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Dec 31, 2024
Universal Corp Q3 2025 Earnings Report
Universal Corporation reported its preliminary unaudited financial results for the third quarter of fiscal year 2025, highlighting strong operational performance driven by its Tobacco Operations segment.
Key Takeaways
Universal Corporation achieved solid results for the third quarter of fiscal year 2025, with strong performance in its Tobacco Operations segment due to robust customer demand and successful procurement efforts, while the Ingredients Operations segment performed in line with strategic plans with new product sales offsetting pricing pressures.
Universal Corporation reported total sales and other operating revenue of $937.2 million for the third quarter of fiscal year 2025.
Net income attributable to Universal Corporation was $57.1 million, resulting in basic earnings per share of $2.28 and diluted earnings per share of $2.27.
The Tobacco Operations segment generated $854.8 million in sales and other operating revenues and $99.2 million in operating income, benefiting from increased customer demand, successful procurement, and higher quality crops.
The Ingredients Operations segment reported $83.3 million in sales and other operating revenues and $3.7 million in operating income, with new product sales largely offsetting market-driven pricing pressures.
Revenue by Segment
Forward Guidance
Universal Corporation is confident in its position to finish fiscal year 2025 strongly, planning to maximize and optimize its tobacco business, expand its ingredients business, and explore opportunities for both segments to create more value for customers and shareholders.
Positive Outlook
- Confidence in finishing fiscal year 2025 on a strong footing.
- Continued maximization and optimization of the tobacco business.
- Expansion of the ingredients business.
- Seeking possible opportunities for both segments to work together.
- Intention to reduce net debt levels supported by cash collection from tobacco shipments and normalized working capital requirements.
Challenges Ahead
- The company filed a Form 12b-25 due to inability to timely file Form 10-Q for Q3 2025.
- Ongoing internal investigation into embezzlement by a former senior finance employee in Mozambique.
- Inability to predict the outcome or time frame for completion of the investigation.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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