NYSE$UVV
Universal Corp/VA · Q1 2025 earnings
Q1 2025 earnings · · Investor relations
Briefing
Universal Corporation had a strong start to fiscal year 2025 with increased revenue and operating income.
Universal Corporation reported a 15% increase in revenue to $597.1 million and a 56% increase in operating income to $17.2 million for the quarter ended June 30, 2024, compared to the same quarter last fiscal year. The increase in revenue was driven by higher sales volumes and prices in both the Tobacco and Ingredients Operations segments. Net income increased by $2.2 million, reaching $0.1 million, or $0.01 per diluted share.
- Revenue increased by approximately 15% for both Tobacco and Ingredients Operations segments.
- Operating income increased by $6.2 million, or 56%, compared to the same quarter last fiscal year.
- Tobacco Operations segment benefited from continued strong demand and strategic decisions to accelerate crop purchasing.
- Ingredients Operations segment delivered improved performance based on increased sales volumes and new product sales.
Headline financials
Revenue & EPS history
Universal Corp · Revenue · Quarterly
$596M
Revenue by segment
Universal Corp · $638M total across 2 segments · Q2 2024
- Tobacco Operations$555M-39.6%86.9%
- Ingredients Operations$83.8M-48.5%13.1%
Forward guidance
The company expects that tobacco shipment timing and related revenue recognition will be more heavily weighted towards the second half of fiscal year 2025 and the Lancaster, Pennsylvania expansion project to meaningfully contribute to the Ingredients Operations segment results in fiscal year 2026.
Tailwinds
- Strong demand from tobacco customers is expected to continue and support solid results for the Tobacco Operations segment for fiscal year 2025.
- Strategic decisions to accelerate tobacco crop purchasing have positioned the company well to meet customer demand.
- Increased sales of new products are contributing to positive results in the Ingredients Operations segment.
- The Lancaster, Pennsylvania expansion project remains on track to become fully operational in the second half of this fiscal year.
- The company's global footprint helps to alleviate the impact of localized disruptions.
Headwinds
- Uncommitted tobacco inventory levels remain low at about 13%, indicating a potential undersupply position in global leaf tobacco.
- Recent elevated green tobacco prices may incentivize farmers to increase planting, potentially leading to more balanced markets in the coming years.
- Debt level remained elevated at June 30, 2024.
- Interest expense for the quarter ended June 30, 2024, increased by $5.2 million, largely on higher interest rates and higher debt balances resulting from higher green tobacco prices and accelerated tobacco purchases.
- Global supply chain challenges could cause increased transportation costs and delays.
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 2025
-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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