Tag: Universal Corp.

  • Universal Named ‘Engagement Leader’

    Universal Named ‘Engagement Leader’

    Photo: Universal

    Universal Corp. has been recognized as a 2021 Supplier Engagement Leader by CDP, a nonprofit charity that runs a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.

    The CDP’s Supplier Engagement Rating (SER) system independently evaluates how effectively companies are engaging their suppliers on climate change using the CDP’s annual climate change questionnaire that covers governance, targets, scope 3 emissions and value chain engagement. The top 8 percent of assessed companies were selected as 2021 Supplier Engagement Leaders.

    “We are honored to be recognized by the CDP as a 2021 Supplier Engagement Leader,” said Universal Chairman, President and CEO George C. Freeman III in a statement. “At Universal, we are committed to setting high standards of social and environmental performance and working in partnership with our suppliers to reinforce the sustainability of our supply chains and meet our climate change goals.”

    Earlier, CDP recognized Pyxus International, Altria Group and Imperial Tobacco for their efforts to promote sustainability.

  • Universal Corp. Reports ‘Solid’ Results

    Universal Corp. Reports ‘Solid’ Results

    George Freeman III (Photo: Universal Corp.)

    Universal Corp. reported net income of $60.8 million for the nine months ended Dec. 31, 2021, compared with $48 million for the nine months ended Dec. 31, 2020.

    Excluding restructuring and impairment costs and certain other non-recurring items, net income increased by $4.5 million. Operating income increased by $18.1 million to $103.2 million. Adjusted operating income was $116.5 million, compared to adjusted operating income of $107.6 million for the comparable period in 2020.

    Net income for the quarter ended Dec. 31, 2021, was $34.9 million, compared with $33.3 million for the quarter ended Dec. 31, 2020.

    Excluding restructuring and impairment costs and certain other non-recurring items, net income decreased by $9.7 million. Operating income increased by $2.6 million to $62.8 million. Adjusted operating income was $74.9 million, compared to adjusted operating income of $85.2 million for comparable 2020 quarter.

    “Our operations produced solid results in the nine months ended Dec. 31, 2021,” said Universal Corp. President and CEO George C. Freeman III in a statement. “We are especially pleased by the strong results from our Ingredients Operations segment. That segment is developing nicely and was bolstered by our acquisition of Shank’s Extracts Inc. on Oct. 4, 2021. Shank’s adds valuable capabilities to the segment, including flavors and extracts, custom packaging, bottling, and product development.

    “We continued to experience the impact of tobacco shipment timing on our results in the nine months and quarter ended Dec. 31, 2021.

    “Tobacco shipments through the nine months ended Dec. 31, 2021, were lower, compared to the same period in fiscal year 2021, in part due to elevated tobacco shipments in the third quarter of fiscal year 2021 related to earlier customer mandated shipment timing.

    “Logistical challenges due to continued limitations in worldwide shipping availability stemming from the ongoing Covid-19 pandemic also slowed tobacco shipments in the nine months ended Dec. 31, 2021. However, despite the shipment timing variations and logistical challenges, we believe that our tobacco business remains robust with strong customer demand, and our uncommitted tobacco inventory levels remain well within our target range.”

  • Universal Releases 2021 Sustainability Report

    Universal Releases 2021 Sustainability Report

    Universal Corp. has released its 2021 Sustainability Report.

    “At Universal, sustainability has long been part of how we conduct business. We are committed to disclosing our operational activities as well as our sustainability performance consistently and in a transparent manner,” said George C. Freeman III, Universal’s chairman, president and CEO.

    “We are excited about our sustainability goals and targets outlined in this report and will continue to build upon our global programs to reinforce the sustainability of our supply chains.” 

    Universal’s 2021 Sustainability Report focuses on the company’s material sustainability topics as well as environmental, social and supply chain goals. Data disclosed in the report reflects activities from April 1, 2020, to March 31, 2021.

