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Mar 31, 2022
Universal Corp Q4 2022 Earnings Report
Reported annual results, facing logistical challenges with strong performance from Ingredients Operations offsetting challenges in Tobacco Operations.
Key Takeaways
Universal Corporation's fiscal year 2022 results were comparable to fiscal year 2021, with strong performance from the Ingredients Operations segment offsetting challenges in the Tobacco Operations segment. Consolidated revenues increased by $29.4 million to $647.0 million for the quarter ended March 31, 2022.
Experienced volatile tobacco and currency markets in Brazil during the fourth quarter of fiscal year 2022.
Appreciation of the Brazilian currency coupled with strong demand for leaf tobacco led to unprecedented increases in green prices for leaf tobacco and earlier purchasing of the 2022 Brazilian crop, resulting in disruptions to market dynamics.
Believe leaf tobacco supply for flue-cured, burley, dark air-cured, and oriental tobaccos to be in an undersupply position.
Named a 2021 Supplier Engagement Leader by CDP, earning recognition for work in engaging suppliers on climate change.
Universal Corp
Universal Corp
Universal Corp Revenue by Segment
Revenue by Segment
Tobacco Operations Revenue
CapyFin.comIngredients Operations Revenue
CapyFin.com Forward Guidance
As we move into fiscal year 2023, we are seeing strong demand for our plant-based ingredients and tobacco products.
Positive Outlook
- Seeing strong demand for our plant-based ingredients and tobacco products.
- Believe leaf tobacco supply for flue-cured, burley, dark air-cured, and oriental tobaccos to be in an undersupply position.
- Continue to see opportunities to increase market share and expand the supply chain services we provide our customers.
- Actively working to mitigate these challenges.
- Confident that we can deliver another good year.
Challenges Ahead
- Expect continued logistical constraints as well as higher costs, particularly freight, raw materials, labor, fertilizer, and energy, in both our tobacco and ingredients businesses.
- Experienced volatile tobacco and currency markets in Brazil during the fourth quarter of fiscal year 2022.
- Ongoing shipping constraints reduced our Tobacco Operations segment results for the year and quarter ended March 31, 2022, as a result of continued limitations in worldwide shipping availability stemming from the COVID-19 pandemic.
- Tobacco shipment volumes in fiscal year 2022 were also reduced due to smaller African burley crops.
- Larger inventory write downs in the quarter ended March 31, 2022, compared to the prior year’s fourth quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income