Universal Corporation (UVV) 2026 Q4 法說會逐字稿

Thank you for standing by. My name is JL, and I will be your conference operator today. At this time, I would like to welcome everyone to the Universal Corporation's fourth-quarter fiscal year 2026 earnings call. (Operator Instructions)

感謝各位稍候。我叫 JL，今天將擔任本次電話會議的接線員。此刻，我謹代表公司歡迎各位參加 Universal Corporation 2026 會計年度第四季財報電話會議。（接線員指示）

I would now like to turn the conference over to Wushuang Ma, Vice President and Treasurer. You may begin.

現在我想將會議交給副總裁兼財務長 Wushuang Ma。您可以開始了。

Good morning, and thank you for joining us. With me today are Preston Wigner, our Chairman, President, and CEO; and Steven Diel, our recently appointed Chief Financial Officer.

各位早安，感謝各位加入我們。今天與我一同出席的有董事長、總裁兼執行長 Preston Wigner，以及我們新近任命的財務長 Steven Diel。

During the course of this call, we will be making forward-looking statements that are based on our current knowledge and some assumptions about the future. They are representative as of today only. Actual results, performance or achievements could differ materially from the anticipated results, prospects, performance, or achievements expressed or implied by such forward-looking statements, and we assume no obligation to update any forward-looking statements, except as required by law.

在本次電話會議過程中，我們將發表前瞻性陳述，該等陳述係基於我們目前所掌握的資訊以及對未來的若干假設，且僅代表截至今日的情況。實際結果、表現或成就可能與該等前瞻性陳述所明示或暗示的預期結果、前景、表現或成就存在重大差異；除法律要求外，我們不承擔更新任何前瞻性陳述之義務。

For information on some of the risks and uncertainties related to these forward-looking statements, please refer to the reports we file with the SEC and under cautionary statement regarding forward-looking statements in our current earnings press release.

關於與這些前瞻性陳述相關的部分風險與不確定性資訊，請參閱我們向 SEC 提交的報告，以及我們最新財報新聞稿中有關前瞻性陳述的警示性聲明。

Finally, some of the information we have filed today may be based on unaudited allocations and may be subject to reclassification. Our comments today may also include certain non-GAAP financial measures. For details regarding these measures, including a reconciliation of these non-GAAP measures to the most comparable GAAP measures, please refer to our current earnings press release and other public materials. This call is being webcast live and will be available for replay on our website through August 29, 2026, and by telephone through June 12, 2026.

最後，我們今日所提交的部分資訊可能係基於未經審計的分攤，並可能需要重新分類。我們今天的評論亦可能包含若干非 GAAP 財務衡量指標。關於這些指標的詳細資訊（包括將該等非 GAAP 指標與最可比 GAAP 指標進行調節之對照表），請參閱我們最新的財報新聞稿及其他公開資料。本次電話會議將進行即時網路直播，並可於我們網站回放至 2026 年 8 月 29 日，亦可透過電話回放至 2026 年 6 月 12 日。

This call is copyrighted and may not be used without our permission. Other than the reference replay, we have not authorized and disclaim responsibility for any recording, replay, or distribution of any transcription on this call.

本次電話會議受著作權保護，未經我們許可不得使用。除前述回放外，我們未授權任何錄音、重播或本次電話會議逐字稿之散布，並對此類行為不承擔任何責任。

I would like now to turn the call over to Preston.

現在我想將電話會議交給 Preston。

Thank you, Wush. Good morning, everyone, and thank you for joining us today. Our fiscal year 2026 performance reflected solid execution across much of our business, operating in a market environment that shifted meaningfully from the prior year. We saw oversupply in certain tobacco styles and continued market headwinds in our ingredients business, which impacted volumes and margins.

謝謝你，Wush。各位早安，感謝各位今天加入我們。我們 2026 會計年度的表現反映出在業務多數領域的穩健執行力，而市場環境相較前一年亦出現顯著變化。我們在某些菸草品類看到供給過剩，且原料（Ingredients）業務仍面臨市場逆風，進而影響銷量與毛利率。

Amidst these challenges, our teams around the globe demonstrated the resilience of our tobacco operations, and we continue to focus on the progress we are making to support the long-term growth of our ingredients operations. However, our financial results for the fourth quarter and fiscal year were impacted by a noncash goodwill impairment related to our Universal ingredients Shank's operation and by inventory write-downs primarily related to non-wrapper, dark air-cured tobacco. We remain confident in our tobacco and ingredients strategies and the steps we have taken to adapt to current market conditions and position the business for the future.

在這些挑戰之下，我們全球團隊展現了菸草營運的韌性；同時，我們也持續聚焦於推動原料業務的長期成長。然而，我們第四季與全年財務結果受到兩項因素影響：其一為與 Universal Ingredients 旗下 Shank's 營運相關的非現金商譽減損；其二為存貨減記，主要與非包葉（non-wrapper）的深色風乾菸草（dark air-cured tobacco）相關。我們仍對菸草與原料策略，以及為因應當前市場狀況並為未來布局所採取的措施充滿信心。

With more than 100 years of operating experience and a market-leading position, our leaf tobacco business has demonstrated its durability across market cycles. At the same time, we believe our ingredient strategy, which focuses on innovation and solution-based products is well aligned with customer needs and long-term value creation.

