NYSE:UVV Universal Q1 2024 Earnings Report $58.74 +0.05 (+0.09%) As of 01:50 PM Eastern This is a fair market value price provided by Polygon.io. Learn more. Earnings History Universal EPS ResultsActual EPS-$0.08Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AUniversal Revenue ResultsActual Revenue$517.72 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AUniversal Announcement DetailsQuarterQ1 2024Date8/2/2023TimeN/AConference Call DateWednesday, August 2, 2023Conference Call Time5:00PM ETUpcoming EarningsUniversal's Q4 2025 earnings is scheduled for Wednesday, May 28, 2025, with a conference call scheduled on Thursday, May 22, 2025 at 7:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Universal Q1 2024 Earnings Call TranscriptProvided by QuartrAugust 2, 2023 ShareLink copied to clipboard.There are 6 speakers on the call. Operator00:00:00Good afternoon, ladies and gentlemen, and welcome to the Universal Corporation First Quarter Fiscal Year 20 24 Earnings Conference Call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. I would now like to turn the conference over to Jennifer Rowe. Please go ahead. Speaker 100:00:24Thank you for joining us. George Freeman, our Chairman, President and CEO Eirsen Henske, our Chief Operating Officer and Johan Kroner, our Chief Financial Officer, are here with me today and will join me in answering questions after these brief remarks. This call is being webcast live and will be available on our website and on telephonetaped replay. That will remain on our website through November 2, 2023. Other than the replay, we have not authorized and disclaim responsibility for Any recording, replay or distribution of any transcription of this call. Speaker 100:00:59This call is copyrighted and may not be used without our permission. Before I begin to discuss our results, I caution you that we will be making forward looking statements that are based on our current knowledge and some assumptions about the future and are representative as of today only. Actual results could differ materially from projected or estimated results, and we assume no obligation to update any forward looking statements. For information on some of the factors that can affect our estimates, I urge you to read our 10 ks for the year ended March 31, 2023. Such risks and uncertainties include, but are not limited to impacts of COVID-nineteen, customer mandated timing of shipments, weather conditions, political and economic environment government regulation and taxation changes in interest rates and exchange rates Industry consolidation and evolution and changes in market structure or sources. Speaker 100:01:58Finally, some of the information I have for you today is based on unaudited allocations and is subject to reclassification. In an effort to provide useful information to investors, our comments today may include non GAAP financial measures. For details on these measures, including reconciliations to the most comparable performed well and are off to a good start for our fiscal year 2024. Segment operating income was higher for our Tobacco Operations segment in the quarter ended June 30, 20 23 compared to the quarter ended June 30, 2022, even though we did not have the benefit of large shipments of carryover tobacco from certain origins that we had in the Q1 of fiscal year 2023. Demand for leaf tobacco from our customers remained strong and our level of uncommitted tobacco inventory was 16% of tobacco inventory at June 30, 2023. Speaker 100:03:00We are forecasting increased leaf tobacco production in fiscal year 2024 compared to fiscal year 2023 and believe that even with the increased production, leaf tobacco will remain in an undersupply position. We are pleased with the ongoing progress we are making to integrate our plant based ingredients platform, and we continue to execute on our strategy to invest in and expand Platform's capabilities for future growth in existing and new products. For the quarter ended June 30, 2023, The platform faced soft demand due to high customer inventory levels and our earnings for the platform were below our expectations. We believe that many of our customers are continuing to draw down on their raw material inventories after building inventories to protect against prior supply chain uncertainty. The inventory challenges have been more extensive and persistent in duration than we had forecast. Speaker 100:03:57In addition, the expansion of the platform's capabilities added to our costs, while a sharp drop in certain new crop raw material prices resulted in inventory write downs in the quarter ended June 30, 2023. We continue to believe the inventory challenges are temporary and expect excess inventory levels held by our customers to eventually work down. One of the main objectives of our current investment in our plant based ingredients platform is to expand our portfolio to include more value added products for our customers. We believe that we are well positioned Capitalize on demand from our customers and that with the investments we are making, we are a stronger partner for current and future customers due to the