liquidity and lower debt levels than a year ago.