Universal (US:UVV)2026-02-09 13:16Financial Performance - Net income for the nine months ended December 31, 2025, was $90,758 thousand, down from $98,941 thousand in the same period of 2024, representing a decrease of about 8.8%[12] - For the three months ended December 31, 2025, the net income attributable to Universal Corporation was $33,249,000, resulting in basic earnings per share of $1.33, down from $2.39 in the same period of 2024[37] - Universal Corporation's net income for the three months ended December 31, 2025, was $33,249,000, compared to $59,639,000 for the same period in 2024, reflecting a decrease of 44%[90] - Total revenue from contracts with customers for the three months ended December 31, 2025, was $853.155 million, a decrease from $927.981 million in the same period of 2024, representing a decline of approximately 8%[24] - Total revenue from contracts with customers for the nine months ended December 31, 2025, was $2,195,224,000, a decrease of 2.2% from $2,232,752,000 in 2024[24] Assets and Liabilities - Total current assets decreased to $2,183,425 thousand as of December 31, 2025, from $2,215,645 thousand a year earlier, reflecting a decline of approximately 1.5%[8] - Total liabilities decreased to $1,492,340 thousand as of December 31, 2025, from $1,548,507 thousand a year earlier, a reduction of approximately 3.6%[10] - Total shareholders' equity rose to $1,525,174 thousand as of December 31, 2025, compared to $1,491,912 thousand a year earlier, an increase of about 2.2%[10] - Cash and cash equivalents at the end of the period were $85,227 thousand, a significant decrease of 67.3% from $260,115 thousand at the beginning of the year[12] - Accounts receivable, net, decreased to $571,511,000 as of December 31, 2025, from $650,021,000 in the previous year, a reduction of 12.1%[8] Sales and Revenue - Tobacco sales for the three months ended December 31, 2025, were $719.882 million, down from $811.743 million in 2024, reflecting a decrease of about 11.3%[24] - Ingredient sales for the three months ended December 31, 2025, were $77.891 million, slightly down from $78.705 million in 2024, indicating a decrease of approximately 1%[24] - Tobacco sales for the nine months ended December 31, 2025, amounted to $1,800,368,000, down 5.3% from $1,901,564,000 in 2024[24] - Ingredient sales increased to $251,671,000 for the nine months ended December 31, 2025, up 6.9% from $235,942,000 in 2024[24] Cash Flow and Operating Activities - The company reported a cash outflow from operating activities of $58,039 thousand for the nine months ended December 31, 2025, compared to an inflow of $168,228 thousand in the same period of 2024[12] - Net cash used by operating activities was $(58,039,000) for the nine months ended December 31, 2025, compared to $168,228,000 provided in 2024[12] Restructuring and Impairment - The company incurred $1.7 million in net provision for losses on advances to suppliers during the nine months ended December 31, 2025, compared to a recovery of $445 thousand in the same period of 2024[12] - Restructuring and impairment costs totaled $1.7 million for the nine months ended December 31, 2025, including $0.7 million related to the consolidation of European sheet tobacco operations[17] - Total restructuring and impairment costs for the nine months ended December 31, 2025, were $1.833 million, down from $10.573 million in 2024, a reduction of approximately 82.7%[18] Capital Expenditures and Investments - Capital expenditures for the Ingredients Operations segment were $15,630 for the nine months ended December 31, 2025, compared to $24,758 in the prior year, indicating a reduction in investment[88] - Capital expenditures for the Tobacco Operations segment were $24.673 million for the nine months ended December 31, 2025, compared to $30.127 million in the same period of 2024, a decrease of approximately 18%[88] Taxation - The consolidated effective income tax rate for the three months ended December 31, 2025, was 37.8%, significantly higher than the 23.0% rate for the same period in 2024, impacted by a new 10% withholding tax law in Brazil[41][42] - The effective tax rate for the nine months ended December 31, 2025, was 31.6%, compared to 25.9% for the same period in 2024[41][42] Stock and Dividends - The company declared cash dividends of $20,443,000 for the three months ended December 31, 2025, slightly higher than $20,020,000 declared in the same period of 2024[90] - The Company approved a stock repurchase program for up to $100 million, with $100 million remaining for repurchases as of December 31, 2025[31] Foreign Currency and Hedging - The Company has implemented hedging strategies for foreign currency exchange rate risk, particularly for tobacco purchases and processing costs in Brazil and Mexico[50] - The total notional amounts of forward currency contracts outstanding were approximately $64.4 million as of December 31, 2025, compared to $66.7 million in 2024, indicating a decrease of 3.4%[55] - The company uses forward contracts to manage currency remeasurement risk, with notional amounts outstanding at December 31, 2025, totaling approximately $64.4 million[55] Other Comprehensive Income - Other comprehensive income for the three months ended December 31, 2025, was a loss of $998,000, compared to a loss of $10,449,000 in the same period of 2024, indicating an improvement[90] - The company reported a total accumulated other comprehensive loss of $72.208 million at the end of December 2025, an improvement from $97.605 million at the end of December 2024[89]