"The current market environment presents significant obstacles, but we remain committed to navigating this period with strategic cost management."
— CEO of Universal Corporation
03Detailed Report
UVV
Universal Corporation
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 15, 2026
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Executive Summary
In Q1 2025, Universal Corporation (UVV) reported a total revenue of $597 million, reflecting a decrease of 22.55% compared to the previous quarter. This decline is attributed to seasonal variations in demand and market challenges in the tobacco industry. Despite a year-over-year growth in revenue of 15.32%, the company's profitability declined sharply, with net income dropping to $130,000, a staggering 99.68% decrease from the prior quarter. The financial strain is further exacerbated by increasing expenses in operations, which have influenced overall performance metrics.
Management acknowledged these challenges in their earnings call, noting, “The current market environment presents significant obstacles, but we remain committed to navigating this period with strategic cost management.” The outlook remains cautious as the company adapts to evolving market demands and seeks to stabilize its financial position while maintaining operational integrity.
Key Performance Indicators
Revenue
Increasing
597.05M
QoQ: -22.55% | YoY: 15.32%
Gross Profit
Increasing
95.33M
15.97% margin
QoQ: -36.13% | YoY: 10.19%
Operating Income
Increasing
17.23M
QoQ: -73.90% | YoY: 56.09%
Net Income
Increasing
130.00K
QoQ: -99.68% | YoY: 106.30%
EPS
Increasing
0.01
QoQ: -99.68% | YoY: 106.26%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: Q1 2025 revenue stood at $597 million, a decrease of 22.55% quarter-over-quarter but an increase of 15.32% year-over-year.
Profitability: Gross profit fell to $95 million, yielding a margin of 15.92%, down from the previous margin. Operating income was reported at $17 million, reflecting a significant 73.90% decline from Q4 2024.
Net Income: Net earnings totaled $130,000, translating to an EPS of $0.0052, showing a remarkable year-over-year increase of 106.30% despite a 99.68% quarterly decline.
Cash Flow: Operating activities generated a negative cash flow of $62.44 million, primarily due to working capital changes. Free cash flow was reported at $(85.19) million, indicating liquidity pressures that may affect future investments.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
597.05M
15.32%
-22.55%
Gross Profit
95.33M
10.19%
-36.13%
Operating Income
17.23M
56.09%
-73.90%
Net Income
130.00K
106.30%
-99.68%
EPS
0.01
106.26%
-99.68%
Key Financial Ratios
Gross Profit Margin
Weak
16.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
2.89%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
0.02%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.01%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
2.60
Current ratio indicates excellent liquidity and financial flexibility