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Highlights

  • UVV’s Q3FY25 revenue rose 14.1% YoY to USD 937.2 million, driven by demand and higher crop quality in Asia
  • Net income grew 10.6% YoY to USD 67.8 million, supported by higher sales despite increased costs
  • A quarterly dividend of USD 0.81 per share was paid on May 5, 2025

Universal Corporation (NYSE:UVV) is a global B2B agriproducts company specializing in two main segments: Tobacco Operations and Ingredients Operations. As a leading worldwide supplier of leaf tobacco, UVV also offers plant-based ingredients serving the food and beverage industries.

In the third quarter of financial year 2025 (Q3FY25), the company’s sales rose 14.1% year-over-year to USD 937.2 million, driven by higher customer demand, trading volumes, and better-quality crops in Asia. Net income increased 10.6% YoY to USD 67.8 million, supported by revenue growth, though partially offset by higher costs.

Net operating cash inflow improved significantly to USD 168.2 million from a USD 46.7 million outflow in Q3FY24, mainly due to higher income and favorable working capital changes. Total cash and cash equivalents jumped 190.3% YoY to USD 215.1 million.

On May 05, 2025, the company paid a quarterly dividend of USD 0.81 per share on the company’s common shares to shareholders of record as of the close of business on April 14, 2025.

UVV reported modest improvements in key metrics for Q3 FY25 versus Q3 FY24. Gross margin rose to 20.66% (from 20.32%), EBITDA margin to 12.72% (from 12.57%), and operating margin to 11.11% (from 10.76%), supported by higher tobacco volumes and cost controls. Despite currency losses of USD 11 million, income before tax margin edged up to 9.39%. However, a higher tax rate reduced the net margin slightly to 7.23% (from 7.46%). Free cash flow yield improved to 4.88% from 3.78%, aided by better working capital and cash collections, even as the company faces challenges like high leverage and an embezzlement probe.

Top 10 Shareholders

The top 10 shareholders of UVV hold approximately 56.11% of total shares, indicating a concentrated ownership structure. BlackRock Institutional Trust Company (7.04%) and Capital Research Global Investors (6.34%) are the largest shareholders with the highest individual stakes.

Stock Information

UVV stock has delivered returns of 10.91% over the last three months and 12.27% over the past six months. As of May 8, 2025, the stock closed at USD 58.44, trading near its 52-week high of USD 59.83 and well above the low of USD 45.19.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is May 08, 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.