Universal Corporation Reports 14% Revenue Growth to $2.25 Billion for Nine Months Ending December 31, 2024

Universal Corporation reported a significant increase in financial performance for the nine months ending December 31, 2024, with total revenues reaching $2.25 billion, a 14% increase from $1.98 billion in the same period last year. The company's net income attributable to Universal Corporation was $98.9 million, up from $86.9 million, reflecting a 14% rise. Diluted earnings per share also increased to $3.41 from $3.17, indicating improved profitability driven primarily by strong demand in the Tobacco Operations segment.

The company experienced notable growth in its Tobacco Operations, which saw revenues rise by 15% to $1.99 billion, with operating income increasing by 31% to $194.4 million. This growth was attributed to higher sales volumes and prices, particularly from better-quality crops in Africa and Asia, as well as accelerated shipment timing in the United States. The Ingredients Operations segment also contributed positively, with revenues increasing by 6% to $249 million and operating income rising by 59% to $7.9 million, despite facing some margin pressures due to high raw material costs.

Operationally, Universal Corporation's total current assets increased to $2.22 billion from $2.01 billion year-over-year, driven by a rise in accounts receivable and cash reserves. The company reported a decrease in uncommitted tobacco inventories to approximately 10% of total tobacco inventory, reflecting effective inventory management. The company also initiated a restructuring plan to consolidate its European sheet tobacco operations, incurring $10.6 million in restructuring and impairment costs during the nine-month period.

Looking ahead, Universal Corporation remains optimistic about its growth trajectory, particularly in the Tobacco Operations segment, which is expected to benefit from ongoing strong customer demand and successful procurement strategies. The company has also launched a new stock repurchase program, authorizing the purchase of up to $100 million in common stock, which reflects its commitment to returning value to shareholders. However, the company acknowledges potential risks, including market fluctuations and regulatory changes, which could impact future performance.