  • Universal Pleased With Six-Month Results

    Universal Pleased With Six-Month Results

    Photo: Taco Tuinstra

    Universal Corp. reported net income of $25.87 million for the six months that ended on Sept. 30, up from $14.78 million in the first six months of 2020. Operating income was $40.42 million, compared with $24.88 million in the comparable period last year. Sales and other operating revenues came to $803.98 million, against $692.84 million in the 2020 period. Operating income from tobacco operations jumped 52 percent to $35.8 million.

    George Freeman

    “I am pleased with our results for the first six months of fiscal year 2022,” said George Freeman III, chairman, president and CEO of Universal Corp in a statement. “Our tobacco operations have continued to perform well, and our ingredients operations, which include our October 2020 acquisition of Silva International, Inc., are making solid contributions to our results.”

    “In the six months ended Sept. 30, 2021, tobacco operations results improved on a favorable product mix consisting of a higher percentage of lamina tobacco and fewer carryover sales of lower margin tobaccos, compared to the same period in the prior fiscal year.

    “In addition, our uncommitted inventory level of 11 percent of tobacco inventories at Sept. 30, 2021, was significantly below our uncommitted inventory level of 16 percent of tobacco inventories at Sept. 30, 2020. At the same time, we continue to have logistical challenges related to worldwide shipping availability stemming from the ongoing Covid-19 pandemic.

    “To address these challenges, we are working closely with our customers to accelerate tobacco shipments in some origins where vessels and containers have been available while diligently managing slower tobacco shipments in origins with reduced container and vessel availability.”

     

     

  • Universal Completes Acquisition of Shank’s

    Universal Completes Acquisition of Shank’s

    Photo: Gajus

    Universal Corp. has completed its previously announced acquisition of Shank’s Extracts, a privately held, specialty ingredient, flavoring and food company with bottling and packaging capabilities.

    The acquisition expands Universal’s plant-based ingredients platform, adding to the company’s product offerings and growing the value-added services available to its customers by adding flavors, custom packaging and bottling, and product development capabilities. 

    Shank’s has a strong presence within the flavoring, extracts and bottling marketplace, with significant vanilla expertise, according to Universal Corp. In addition to pure vanilla extract products, Shank’s offers a portfolio of over 2,400 other extracts, distillates, natural flavors and colors for industrial and private label customers worldwide.

    Shank’s employs more than 200 people and has a 191,000-square-foot manufacturing campus in Lancaster, Pennsylvania, USA.

  • Universal to Acquire Shank’s Extracts

    Universal to Acquire Shank’s Extracts

    Photo: Africa Studio

    Universal Corp. has entered into a definitive agreement to acquire Shank’s Extracts, a privately held specialty ingredient, flavoring and food company with bottling and packaging capabilities. Following the close of the transaction, Shank’s will operate as part of Universal’s plant-based ingredients platform, which includes the previously acquired companies Silva International and FruitSmart.

    Founded in 1899, Shank’s has established a strong presence within the flavoring, extracts and bottling marketplace, with significant vanilla expertise. In addition to pure vanilla extract products, Shank’s offers a robust portfolio of over 2,400 other extracts, distillates, natural flavors and colors for industrial and private label customers worldwide. Headquartered in Lancaster, Pennsylvania, USA, Shank’s employs more than 200 people and has a 191,000-square-foot manufacturing campus.

    “This agreement with Shank’s marks another important step forward in Universal’s efforts to identify and execute on opportunities that broaden and enhance our plant-based ingredients platform,” said George C. Freeman III, chairman, president and CEO of Universal Corp, in a statement. “The Shank’s acquisition fits squarely in our new platform and our capital allocation strategy, bolstering our offerings for customers and expanding our value-added services by adding flavors, custom packaging and bottling, and product development capabilities.” 