expanded range of capabilities and products that we can offer them. We are encouraged by ongoing customer engagements regarding existing business and new business opportunities. Speaker 100:04:51Some financial highlights for the quarter ended June 30, 2023. Net loss for the quarter ended June 30, 2023 was $2,100,000 or $0.08 per diluted share. Excluding certain nonrecurring items detailed in today's press release, net income and diluted earnings per share decreased by 8,200,000 and $0.33 respectively for the quarter ended June 30, 2023 compared to the quarter ended June 30, 2022. Operating income of $11,000,000 for the quarter ended June 30, 2023 decreased by 2,200,000 Segment operating income for the Tobacco Operations segment was up $800,000 while segment operating income for the Ingredients Operations segment was down 6 $600,000 for the quarter ended June 30, 2023 compared to the quarter ended June 30, 2022. Selling, general and administrative expenses were up $9,000,000 in the Q1 of fiscal year 2024 compared to the Q1 of fiscal year 2023. Speaker 100:05:58Our costs, notably interest costs and prices for green leaf tobacco, remained high in the quarter ended June 30, 2023, compared to the quarter ended June 30, 2022. Interest costs were more than double on higher interest rates in the Q1 of fiscal year 2024 compared to the same quarter of fiscal year 2023. Our debt balances, the sum of notes payable in overdrafts and long term obligations We're relatively flat in the quarter ended June 30, 2023 compared to the same quarter in the prior fiscal year as working capital requirements We continue to make transparency around our sustainability efforts and goals a priority. We recently completed our annual submission to the global nonprofit organization, CDP, regarding climate change, forestry and water risks to provide more information on our achievements in these areas to our stakeholders. We continue to work with third parties to verify our mission and establish our pathway to net 0 through the identification and prioritization of high impact projects throughout our footprint. Speaker 100:07:12At this time, we are available to take your questions. Operator00:07:19Thank you. Ladies and gentlemen, we will now begin the question and answer session. Please ensure you lift the handset if you're using a speakerphone before pressing any keys. Your first question comes from the line of Ann Gurkin from Davenport. Speaker 200:07:47Your line Speaker 300:07:49is now open. Good evening, everybody. Speaker 200:07:50Hey, Maria. Hi. I wanted to start with the Ingredients business. A couple of questions related to that business. 1, do you think end market demand has changed for plant based products? Speaker 200:07:59I think some companies' customers are commenting maybe slower End market demand, not inventory build because of COVID build, but just overall market dynamics. I was wondering if you could comment on that. Speaker 100:08:12I don't I have not seen Speaker 400:08:16a radical I mean, we looking at The end users to whom we sell haven't seen drastic reduction in their sales Volumes, we think it's just they're just it's just they're right sizing and streamlining their Supply chain. And it's gone on longer than we expected. I think there's some mix Signals that it may be abating some, but we can't we don't know for certain. Speaker 200:08:48Okay. And then I think last quarter you talked Investing to expand capacity, is that on track or maybe an update on that objective? Speaker 300:08:58Yes, Jan, it is on That will not come online until calendar year 2024 somewhere. Speaker 200:09:07Okay, great. And the release, when you talked about including more value added products for customers, does that include potential M and A? Or is that more reflecting the capacity you're adding, sorry? Speaker 400:09:18That's the capacity and it's sort of combining the 3 pillars to produce Speaker 300:09:27Yes. And as well, as we have pointed out previously, Ann, that's why we're incurring additional costs with regard to resources On the R and D side, we have brought on quite a few people in order to be able to Create some solutions for certain customers that use the entire platform and our ability to be able Go to these customers with unique solutions for what they're looking for. Speaker 200:09:59Great. That's great. And then Can you comment at all on projected sequential improvement in margins for the ingredients segment for fiscal 2024? Speaker 300:10:08No, really Ken. We need to first get out of this patch of soft demand and then we can go there. But currently, That soft demand, there's pressure everywhere in order to just have the sales that we have. Those pressures are just there right now. If we get out of that patch, then we can go from there. Speaker 200:10:30How about can you turn a profit in the business for the fiscal year? Speaker 300:10:34Yes. We certainly hope so because that's why we are in it. But again, it all depends on how long This patch lasts and when this thing turns around on us, if it lasts long enough, we certainly it's not across all of the items. We're seeing an uptick