憑藉超過 100 年的營運經驗與市場領先地位，我們的菸葉業務已在不同市場循環中展現其耐久性。同時，我們相信以創新與解決方案導向產品為核心的原料策略，與客戶需求及長期價值創造高度契合。

We have invested over several years to build a scalable ingredients platform with necessary capacity and capabilities, and we believe the platform is well positioned for future growth. Supporting both these priorities is our continued advancements in sustainability, which remains an increasingly important expectation across our global value chain.

我們多年來持續投資，打造具可擴展性的原料平台，並建立所需的產能與能力；我們相信該平台已為未來成長做好良好準備。支撐這兩項優先事項的是我們在永續發展方面的持續進展，而永續已在全球價值鏈中成為日益重要的期待。

During the fourth fiscal quarter, Universal advanced from an A- to an A rating in the Carbon Disclosure Project's Supplier Engagement Assessment. In addition, we were recognized as a CDP supplier engagement leader and named to CDP's Supplier Engagement A list, underscoring the strength of our governance, emissions management and collaboration with suppliers. Strong financial discipline and leadership are critical to executing across both our operating segments.

在本會計年度第四季，Universal 在碳揭露專案（Carbon Disclosure Project, CDP）的供應商參與評估（Supplier Engagement Assessment）中，評等由 A- 提升至 A。此外，我們亦獲認定為 CDP 供應商參與領導者，並入選 CDP 的 Supplier Engagement A 名單，彰顯我們在治理、排放管理以及與供應商協作方面的實力。強健的財務紀律與領導力，對於在兩大營運事業部門的執行至關重要。

In February, we announced the appointment of Steven Diel as our Chief Financial Officer, effective April 1. Steve has been with Universal since 2018 and has more than 25 years of experience across finance, corporate development, and business strategy. He is a trusted Universal leader with significant financial expertise, a deep understanding of our operations, and a proven record of strategic execution.

今年 2 月，我們宣布任命 Steven Diel 擔任財務長，自 4 月 1 日起生效。Steve 自 2018 年加入 Universal，並在財務、企業發展與商業策略領域擁有超過 25 年經驗。他是值得信賴的 Universal 領導者，具備深厚的財務專業、對我們營運的深入理解，以及經證實的策略執行紀錄。

With that, I'll now turn the call over to Steve to review our financial results in more detail.

接下來，我將把電話會議交給 Steve，請他更詳細地說明我們的財務結果。

Thank you, Preston. Good morning, everyone. As Preston mentioned, during fiscal year 2026, our flu-cured and burley tobacco portfolio performed well, but results were significantly impacted by two areas of our businesses, which I'll discuss during a review of consolidated and segment results.

謝謝你，Preston。各位早安。如 Preston 所提及，在 2026 會計年度，我們的烤菸（flu-cured）與白肋菸（burley）產品組合表現良好，但整體結果受到我們業務中兩個領域的顯著影響；我將在回顧合併與分部結果時加以說明。

For the fourth quarter, consolidated revenue was $715 million, up 2% from the same quarter of last year. For the full year, consolidated revenue was $2.9 billion, down slightly from the previous exceptional fiscal year.

第四季合併營收為 7.15 億美元，較去年同期成長 2%。全年合併營收為 29 億美元，較前一個表現特別突出的會計年度略為下降。

For the quarter, operating loss was $15 million as compared to an operating income of $43 million for the same quarter of last year. And for the full year, operating income was $169 million, down $64 million as compared to fiscal year 2025.

本季營業損失為 1,500 萬美元，相較去年同期營業利益 4,300 萬美元。全年營業利益為 1.69 億美元，較 2025 會計年度減少 6,400 萬美元。

Lower operating income was mainly driven by two areas. First, the Shank's business within our Ingredients segment experienced lower profitability and recorded a $41 million noncash goodwill impairment, and I'll address both of these items in more detail later.

營業利益下降主要由兩個面向所致。第一，原料事業部門中的 Shank's 業務獲利能力下降，並認列 4,100 萬美元的非現金商譽減損；稍後我會更詳細說明這兩項。

Second, higher inventory write-downs in our non-wrapper, dark air-cured tobacco business, combined with weaker performance.

第二，非包葉（non-wrapper）的深色風乾菸草（dark air-cured tobacco）業務存貨減記增加，並伴隨較弱的營運表現。

For the fourth quarter, net loss attributable to Universal was $43 million as compared to net income of $9 million for the same quarter of last year. For the full year, net income was $33 million, down from $95 million for fiscal year 2025. Lower net income was again mainly the result of the noncash charges I just mentioned as well as weaker performance at Shank's and our dark air-cured tobacco business.

第四季歸屬於 Universal 的淨損為 4,300 萬美元，相較去年同期淨利 900 萬美元。全年淨利為 3,300 萬美元，低於 2025 會計年度的 9,500 萬美元。淨利下降同樣主要源於我剛提到的非現金費用，以及 Shank's 與深色風乾菸草業務表現較弱。

In terms of segment results, tobacco segment revenue was $632 million for the fourth quarter of fiscal 2026, up 3% versus the same quarter last year. For the full year, revenue was $2.6 billion, down slightly as compared to fiscal year 2025.

