Universal Corporation reported a consolidated revenue of approximately $2.95 billion for the fiscal year ending March 31, 2025, marking a 7% increase from the previous year. The company also achieved an operating income of $232.8 million, which represents a 5% rise compared to the prior fiscal year. The growth in revenue and profitability was primarily driven by strong demand in its Tobacco Operations segment, which saw a 7% increase in revenues, and a notable 9% rise in the Ingredients Operations segment. The average sales price for tobacco increased by 12%, although sales volumes decreased slightly by about 4%.
In terms of operational changes, Universal Corporation has been actively consolidating its European sheet tobacco operations, resulting in restructuring costs of approximately $10.6 million. The company also completed a significant pension de-risking transaction, transferring about $47 million of pension obligations to a third-party insurer, which incurred a non-cash pension settlement charge of $14.1 million. These strategic moves are part of the company's ongoing efforts to optimize its operations and manage costs effectively.
The company employed over 28,500 individuals across more than 30 countries, with approximately 60% of its workforce being seasonal. Universal Corporation's customer base remains concentrated, with its top five customers accounting for over 50% of its consolidated revenues. The company continues to focus on enhancing its product offerings, particularly in the Ingredients Operations segment, where it has invested in expanding its sales, marketing, and product development teams. This segment has seen increased interest in value-added products, particularly in the beverage category.
Looking ahead, Universal Corporation anticipates continued strong demand for tobacco and expects larger tobacco crops to balance global supply positions. The company is committed to maximizing its tobacco business while also expanding its plant-based ingredients platform. Management expressed optimism about the prospects for fiscal year 2026, aiming to leverage its operational strengths and enhance shareholder value through disciplined investments and strategic growth initiatives.
About UNIVERSAL CORP /VA/
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