NYSE$UVV
Universal Corp/VA · Q1 2024 earnings
Q1 2024 earnings · · Investor relations
Briefing
Universal Corporation's first quarter of fiscal year 2024 was impacted by soft demand in the plant-based ingredients platform and high interest costs, while tobacco operations performed well.
Universal Corporation reported a net loss of $(2.1) million, or $(0.08) per diluted share, for the quarter ended June 30, 2023, compared with net income of $6.8 million, or $0.27 per diluted share, for the quarter ended June 30, 2022. Consolidated revenues increased by $87.9 million to $517.7 million for the three months ended June 30, 2023, compared to the same period in fiscal year 2023, on higher tobacco sales prices and a favorable product and geographic mix in our Tobacco Operations segment.
- Tobacco operations performed well with higher segment operating income due to a favorable product and geographic mix.
- Demand for leaf tobacco remains strong, with uncommitted tobacco inventory at 16% of total tobacco inventory.
- The plant-based ingredients platform faced soft demand due to high customer inventory levels, leading to earnings below expectations.
- Interest costs more than doubled due to higher interest rates, impacting overall profitability.
Headline financials
Revenue & EPS history
Universal Corp · Revenue · Quarterly
$516M
Revenue by segment
Universal Corp · $518M total across 2 segments · Q1 2024
- Tobacco Operations$444M+27.5%85.7%
- Ingredients Operations$73.8M-9.7%14.3%
Forward guidance
The company believes that leaf tobacco will remain in an undersupply position. Inventory challenges in the plant-based ingredients platform are expected to be temporary.
Tailwinds
- Demand for leaf tobacco from our customers remains strong.
- We are forecasting increased leaf tobacco production in fiscal year 2024.
- Leaf tobacco will remain in an undersupply position.
- Ongoing progress in integrating plant-based ingredients platform.
- Excess inventory levels held by our customers to eventually work down.
Headwinds
- Soft demand in the plant-based ingredients platform due to high customer inventory levels.
- Earnings for the plant-based ingredients platform were below expectations.
- Expansion of the plant-based ingredients platform’s capabilities has added to our costs.
- Sharp drop in certain new crop raw material prices resulted in inventory write-downs.
- Costs, notably interest costs and prices for green leaf tobacco, remained high.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q1 2024
-0.4%
Avg return
Earnings day
+0.5%
Avg return
5 days after
+1.2%
Avg return
30 days after
49%
33 / 68 earnings
Positive
+30.3%
Q4 2018
Best reaction
-14.9%
Q1 2011
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2026 | +1.0% | +3.5% | — | |
| Q3 2026 | -10.7% | -7.5% | -9.6% | |
| Q2 2026 | +1.4% | +2.6% | +1.7% | |
| Q1 2026 | -4.6% | -0.7% | +1.8% | |
| Q2 2025 | +0.3% | +0.0% | +11.7% | |
| Q3 2025 | +1.4% | -0.7% | +2.7% | |
| Q1 2025 | +5.2% | +3.3% | +5.3% | |
| Q4 2024 | -12.2% | -13.2% | -9.8% | |
| Q3 2024 | -7.7% | -9.3% | -12.7% | |
| Q2 2024 | +13.6% | +17.8% | +29.2% | |
| Q1 2024 | -1.5% | -2.4% | -5.8% | |
| Q4 2023 | -0.5% | -1.4% | -6.5% | |
| Q3 2023 | -0.4% | +1.1% | -6.1% | |
| Q2 2023 | +9.2% | +10.3% | +15.8% | |
| Q1 2023 | -6.1% | -6.0% | -8.6% | |
| Q4 2022 | +1.6% | +2.8% | -3.7% | |
| Q3 2022 | -4.6% | -5.8% | +6.1% | |
| Q2 2022 | +2.5% | +2.9% | +1.1% | |
| Q1 2022 | -3.9% | -2.6% | -1.9% | |
| Q4 2021 | -2.8% | -5.1% | -5.0% | |
| Q3 2021 | +7.6% | +9.0% | +20.1% | |
| Q2 2021 | +0.2% | +11.1% | +19.1% | |
| Q1 2021 | +2.1% | +6.2% | +1.1% | |
| Q4 2020 | -1.6% | -3.2% | -8.8% | |
| Q3 2020 | -4.3% | -4.9% | -8.9% | |
| Q2 2020 | -11.0% | -9.8% | -3.8% | |
| Q1 2020 | -5.8% | -9.8% | -9.5% | |
| Q4 2019 | +15.0% | +12.0% | +14.4% | |
| Q3 2019 | +3.3% | +0.3% | +6.2% | |
| Q2 2019 | -2.0% | -4.5% | -10.4% | |
| Q1 2019 | -13.2% | -16.9% | -11.8% | |
| Q4 2018 | +30.3% | +36.8% | +37.1% | |
| Q3 2018 | +1.2% | +9.2% | +8.7% | |
| Q2 2018 | -5.4% | -2.1% | -6.0% | |
| Q1 2018 | -3.8% | -9.2% | -8.5% | |
| Q4 2017 | -4.7% | -5.5% | -6.5% | |
| Q3 2017 | +15.6% | +6.7% | -4.8% | |
| Q2 2017 | +4.9% | -0.1% | +10.8% | |
| Q1 2017 | +3.9% | +3.2% | +3.0% | |
| Q4 2016 | +4.3% | +1.6% | +1.5% | |
| Q3 2016 | -2.5% | — | — | |
| Q2 2016 | -0.0% | — | — | |
| Q1 2016 | -14.0% | — | — | |
| Q4 2015 | +6.9% | — | — | |
| Q3 2015 | +6.5% | — | — | |
| Q2 2015 | -6.0% | — | — | |
| Q1 2015 | -3.9% | — | — | |
| Q4 2014 | -4.4% | — | — | |
| Q3 2014 | +7.9% | — | — | |
| Q2 2014 | +1.3% | — | — | |
| Q1 2014 | -5.0% | — | — | |
| Q4 2013 | -2.5% | — | — | |
| Q3 2013 | +0.3% | — | — | |
| Q2 2013 | -2.2% | — | — | |
| Q1 2013 | +2.3% | — | — | |
| Q4 2012 | -0.2% | — | — | |
| Q3 2012 | +3.1% | — | — | |
| Q2 2012 | +3.1% | — | — | |
| Q1 2012 | +1.9% | — | — | |
| Q4 2009 | -1.5% | — | — | |
| Q4 2011 | -1.5% | — | — | |
| Q3 2010 | +3.4% | — | — | |
| Q3 2011 | +3.4% | — | — | |
| Q2 2011 | +1.1% | — | — | |
| Q2 2010 | +1.1% | — | — | |
| Q1 2010 | -14.9% | — | — | |
| Q4 2010 | -14.9% | — | — | |
| Q1 2011 | -14.9% | — | — |
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