就分部結果而言，菸草事業部門在 2026 會計年度第四季的營收為 6.32 億美元，較去年同期成長 3%。全年營收為 26 億美元，較 2025 會計年度略為下降。

Segment operating income was $27 million for the fourth quarter of fiscal year 2026 as compared to $46 million for the same quarter of last year. For the full year, segment operating income was $212 million as compared to $240 million for fiscal year 2025. Lower segment operating income was mainly the result of lower profitability and higher inventory write-downs of non-wrapper, dark air-cured tobaccos. Specifically, for fiscal year 2026, total inventory write-downs for our tobacco operations segment were $43 million as compared to $19 million during fiscal year 2025 and an average of $14 million across the five years from fiscal year 2021 through 2025.

2026 會計年度第四季分部營業利益為 2,700 萬美元，相較去年同期為 4,600 萬美元。全年分部營業利益為 2.12 億美元，相較 2025 會計年度為 2.40 億美元。分部營業利益下降主要係因獲利能力降低，以及非包葉（non-wrapper）的深色風乾菸草存貨減記增加。具體而言，2026 會計年度我們菸草營運分部的存貨減記總額為 4,300 萬美元，相較 2025 會計年度為 1,900 萬美元，亦高於 2021 至 2025 會計年度五年期間平均的 1,400 萬美元。

Now, turning to the Ingredients operating segment. Segment revenue was $83 million for the fourth quarter of fiscal year 2026 as compared to $90 million for the same quarter of last year. For the full year, revenue was $348 million, up 3% as compared to fiscal year 2025. Segment operating income was $2 million for the fourth quarter of fiscal year 2026 as compared to $4 million for the same quarter of last year. And for the full year, segment operating income was $3 million as compared to $12 million for fiscal year 2025.

接著談原料（Ingredients）營運分部。2026 會計年度第四季分部營收為 8,300 萬美元，相較去年同期為 9,000 萬美元。全年營收為 3.48 億美元，較 2025 會計年度成長 3%。2026 會計年度第四季分部營業利益為 200 萬美元，相較去年同期為 400 萬美元。全年分部營業利益為 300 萬美元，相較 2025 會計年度為 1,200 萬美元。

Despite significant industry headwinds, our FruitSmart and Silva businesses performed in line with expectations Lower operating income for the segment was mainly the result of Shank's performance and driven by higher fixed and operating costs related to the recent growth investments as we build our new product pipeline.

儘管產業逆風顯著，我們的 FruitSmart 與 Silva 業務表現符合預期。該分部營業利益下降主要源於 Shank's 的表現，並受到近期成長投資所帶來的較高固定成本與營運成本影響，因為我們正在建立新的產品管線。

Regarding liquidity and capital structure. As of March 31, 2026, our net debt was $845 million compared to $817 million at the same point last year. The increase was mainly the result of higher working capital usage associated with purchasing and selling a significantly larger tobacco crop. Our liquidity availability, which includes cash and availability under our committed and uncommitted credit lines totaled over $1.2 billion.

關於流動性與資本結構。截至 2026 年 3 月 31 日，我們的淨負債為 8.45 億美元，去年同期為 8.17 億美元。增加主要係因購買並銷售顯著更大規模的菸草作物，導致與營運資金使用增加相關。我們的可用流動性（包含現金以及已承諾與未承諾信用額度下的可用額度）合計超過 12 億美元。

Now, I'll briefly shift to an introduction as Universal's new CFO. As Preston mentioned, I joined Universal in 2018, coinciding with the company's rollout of the enhanced capital allocation strategy. Since then, I've been closely involved in developing and executing that strategy, including the formation of Universal Ingredients platform through three acquisitions and the continued investment in its commercial and operational capabilities.

接下來，我將簡要談談我作為 Universal 新任財務長的介紹。如 Preston 所提及，我於 2018 年加入 Universal，正值公司推動強化版資本配置策略之際。自那時起，我一直深度參與該策略的制定與執行，包括透過三項收購建立 Universal Ingredients 平台，以及持續投資其商業與營運能力。

At the same time, I have led our financial planning and analysis function, supporting the company through a full supply-demand cycle in leaf tobacco, the complexities of COVID and the evolving macroeconomic environment that followed. Because of these experiences, I have a clear perspective on both the durability of our core business and the importance of financial discipline as we invest in growth. I am greatly honored to take on the role of Chief Financial Officer.

同時，我也領導我們的財務規劃與分析職能，協助公司走過煙葉供需的完整循環、COVID 的複雜影響，以及其後不斷演變的總體經濟環境。基於這些經驗，我對我們核心業務的韌性，以及在投資成長時維持財務紀律的重要性，都有清晰的觀點。我非常榮幸能擔任財務長一職。

Universal combines a resilient, market-leading leaf tobacco business with an adjacent ingredients platform that has a strong core product and customer base, expanding capabilities and a long runway for growth. My priority is to deliver dependable free cash flow and balance sheet strength through disciplined capital allocation. This approach underpins our commitment to durable shareholder value across agricultural and economic cycles.

