What changed in this filing

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Item 1. Business

2025-05-30 compared with 2024-05-29 · 77 added, 72 removed, 187 unchanged (44% of the section changed)

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Rather, we support consumer product manufacturers by selling them transformed agriproducts and performing related services for them.

Recognizing that leaf tobacco is a mature industry, we have been positioning our company for the future by investing in and growing Universal Ingredients, our plant-based ingredients platform, while leveraging our position as the leading global leaf tobacco supplier to maximize opportunities in the leaf tobacco business.

In fiscal year 2024, we continued to enhance and increase the capabilities of Universal Ingredients to drive value creation.

We have been achieving operational synergies across the platform among our acquired businesses, including FruitSmart, Inc.

(“FruitSmart”), acquired on January 1, 2020, Silva International, Inc.

(“Silva”), acquired on October 1, 2020, and Shank’s Extracts, LLC (“Shank’s”), acquired on October 4, 2021.

We have also made considerable progress on our vision to provide a total solutions-based portfolio of value-added product offerings to our customers.

Additionally, we intend to continue to enhance our product offerings over the longer term by leveraging Universal’s existing global sourcing capabilities, strong relationships with our farmer base, sustainability practices, and agronomic expertise.

We generated approximately $2.7 billion in consolidated revenues and earned $222.0 million in total operating income and $226.3 million in total segment operating income in fiscal year 2024.

Universal Corporation is a holding company that operates through numerous directly and indirectly owned subsidiaries.

Universal Corporation’s primary subsidiaries are Universal Leaf Tobacco Company, Incorporated ("Universal Leaf"), which is associated with our Tobacco Operations segment, and Universal Global Ventures, Incorporated, which is associated with our Ingredients Operations segment.

See Exhibit 21, “Subsidiaries of the Registrant,” for additional subsidiary information.

Our business strategy focuses on three pillars:

maximizing and optimizing our Tobacco Operations segment, growing our Ingredients Operations segment, and strengthening our organization.

In our Tobacco Operations segment, we continue to look for opportunities to increase our sales volumes and market share, expand services across our customers’ supply chains, participate in the evolution of next generation products, and improve operating efficiency.

In our Ingredients Operations segment, we seek opportunities to grow Universal Ingredients, our plant-based ingredients platform, both organically and through disciplined acquisitions to provide customers with a solutions-based portfolio of value-added product offerings.

Under our corporate pillar, we continue to pursue strategies and initiatives to strengthen and support our organization for the future.

These strategies and initiatives are expected to focus on efficient financial management, effective human capital management, optimal utilization of technology and operational synergies between our business segments.

Our goal is to drive excellence across the company and position Universal for long-term success and value creation.

We generated approximately $2,947.3 million in consolidated revenues and earned $232.8 million in total operating income and $252.5 million in total segment operating income in fiscal year 2025.

We are a holding company that operates through numerous directly and indirectly owned subsidiaries.

Our primary subsidiaries are Universal Leaf Tobacco Company, Incorporated (“Universal Leaf”), which is associated with our Tobacco Operations segment, and Universal Global Ventures, Incorporated, which is associated with our Ingredients Operations segment.

Additional Information

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Information on our website is not deemed to be incorporated by reference into this Annual Report.

In addition, our Corporate Governance Guidelines, Code of Conduct, and charters for the Audit Committee, the Compensation Committee, the Executive Committee, the Finance and Pension Investment Committee, and the Nominating and Corporate Governance Committee are available free of charge to shareholders and the public through the “Investors-Governance” section of our website.

In addition, our Corporate Governance Guidelines, Code of Conduct, and charters for the Audit Committee, the Compensation and Human Resources Committee, the Executive Committee, the Finance and Pension Investment Committee, and the Nominating, Governance and Risk Committee are available free of charge to shareholders and the public through the “Investors-Governance” section of our website.

Printed copies of the foregoing are available to any shareholder upon written request to our Treasurer at the address set forth on the cover of this Annual Report or may be requested through our website, www.universalcorp.com.

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Partnering with Universal offers most growers the added benefit of access to crop input packages (including advances of seeds or seedlings and fertilizer) that may not otherwise be readily available.

As we are dedicated to promoting a sustainable farmer base, Universal provides significant agronomic support throughout a season, including educational programs in such matters as good agricultural practices("GAP"), the reduction of non-tobacco related materials, product traceability, environmental sustainability, agricultural labor standards, and social responsibility.