    “Shank’s has been providing high-quality products and services for more than 120 years, earning a reputation for consistency, traceability and dependability. This has allowed us to build a strong portfolio of long-tenured, blue-chip customers. As part of Universal Corporation, Shank’s will benefit from the resources and scale of a global organization as we look to expand our offerings and enter new, lucrative end markets,” said Jeffrey Lehman, president-owner of Shank’s.

    Universal Corporation expects the transaction to close in the calendar-year fourth quarter, subject to customary closing conditions, and anticipates the acquisition will be accretive to earnings in fiscal year 2023. Following the close of the transaction, the existing management team will continue to run the business and report to J. Patrick O’Keefe, senior vice president of Universal Global Ventures.

  • Quarterly Sales and Income up for Universal

    Quarterly Sales and Income up for Universal

    Photo: Universal Corp.

    Universal Corp. reported sales and other operating revenue of $350 million in the three months that ended June 30, 2021, up 11 percent over that reported in the comparable 2020 quarter. Operating income was up 24 percent to $10.6 million. On an adjusted basis, operating income increased 190 percent to $12.6 million. The company’s gross profit margin was up 80 base points to 17.8 percent.

    “We are off to a good start for fiscal year 2022,” said George C. Freeman, III, chairman, president and CEO of Universal, in a statement. “Results for our tobacco operations segment improved on higher African carryover tobacco shipments and a favorable tobacco product mix in the three months ended June 30, 2021, compared to the three months ended June 30, 2020. Our ingredients operations segment, which includes our October 2020 acquisition of Silva International Inc., delivered very strong performance in the three months ended June 30, 2021.

    “It is exciting to begin to see the positive outcome from our capital allocation strategy, which we put in place in May 2018 with the goal of ensuring that we are well positioned for the future. Investments in our tobacco business have enabled us to expand the supply chain services we provide our customers and to create footprint rationalization efficiencies, and we are seeing the returns from those investments in our results.”

    Freeman said Covid-19-related vessel and container shortages had created logistical restraints for many industries, but the company was not yet able to determine what, if any, impact those constraints would have on shipment timing or its results.

    “We are continuing to monitor these and other pandemic-related conditions which affect our operations,” he said.

  • Universal Corp. Reports Strong Fiscal 2021

    Universal Corp. Reports Strong Fiscal 2021

    Photo: Universal Corp.

    Universal Corp. reported sales and other operating revenue of $1.98 billion in the fiscal year that ended March 31, 2021, up 4 percent over the amount reported in the previous year. Operating income was up 17 percent to $147.8 million while adjusted operating income increased 22 percent to $172.9 million. Gross profit margin improved 80 base points to 19.5 percent.

    Tobacco operations sales and other operating revenues were $1.84 billion in fiscal year 2021 compared with $1.89 billion in 2020. Tobacco operations operating income grew 15 percent to $168.8 million.

    “I am pleased to report that our net income and diluted earnings per share, and our non-GAAP adjusted operating income for fiscal year 2021, are all up over 20 percent compared to fiscal year 2020,” said George C. Freeman III, chairman, president and CEO of Universal, in a statement.

    “Strong leaf tobacco shipments in the second half of fiscal year 2021, the addition of our plant-based ingredients acquisitions and favorable foreign currency comparisons all contributed to this improvement in our results.

    I am especially proud that we were able to deliver these results in the midst of the Covid-19 pandemic.

    George C. Freeman III, chairman, president and CEO, Universal

    “I am especially proud that we were able to deliver these results in the midst of the Covid-19 pandemic and would like to thank our employees, growers, customers and other partners for their support, adaptability and hard work that made this a successful year.”

    Leaf tobacco shipments, which started slowly in fiscal year 2021, accelerated in the second half of the fiscal year, according to Freeman. The company ended the year with leaf tobacco volumes that were just slightly below those in fiscal year 2020, in part due to some tobacco shipments that were delayed and will ship in fiscal year 2022.

