Universal pleased with results
Universal Corp.’s net income for the fiscal year ended March 31, 2016, was $109 million, compared with $114.6 million last year. Excluding certain non-recurring items in both years, net income increased $6.8 million.
Segment operating income, which excludes those items, was $186.1 million for fiscal year 2016, up 11 percent from the prior year. That improvement was primarily attributable to a reduction in selling, general, and administrative costs, as well as improved gross margins on this year’s modestly higher sales volumes.
Revenues of $2.1 billion for fiscal year 2016 declined 7 percent compared with the previous year, driven mainly by lower green leaf costs and lower processing revenues, partly mitigated by the increase in volumes.
Net income for the fourth quarter ended March 31, 2016, was $48 million, compared with $45.8 million in the comparable 2015 quarter. Excluding non-recurring items, net income for the quarter increased $10.2 million.
Segment operating income for the period of $83.3 million was up by $30.5 million, compared with the previous fiscal year, on improved results in every segment as stronger sales volumes and lower selling, general, and administrative costs led to overall higher earnings for the quarter. Consolidated revenues for the fourth fiscal quarter increased by 3 percent to $804 million, as higher sales volumes, reflecting this year’s later shipping patterns, were partially offset by lower green leaf costs.
“I am proud to report that we achieved improved results in fiscal year 2016, after managing through this second year of oversupplied market conditions,” said George C. Freeman, III, Universal Corp.’s chairman, president and CEO.
“As anticipated, we ended the year with strong fourth quarter volumes, primarily driven by later timing of customer shipping orders in Brazil and Asia this year, and the positive change in leaf supply arrangements in our North America segment that we announced last year.
“We also achieved modest growth in overall volumes for the full fiscal year and improved our margins, and our selling, general, and administrative costs were lower. Our inventories continue to be well-managed, and uncommitted stocks have declined from last year’s level, in line with our target.
“In addition, we returned more than $60 million in dividends to our shareholders during the fiscal year, closed the year with higher cash balances, which will support upcoming seasonal working capital requirements in fiscal year 2017, and preserved our solid financial position.”