As we are dedicated to promoting a sustainable farmer base, Universal provides significant agronomic support throughout a growing season, including educational programs in such matters as good agricultural practices (“GAP”), the reduction of non-tobacco related materials, product traceability, environmental sustainability, agricultural labor standards, and social responsibility.

Before each growing season, we use customer indications of tobacco type, style, and volume requirements to help us determine our farmer contracting needs in each region.

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Processing leaf tobacco includes grading in the factories, blending, removing of non-tobacco material, separating of leaf from the stems, drying, packing to precise moisture targets for proper aging primarily in corrugated cardboard cases, as well as temporarily storing packed tobacco.

This generally requires investments in factories and machinery in the geographic areas where tobacco is grown.

Processing generally requires investments in factories and machinery in the geographic areas where tobacco is grown.

Processed tobacco that has been properly packed can be stored by customers for several years prior to use, but most processed tobacco is used within two to three years.

We conduct our flue-cured and burley tobacco business in varying degrees in a number of countries, including Bangladesh, Brazil, Canada, the Dominican Republic, Ecuador, France, Germany, Guatemala, Hungary, India, Indonesia, Italy, Malawi, Mexico, Mozambique, the Netherlands, Paraguay, the People’s Republic of China, the Philippines, Poland, the Republic of South Africa, Singapore, Spain, Switzerland, the United Arab Emirates, the United States, and Zimbabwe.

We conduct our tobacco business in varying degrees in a number of countries, including Bangladesh, Brazil, Canada, the Dominican Republic, Ecuador, France, Germany, Guatemala, Hungary, India, Indonesia, Italy, Malawi, Mexico, Mozambique, the Netherlands, Paraguay, the People’s Republic of China, the Philippines, Poland, the Republic of South Africa, Singapore, Spain, Switzerland, the United Arab Emirates, the United States, and Zimbabwe.

In addition, our oriental tobacco joint venture, Socotab, L.L.C.

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and our long-standing relationships with customers.

Our ability to market most styles and grades of leaf to a diverse customer base, and the efficiencies we offer customers due to our operational expertise and established infrastructure, are also key to our success.

We believe that our ability to market most styles and grades of leaf to a diverse customer base, and the efficiencies we offer customers due to our operational expertise and established infrastructure, are also key to our success.

We believe our Tobacco Operations will continue to produce solid financial returns and enhance shareholder value through the following key operating principles:

• Strategic market position.

By working closely with both our customers and our suppliers throughout the year, we ensure the consistent delivery of a product that meets our customers' needs and cultivate a strong, sustainable supplier base.

We also maximize supply chain efficiencies by balancing product purchases against indicated customer demand and maintaining global procurement and production operations.

By working closely with both our customers and our suppliers throughout the year, we seek to ensure the consistent delivery of a product that meets our customers' needs and cultivate a strong, sustainable supplier base.

We also aim to maximize supply chain efficiencies by balancing product purchases against indicated customer demand and maintaining global procurement and production operations.

• Strong local management .

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• Compliant products .

Customers expect a sustainable supply of compliant, traceable, competitively priced products, and we meet this demand through our investment in GAP training for farmers which encompasses crop quality, environmental stewardship, and agricultural labor standards.

Customers expect a sustainable supply of compliant, traceable, competitively priced products, and we seek to meet this demand through our investment in GAP training for farmers which encompasses crop quality, environmental stewardship, and agricultural labor standards.

• Diversified sources.

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Financial strength is critical to our existing global operations and enables us to invest in suitable opportunities when they arise.

Management of liquidity, borrowings, and capital costs provides us with a competitive advantage, affords us flexibility when responding to customer requirements and market changes, and allows us to enhance shareholder value.

We believe management of liquidity, borrowings, and capital costs provides us with a competitive advantage, affords us flexibility when responding to customer requirements and market changes, and allows us to enhance shareholder value.

Our tobacco operations are seasonal in nature.

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A material part of our tobacco business is dependent upon a few customers.

Sales to our largest customers, with whom we have long-standing relationships, have accounted for approximately 60% of our consolidated revenues for each of the past three fiscal years.

Our largest customers are Altria Group Inc., British American Tobacco plc, China Tobacco International, Inc., Imperial Brands plc, Japan Tobacco, Inc., and Philip Morris International, Inc.