in demand in certain areas. But again, this thing is certainly lasting longer than we had anticipated. Speaker 200:10:58Okay. That's great. That helps. And then turning to tobacco, I guess you didn't change any kind of crop outlook size for U. S. Speaker 200:11:05Just given the hot weather. I know it's still the growing season. I was just curious, if there's any other comments regarding the domestic tobacco leaf crop? Speaker 500:11:14What we see here and in the U. S. Flu cured crop, it is progressing nicely and that hot weather Did not produce negative impacts lately. We are seeing forecasted increased In overall volumes on the Flugyard compared to last year. On the Burley side, we think we saw some impact related to weather, Some heavy rain and some hail, but the volumes also that we are projecting, it's they are higher than last year. Speaker 500:11:50And then of course in U. S, in Pennsylvania, in Connectitudes, in Tennessee and Kentucky, we also produce RAPA styles and that crop has been affected in different areas, somewhere a little bit more, in others a little bit less. But keep in mind, it is a little early in the whole process. And I think the next quarter, I can update you on where we stand. But so far, we don't see any negative impact. Speaker 500:12:19And hopefully, that we are not going to face any extreme weather conditions in the next couple of months. Speaker 200:12:25Okay. That's great. And then I get an update on the outlook for the oriental tobacco crop. JV was down significantly in the quarter. What's the outlook for the year for that crop? Speaker 300:12:35Yes. That one is specifically, of course, with regard to the unfavorable foreign currency comparisons due to local The denominated net assets in a weakening local currency environment and the high interest rates. This is about Turkey. This is specifically about Turkey. A tough environment for those folks there, and we're just trying to get through this crop. Speaker 200:13:01Okay. That's great. That helps. CapEx for the year, I'm sorry, did that change? I didn't have time to look in the queue. Speaker 200:13:05I'm sorry. Speaker 300:13:0665 to 75 were still for the next 12 months. Speaker 200:13:09Okay. Okay. And then I need help if you can give any help with SG and A expense for the year or interest expense. I'm struggling with those two lines. They have gone up dramatically Over the next over the past couple of years and I don't see how that's coming down. Speaker 200:13:21So that's what I would need help with. Sorry. Speaker 300:13:23Yes, it's early on of course. The debt levels Q1 was similar to last year, but certainly interest rates were higher. As you all know, our working capital Are usually higher in the first half of the year. In Greenleaf, tobacco prices are up. So but Yes. Speaker 300:13:42That one is all I can tell you there. With regard to the SG and A, there is lots of variables there. Of course, we're trying to highlight the big movers In the current quarter, certainly, the weakening U. S. Dollars in certain origins didn't help us. Speaker 300:13:56And then compensation increases in the higher travel costs also impacted those numbers. So we always and continue to look at SG and A And try to determine whether or not there is any efficiencies to be had, so we will continue to do that. So I Speaker 200:14:12was using the Q4, Q1 number, SG and A number Every quarter for the full year, is that a reasonable base? Speaker 300:14:19Again, we don't give guidance there, Anne. We'll have to see how this whole thing pans out. Speaker 200:14:24And our higher SG and A expenses related to the ingredients business also built into that line? Speaker 300:14:31Yes. The S and J Everything, yes ma'am. Speaker 200:14:34Okay, great. And then, Jennifer, I don't know if you have worldwide uncommitted leaf numbers. Speaker 100:14:39Sure. It's 20 6,000,000 kilos as of June 30, that's up $9,000,000 from the March 31 number. Speaker 200:14:46Great. And then, any change in prior to use of capital for the business? Speaker 300:14:51No, there is no. Speaker 200:14:54Okay. That's great. Thank you all. I appreciate your time. Thank you. Operator00:15:00There are no further questions at this time. I will now hand over to Jennifer. Please continue. Speaker 100:15:06Thank you all for joining us on our call today.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallUniversal Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Universal Earnings HeadlinesJFrog Redefines Universal Artifact Management with Industry's Widest Native Support for ...May 6 at 12:04 PM | gurufocus.comJFrog Redefines Universal Artifact Management with Industry's Widest Native Support for ...May 6 at 12:04 PM | gurufocus.comElon’s Terrifying Warning Forces Trump To Take ActionElon Musk has avoided two major financial crises before. He pulled Tesla and SpaceX back from the brink of collapse and built two of the most valuable companies in history. Now, he's sounding the alarm about America's $36 trillion debt time bomb that could destroy the fabric of our society.As head of the Department of Government Efficiency (DOGE) under President Trump, Musk is exposing just how bad things are...May 6, 2025 | American Hartford Gold (Ad)Genertec Universal Medical Group Declares Final Dividend for 2024May 6 at 6:15 AM | tipranks.comUniversal Store Holdings Ltd Announces Correction and CEO Share SaleMay 6 at 5:33 AM | tipranks.comGenertec Universal Medical Group Proposes Auditor ChangeMay 6 at 5:33 AM | tipranks.comSee More Universal Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Universal? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Universal and other key companies, straight to your email. Email Address About UniversalUniversal (NYSE:UVV) processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations; and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production. Universal Corporation was founded in 1886 and is headquartered in Richmond, Virginia.View Universal ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Palantir Stock Drops Despite Stellar Earnings: What's Next?Is Reddit Stock a Buy, Sell, or Hold After Earnings Release?Warning or Opportunity After Super Micro Computer's EarningsAmazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousRocket Lab Braces for Q1 Earnings Amid Soaring ExpectationsMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2Palantir Earnings: 1 Bullish Signal and 1 Area of Concern Upcoming Earnings ARM (5/7/2025)AppLovin (5/7/2025)Fortinet (5/7/2025)MercadoLibre (5/7/2025)Cencora (5/7/2025)Carvana (5/7/2025)Walt Disney (5/7/2025)Emerson Electric (5/7/2025)Johnson Controls International (5/7/2025)Lloyds Banking Group (5/7/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 6 speakers on the call. Operator00:00:00Good afternoon, ladies and gentlemen, and welcome to the Universal Corporation First Quarter Fiscal Year 20 24 Earnings Conference Call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. I would now like to turn the conference over to Jennifer Rowe. Please go ahead. Speaker 100:00:24Thank you for joining us. George Freeman, our Chairman, President and CEO Eirsen Henske, our Chief Operating Officer and Johan Kroner, our Chief Financial Officer, are here with me today and will join me in answering questions after these brief remarks. This call is being webcast live and will be available on our website and on telephonetaped replay. That will remain on our website through November 2, 2023. Other than the replay, we have not authorized and disclaim responsibility for Any recording, replay or distribution of any transcription of this call. Speaker 100:00:59This call is copyrighted and may not be used without our permission. Before I begin to discuss our results, I caution you that we will be making forward looking statements that are based on our current knowledge and some assumptions about the future and are representative as of today only. Actual results could differ materially from projected or estimated results, and we assume no obligation to update any forward looking statements. For information on some of the factors that can affect our estimates, I urge you to read our 10 ks for the year ended March 31, 2023. Such risks and uncertainties include, but are not limited to impacts of COVID-nineteen, customer mandated timing of shipments, weather conditions, political and economic environment government regulation and taxation changes in interest rates and exchange rates Industry consolidation and evolution and changes in market structure or sources. Speaker 100:01:58Finally, some of the information I have for you today is based on unaudited allocations and is subject to reclassification. In an effort to provide useful information to investors, our comments today may include non GAAP financial measures. For details on these measures, including reconciliations to the most comparable performed well and are off to a good start for our fiscal year 2024. Segment operating income was higher for our Tobacco Operations segment in the quarter ended June 30, 20 23 compared to the quarter ended June 30, 2022, even though we did not have the benefit of large shipments of carryover tobacco from certain origins that we had in the Q1 of fiscal year 2023. Demand for leaf tobacco from our customers remained strong and our level of uncommitted tobacco inventory was 16% of tobacco inventory at June 30, 2023. Speaker 100:03:00We are forecasting increased leaf tobacco production in fiscal year 2024 compared to fiscal year 2023 and believe that even with the increased production, leaf tobacco will remain in an undersupply position. We are pleased with the ongoing progress we are making to integrate our plant based ingredients platform, and we continue to execute on our strategy to invest in and expand Platform's capabilities for future growth in existing and new products. For the quarter ended June 30, 2023, The platform faced soft demand due to high customer inventory levels and our earnings for the platform were below our expectations. We believe that many of our customers are continuing to draw down on their raw material inventories after building inventories to protect against prior supply chain uncertainty. The inventory challenges have been more extensive