NYSE$UVV

Universal Corp/VA · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported results for the second quarter and first six months of fiscal year 2022.

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.

Headline financials

Total Revenue

$453M

Previous: $376M+20.4%
EPS (adj)

$0.66

Previous: $0.37+78.4%
Capital Expenditures

-$18.6M

Previous: -$22.8M+18.0%
Free Cash Flow

-$139M

Previous: -$173M+19.3%
Net Income

$19.5M

Previous: $7.5M+160.1%
Operating Income

$29.8M

Previous: $16.4M+82.3%
Gross Profit

$92M

Previous: $68.1M+35.1%
Cash & Equivalents

$101M

Previous: $57.1M+76.4%
Total Assets

$2.43B

Previous: $2.24B+8.2%

Revenue & EPS history

Universal Corp · Revenue · Quarterly

$453M

Q2 2022+20.4%vs Q2 2021

Revenue by segment

Universal Corp · $454M total across 2 segments · Q2 2022

  • Tobacco Operations
    $397M
  • Ingredients Operations
    $57.2M

Forward guidance

Looking to maintain strong performance while monitoring global supply chain challenges and setting high standards for social and environmental performance.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q2 2022

Historical avgQ2 2022

-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

Earnings price reactions
QuarterReport dateReaction (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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