Universal 結合了具韌性、具市場領導地位的煙葉業務，以及相鄰的配料平台；該平台擁有強勁的核心產品與客戶基礎、持續擴充的能力，以及長期的成長跑道。我的首要任務是透過嚴謹的資本配置，提供穩健可靠的自由現金流與資產負債表實力。此一作法支撐我們在農業與經濟循環中，對股東長期價值韌性的承諾。

Now before I hand the call back to Preston, I would like to address the noncash goodwill impairment related to Shank's. When we acquired Shank's in October of 2021, we recorded approximately $41 million of goodwill.

在我把電話交回給 Preston 之前，我想先說明與 Shank's 相關的非現金商譽減損。當我們在 2021 年 10 月收購 Shank's 時，我們認列了約 4,100 萬美元的商譽。

In accordance with US GAAP, this goodwill was assessed periodically and no indications of impairment were identified prior to fiscal year 2026. Since acquiring the business, we have invested in growth, both in the form of capital expenditures to build new production capabilities and in commercial and R&D human capital.

依據美國一般公認會計原則（US GAAP），該商譽會定期進行評估，在 2026 會計年度之前並未發現減損跡象。自收購該業務以來，我們持續投資成長，包括以資本支出建立新的生產能力，以及在商務與研發（R&D）的人力資本上投入。

During fiscal 2026, market conditions pressured revenues and profitability for both core products and new product development. As a relatively new player in this space, converting customer interest into sustained revenue and margin growth can be a lengthy process.

在 2026 會計年度，市場狀況對核心產品與新產品開發的營收與獲利能力造成壓力。作為此領域相對較新的參與者，將客戶興趣轉化為可持續的營收與毛利成長，可能需要較長的時間。

And as of March 31, 2026, we were behind in executing our commercial strategy amidst the market headwinds. In response, management, together with a third-party consultant, conducted a valuation analysis and concluded that a noncash goodwill impairment was appropriate.

截至 2026 年 3 月 31 日，在市場逆風之下，我們在執行商業策略方面落後於計畫。為此，管理團隊與第三方顧問共同進行估值分析，並認定進行非現金商譽減損是適當的。

To improve execution, we have recently implemented a leadership level organizational realignment at Shank's. The focus is on strengthening commercial execution, improving facility utilization and enhancing financial and operational efficiency. Strategically, Shank's remains a key component of our ingredients platform, given its underutilized capacity, technical capabilities and role in supporting innovation and solutions-based offerings.

為改善執行力，我們近期在 Shank's 推動了領導層級的組織重整。重點在於強化商業執行、提升廠房利用率，以及增進財務與營運效率。從策略面來看，鑑於其未充分利用的產能、技術能力，以及在支持創新與解決方案型產品供應中的角色，Shank's 仍是我們配料平台的關鍵組成。

As CFO, I will focus on strengthening the execution and financial discipline across the company, ensuring we convert strategic intent into financial performance and on growing revenue and margins, controlling costs and deploying capital effectively to support growth, both organically and through future accretive acquisition opportunities.

作為財務長，我將著重於強化全公司執行力與財務紀律，確保我們把策略意圖轉化為財務表現；並致力於提升營收與利潤率、控管成本，以及有效部署資本以支持成長，包括有機成長與未來具增益性的併購機會。

I'll now turn the conversation back to Preston.

接下來我把談話交回給 Preston。

Thank you, Steve. As we look ahead to fiscal year 2027, our leaf tobacco business brings over 100 years of experience operating through complex and evolving global environments. Combined with our broad geographic diversification and long-standing customer relationships, this positions us well to manage ongoing oversupply and current market dynamics.

謝謝你，Steve。展望 2027 會計年度，我們的煙葉業務擁有超過 100 年在複雜且不斷演變的全球環境中營運的經驗。結合我們廣泛的地理多元化布局與長期的客戶關係，這使我們能夠妥善管理持續的供給過剩與當前的市場動態。

In Ingredients, our strategy is centered on clean label, healthy, organic, and solution-based products and remains aligned with our customers' priorities. We will continue to support our customers as we work together to navigate the persistent market headwinds.

在配料業務方面，我們的策略聚焦於潔淨標示、健康、有機與解決方案型產品，並持續與客戶的優先事項保持一致。我們將持續支持客戶，與他們共同因應持續的市場逆風。

Our ingredients focus remains on disciplined execution, including leveraging the investments we have made, strengthening commercial effectiveness, achieving operational efficiencies and improving financial performance. We enter fiscal year 2027 focused on maximizing and optimizing our tobacco business, growing our ingredients business and strengthening our company for the next 100 years. This strategic approach strengthens the durability of our business and positions us to navigate market cycles and volatility while continuing to deliver long-term value to our shareholders, like our recent announcement of our 56th consecutive annual dividend increase.

我們在配料業務的重點仍是嚴謹執行，包括善用既有投資、強化商業效能、達成營運效率並改善財務表現。我們以明確目標進入 2027 會計年度：最大化並優化我們的煙草業務、成長我們的配料業務，並強化公司以迎接下一個 100 年。此一策略作法提升我們業務的韌性，並使我們能在市場循環與波動中持續前行，同時持續為股東創造長期價值，例如我們近期宣布連續第 56 年提高年度股利。

Thank you again for joining us today. We will now open the call for questions.