and persistent in duration than we had forecast. Speaker 100:03:57In addition, the expansion of the platform's capabilities added to our costs, while a sharp drop in certain new crop raw material prices resulted in inventory write downs in the quarter ended June 30, 2023. We continue to believe the inventory challenges are temporary and expect excess inventory levels held by our customers to eventually work down. One of the main objectives of our current investment in our plant based ingredients platform is to expand our portfolio to include more value added products for our customers. We believe that we are well positioned Capitalize on demand from our customers and that with the investments we are making, we are a stronger partner for current and future customers due to the expanded range of capabilities and products that we can offer them. We are encouraged by ongoing customer engagements regarding existing business and new business opportunities. Speaker 100:04:51Some financial highlights for the quarter ended June 30, 2023. Net loss for the quarter ended June 30, 2023 was $2,100,000 or $0.08 per diluted share. Excluding certain nonrecurring items detailed in today's press release, net income and diluted earnings per share decreased by 8,200,000 and $0.33 respectively for the quarter ended June 30, 2023 compared to the quarter ended June 30, 2022. Operating income of $11,000,000 for the quarter ended June 30, 2023 decreased by 2,200,000 Segment operating income for the Tobacco Operations segment was up $800,000 while segment operating income for the Ingredients Operations segment was down 6 $600,000 for the quarter ended June 30, 2023 compared to the quarter ended June 30, 2022. Selling, general and administrative expenses were up $9,000,000 in the Q1 of fiscal year 2024 compared to the Q1 of fiscal year 2023. Speaker 100:05:58Our costs, notably interest costs and prices for green leaf tobacco, remained high in the quarter ended June 30, 2023, compared to the quarter ended June 30, 2022. Interest costs were more than double on higher interest rates in the Q1 of fiscal year 2024 compared to the same quarter of fiscal year 2023. Our debt balances, the sum of notes payable in overdrafts and long term obligations We're relatively flat in the quarter ended June 30, 2023 compared to the same quarter in the prior fiscal year as working capital requirements We continue to make transparency around our sustainability efforts and goals a priority. We recently completed our annual submission to the global nonprofit organization, CDP, regarding climate change, forestry and water risks to provide more information on our achievements in these areas to our stakeholders. We continue to work with third parties to verify our mission and establish our pathway to net 0 through the identification and prioritization of high impact projects throughout our footprint. Speaker 100:07:12At this time, we are available to take your questions. Operator00:07:19Thank you. Ladies and gentlemen, we will now begin the question and answer session. Please ensure you lift the handset if you're using a speakerphone before pressing any keys. Your first question comes from the line of Ann Gurkin from Davenport. Speaker 200:07:47Your line Speaker 300:07:49is now open. Good evening, everybody. Speaker 200:07:50Hey, Maria. Hi. I wanted to start with the Ingredients business. A couple of questions related to that business. 1, do you think end market demand has changed for plant based products? Speaker 200:07:59I think some companies' customers are commenting maybe slower End market demand, not inventory build because of COVID build, but just overall market dynamics. I was wondering if you could comment on that. Speaker 100:08:12I don't I have not seen Speaker 400:08:16a radical I mean, we looking at The end users to whom we sell haven't seen drastic reduction in their sales Volumes, we think it's just they're just it's just they're right sizing and streamlining their Supply chain. And it's gone on longer than we expected. I think there's some mix Signals that it may be abating some, but we can't we don't know for certain. Speaker 200:08:48Okay. And then I think last quarter you talked Investing to expand capacity, is that on track or maybe an update on that objective? Speaker 300:08:58Yes, Jan, it is on That will not come online until calendar year 2024 somewhere. Speaker 200:09:07Okay, great. And the release, when you talked about including more value added products for customers, does that include potential M and A? Or is that more reflecting the capacity you're adding, sorry? Speaker 400:09:18That's the capacity and it's sort of combining the 3 pillars to produce Speaker 300:09:27Yes. And as well, as we have pointed out previously, Ann, that's why we're incurring additional costs with regard to resources On the R and D side, we have brought on quite a few people in order to be able to Create some solutions for certain customers that use the entire platform and our ability to be able Go to these customers with unique solutions for what they're looking for. Speaker 200:09:59Great. That's great. And