Tobacco Asia

62 tobaccoasia Issue 2, 2026 March / April On the fruit side, Wigner said Universal can process fruit juices, purees, essences, dry by- products, and functional fruit ingredients. On the vegetable side, the platform includes dehydrated vegetable capabilities in multiple forms, "from granules to powders and everything in between," including blends. The company also acquired bo- tanical extracts and flavoring products, expanding into plant-based extracts and broadening its flavor profile and library. Then came integration and investment Universal expanded commercial sales and mar- keting to operate across the platform rather than as separate companies. Wigner said that the ap- proach creates cross-selling opportunities among existing customers and enables market expansion. Instead of "3 separate companies selling 3 sepa- rate products," he said, Universal built commercial sales that can "sell across the platform." R&D and product development were an- other focus, he added — vital capabilities in ingre- dients where competitive advantage stems from functionality, science, and customer collaboration. "We want to co-create products with our custom- ers," Wigner said. "What we're looking at is value- added products with higher margins." Universal also invested heavily in expand- ing manufacturing capabilities, including a US$30 million-plus expansion at its extracts and flavors business in Pennsylvania. That expansion added extraction capabilities, bulk blending, and asep- tic packaging under one roof — a configuration Wigner described as relatively unique. Aseptic packaging, he said, provides logisti- cal advantages and sustainability benefits for cus- tomers by reducing cold-chain handling and deliv- ering shelf-stable solutions. Now, Wigner said, Universal wants scale and returns. "We built it, we've invested in it," he said. "Now we'd like to see a return on that investment." Next 100 years Throughout his presentation, Wigner repeatedly returned to sustainability, framing it not as a mar- keting theme but as a strategic differentiation— especially in Universal's tobacco division. "When we talk about Universal, we always talk about sustainability," he said. "It's also a strength and a competitive advantage for us." He described sustainability as vital to both stewardship and business discipline, adding that it's tied to customer requirements, investor expec- tations, and helping farmers succeed. Wigner said Universal's guidelines include setting standards, educating farmers, monitoring compliance, col- lecting data, and reporting progress transparently. "We take sustainability very seriously," Wigner said. "It's good business for us because our cus- tomers value it, but it's also good stewardship." He also highlighted the company's financial performance. Wigner said Universal has made steady progress over the past five years, noting that adjusted EBITDA has risen each year and cash flow has increased year over year. However, tobacco remains the cash generator, he said, and those cash flows have funded investment, debt re- duction, and shareholder returns. Universal has used its credit facility to ac- quire ingredient businesses and is paying down debt, he said, while maintaining what he called conservative leverage and protecting the com- pany's credit standing. "We're really fiscally con- servative on our debt levels," Wigner said, add- ing FY2025 year-end leverage was around "two and a half times adjusted EBITDA." Wigner also highlighted Universal's dividend record as central to the company's investor proposition. He noted that FY2025 was the company's 55th consecutive annual increase. He closed the presentation by returning to the broader message. Universal is executing a strat- egy to extend the company's strength for decades. That strength will be supported by a leading to- bacco platform and a growing ingredients segment with significant runway for development. "We're building this for our next 100 years," he said. Ingredients, he acknowledged, still requires work — from building brand recognition and trust among customers and vendors to scaling commer- cial momentum. He said progress is evident, in- vestments have been made, and the next stage is performance. Preston Wigner - chairman, president and chief executive officer. Credit: Universal Corporation

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