Universal Corp Reports Q2 2027 Earnings Decline Amid Slower Tobacco Shipments and Ingredient Cost Pressures
Universal Corp (UVV) reported a significant downturn in its second quarter fiscal 2027 results, with consolidated revenue falling 18% to $621.8 million. The decline was primarily driven by an 19% drop in tobacco operations revenue and a 23% decrease in sales volume, attributed to the slower timing of tobacco shipments and late customer commitments within the market cycle. The company's net income plummeted 63% year-over-year to $12.6 million, resulting in a diluted EPS of $0.50. Additional headwinds included an operating loss in the Ingredients segment due to tight apple supplies and rising production costs. Despite these challenges, management maintained tobacco operating margin guidance of 17% to 19% for the full fiscal year and noted that uncommitted tobacco inventory remains within target ranges.
Tickers: $UVV
Topics: ingredients segment loss net income reduction revenue decline tobacco industry