Universal Leaf Tobacco Company Presentation
Segment Highlights - First Quarter FY24
Tobacco Operations
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Demand for leaf tobacco from our customers remains strong
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Although tobacco sales volumes were down, operating income was up largely on a more favorable product and geographic mix
in the quarter ended June 30, 2023, compared to the same quarter in the prior fiscal year
Prices for green leaf tobacco in the quarter ended June 30, 2023, were higher than in the quarter ended June 30, 2022
Carryover crop shipments were significantly lower in the quarter ended June 30, 2023, compared to the quarter ended June 30,
2022
Our level of uncommitted tobacco inventory was 16% of tobacco inventory at June 30, 2023
Ingredients Operations
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We are pleased with the ongoing progress we are making to integrate our plant-based ingredients platform
We believe that many of our customers are continuing to draw down on their raw materials inventories after building inventories to
protect against prior supply chain uncertainties
These inventory challenges have been more extensive and persistent in duration than we had forecasted
The expansion of the platform's capabilities has added to our costs
A sharp drop in certain new crop raw material prices resulted in inventory write-downs in the quarter ended June 30, 2023
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