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Universal Corporation (NYSE: UVV), headquartered in Richmond, Virginia, has established itself as a global leader in the leaf tobacco business with over 100 years of excellence. Founded by Jaquelin Taylor, Universal Corporation has grown to become a pivotal player in the global supply chain of leaf tobacco, responsibly sourced and processed. The company procures leaf tobacco from farmers, carefully processes it, and sells it to manufacturers of consumer tobacco products. Universal Corporation is segmented into two primary operations: Tobacco Operations and Ingredients Operations, generating the bulk of its revenue from the former.
The Tobacco Operations segment involves the purchasing, processing, packing, storing, and shipping of various types of tobacco, including flue-cured, burley, dark air-cured, and oriental tobaccos. These activities serve major multinational cigarette and cigar manufacturers worldwide. The segment also provides physical and chemical product testing and smoke testing, ensuring high standards for its customers.
In the Ingredients Operations segment, Universal Corporation offers an array of plant-based ingredients used in both human and pet food products. The segment transforms raw materials into fruit and vegetable juices, concentrates, dehydrated products, flavors, and botanical extracts. Through brands like FruitSmart, Silva, and Shank's, the company caters to large multinational food and beverage companies as well as smaller independent manufacturers.
Universal Corporation has shown resilience and adaptability in the ever-evolving market. As of the latest reports, the company has seen significant growth in its Tobacco Operations segment, with increased demand for leaf tobacco and higher operating income. The Ingredients Operations segment faced soft demand due to high customer inventory levels, but the company remains optimistic about future growth, driven by investments in research and development and expanded capabilities.
Universal Corporation is committed to sustainability and transparency. The company has made strides in reducing its environmental impact, including a virtual power purchase agreement with Clearway Energy Group to achieve 100% renewable electricity for its U.S. operations. The company's focus on sustainability is evident in its efforts to promote water stewardship, reduce greenhouse gas emissions, and engage in sustainable practices across its supply chain.
Financially, Universal Corporation has reported increased revenues and operating incomes despite challenges such as higher interest costs and elevated green leaf tobacco prices. The company continues to adapt to market dynamics, aiming to meet the demands of its customers while maintaining a robust and sustainable business model.
Universal Corporation (NYSE: UVV) announced a definitive agreement to acquire Shank's Extracts, Inc., a leader in flavoring and extracts, enhancing its plant-based ingredients platform. Founded in 1899, Shank's specializes in vanilla and offers over 2,400 extracts for global customers. The acquisition aims to bolster Universal's services and product development capabilities, driven by Shank's commitment to food safety and quality. Expected to close in Q4 2021, the deal is anticipated to be accretive to earnings for fiscal year 2023, funded by cash and revolving credit.
Universal Corporation (NYSE:UVV) reported improvements in its financial performance for the first quarter of fiscal year 2022, ended June 30, 2021. Sales rose 11% to $350.0 million, driven by increased tobacco shipments from Africa and strong performance in the Ingredients Operations segment, particularly after the acquisition of Silva International. Operating income grew 24% to $10.6 million, while adjusted diluted earnings per share surged 1,400% to $0.30. Despite lower tobacco sales volumes, the company is optimistic about future growth amid ongoing pandemic-related challenges.
On August 4, 2021, Universal Corporation (NYSE: UVV) announced a quarterly dividend of $0.78 per share, payable on November 1, 2021. Shareholders must be on record by October 11, 2021 to receive this dividend. The company, a leader in leaf tobacco supply with over $2.0 billion in revenue for the fiscal year ending March 31, 2021, operates in over 30 countries, providing both tobacco and plant-based ingredients. Universal Corporation aims to meet customer needs innovatively, continuing its century-long tradition.
Universal Corporation reported significant growth for fiscal year 2021, with net income and diluted earnings per share increasing over 20% compared to fiscal year 2020. Key drivers included strong leaf tobacco shipments in the second half, successful acquisitions in plant-based ingredients, and favorable foreign currency impacts. Total revenues rose to $1.98 billion, a 4% increase from the previous year. The Ingredients Operations segment saw a dramatic revenue increase of 518%. The company also announced its 51st annual dividend increase, reflecting its commitment to shareholder value.
On May 26, 2021, Universal Corporation (NYSE: UVV) announced a quarterly dividend of $0.78 per share, payable on August 2, 2021, to shareholders of record by July 12, 2021. This marks the company's 51st consecutive annual dividend increase, aligning with its capital allocation strategy and commitment to delivering shareholder value. The increase leads to an annualized rate of $3.12 per share, equating to an approximate yield of 5% based on a closing price of $59.06 on May 25, 2021.
Universal Corporation (UVV) reported strong tobacco shipment volumes exceeding expectations for Q3 FY2021, leading to a net income increase to $33.3 million ($1.34 per share) from $26.0 million ($1.04 per share) in the previous year. Despite a decline in nine-month net income to $48.0 million from $56.1 million, adjusted operating income rose to $107.6 million. The company successfully integrated recent acquisitions in the plant-based ingredients sector, although it faced operating losses in this segment. Shipping challenges due to COVID-19 remain a concern.
Universal Corporation (NYSE: UVV) announced a quarterly dividend of $0.77 per share, payable on May 3, 2021, to shareholders on record by April 12, 2021. This decision reflects the company's ongoing commitment to returning value to its shareholders. Headquartered in Richmond, Virginia, Universal specializes in sourcing, processing, and supplying leaf tobacco and plant-based ingredients. For the fiscal year ending March 31, 2020, the company reported revenues of $1.9 billion. The firm has been a leader in the leaf tobacco market since its inception in 1918.
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