Universal (US:UVV)2025-11-05 21:19Financial Performance - Net income for the six months ended September 30, 2025, was $49,170 thousand, compared to $31,145 thousand for the same period in 2024, representing an increase of 57.9%[13] - Net income for the three months ended September 30, 2025, was $34,169 thousand, a significant increase from $25,940 thousand in the same period of 2024, representing a year-over-year growth of about 31.5%[14] - The total consolidated operating income for the six months ended September 30, 2025, was $101.462 million, up from $85.961 million in the same period of 2024, reflecting an increase of approximately 17.0%[84] - The company reported a net gain on foreign currency translation of $7.954 million for the six months ended September 30, 2025, compared to a gain of $3.933 million in the same period of 2024, representing an increase of approximately 102.5%[86] Revenue and Sales - Total revenue from contracts with customers for the six months ended September 30, 2025, was $1,342,069 thousand, up from $1,304,771 thousand in 2024, reflecting a 3% increase[25] - Total revenue from contracts with customers for the three months ended September 30, 2025, was $749.4 million, a 5.8% increase from $708.4 million in 2024[25] - Tobacco sales for the six months ended September 30, 2025, were $1,080,486 thousand, slightly down from $1,089,821 thousand in 2024, indicating a decrease of 1%[25] - Ingredient sales increased to $173,780 thousand for the six months ended September 30, 2025, compared to $157,237 thousand in 2024, marking a 10% growth[25] Assets and Liabilities - As of September 30, 2025, total assets increased to $3,070,439 thousand from $3,045,586 thousand as of September 30, 2024, reflecting a growth of approximately 0.82%[9] - Total current liabilities decreased to $828,631 thousand as of September 30, 2025, from $849,422 thousand as of September 30, 2024, a reduction of approximately 2.1%[11] - The company reported a total of $1,188,283 thousand in retained earnings as of September 30, 2025, up from $1,158,658 thousand as of September 30, 2024, an increase of 2.6%[11] - The company’s long-term debt remained stable at $618,196 thousand as of September 30, 2025, compared to $617,641 thousand as of September 30, 2024[11] Cash Flow and Expenses - Net cash used by operating activities for the six months ended September 30, 2025, was $(172,358) thousand, compared to $(47,413) thousand for the same period in 2024[13] - Selling, general and administrative expenses for the six months ended September 30, 2025, totaled $108.889 million, up from $104.857 million in the same period of 2024, indicating an increase of about 3.0%[84] - The cost of goods sold for the six months ended September 30, 2025, was $1.094 billion, compared to $1.069 billion in the same period of 2024, reflecting an increase of approximately 2.3%[84] Shareholder Equity and Dividends - Total shareholders' equity increased to $1,504,150 thousand as of September 30, 2025, compared to $1,458,004 thousand as of September 30, 2024, reflecting an increase of 3.2%[11] - Cash dividends declared for common stock amounted to $20,429 thousand in the three months ended September 30, 2025, compared to $20,020 thousand in the same period of 2024, indicating a slight increase of 2.04%[14] Impairment and Restructuring - The company incurred $1.0 million in impairment costs related to the consolidation of sheet tobacco operations during the six months ended September 30, 2025[18] - Total restructuring and impairment costs for the six months ended September 30, 2025, were $10.6 million, compared to $1.1 million in 2024[19] - The company recognized an impairment charge of $4.9 million for long-lived assets in Germany due to the consolidation of European Sheet tobacco operations[72] Stock and Compensation - The company issued 114,440 RSUs with a grant date fair value of $62.77 during the six months ended September 30, 2025, compared to 96,230 RSUs at $47.81 in 2024[78] - The total stock-based compensation expense recorded for the six-month periods ended September 30, 2025, and 2024, was approximately $8.5 million and $6.6 million, respectively[78] Taxation - The Company's consolidated effective income tax rates for the three and six months ended September 30, 2025, were 24.4% and 25.2%, respectively, compared to 28.6% and 31.5% for the same periods in 2024[38][39] - The Company does not anticipate a material impact from the Pillar Two legislation, which establishes a 15% global minimum tax rate effective for fiscal year 2025, on its consolidated financial statements for fiscal year 2026[36] Segment Performance - The Ingredients Operations segment provides a variety of plant-based ingredients, serving large multinational food and beverage companies[81] - The Tobacco Operations segment derives a substantial portion of its revenues from sales to a limited number of large, multinational cigarette and cigar manufacturers[80] - Segment operating income for Tobacco Operations was $65.088 million for the three months ended September 30, 2025, compared to $78.667 million in the same period of 2024, indicating a decline of about 17.3%[84] - The Ingredients Operations segment generated sales of $94.8 million for the three months ended September 30, 2025, up from $80.6 million in the same period of 2024, reflecting a growth of about 17.5%[84]