再次感謝各位今天與會。現在我們將開放提問。

(Operator Instructions) Daniel Harriman, Sidoti.

（接線員指示）Daniel Harriman，Sidoti。

Thank you. Hey, guys. Good morning. And Steve, congratulations on the new role. I'll start with two questions today, and then I'll get back into the queue.

謝謝。各位早安。Steve，恭喜你擔任新職務。我今天先問兩個問題，之後再回到排隊序列。

But Preston, can you just talk about your confidence level that we'll get inventory normalization during fiscal 2027? I know uncommitted inventories were 27%, I believe. And then I wanted to see if there's any additional write-down risk in non-wrapper, dark air-cured tobacco.

Preston，你能談談你對於在 2027 會計年度期間庫存能夠正常化的信心程度嗎？我記得未承諾庫存是 27%。另外我也想了解，在非茄衣用的深色風乾煙草（dark air-cured tobacco）方面，是否還有額外的減記風險。

And then if we set aside the impairment and the tobacco inventory write-downs, it appears that the overall business is operating at a high level. So I was just wondering if you could speak about the underlying trends in flue-cured, burley and the ingredients platform outside of shanks and kind of what that tells you about the setup for fiscal '27. Thanks.

另外，如果先不考慮減損以及煙草庫存減記，看起來整體業務的營運水準相當高。因此我想請你談談在不含 Shank's 的情況下，烤煙（flue-cured）、白肋煙（burley）以及配料平台的基本趨勢，以及這對 2027 會計年度的布局意味著什麼。謝謝。

Thanks, Daniel. I'll start with the inventory. Yeah. So that inventory number we disclosed, that's as of March 31, 2026. And leading into that, we've had some buying -- early days of buying, but buying in Brazil.

謝謝你，Daniel。我先從庫存談起。是的，我們揭露的那個庫存數字是截至 2026 年 3 月 31 日。進入那段期間之前，我們在巴西有一些採購——算是採購季初期，但確實是在巴西採購。

So some of that is what we bought in Brazil. But we've already seen movement from March 31, just over the last two months. We're confident that we will be within our range for uncommitted inventory between 10% and 20% during the fiscal year. And we'll have a much better update and a much better view of things for our first-quarter call in a couple of months. But at the moment, we're pleased with where things are going. And like I said, we're confident we'll be within that range during the fiscal year.

所以其中一部分就是我們在巴西買進的量。不過自 3 月 31 日以來，在過去兩個月我們已經看到庫存有所變動。我們有信心在本會計年度期間，未承諾庫存會落在 10% 到 20% 的區間內。幾個月後的第一季電話會議，我們會提供更完整的更新與更清楚的視角。但就目前而言，我們對進展感到滿意。正如我所說，我們有信心在本會計年度期間會落在該區間內。

For the dark write-downs, we've taken those write-downs, in particular in the fourth quarter through sort of a thorough review of inventory on hand and market dynamics. All of that goes into sort of the accounting side of how we evaluate and determine write-downs to take. That was a thorough review at the end of the fiscal year based on current market dynamics. And going into this year, we feel comfortable that inventory positions are good, that we're working closely with our customers to make sure we have the volumes and the quality, in particular, that they need of non-wrapper and of wrapper tobaccos, and we'll monitor it throughout the year.

至於深色煙草的減記，我們之所以做出這些減記，特別是在第四季，是基於對手上庫存與市場動態所做的相當全面的檢視。這些因素都會納入會計面向，用以評估並決定是否需要認列減記。這是在會計年度末、依據當前市場動態所做的徹底檢視。進入今年，我們對庫存部位感到安心；我們也與客戶密切合作，確保我們具備他們所需的數量與品質，尤其是非茄衣用與茄衣用煙草，我們也會在全年持續監控。

There's an accounting side to it where we always assess no matter what the tobacco style, we assess our inventory positions and values through the accounting rules, and we'll continue to do that during the year. But at the moment, given the extent of the fourth quarter write-downs, we're comfortable where we are right now with current market dynamics.

在會計面向上，不論是哪一種煙草類型，我們都會依會計準則評估庫存部位與價值，並會在全年持續進行。但就目前而言，考量第四季減記的幅度，我們對在當前市場動態下的現況感到放心。

Yeah. Just to follow on the -- from the accounting side of that, we record inventory at the lower of cost or what we estimate as net realizable value. And that's where, as Preston said, we did a deep dive into our inventories in Q4 to come up with the estimates that we did. So we feel good about going into this coming year.

是的，補充一下會計面的說明：我們以成本與我們估計的可變現淨值兩者孰低來認列存貨。正如 Preston 所說，我們在第四季對存貨做了深入盤點，以得出我們所採用的估計。因此，我們對進入接下來這個年度的狀況感到良好。

I think your other question is a little more about view of fiscal year '27 and on both ingredients and the tobacco side, in particular, flue-cured and burley. So on the tobacco side, it's very early in the season for us. Markets are really just starting.

