Universal (US:UVV)2025-11-05 21:17Revenue and Income - Revenue increased by 3% to $1.35 billion for the first half of fiscal year 2026, and by 6% to $754.2 million for the second quarter[7] - Operating income rose by 18% to $101.5 million for the first half, but decreased by 2% to $67.6 million for the second quarter[7] - Net income attributable to Universal Corporation increased by 64% to $42.7 million for the first half, and by 32% to $34.2 million for the second quarter[7] - Total sales and other operating revenues for the six months ended September 30, 2025, were $1,347,939,000, up from $1,307,812,000 in 2024, indicating a 3% growth[41] - Net income for the six months ended September 30, 2025, was $49,170,000, compared to $31,145,000 for the same period in 2024, representing a 58% increase[30] - Basic earnings per share for the six months ended September 30, 2025, were $1.71, compared to $1.05 for the same period in 2024, representing a 63% increase[33] Segment Performance - Tobacco Operations segment revenue grew by 2% to $1.16 billion for the first half, with operating income up 10% to $100.9 million[9] - Ingredients Operations segment revenue increased by 11% to $183.8 million for the first half, but operating income decreased by 64% to $1.5 million[7] - Segment operating income for Tobacco Operations was $100,918,000 for the six months ended September 30, 2025, compared to $91,788,000 in 2024, reflecting a 10% increase[41] - The Ingredients Operations segment reported sales of $183,820,000 for the six months ended September 30, 2025, compared to $165,645,000 in 2024, marking an 11% increase[41] Financial Position - Total debt decreased by $39 million to $1.16 billion compared to September 30, 2024[11] - Net debt (non-GAAP) decreased by $52 million to $1.07 billion as of September 30, 2025[11] - Total assets as of September 30, 2025, amounted to $3,070,439,000, a slight increase from $3,045,586,000 as of September 30, 2024[27] - Current liabilities decreased to $828,631,000 as of September 30, 2025, from $849,422,000 as of September 30, 2024, indicating a reduction of approximately 2.5%[29] - The inventory of tobacco as of September 30, 2025, was valued at $1,138,630,000, compared to $1,070,655,000 in the previous year, showing an increase of 6.4%[27] Cash Flow and Expenses - Cash used by operating activities for the six months ended September 30, 2025, was $(172,358,000), significantly higher than $(47,413,000) in 2024[30] - Net cash provided by financing activities for the six months ended September 30, 2025, was $20,565,000, a decrease from $109,289,000 in 2024[30] - The company reported a net cash decrease of $(171,463,000) for the six months ended September 30, 2025, compared to an increase of $24,525,000 in 2024[30] - Interest expense for the three months ended September 30, 2025, was $20,438,000, a decrease from $21,273,000 in the same period of 2024, representing a decline of 3.9%[25] Strategic Focus and Initiatives - The company is focusing on organic growth and building scale through its product pipeline despite market challenges[11] - Universal Corporation is making progress in its transition to renewable energy sources, expanding solar capacity in multiple countries[14] - The company anticipates continued growth in fiscal year 2026, driven by strategic plans in both the ingredients and tobacco businesses[22] Other Financial Metrics - Basic earnings per share for the three months ended September 30, 2025, rose to $1.36, compared to $1.04 for the same period in 2024, marking an increase of 30.8%[25] - Operating income for the six months ended September 30, 2025, was $101,462,000, compared to $85,961,000 for the same period in 2024, reflecting an increase of 17.9%[25] - Cash and cash equivalents as of September 30, 2025, were $88,652,000, compared to $80,118,000 as of September 30, 2024, indicating an increase of 10.5%[27] - The company incurred restructuring and impairment costs of $1,122,000 for the six months ended September 30, 2025, down from $10,573,000 in 2024[41]