Universal Q2 revenue up climbs on higher tobacco and ingredient sales volumes

Universal

05/11/2025 22:43

Overview

Universal fiscal Q2 revenue up 6%, driven by higher tobacco and ingredient sales volumes

Operating income for fiscal Q2 down 2% due to unfavorable currency and higher write-downs

Net income for first half rises 64%, reflecting improved operational performance

Outlook

Universal expects tobacco supply to move to oversupply by fiscal year-end

Company focuses on organic growth and scaling through product pipeline

Universal expands renewable energy use to enhance operational efficiency

Result Drivers

TOBACCO DEMAND - Firm customer demand despite larger crops and earlier shipments of current crop tobacco contributed positively to results

INGREDIENTS SALES VOLUME - Increased sales volumes in Ingredients Operations segment supported revenue growth

COST IMPACT - Higher fixed costs and market challenges including tariff uncertainty negatively impacted Ingredients Operations earnings

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Adjusted EPS
$1.74
H1 EPS
$1.70
H1 Net Income
$42.70 mln
H1 Gross Margin
18.80%
H1 Adjusted Operating Income
$102.60 mln
H1 Operating Income
$101.50 mln


Analyst Coverage

Wall Street's median 12-month price target for Universal Corp is $78.00, about 34.1% above its November 4 closing price of $51.40

Press Release: ID:nBw14HLy7a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)