我想你另一個問題比較是關於對 2027 會計年度的看法，以及配料與煙草兩端，特別是烤煙與白肋煙。就煙草端而言，對我們來說目前仍是季節初期，市場才剛開始啟動。

In Brazil, we are buying in Africa and our footprint buying has started recently. The oversupply which carries over from the transition this past fiscal year '26 from undersupply to balance oversupply all in one time based on really large crops feeds into this year, where we also see large crops really across the world, flue-cured and burley.

在巴西，我們正在採購；在非洲，我們也在採購，我們的採購布局近期才開始。供給過剩的情況延續自上一個 2026 會計年度的轉換——在非常大的收成帶動下，市場一次性從供給不足轉為供需平衡再到供給過剩——而這也延伸到今年；我們同樣看到全球各地普遍是大收成，涵蓋烤煙與白肋煙。

Even though it's early days, we have a lot of experience with our strong local teams in managing crops in any type of market cycle, including oversupply. The key for us is our geographic footprint where we can mitigate risks from one origin to another based on current conditions, our really sort of broad portfolio of customers that require all the styles, flue-cured and burley and all the origins where we are, we're in all the strategic origins.

儘管仍在初期，我們憑藉強大的在地團隊，對於在任何市場循環（包括供給過剩）下管理作物都有豐富經驗。對我們而言，關鍵在於我們的地理布局：可依據當前狀況在不同產地之間分散與降低風險；以及我們相當廣泛的客戶組合，客戶需要各種型式——烤煙、白肋煙——以及我們所在的各個產地來源；我們涵蓋所有策略性產地。

And maybe most importantly, a lot of deep experience in knowing how to buy and how to buy the right grades at the right price. And when we look at the undersupply years, there were places in the undersupply years where we were really forced and the market was forced to pay really high prices for practically all grades because it was such an undersupply.

也許最重要的是，我們在如何採購、以及如何以正確價格買到正確等級方面，具備深厚經驗。回顧供給不足的年份，當時在某些地區我們以及整個市場幾乎被迫為幾乎所有等級支付非常高的價格，因為供給實在太緊。

And oversupply, we have more flexibility. We have access to the tobacco we need. The larger crops give us also some additional benefits like third-party processing because of larger crops being handled by others. And we could be more, I'd say, more intentional, more strategic and more efficient in how we buy. So we know we're buying the right grades at the right prices. And then we can move them and try to protect margins with oversupply and with customers who have built up durations over the past few years with their large purchases.

而在供給過剩時，我們有更大的彈性。我們能取得所需的煙草。較大的收成也帶來一些額外好處，例如因為更多作物由其他業者處理，使第三方加工的選項增加。我們在採購上也能更有目的性、更具策略性、也更有效率。如此一來，我們能確保以合適的價格買到合適的等級，並進行調度，努力在供給過剩以及客戶在過去幾年大量採購、已建立較長庫存期間的情況下，維持並保護利潤率。

It's very important that we're buying correctly. But we're also keeping in close contact with our customers. So we know their demands and know their needs, and we can plan accordingly. And that will continue throughout the year. But so far, that's been going well, and we are encouraged where we are despite lots of market dynamics, and it's early.

我們正確採購非常重要。但我們也與客戶保持密切聯繫。因此，我們了解他們的需求與需要，並可據此規劃。而這將貫穿全年持續進行。但到目前為止，進展良好；儘管市場動態眾多且目前仍在年初，我們對現況感到鼓舞。

So we'll continue that good work. But on the tobacco side, we feel good. We are experienced and we're entering it with the right strategies. On the ingredient side, also encouraged. We're very happy with the strategy of ingredients and with shanks as an important part of that, as Steve had mentioned.

因此我們會持續把這項工作做好。不過在菸草業務方面，我們感覺良好。我們經驗豐富，並以正確的策略切入。在原料業務方面也同樣令人鼓舞。我們對原料策略非常滿意，而 Shank's 也是其中的重要一環，正如 Steve 所提到的。

We see inflationary pressure and some of the other market headwinds persisting into this year. So we will continue to navigate those. And I think for things example, like tariffs, I think we did a good job of navigating a lot of the direct impacts of tariffs this past year to minimize the costs that are going into our inventory and taking advantage of opportunities we had where maybe domestic sourcing gave us opportunities versus others who are sourcing overseas and paying those higher tariffs. with maybe more normalized tariffs this year, and it will also be fluid with tariffs.

我們看到通膨壓力以及其他一些市場逆風將延續到今年。因此我們會持續因應。我認為以關稅為例，去年我們在應對關稅的許多直接影響方面做得不錯，將進入庫存的成本降到最低，並把握了我們所擁有的機會——例如相較於從海外採購並支付較高關稅的同業，國內採購可能為我們帶來機會。今年關稅可能更趨正常化，但關稅情況也仍將是動態變化的。

But if tariffs remain lower this year or even go away, I am optimistic that, that will reduce some inflationary pressure that our customers feel with our own sales and products and certainly on the tariff side, impacts on their business from tariffs that are more direct to them.

