Universal Corp said it expects the volume of tobacco sold in the current fiscal year will be lower than the previous year due mainly to lower Brazilian volumes.

For the traditionally weak first quarter ended 30 June, Universal reported an operating loss of USD 8 million (EUR 7.2 million) compared with a loss of USD 5.3 million. Sales were roughly USD 20 million higher at USD 295.5 million. Flue-cured and burley sales in North American rose and were stable in the rest of the world, the company said in a statement released 4 Aug. Sales declined for other tobaccos, a category including dark air-cured and oriental.
"With the lower 2016 crop levels, we believe that supply of flue-cured and burley tobaccos is largely in line with demand on a global basis. However, inventories held by our customers and the leaf quality and pricing of crops yet to come to market may influence near-term demand for leaf tobacco and the desirability of certain types and styles. It is still early in the season, but customer orders and indications to date remain consistent with our expectations,” said Chief Executive Officer George Freeman.