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NEW YORK - Universal Corporation (NYSE:UVV) reported fourth quarter earnings that beat analyst estimates, though revenue declined from the prior year period. The tobacco and ingredients supplier’s stock edged up 0.2% following the release.
Universal posted adjusted earnings per share of $0.80 for the quarter ended March 31 Revenue came in at $702.3 million, down 9% from $770.9 million in the same quarter last year. Despite this, full-year revenue of $2.9 billion was up 7% YoY.
The company said the revenue decline was due to lower tobacco sales volumes, as shipments occurred earlier in fiscal 2025 compared to the prior year. Operating income for the tobacco operations segment fell 38% to $45.8 million.
"Fiscal year 2025 was an exceptional year for Universal," said Preston D. Wigner, Chairman, President and CEO. He noted the company increased revenue and operating income for both its tobacco and ingredients segments for the full year.
For fiscal 2026, Universal expects flue-cured and burley tobacco crops grown outside China to increase by 20% and 30% respectively. However, the company said crop purchases in Brazil are not following the accelerated patterns seen in fiscal 2025.
Universal’s ingredients operations segment saw revenue rise 20% to $89.7 million in Q4, with operating income swinging to a $4.4 million profit from a $1 million loss last year.
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