Universal Corp revenue fell 29 per cent and operating income by more 40 per cent in the three months to 30 Sept as supply outstripped demand, the company said.

"Our results continue to be impacted by an oversupply in tobacco leaf markets and the effects of softer demand from our customers”, said Chief Executive Officer George Freeman. “As is typical under these conditions, markets have developed slowly in some origins, with a later start to purchasing and processing, as well as delayed receipt of shipping instructions from customers.”

Sales declined to USD 464.1 million (EUR 372.1 million) in the company’s second business quarter and segment operating income to USD 28.6 million from 49.3 million.