但如果今年關稅維持較低水準，甚至取消，我樂觀認為這將減輕我們客戶在我們銷售與產品方面所感受到的部分通膨壓力；當然在關稅面，對他們業務更直接的關稅影響也會降低。

But that will give us opportunities to increase the volumes we would otherwise have sold to those customers this past year with those headwinds. And with the increased volumes focus on increased profitability and cost absorption. So I'm happy with where we are, happy with our strategy. I'm really excited about what we're doing with Universal Ingredients and where it can go. And we're putting in the hard work and we're absolutely committed to growing our ingredients business, in particular, in Shank's, executing these initiatives so that we're operating as efficiently and as profitably as we can operate this year.

但這也將為我們帶來機會，讓我們把原本在去年受這些逆風影響而未能賣給這些客戶的銷量提升回來。隨著銷量增加，我們也會聚焦提升獲利能力與成本吸收。因此我對目前的狀況感到滿意，也對我們的策略感到滿意。我對 Universal Ingredients 正在做的事情以及其未來發展非常興奮。我們正投入大量努力，並且絕對致力於成長我們的原料業務，尤其是在 Shank's；執行這些計畫，讓我們今年能以最高效率、最高獲利能力來營運。

Thanks, guys. I really appreciate it.

謝謝各位。我非常感謝。

Sure.

當然。

(Operator Instructions) Daniel Harriman, Sidoti.

（接線員指示）Daniel Harriman，Sidoti。

Hey, guys, I'm back. I guess I'll follow up with one more if there are no other questions. Sorry about that.

嗨，各位，我回來了。如果沒有其他問題，我想再追問一個。不好意思。

Yeah, no problem.

好的，沒問題。

Steve, kind of like I mentioned, congratulations on the role. And I understand that you're not at all new to Universal and you're not new to financial management or really corporate development. But can you just kind of remind us of the company's capital allocation priorities and how you see the balance breaking down in the coming year, maybe between the dividend leverage and then continued investment in ingredients?

Steve，如我提到的，恭喜你擔任這個職務。我也了解你對 Universal 並不陌生，對財務管理或企業發展也不陌生。但你能否再幫我們回顧一下公司的資本配置優先順序，以及你如何看待未來一年在股利、槓桿，以及持續投資原料之間的平衡可能會如何分配？

Sure. Thank you, Daniel. I really appreciate it. It's great to speak with you today.

當然。謝謝你，Daniel。我非常感謝。今天很高興與你通話。

Yeah. So our capital allocation strategy, which we announced right around the time I joined the company in 2018, it really has four pillars: strengthening and investing for growth in our leaf tobacco business, increasing our strong dividend, and exploring growth opportunities for our plant-based ingredients business. And then finally, returning excess capital through share repurchases. So that strategy hasn't changed. It's still consistent. As far as the dividend goes, we are a strong cash-generating company and our dividend payout ratio on our reported net income this year is over 100%.

好的。我們的資本配置策略是在我 2018 年加入公司前後對外宣布的，主要有四大支柱：強化並投資以推動我們的菸葉業務成長、提高我們穩健的股利、探索我們植物性原料業務的成長機會，最後是透過庫藏股回購返還多餘資本。因此這項策略沒有改變，仍然一致。就股利而言，我們是一家現金創造能力強的公司，而我們今年以報導淨利計算的股利支付率超過 100%。

But if you look back kind of over the last five years on an adjusted net income basis, it's been below 75%. So we feel really good about our positioning and our ability to continue to fund the dividend going forward. That said, our Board certainly reviews and management with the Board reviews our capital allocation strategy regularly and could make decisions based on new information that comes along.

但如果回頭看過去五年、以調整後淨利為基礎，支付率一直低於 75%。因此我們對自身的定位以及未來持續支應股利的能力感到非常有信心。話雖如此，我們的董事會當然會定期檢視，而管理團隊也會與董事會定期檢視我們的資本配置策略，並可能根據新出現的資訊做出決策。

But as we sit here now, we see no change. And from the ingredients kind of M&A strategy standpoint, no change there. We have not acquired any businesses since Shank's in 2021. We've invested in organic growth. We are now in kind of the phase of realizing the returns on that investment and earning the right for future growth.

但就目前而言，我們看不到任何改變。就原料業務的併購策略角度來看，也沒有改變。自 2021 年收購 Shank's 以來，我們沒有再收購任何企業。我們一直投資於有機成長。現在我們正處於實現這些投資報酬、並為未來成長贏得資格的階段。

And so as we kind of pull through this current expansion at Shank's and get new volumes through that facility to really leverage the cost structure that we have in place and the R&D and commercial people that we put in place, that's our focus now. And once we achieve that, we will be back in and investing in new opportunities for growth.

因此，當我們推進 Shank's 目前這一波擴產，並讓新產量透過該廠區進來，以真正發揮我們既有的成本結構，以及我們所配置的研發與商務團隊的效益，這就是我們現在的重點。一旦達成，我們就會回到投資新的成長機會。

Daniel, if I can add on to that, in particular, the top of our priorities, which is investing in our tobacco business. We've got such a strong tobacco business. And even this year, if you take away the write-downs, primarily the dark air-cured non-wrapper write-downs, the rest of the business performed really well. And our tobacco business is so strong. We see lots of opportunities in terms of market share growth, volume growth, other opportunities for services that we see lots of opportunities to continue to invest in tobacco.

