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Sep 30, 2021
Universal Corp Q2 2022 Earnings Report
Reported results for the second quarter and first six months of fiscal year 2022.
Key Takeaways
Universal Corporation reported improved results for the first six months of fiscal year 2022, driven by strong performance in tobacco operations and solid contributions from ingredients operations, including the acquisition of Silva International, Inc. Net income for the quarter ended September 30, 2021, was $19.5 million, or $0.78 per diluted share, compared with $7.5 million, or $0.30 per diluted share, for the quarter ended September 30, 2020.
Tobacco operations results improved due to a favorable product mix and fewer carryover sales of lower margin tobaccos.
Uncommitted inventory level of 11% of tobacco inventories at September 30, 2021, was significantly below the 16% level at September 30, 2020.
Ingredients operations made solid contributions, including the October 2020 acquisition of Silva International, Inc.
Acquired Shank’s Extracts, Inc. on October 4, 2021, enhancing the plant-based ingredients platform.
Universal Corp
Universal Corp
Universal Corp Revenue by Segment
Revenue by Segment
Tobacco Operations Revenue
CapyFin.comIngredients Operations Revenue
CapyFin.com Forward Guidance
Looking to maintain strong performance while monitoring global supply chain challenges and setting high standards for social and environmental performance.
Positive Outlook
- Maintaining a strong level of performance.
- Committed to setting high standards of social performance.
- Committed to setting high standards of environmental performance.
- Supporting a sustainable supply chain.
- Released goals and targets around agricultural labor practices and environmental impacts.
Challenges Ahead
- Ongoing global supply chain challenges.
- Potential shipment timing delays that may push shipments into fiscal year 2023.
- Rising rates of inflation.
- Increases in freight costs.
- Labor constraints in some locations which are driving up costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income