then Can you comment at all on projected sequential improvement in margins for the ingredients segment for fiscal 2024? Speaker 300:10:08No, really Ken. We need to first get out of this patch of soft demand and then we can go there. But currently, That soft demand, there's pressure everywhere in order to just have the sales that we have. Those pressures are just there right now. If we get out of that patch, then we can go from there. Speaker 200:10:30How about can you turn a profit in the business for the fiscal year? Speaker 300:10:34Yes. We certainly hope so because that's why we are in it. But again, it all depends on how long This patch lasts and when this thing turns around on us, if it lasts long enough, we certainly it's not across all of the items. We're seeing an uptick in demand in certain areas. But again, this thing is certainly lasting longer than we had anticipated. Speaker 200:10:58Okay. That's great. That helps. And then turning to tobacco, I guess you didn't change any kind of crop outlook size for U. S. Speaker 200:11:05Just given the hot weather. I know it's still the growing season. I was just curious, if there's any other comments regarding the domestic tobacco leaf crop? Speaker 500:11:14What we see here and in the U. S. Flu cured crop, it is progressing nicely and that hot weather Did not produce negative impacts lately. We are seeing forecasted increased In overall volumes on the Flugyard compared to last year. On the Burley side, we think we saw some impact related to weather, Some heavy rain and some hail, but the volumes also that we are projecting, it's they are higher than last year. Speaker 500:11:50And then of course in U. S, in Pennsylvania, in Connectitudes, in Tennessee and Kentucky, we also produce RAPA styles and that crop has been affected in different areas, somewhere a little bit more, in others a little bit less. But keep in mind, it is a little early in the whole process. And I think the next quarter, I can update you on where we stand. But so far, we don't see any negative impact. Speaker 500:12:19And hopefully, that we are not going to face any extreme weather conditions in the next couple of months. Speaker 200:12:25Okay. That's great. And then I get an update on the outlook for the oriental tobacco crop. JV was down significantly in the quarter. What's the outlook for the year for that crop? Speaker 300:12:35Yes. That one is specifically, of course, with regard to the unfavorable foreign currency comparisons due to local The denominated net assets in a weakening local currency environment and the high interest rates. This is about Turkey. This is specifically about Turkey. A tough environment for those folks there, and we're just trying to get through this crop. Speaker 200:13:01Okay. That's great. That helps. CapEx for the year, I'm sorry, did that change? I didn't have time to look in the queue. Speaker 200:13:05I'm sorry. Speaker 300:13:0665 to 75 were still for the next 12 months. Speaker 200:13:09Okay. Okay. And then I need help if you can give any help with SG and A expense for the year or interest expense. I'm struggling with those two lines. They have gone up dramatically Over the next over the past couple of years and I don't see how that's coming down. Speaker 200:13:21So that's what I would need help with. Sorry. Speaker 300:13:23Yes, it's early on of course. The debt levels Q1 was similar to last year, but certainly interest rates were higher. As you all know, our working capital Are usually higher in the first half of the year. In Greenleaf, tobacco prices are up. So but Yes. Speaker 300:13:42That one is all I can tell you there. With regard to the SG and A, there is lots of variables there. Of course, we're trying to highlight the big movers In the current quarter, certainly, the weakening U. S. Dollars in certain origins didn't help us. Speaker 300:13:56And then compensation increases in the higher travel costs also impacted those numbers. So we always and continue to look at SG and A And try to determine whether or not there is any efficiencies to be had, so we will continue to do that. So I Speaker 200:14:12was using the Q4, Q1 number, SG and A number Every quarter for the full year, is that a reasonable base? Speaker 300:14:19Again, we don't give guidance there, Anne. We'll have to see how this whole thing pans out. Speaker 200:14:24And our higher SG and A expenses related to the ingredients business also built into that line? Speaker 300:14:31Yes. The S and J Everything, yes ma'am. Speaker 200:14:34Okay, great. And then, Jennifer, I don't know if you have worldwide uncommitted leaf numbers. Speaker 100:14:39Sure. It's 20 6,000,000 kilos as of June 30, that's up $9,000,000 from the March 31 number. Speaker 200:14:46Great. And then, any change in prior to use of capital for the business? Speaker 300:14:51No, there is no. Speaker 200:14:54Okay. That's great. Thank you all. I appreciate your time. Thank you. Operator00:15:00There are no further questions at this time. I will now hand over to Jennifer. Please continue. Speaker 100:15:06Thank you all for joining us on our call today.Read morePowered by