RICHMOND, Va. - Universal Corporation (NYSE: UVV), a prominent agriproducts supplier, has announced a leadership change with Preston D. Wigner set to become the new Chairman, President, and CEO starting October 1, 2024. Wigner, who has been with the company for over 20 years, will succeed George C. Freeman, III, who is retiring from his roles as Chairman, President, and CEO.
The transition is part of a carefully planned succession strategy, which included the assistance of a global leadership advisory firm over the last two years. Freeman will aid in the transition as Vice Chair until December 31, 2024, and then as Senior Advisor until the end of the fiscal year on March 31, 2025.
Thomas H. Johnson, Lead Independent Director of Universal's Board, praised Freeman's leadership, which has been integral in shaping the company and delivering value to shareholders. He also expressed confidence in Wigner's ability to lead the company forward given his significant tobacco industry experience and involvement in the company's ingredients business strategy.
Wigner, who joined Universal in 2003 and was appointed Senior Vice President in December 2023, expressed his gratitude for the opportunity to lead the company and his intention to build on the foundation laid by Freeman's leadership. He emphasized the importance of innovation and the company's commitment to social and environmental standards.
Freeman reflected on his tenure, highlighting the company's growth and its sustainable supply chain that supports over 200,000 farmers across five continents. He expressed his confidence in Wigner's ability to advance Universal's strategy and deliver long-term value for shareholders.
Universal Corporation, with over a century of experience, is recognized for its supply chain expertise and commitment to sustainability, operating in more than 30 countries.
This leadership change announcement is based on a press release statement and includes "forward-looking statements" that involve risks and uncertainties. The company's actual future results could differ materially from those anticipated in these statements.
"In other recent news, Universal Corporation has declared a quarterly dividend of $0.81 per share, confirmed by Chairman, President, and CEO George C. Freeman, III. The company has also reported a robust fiscal year 2024, with a net income of $119.6 million, despite facing challenges such as a tight tobacco supply and high green tobacco prices. The fourth quarter alone contributed $40.3 million to the year's net income.
Universal Corporation has expressed optimism for future growth, particularly looking at the expansion of its Lancaster manufacturing facility, which is expected to enhance the results of the ingredients segment in fiscal year 2026. The company's tobacco segment experienced increased sales prices and a favorable product mix, leading to higher operating income.
In contrast, the ingredients segment reported an operating income of $4 million for the fiscal year, despite a quarterly operating loss due to higher costs and inventory write-downs. The Lancaster facility expansion project is on track, with full operational status expected in the third quarter of fiscal year 2025. These are among the recent developments at Universal Corporation, which remains focused on maximizing tobacco opportunities while growing its ingredients business."
InvestingPro Insights
As Universal Corporation (NYSE: UVV) prepares for a significant leadership transition, the company's financial health and shareholder value remain pivotal considerations. According to the latest data from InvestingPro, Universal Corporation is currently trading at a low earnings multiple, with a P/E ratio of 11.19. This valuation suggests that the stock may be undervalued compared to its earnings potential, providing an attractive entry point for investors.
Adding to the appeal for income-focused investors, Universal has a strong track record of rewarding shareholders with dividends. The company has not only maintained its dividend payments for an impressive 54 consecutive years, but it has also raised its dividend for 33 consecutive years. This consistency reflects a commitment to returning value to shareholders and a stable financial position, particularly as the dividend yield stood at a significant 5.95% as of the last recorded date.
InvestingPro Tips also highlight that despite operating with a significant debt burden, Universal Corporation's liquid assets exceed its short-term obligations, indicating a level of financial flexibility. This is a crucial factor as the company navigates through the leadership change and continues to execute its long-term strategy. For investors seeking a deeper dive into Universal's financials and strategic outlook, InvestingPro offers additional tips on the company's performance and investment potential.
For those interested in exploring these insights further, there are 6 more InvestingPro Tips available for Universal Corporation, which can be found at https://www.investing.com/pro/UVV. These tips can provide valuable context and assist investors in making informed decisions as they assess the company's future under the new leadership of Preston D. Wigner.
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