Universal Corporation Announces $30M Expansion to Support Leaf Tobacco Supply at Shank’s Extracts

Trending News ☀️

Universal Corporation ($NYSE:UVV), a leading supplier of leaf tobacco, has announced a $30M expansion project at Shank’s Extracts, one of its units. This expansion is intended to bolster the company’s supply chain for leaf tobacco to meet the growing demand from customers. The investment will enable Shank’s Extracts to expand its operations, upgrade its infrastructure, and create new jobs in the community.

The company is a publicly traded firm on the New York Stock Exchange (UNV) and has a market capitalization of over $3 billion. Universal Corporation has been ranked among the world’s top tobacco companies by market share for several years now, and its commitment to expansion at Shank’s Extracts is indicative of its commitment to growth and innovation.

Price History

This expansion is a strategic move to build upon the success of existing supply agreements and take advantage of increased demand. The announcement was welcomed by investors and the stock opened at $53.0, closing at the same high mark, up 0.7% from the prior closing price of $52.6. The announcement was well received as investors see the potential for increased profitability with an increased supply of leaf tobacco.

With the expansion, UNIVERSAL CORPORATION is investing in its future and creating long-term value for shareholders. This latest investment expands upon existing business arrangements and is expected to further enhance the company’s growth prospects. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Universal Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Universal Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Universal Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Universal Corporation are shown below. More…

Analysis

At GoodWhale, we recently conducted a comprehensive analysis of UNIVERSAL CORPORATION‘s wellbeing, and based on our Risk Rating, we have determined that this is a medium risk investment in terms of its financial and business aspects. We have identified a single risk warning in the company’s balance sheet, which could be indicative of potential issues. We invite you to register on our website, goodwhale.com, to view the full report and see exactly what we found. Our Risk Rating is designed to provide an objective assessment of the company’s financial and operational stability. By taking into consideration various aspects such as liquidity, profitability, solvency, and debt coverage, we can accurately gauge the likelihood of company risk. Ultimately, our research provides investors with the information needed to make sound decisions when it comes to investing in UNIVERSAL CORPORATION. We hope that our findings can help investors make educated choices about the future of their investments. 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 is a leading global leaf tobacco supplier, and the company recently announced a $30 million expansion project for its Shank’s Extracts facility. This investment is expected to bring additional jobs to the local area, while also improving the efficiency of its existing operations. The expansion will include additional storage space and improved shipping and logistics capabilities. The project aims to increase Universal’s capacity to supply products to key markets and create additional value for shareholders. Analysts view this project as a positive sign for the company, as it indicates management’s commitment to capital investments and future growth.

Additionally, the increased capacity and improved operations are expected to increase earnings in the coming years. Overall, investors seem optimistic about Universal Corporation’s prospects and future success.