Sales to our top five customers, with whom we have long-standing relationships, have accounted for more than 50% of our consolidated revenues for each of the past three fiscal years.

For the fiscal year ended March 31, 2025, each of Imperial Brands plc and Philip Morris International, Inc., including their respective affiliates, accounted for 10% or more of our revenues.

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Our principal competitor is Pyxus International, Inc.

(“Pyxus”) (formerly Alliance One International, Inc.), and we consider ourselves and Pyxus to be the only global leaf suppliers based on our worldwide scope of operations.

(“Pyxus”), and we consider ourselves and Pyxus to be the only global leaf suppliers based on our worldwide scope of operations.

However, Universal is the only global leaf tobacco supplier with operations in the Dominican Republic, Ecuador, Hungary, Italy, Mexico, Mozambique, Paraguay, the Philippines, and Poland and that participates in the sale and production of dark air-cured tobaccos.

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We provide comprehensive training, technical support in the field, and crop analytics through ongoing research and development.

Our major customers increasingly require these services, and we believe our

programs increase the quality and value of the products and services we offer.

Our major customers increasingly require these services, and we believe our programs increase the quality and value of the products and services we offer.

In addition, our customers value the security of supply that we can provide due to our strong relationships with our farmer base and our global footprint.

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These businesses operate in different markets (fruits, vegetables, and flavors) and offer value-added services that can apply broadly to multiple parts of our Ingredients Operations to better meet our customers’ needs for unique, plant-based ingredients.

By diversifying our portfolio in the ingredients space through the acquisitions of FruitSmart, Silva, and Shank’s, we are positioned to deliver deeply customizable products and services to our customers.

By diversifying our portfolio in the ingredients space through the acquisitions of FruitSmart, Inc.

(“FruitSmart”), Silva International, Inc.

(“Silva”), and Shank’s Extracts, LLC d/b/a Universal Ingredients–Shank’s (“Universal Ingredients–Shank’s”), we are positioned to deliver customizable products and solutions to our customers.

FruitSmart supplies a broad set of juices, concentrates, pomaces, purees, fruit fibers, seeds, seed powders, and other value-added products to food, beverage, and flavor companies throughout the United States and internationally.

Their top products are not-from-concentrate apple juice as well as apple, blueberry, concord grape, and raspberry juice concentrates.

FruitSmart is well positioned to benefit from growing consumer preferences for better-for-you premium ingredients, including custom blends, not-from-concentrate and dry products, and strong growth in targeted end markets including ciders, purees and nutraceuticals.

Its top products are not-from-concentrate apple juice as well as apple, blueberry, concord grape, and raspberry juice concentrates.

We believe that FruitSmart is well positioned to benefit from growing consumer preferences for better-for-you premium ingredients, including custom blends, not-from-concentrate and dry products, and strong growth in targeted end markets including ciders, purees and nutraceuticals.

FruitSmart is headquartered in the Yakima Valley in Washington State and has approximately 200 employees.

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one that produces liquid products and one that produces dry products.

In 2023, FruitSmart implemented several projects to improve refrigeration efficiency and installed a central refrigeration control system that substantially reduced year-over-year energy use – an approximately 15% decrease on average per month.

In fiscal year 2025, FruitSmart embarked on several automation projects that utilize robotics to increase efficiency, enhance capacity, and increase health and safety protocols.

Silva procures over 60 types of dehydrated vegetables, fruits, and herbs from over 20 countries around the world and specializes in processing natural materials into custom designed dehydrated vegetable and fruit-based ingredients for a variety of end products.

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Silva also has longstanding relationships with suppliers and their farmers around the world and maintains strong quality control procedures to ensure a consistent, high-quality supply of ingredients.

Silva’s manufacturing facility was recently expanded and enhanced.

As a result, the business is well positioned to take advantage of increasing demand for natural and clean-label products across the end markets it serves, including the growing savory and pet food end markets.

Shank’s offers a diversified portfolio of over 2,400 botanical extracts, distillates, natural flavors, and colors for industrial and private label customers worldwide, and is known for significant vanilla expertise.

Shank’s is also equipped to offer customers custom bottling and packaging for their products.

Shank’s employs more than 200 people at their 191,000 square foot manufacturing campus in Lancaster, Pennsylvania.

In May 2023, Universal announced a major expansion project at the Lancaster facility.

Upon completion, the project is expected to add an industry-leading combination of extraction, blending, and aseptic packaging.

