RICHMOND, Va. - Universal Corporation (NYSE:UVV), a leading global agricultural company, has declared a quarterly dividend of eighty-one cents ($0.81) per share. The Chairman, President, and CEO of Universal Corporation, George C. Freeman, III, confirmed that the dividend is slated for payment on November 4, 2024, to shareholders of record by the close of business on October 14, 2024.
The company, known for its century-long history, operates a vast network of farmers and partners in over 30 countries across five continents. Universal Corporation prides itself on offering high-quality, traceable products through its integrated supply chain. Its expertise spans global reach, processing capabilities, and a commitment to sustainability, all of which contribute to driving efficiency and delivering value to its customers.
In other recent news, Universal Corporation has reported a strong fiscal year 2024, overcoming challenges such as a tight tobacco supply and high green tobacco prices. The company's net income for the year was $119.6 million, with the fourth quarter contributing $40.3 million.
Despite higher costs and inventory adjustments in the ingredients business, Universal Corporation remains hopeful about future growth, particularly with the expansion of its Lancaster manufacturing facility expected to bolster the ingredients segment's results in fiscal year 2026.
Universal Corporation's tobacco segment saw increased sales prices and a favorable product mix, leading to higher operating income. Meanwhile, 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 company also managed to navigate the tight tobacco supply by accelerating purchases in Brazil.
The expansion project at the Lancaster facility is progressing as planned, with full operational status expected in the third quarter of fiscal year 2025. Universal Corporation is also in ongoing discussions with potential customers for packaging beverages like protein shakes. These are among the recent developments at Universal Corporation, which is focused on maximizing tobacco opportunities while growing its ingredients business.
InvestingPro Insights
Universal Corporation (NYSE:UVV) continues to uphold its reputation as a consistent provider of shareholder value, as evidenced by its recent announcement of a quarterly dividend. A closer look at some key financial metrics and InvestingPro Tips provides further context into the company's current standing. With a market capitalization of $1.23 billion and a price-to-earnings (P/E) ratio that has been adjusted to 10.03 for the last twelve months as of Q4 2024, Universal appears to be trading at a low earnings multiple which could indicate that the stock is potentially undervalued relative to its earnings.
Investors might also be encouraged by Universal Corporation's significant dividend yield, which stands at 6.53% for 2024. This is a substantial return in the form of dividends relative to the share price, highlighting the company's commitment to returning value to its shareholders. Moreover, Universal Corporation has not only maintained but also raised its dividend for 32 consecutive years, showcasing a stable financial discipline and a strong track record of shareholder returns.
Another point of interest for investors is the company's revenue growth, which has been reported at 6.96% for the last twelve months as of Q4 2024. This indicates a healthy upward trajectory in Universal's business operations and could signal ongoing operational efficiency and market reach expansion.
For those seeking to delve deeper into the financial nuances of Universal Corporation, there are additional InvestingPro Tips available at InvestingPro. Currently, there are six more tips listed, which provide insights into the company's financial health, including its debt management, liquidity, and profitability over the last twelve months.
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