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    Ann Gurkin • D.A. Davidson & Co.

    Ann Gurkin's questions to Universal Corp (UVV) leadership

    Ann Gurkin's questions to Universal Corp (UVV) leadership • Q1 2026

    Question

    Ann Gurkin of Davenport & Company LLC inquired about the impact of tariffs on both the tobacco and ingredients segments, particularly concerning imports from Brazil. She also asked for the margin outlook for the tobacco segment for the remainder of the fiscal year, progress on gaining market share, the status of the U.S. tobacco crop, and the margin trajectory for the ingredients business. Additionally, she requested an update on the CFO succession plan and the company's use of cash.

    Answer

    Preston Wigner, Chairman, President & CEO, explained that Universal's global footprint helps mitigate tariff impacts by providing sourcing flexibility. He noted that while larger crops may pressure tobacco margins, increased factory volumes could lower per-unit costs. For the Ingredients segment, he acknowledged Q1 headwinds but expressed confidence in driving volume through the new facility to improve margins over time. He also confirmed the CFO search is underway. Johan Kroner, Senior VP & CFO, added that the share repurchase program is available for opportunistic use but there are no immediate large-scale plans.

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    Ann Gurkin's questions to Universal Corp (UVV) leadership • Q1 2026

    Question

    Ann Gurkin of Davenport & Company LLC inquired about the impact of tariffs on both the tobacco and ingredients segments, the margin outlook for both segments for the remainder of fiscal 2026, progress on the U.S. tobacco crop, potential market share gains, customer wins in the ingredients business, the CFO succession plan, and the company's use of cash.

    Answer

    Preston Wigner, Chairman, President & CEO, explained that Universal's global footprint provides flexibility to manage tariff impacts by shifting sourcing for customers. He noted that while Q1 tobacco margins were strong due to mix, larger global crops could pressure prices later in the year, though higher volumes could offset this by lowering per-unit costs. For the ingredients segment, Wigner acknowledged Q1 margin pressure from higher costs and unfavorable mix but expressed optimism in driving volume growth through the new facility to improve margins over time. He confirmed the CFO search has begun. Johan Kroner, Senior VP & CFO, added that the share repurchase program was renewed and remains an option, but there are no immediate large-scale plans.

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    Ann Gurkin's questions to Universal Corp (UVV) leadership • Q4 2025

    Question

    Ann Gurkin of Davenport & Company LLC inquired about the outlook for fiscal 2026, focusing on SG&A expenses, tobacco segment margins amid a shifting supply environment, ingredients segment profitability, the impact of tariffs, and capital allocation priorities including share buybacks, interest expense, and CapEx.

    Answer

    CFO Johan Kroner provided context on SG&A components, noting the Mozambique investigation legal fees would not recur, and forecasted CapEx between $45M and $55M. CEO Preston Wigner discussed the tobacco market's transition to a more balanced supply, stating that customer inventory strategies will be key for volume and pricing. For the ingredients segment, both executives emphasized a focus on growing volume and margins through specialized products from their new Lancaster facility. Wigner also confirmed modest tariff-related buying in Q4 and outlined strategies to mitigate future tariff impacts. Regarding capital allocation, Kroner prioritized deleveraging and strategic investments over share repurchases at this time.

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    Ann Gurkin's questions to Universal Corp (UVV) leadership • Q4 2025

    Question

    Ann Gurkin of Davenport & Company LLC inquired about the financial outlook for fiscal year 2026, focusing on SG&A expenses, tobacco segment margins and volumes amid a shifting supply market, and the profitability and growth prospects for the Ingredients segment. She also asked about capital allocation priorities, including the share repurchase program, interest expense, and CapEx.

    Answer

    CFO Johan Kroner provided context on SG&A components, noting the Mozambique investigation costs are complete, and projected FY26 CapEx between $45-55 million. He stated the goal is to lower interest expense and that strategic investments are a higher priority than share buybacks. CEO Preston Wigner explained that FY26 tobacco volumes depend on customer inventory strategies but demand remains strong. He also affirmed the goal to grow the Ingredients business by leveraging platform investments to improve margins and scale. VP & Treasurer Wushuang Ma provided specific uncommitted inventory figures.

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    Ann Gurkin's questions to Universal Corp (UVV) leadership • Q1 2025

    Question

    Ann Gurkin of D.A. Davidson & Co. inquired about a range of topics, including the fiscal 2026 outlook for the Tobacco segment's margins given the expected move toward a more balanced supply environment. She also asked about potential cost savings from consolidating European sheet production, shipping container availability, the performance of the oriental tobacco joint venture, and the potential impact of Hurricane Debby. For the Ingredients segment, Gurkin questioned the full-year outlook, margin potential, new product examples, and the impact of business pulled forward. Additionally, she sought clarification on full-year SG&A guidance, interest expense trends, and capital expenditure levels.

    Answer

    CEO George Freeman addressed the tobacco market, stating that a mild La Nina weather pattern is expected to produce bigger crops in 2025, leading to a more balanced supply. He anticipates a reduction in inflationary green tobacco prices but believes the company can maintain margins through higher processing volumes. Regarding logistics, Freeman noted some disruptions and increased costs due to the Red Sea situation but expressed confidence in managing the supply chain. CFO Johan Kroner commented on financials, expecting full-year SG&A for fiscal 2025 to be below the prior year's $311 million and noted that interest expense should decrease as working capital unwinds in the second half of the year. An executive added that the Ingredients segment's improvement was driven by new product sales and recovery in core products, with meaningful contributions from the Lancaster expansion expected in fiscal 2026. Executive Jennifer Rowe provided the uncommitted worldwide tobacco leaf number, which stood at 21 million kilos at the end of June.

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