The investment will also offer refrigerated storage and enhanced capabilities to support additional customer demand and growth into new product categories and markets.

The expansion project is expected to be fully operational by the second half of fiscal 2025.

To support Universal Ingredients, we have invested in an Ingredients Operations commercial team and a fully staffed product research and development group.

Universal Ingredients–Shank’s offers a diversified portfolio of over 2,400 botanical extracts, distillates, natural flavors, and colors for industrial and private label customers worldwide, and is known for significant vanilla expertise.

Universal Ingredients–Shank’s is also equipped to offer customers custom bottling and packaging for their products.

Universal Ingredients–Shank’s employs more than 300 people at their 194,000 square foot manufacturing campus in Lancaster, Pennsylvania.

In fiscal year 2025, Universal completed a major expansion project at the Lancaster, Pennsylvania facility.

The project added an industry-leading combination of extraction, blending, and aseptic packaging.

The investment also added refrigerated storage and enhanced capabilities to support additional customer demand and growth into new product categories and markets.

To support Universal Ingredients, we have invested in building out our sales, marketing and product development teams focused on creating value across the entire platform.

This platform-level support enables us to deliver unique, custom products to our customers.

Our newly created research and development function includes highly trained food scientists that are skilled in the creation of various food and beverages to showcase the value of our ingredients.

The commercial sales team consists of seasoned sales professionals that work closely with the research and development team.

Our research and development function includes highly trained food scientists and professionals who are skilled in the creation of various food and beverages to showcase the value of our ingredients.

Some examples of the concepts developed by our research and development group include ready-to-drink teas and coffees, carbonated soft drinks, nutritional smoothies, and bakery items.

The commercial sales team consists of seasoned sales professionals who work closely with the research and development team.

This platform team is tasked with becoming subject matter experts on the entire suite of products to help leverage the full potential of the ingredients portfolio and drive earnings growth.

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These companies can range from small, privately held regional food and beverage brands to multinational food and beverage companies.

The food and beverage market is segmented into many different categories including retailers, food service providers, consumer packaged goods companies, beverage companies, and many others.

Silva, our company that provides custom dehydrated vegetables, also has a large presence in the pet food market.

most recent investments in our Lancaster, Pennsylvania facility, we will be focusing heavily on the food service, beverage and casual dining markets.

The food and beverage market is segmented into many different categories including retailers, food service providers, consumer packaged goods companies, and beverage companies.

Silva also has a large presence in the pet food market.

With our most recent investments in our Lancaster, Pennsylvania facility, we will be focusing heavily on the food service, beverage and casual dining markets.

Our investment in the research and development function in Lancaster, Pennsylvania, supports our ability to meet the demands of such a large and diverse group of customers.

No customer accounted for more than 10% of our Ingredients Operations segment revenues in fiscal year 2024.

Universal Ingredients serves the human and pet food markets as well as the beverage market, one of the largest industrial categories in the United States.

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Sustainability

As a global agricultural company, the success of our business is linked to the health and resiliency of the environments in which we operate, and we have a fundamental responsibility to our stakeholders to set high standards of social and environmental performance to support a sustainable supply chain.

As a global agricultural company, we believe that the success of our business is linked to the health and resiliency of the environments in which we operate, and we have a fundamental responsibility to our stakeholders to set high standards of social and environmental performance to support a sustainable supply chain.

We consistently disclose our operational activities and sustainable practices in a transparent manner through our annual Sustainability Report, which can be found on our website.

Our Nominating and Corporate Governance Committee has primary oversight of our Environmental, Social, and Governance ("ESG") programs.

Our Nominating, Governance and Risk Committee has primary oversight of our sustainability programs.

We continue to further strengthen our approach to sustainability throughout the organization in alignment with recognized best practices, regulatory compliance, and shareholder interests.

As a global agriproducts supplier operating in numerous countries around the world, we primarily focus our sustainability efforts on our own operations and the farmers in our supply chain with whom we contract for raw materials.

We are a global agriproducts supplier operating in numerous countries around the world, and we primarily focus our sustainability efforts on our own operations and the farmers in our supply chain with whom we contract for raw materials.

Sustainability efforts with respect to our facilities around the world involve the adoption and implementation of policies and procedures related to environmental impacts, workforce protections and programs such as those we address in “Human Capital Management” below, and other important considerations.

