RICHMOND, Va. - Universal Corporation (NYSE:UVV), a leading agri-products company, today declared a quarterly dividend and announced a new share repurchase program. The company's Board of Directors has declared a dividend of eighty-one cents ($0.81) per share, payable on February 3, 2025, to shareholders of record as of January 13, 2025.
In a move that underscores its financial health and commitment to shareholder returns, Universal also revealed a share repurchase initiative. The company has been authorized to buy back up to $100 million of its common stock. These repurchases, which reinforce the company's confidence in its own business operations, are to occur in the open market or through privately negotiated transactions, adhering to market price norms.
With a history spanning over a century, Universal Corporation has a significant presence in the global agricultural sector. It operates a vast network of partnerships and farming operations across more than 30 countries, providing a suite of products and services that emphasize traceability, quality, and sustainability. The company's stock is publicly traded on the New York Stock Exchange, with approximately 24.7 million common shares currently outstanding.
This announcement is based on a press release statement and reflects the company's latest strategic financial decisions, aimed at enhancing shareholder value and capital allocation.
In other recent news, Universal Corporation has been the subject of several recent developments. The company has announced a leadership change, with Preston D. Wigner set to take over as Chairman, President, and CEO from George C. Freeman, III, who is retiring. This transition is part of a planned succession strategy, which includes Freeman's continued involvement as Vice Chair and later as Senior Advisor.
In financial news, Universal Corporation reported a strong fiscal year 2024, with a net income of $119.6 million. This was achieved despite 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. Additionally, the company declared a quarterly dividend of $0.81 per share.
Furthermore, Universal Corporation is optimistic about future growth, especially with the expansion of its Lancaster manufacturing facility. This expansion is expected to enhance the results of the ingredients segment in fiscal year 2026. However, 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.
Finally, the company's tobacco segment saw increased sales prices and a favorable product mix, leading to higher operating income. These are among the recent developments at Universal Corporation, which remains focused on maximizing tobacco opportunities while growing its ingredients business.
InvestingPro Insights
Universal Corporation's recent dividend declaration and share repurchase program announcement align well with its historical commitment to shareholder returns. According to InvestingPro data, the company boasts a significant dividend yield of 6.04% as of the last twelve months, making it an attractive option for income-focused investors.
InvestingPro Tips reveal that Universal Corporation has raised its dividend for 33 consecutive years and has maintained dividend payments for 54 consecutive years. This impressive track record underscores the company's financial stability and dedication to returning value to shareholders, which is further reinforced by the newly announced share repurchase program.
The company's P/E ratio of 10.75 suggests it may be trading at a relatively low earnings multiple, potentially indicating an undervalued stock. This could explain the Board's decision to authorize a share repurchase program, as they may view the current stock price as an opportune time to buy back shares.
Universal Corporation's revenue growth of 6.4% over the last twelve months and a robust EBITDA growth of 22.42% during the same period demonstrate the company's ability to expand its business and improve profitability, which supports its ability to sustain and potentially increase shareholder returns.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights on Universal Corporation, with 8 more tips available on the platform.
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