Daniel，如果我可以補充一下，特別是我們優先順序的首要項——投資我們的菸草業務。我們的菸草業務非常強勁。即使在今年，如果扣除減記，主要是深色風乾（dark air-cured）非包葉（non-wrapper）的減記，其餘業務表現都非常好。我們的菸草業務非常強，我們看到很多機會，包括市占率成長、銷量成長，以及我們在服務方面看到的其他機會；我們有很多機會持續投資菸草業務。

At the same time, we're absolutely committed to investing in what we need to grow ingredients as well. So we've -- our capital allocation strategy hasn't changed. I don't see it changing because I think it's the right strategy for us to grow the company as a whole. But both sides really have good opportunities going forward. I'm really happy with the priorities that we have in continuing to invest in tobacco.

同時，我們也絕對致力於投資我們成長原料業務所需的一切。因此，我們的資本配置策略沒有改變。我也不認為會改變，因為我認為這是讓我們整體公司成長的正確策略。不過兩個面向未來都確實有很好的機會。我對我們持續投資菸草的優先順序感到非常滿意。

Steve, seeing that you came to Universal at the beginning of the rollout with ingredients and where you are now, can you -- and you talked about this a little bit in the prepared remarks, but could you just kind of talk us through what that experience has shown you and prepared you and how you think you will use that in the CFO role?

Steve，鑑於你在 Universal 於原料業務開始推動之初就加入公司，並一路看到現在的進展——你在事先準備的發言中也稍微提到——你能否談談這段經驗帶給你什麼、如何讓你做好準備，以及你認為在 CFO 的角色上會如何運用？

And then maybe how that -- how you incorporate that view into the long-term value proposition of the ingredients platform that some other people like us may not have a view on?

另外，也許你可以談談你如何把這樣的觀點納入原料平台的長期價值主張中——這可能是像我們這樣的其他人未必能看見的。

Yeah. So I mean, coming into the role as a public company CFO, my number one priority is to maximize long-term shareholder value by driving profitable growth, securing strict regulatory compliance and optimizing capital allocation.

好的。也就是說，作為一家上市公司的 CFO，我的首要任務是透過推動獲利性成長、確保嚴格的法規遵循，以及最佳化資本配置，來最大化股東的長期價值。

So I think achieving that falls into kind of four main categories, all that are underpinned by human capital management. First is on financial stewardship. So I must continue to build on the strong culture that we have here at Universal around compliance, financial reporting, tax, audit, all the nuts and bolts of finance.

我認為要達成這點，大致可歸納為四個主要面向，而這些都以人力資本管理為基礎。第一是財務治理（financial stewardship）。因此我必須持續在 Universal 既有的強大文化基礎上再接再厲，這個文化圍繞著法遵、財務報導、稅務、稽核，以及財務工作的各項基本功。

Second is kind of taking that to the next level around financial excellence. So this is about continuous improvement. All the areas like budgeting, forecasting, capital structure optimization, tax strategies, cost management, capital decision-making. And in order to do all of this, we just need to make sure -- I need to make sure that we have the right people and the right systems and tools in place to achieve that.

第二是把它提升到財務卓越（financial excellence）的層次。這關乎持續改善，包括預算編製、預測、資本結構最佳化、稅務策略、成本管理、資本決策等各個領域。為了做到這些，我們需要確保——我需要確保——我們具備正確的人才，以及正確的系統與工具來達成。

Third is around supporting Preston and the Board on executing the strategy that we decided upon and maximizing in the four areas that I just talked about, maximizing and optimizing tobacco, growing ingredients, strengthening for the future and committing to the dividend.

第三是支持 Preston 與董事會執行我們所制定的策略，並在我剛提到的四個面向中達到最大化與最佳化：最大化並最佳化菸草、成長原料、為未來強化，以及承諾股利。

And so this includes not only ensuring that the strategy and vision flow through the finance organization, but partnering with the other resource groups and operations around the world to make that happen. And that kind of brings it to the fourth and final category of telling the story around the strategy.

因此，這不僅包括確保策略與願景能在財務組織中落地，也包括與全球各地的其他資源團隊與營運單位合作，讓它真正發生。而這也帶到第四個也是最後一個面向：對外講好策略故事。

So Universal, I believe, is uniquely positioned in the agri product space as a market-leading leaf tobacco processor. We have over 100 years of proven performance combined with developing an ingredients business positioned for long-term growth and value creation, and I'm excited to engage with potential investors and other external shareholders to tell that story.

我相信 Universal 在農產品領域具備獨特定位，作為市場領先的菸葉加工商。我們擁有超過 100 年經驗證的績效，同時也在發展一個具備長期成長與價值創造定位的原料業務。我很期待與潛在投資人及其他外部股東互動，向他們傳達這個故事。

With no further questions, that concludes our Q&A session. I will now turn the conference back over to Preston Wigner for closing remarks.

若無進一步問題，我們的問答環節到此結束。接下來我將把電話會議交回給 Preston Wigner 作結語。

Thank you, JL. Thank you for joining our call today. We look forward to speaking with you during our fiscal year 2027 first-quarter call in the coming months.

謝謝你，JL。感謝各位今天參與我們的電話會議。我們期待在未來幾個月的 2027 會計年度第一季電話會議中再與各位交流。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以掛線。