Sustainability efforts in our supply chain emphasize important issues related to the countries and communities in which we operate and include the protection of farm worker rights through appropriate agricultural labor practices and monitoring the reduction of environmental impacts through compliance with industry-recognized GAP programs, as well as our own environmental programs and initiatives.

Agricultural Labor Practices

Agricultural Labor Practices ( “ ALP ” )

Throughout the world, we work side-by-side with our contracted farmers to produce a sustainable tobacco crop that adheres to GAP and appropriate ALP.

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and minimizing greenhouse gas emissions.

In fiscal year 2024, Universal continued making progress towards our sustainability goals as outlined in our annual Sustainability Report.

We made progress towards our operational emissions targets.

We also entered into a virtual power purchase agreement, which will generate renewable electricity equal to our North American footprint beginning in 2026, and entered an emissions reduction agreement expected to provide benefits to tobacco growing areas in the Philippines, which will offset a portion of our emissions in Asia beginning in 2025.

We also continued monitoring for our social supply chain targets, and for the second year in a row, we substantially met our personal protective equipment distribution, child labor elimination, farm labor accommodation, and farm labor payment goals for our contracted tobacco growers.

For a discussion of recent developments and trends in our businesses, along with factors that may affect our businesses see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Item 1A, “Risk Factors.”

Recent Initiatives

Universal released our 2024 Sustainability Report in December 2024, highlighting our efforts in strengthening supply chain resiliency, maintaining our strong partnerships with our farming communities, and advancing energy efficiency.

Responsible business practices are integrated into Universal’s business strategy.

As disclosed in our 2024 Sustainability Report, we continued to support our supply chain sustainability goals and substantially met our existing targets of zero child labor, appropriate labor accommodations, farm worker minimum wage payments, and personal protective equipment access.

Our leaf technicians made over 1.8 million visits to more than 175,000 contracted farmers to maintain our visibility and traceability in our supply chain.

Our operations continue to enhance transparency and collaboration with our stakeholders by reporting to the Sustainable Tobacco Program and training over 175,000 farmers on GAP and ALP to advance environmental and human rights best practices throughout our contracted farmer base.

Universal’s climate transition plan includes reducing fossil fuel use, purchasing renewable forms of electricity, and enhancing operational efficiencies throughout our operations and value chain.

These actions support the Company’s goal of reaching net-zero greenhouse gas (“GHG”) emissions across the value chain by 2050.

Universal is actively transitioning to cleaner fuels around the world.

Diesel and coal fuels are being replaced with electricity and biomass where possible to reduce our GHG emissions footprint.

Renewable energy plays a significant role in our journey to net-zero, so we have developed plans to purchase Renewable Energy Credits where possible and have signed a Virtual Power Purchase Agreement (“VPPA”) for solar-powered energy that we expect to reduce our total scope 1 and 2 emissions in North America by 45%.

For a discussion of recent developments and trends in our businesses, along with factors that could have a material adverse effect on our businesses see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Item 1A, “Risk Factors.”

Human Capital Management

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Our employees are among our most important resources, and we rely on them to execute our business plan with integrity and efficiency.

Investing in human capital is critical to our continued success.

We believe that investing in human capital is critical to our continued success.

Our employees enable us to be a leading global supplier of leaf tobacco and other agriproducts.

We strive to foster a diverse and inclusive workplace;

We strive to foster an inclusive workplace;

attract, retain, and develop talented personnel;

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Almost 50% of our employees are female and more than 20% of our managers are female.

Globally, Universal has twelve collective bargaining agreements in place, covering approximately 52% of our workforce.

Globally, Universal has 13 collective bargaining agreements in place, covering approximately 40% of our workforce.

The sizeable seasonal nature of our global workforce makes these numbers fluctuate throughout the year.

The above percentages reflect our workforce on March 31, 2024.

We are a multinational and multicultural organization, with employees and operations located around the world, and we are committed to maintaining a diverse and inclusive workplace.

We are a multinational and multicultural organization, with employees and operations located around the world, and we are committed to maintaining an inclusive workplace.

Only around 4.8% of our employees are located in the United States.

Almost all of our employees are from the same country in which our operations are located.

Almost all of our employees are from the same country in which our related operations are located.

Our expatriate hires represent less than 0.3% of our workforce, and they are hired due to their essential professional knowledge necessary for the operation of our business.

Universal Corporation’s Board of Directors’ Role in Human Capital Management

Board of Directors’ Role in Human Capital Management

Our Board of Directors believes that human capital management is an important component of our continued growth and success and is essential to our ability to attract, retain, and develop talented and skilled employees.

