NYSE$UVV

Universal Corp/VA · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported annual results, facing logistical challenges with strong performance from Ingredients Operations offsetting challenges in Tobacco Operations.

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.

Headline financials

Total Revenue

$641M

Previous: $609M+5.2%
EPS (adj)

$1.03

Previous: $0.57+80.7%
Capital Expenditures

$13.4M

Previous: $32.4M-58.7%
Free Cash Flow

$83.1M

Previous: $149M-44.4%
Net Income

$25.8M

Previous: $39.4M-34.5%
Operating Income

$57.1M

Previous: $62.7M-9.0%
Gross Profit

$122M

Previous: $124M-1.4%
Cash & Equivalents

$81.6M

Previous: $197M-58.6%
Total Assets

$2.59B

Previous: $2.34B+10.4%
Stock-Based Comp

$6.19M

Previous: $6.11M+1.3%

Revenue & EPS history

Universal Corp · Revenue · Quarterly

$641M

Q4 2022+5.2%vs Q4 2021
Beat estimate in 0 of 1 quarters(0%)
ActualEstimate

Revenue by segment

Universal Corp · $647M total across 2 segments · Q4 2022

  • Tobacco Operations
    $567M
  • Ingredients Operations
    $79.8M

Forward guidance

As we move into fiscal year 2023, we are seeing strong demand for our plant-based ingredients and tobacco products.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q4 2022

Historical avgQ4 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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