    “As we move into fiscal year 2022, we currently expect global supply for flue-cured leaf tobacco to be in line with anticipated demand and for burley leaf tobacco to be in a slight undersupply position,” said Freeman. “We are continuing to monitor freight costs as the Covid-19 pandemic disrupted shipping patterns, which has resulted in cost increases due to limited container availability.”

  • Universal Reports Results

    Universal Reports Results

    Photo: Taco Tuinstra

    Universal Corp. reported net income for the quarter ended Dec. 31, 2020, of $33.3 million, compared with net income of $26 million, for the prior year’s third fiscal quarter. Excluding restructuring and impairment costs and certain other non-recurring items net income increased by $27.5 million from the comparable 2019 quarter. Operating income for the third quarter of fiscal year 2021 increased to $60.2 million compared to $44.1 million for the three months ended Dec. 31, 2019.

    Net income for the nine months ended on Dec. 31, 2020, was $48 million, compared with $56.1 million for the same period of the prior fiscal year. Excluding restructuring and impairment costs and certain other non-recurring items, net income increased by $3.4 million for the nine months ended Dec. 31, 2020, compared to the nine months ended December 31, 2019. Operating income of $85.1 million for the nine months ended Dec. 31, 2020, was down from operating income of $94.8 million for the nine months ended Dec. 31, 2019.

    George Freeman

    “Tobacco shipments in the third quarter of fiscal year 2021 exceeded our previous expectations as customer mandated timing for some shipments forecast for the fourth fiscal quarter were accelerated into the third fiscal quarter,” said George C. Freeman, III, chairman, president and CEO of Universal Corp. in a statement. “As a result, total tobacco shipment volumes for the nine months ended Dec. 31, 2020, are similar to those of the prior year’s comparable fiscal period.

    “The majority of our remaining committed tobacco orders for the 2020 crop are packed and ready to ship, and we expect sustained strong tobacco shipment volumes in our fourth fiscal quarter of 2021 barring any unforeseen events including changes in shipment timing. In addition, our uncommitted tobacco inventory levels remain within our target range. We continue to believe our adjusted operating income for fiscal year 2021, which excludes restructurings and certain costs for acquisitions, will materially exceed that for fiscal year 2020, barring any unforeseen events including shipment delays due to lack of vessel or container availability, port congestion, or Covid-19 related uncertainties.”

    Universal Corp.’s board of directors declared a quarterly dividend of $0.77 per share on the common shares of the company, payable May 3, 2021, to common shareholders of record at the close of business on April 12, 2021. 

  • Covid-19 Weighs on Universal’s Half Year

    Covid-19 Weighs on Universal’s Half Year

    Photo: Taco Tuinstra

    Universal Corp. reported net income of $14.8 million for the first half of fiscal year 2021, compared with $30.1 million for the same period of the prior fiscal year. Excluding certain nonrecurring items, net income declined by $23.9 million. Operating income was $24.9 million, down from $50.7 million in the first six months of 2019.

    George Freeman

    “Timing factors related to Covid-19 continued to impact our results in the second quarter of fiscal year 2021,” said George C. Freeman III, chairman, president and CEO of Universal, in a statement. “Our tobacco customer orders for crop year 2020 are strong, however, and the vast majority of these committed orders are packed awaiting shipment, with customer mandated shipment timing heavily weighted to our fourth quarter of fiscal year 2021.

    “In addition, our uncommitted inventories have come down significantly from the levels at the end of fiscal year 2020 and are at 16 percent of tobacco inventories as of September 30, 2020, which is well within our target range.

    “At this time, we believe our adjusted operating income for fiscal year 2021, excluding acquisitions, will materially exceed that of fiscal year 2020 barring any unforeseen events including shipment delays due to lack of vessel or container availability, port congestion, or Covid-19 related uncertainties. We are closely monitoring shipping conditions and currently expect to complete our scheduled shipments prior to our 2021 fiscal year end.”