The tobacco leaf merchant saw its stock price fall 10% to $52.15 during Monday morning trading, a move that leaves the shares down roughly 1% over the past year. The sell-off followed a quarterly report showing net income dropped to $33.2 million, or $1.32 per share, representing a sharp decrease from the $59.6 million recorded during the same period last year.

Revenue Declines and Market Headwinds

Total revenue for the quarter retreated 8% to $861.3 million, driven primarily by a contraction in tobacco sales volumes and softening prices. According to the company, a less favorable product mix within its ingredients segment further weighed on the top-line results. These figures highlight the operational challenges facing the Richmond, Virginia-based supplier as it navigates fluctuating global demand and pricing volatility.

Amid the financial downturn, Universal announced that Steven Diel will take over as chief financial officer on April 1. Diel, who has served as the financial head of the company’s ingredients division since January, will succeed Johan Kroner. Kroner is retiring from the role following a 32-year career with the organization.