Universal Stock Price, News & Analysis

Universal Corporation (NYSE:UVV) reported strong performance for the first half of fiscal year 2022, with consolidated revenues reaching $804 million, a 16% increase compared to the previous year. Operating income rose by 62% to $40.4 million, and diluted earnings per share improved by 73% to $1.04.

The company's tobacco operations benefitted from a favorable product mix and reduced carryover sales of lower-margin tobaccos. However, challenges related to global supply chain disruptions and rising costs due to inflation were noted.

Universal Corporation (NYSE:UVV) has declared a quarterly dividend of $0.78 per share on common shares, payable on February 7, 2022. To qualify, shareholders must own shares by the close of business on January 10, 2022. Based in Richmond, Virginia, Universal Corporation operates in over 30 countries, specializing in agri-products, particularly as a leading supplier of leaf tobacco. The company emphasizes a commitment to a sustainable supply chain and high-quality value-added products for its customers, which include consumer product manufacturers.

Universal Corporation (NYSE: UVV) has completed the acquisition of Shank's Extracts, Inc., enhancing its plant-based ingredients platform. This acquisition is funded through cash on hand and existing borrowing, expanding Universal's offerings with over 2,400 extracts, distillates, and natural flavors, notably in vanilla. With a 191,000 square foot facility in Lancaster, Pennsylvania, Shank's employs over 200 people. Universal aims to leverage this acquisition to provide value-added services, benefiting its global B2B operations in the food and beverage sector.

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.