We pride ourselves on a culture that respects co-workers and values concern for others.

Our Nominating and Corporate Governance Committee and our Compensation Committee both have important roles with respect to human capital management.

The Nominating and Corporate Governance Committee oversees and reviews our ESG programs, which include important policies and practices related to human rights, diversity and inclusion, prohibitions against discrimination, employee health and safety, and other policies related to our workforce.

The Compensation Committee has oversight of compensation, benefits, and retention and development processes of senior management, including an annual review of the Company's succession planning and leadership development program.

The recent name change of the Compensation Committee to the Compensation and Human Resources Committee reflects the importance of human capital management to the Company.

Our Nominating, Governance and Risk Committee and our Compensation and Human Resources Committee both have important roles with respect to human capital management.

The Nominating, Governance and Risk Committee oversees and reviews our sustainability programs, which include important policies and practices related to human rights, prohibitions against discrimination, employee health and safety, and other policies related to our workforce.

The Compensation and Human Resources Committee oversees administration of the Company’s human resource programs and has oversight of compensation, benefits, and retention and development processes of senior management, including an annual review of the Company’s succession planning and leadership development program.

We are committed to protecting the human rights of our employees and have policies in place to support this effort, including those relating to whistleblowing, harassment, equal employment, and compliance with local labor laws.

Our Board of Directors also adopted our Code of Conduct and Anti-Corruption Compliance Manual to promote ethical behavior throughout the Company and address violations of ethical standards.

Our Board of Directors also adopted our Code of Conduct (the “Code”) and Anti-Corruption Compliance Manual (the “Manual”) to promote ethical behavior throughout the Company and address violations of ethical standards.

The Code and Manual have been translated into 16 languages and apply directly to all officers, directors, and non-seasonal employees in the Universal family of companies.

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Our compliance hotline is available to all our employees and any other interested parties 24 hours a day, 7 days a week, by internet or phone.

The Board of Directors oversees our global compliance program and receives reports from our Chief Compliance Officer at each scheduled Board of Directors meeting.

The Board of Directors oversees our global compliance program and receives reports from our Chief Compliance Officer at each quarterly Board of Directors meeting.

Employee Compensation and Benefits

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We provide employees with a range of development opportunities that vary by location and seniority of employees, such as online training and live classes.

These programs often include safety and technical job skill training as well as soft-skill programs focused on communication and change management.

These programs often include safety and technical job skill training as well as programs focused on soft skills such as effective communication.

Development of leadership skills is also a priority and is specialized for different levels of employees.

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Additionally, we utilize other health and safety initiatives to ensure our facilities remain safe for our employees.

We established health and safety Key Performance Indicators ("KPIs") across our tobacco factory and agronomy operations.

Each factory carries out an in-depth data analysis of prior data and implements KPIs for improvement and monitoring.

We established health and safety metrics across our tobacco factory and agronomy operations.

Each factory carries out an in-depth data analysis of prior data and implements health and safety metrics for improvement and monitoring.

By giving employees a goal to achieve and monitor, they will be more engaged in what they do and better able to help us succeed.

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Legal compliance is a fundamental aspect of our health and safety practices.

Universal companies adhere to full compliance with health and safety laws and regulations and cooperate with local authorities to maintain strong health and safety programs.

Universal companies seek to adhere to full compliance with health and safety laws and regulations and cooperate with local authorities to maintain strong health and safety programs.

As part of our commitment to a robust supply chain, our policies require our suppliers and partners to uphold healthy and safe work environments in compliance with all relevant regulations.

Research and Development

We did not expend material amounts for research and development during the fiscal years ended March 31, 2024, 2023, or 2022.

While we invest in research and development activities in both our Tobacco Operations and Ingredients Operations segments, these costs as a portion of global expenditures were not material during the fiscal years ended March 31, 2025, 2024, or 2023.

Intellectual Property

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To date, governmental provisions regulating the discharge of material into the environment have not had a material effect upon our capital expenditures, earnings, or competitive position.

See Item 1A, “Risk Factors” for a discussion of government regulations and other factors that may affect our business.

See Item 1A, “Risk Factors” for a discussion of government regulations and other factors that could have a material adverse effect on our business.

Information About Our Executive Officers

“Directors, Executive Officers, and Corporate Governance” of this Annual Report.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business