Leaf tobacco inventories are high enough to expect the current global oversupply to continue despite lower production in Brazil and Africa, said Universal Chief Executive Officer George Freeman.

“While our own leaf inventories are well-managed, global tobacco leaf inventory volumes are high. This may have the effect of extending the duration of the oversupply conditions, despite reduced new crop production and a more positive outlook for demand from some customers based on recent recoveries in certain of their retail markets,” Freeman said in the leaf merchant’s fiscal fourth quarter earnings statement.
Consolidated operating profit and sales in the three months ended 31 March increased, however both measures declined in FY 2015. Fourth quarter sales were nearly USD 90 million (EUR 80.2 million) higher at USD 778 million. Sales fell about USD 270 million to USD 2.27 billion in the 12 months to 31 March. Fiscal year operating profit fell USD 78.3 million to USD 167.9 million.
"Given fiscal year 2015's oversupplied market conditions, I am pleased with the results we achieved,” Freeman said. “We ended the year with strong fourth quarter results, which helped to bring our segment operating earnings for the fiscal year in line with our expectations.”