Universal Corporation Reports Record Earnings for 2024 First Quarter
August 7, 2023
🌥️Earnings Overview
On June 30 2023, UNIVERSAL CORPORATION ($NYSE:UVV) reported their earnings results for the first quarter of the 2024 fiscal year. The company’s total revenue for the period was USD 517.7 million, a 20.5% increase year-over-year. Net income, however, was USD -2.1 million, a decrease from the USD 6.8 million seen in the same quarter of the previous year.
Share Price
The company’s stock opened at $50.0 and closed at $50.5, up by 0.3% from the previous closing price of 50.4. The impressive results were largely attributed to its successful implementation of cost cutting measures and strategic investments. These initiatives enabled the company to maximize profits and minimize costs.
Additionally, it was noted that the company had increased its global presence, which helped generate a larger customer base and gain stronger market share. Overall, the impressive performance of UNIVERSAL CORPORATION across various sectors has resulted in record earnings for the quarter, with the stock increasing by 0.3% from the previous closing price. The company is expected to continue its growth trajectory and deliver more impressive financial results in the upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Universal Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 2.66k | 115.16 | 4.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Universal Corporation. More…
| Operations | Investing | Financing |
| 111.32 | -54.37 | -69.17 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Universal Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.89k | 1.47k | 56.04 |
Key Ratios Snapshot
Some of the financial key ratios for Universal Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.3% | 11.0% | 7.0% |
| FCF Margin | ROE | ROA |
| 2.0% | 8.4% | 4.1% |
Analysis
At GoodWhale, we have completed a thorough analysis of UNIVERSAL CORPORATION‘s fundamentals. Based on the STAR Chart assessment, UNIVERSAL CORPORATION is strong in asset and medium in dividend, growth, and profitability. This leads us to classify UNIVERSAL CORPORATION as a ‘cheetah’, which is a type of company that achieves high revenue or earnings growth but is considered less stable due to lower profitability. Given the ‘cheetah’ classification of the company, we believe investors with an appetite for higher risk and higher return may be interested in this type of company. Additionally, we have concluded that UNIVERSAL CORPORATION has an intermediate health score of 6/10 with regard to its cashflows and debt, which indicates that the company is likely to safely ride out any crisis without the threat of bankruptcy. More…
Peers
The company produces a wide range of tobacco products, including cigarettes, cigars, pipe tobacco, smokeless tobacco, and rolling papers. Universal Corp is one of the world’s largest tobacco companies, with a market share of more than 10%. The company’s main competitors are Scandinavian Tobacco Group A/S, NTC Industries Ltd, and PepsiCo Inc.
– Scandinavian Tobacco Group A/S ($OTCPK:SNDVF)
Scandinavian Tobacco Group A/S is a leading international manufacturer and marketer of cigars, cigarettes, and pipe tobacco. The company has a market cap of 1.5B as of 2022 and a Return on Equity of 12.76%. Scandinavian Tobacco Group A/S is a publicly traded company listed on the Copenhagen Stock Exchange. The company’s products are sold in more than 100 countries worldwide.
– NTC Industries Ltd ($BSE:526723)
NTC Industry Ltd is a publicly traded company with a market capitalization of 1.04 billion as of 2022. The company has a return on equity of 9.86%. NTC Industries Ltd is engaged in the production and sale of nitrocellulose-based products. The company’s products are used in a variety of applications, including paints, inks, adhesives, and coatings.
– PepsiCo Inc ($NASDAQ:PEP)
PepsiCo Inc is a food and beverage company with a market cap of 246.31B as of 2022. The company has a Return on Equity of 45.25%. PepsiCo manufactures, markets, and sells a variety of carbonated and non-carbonated beverages, food, and snacks. The company’s products are sold in over 200 countries and territories. PepsiCo’s brands include Pepsi, Lay’s, Gatorade, Quaker, Tropicana, Mountain Dew, and Doritos.
Summary
Universal Corporation‘s first quarter of 2024 saw a substantial jump in total revenue, with a 20.5% year-over-year increase to USD 517.7 million. Despite this strong performance, net income decreased from USD 6.8 million to USD -2.1 million. Investors should assess Universal Corporation’s current financial position to determine if the company can sustain its growth momentum and reverse the trend of declining profits. It will also be important to monitor the company’s performance in the quarters to come and compare it to competitors in the industry.
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