Pyxus Reports Second Quarter Results
Pyxus International reported sales and other operating revenues of $394.2 million for the second quarter of 2021, up 30.3 percent from the same period in 2020.
Gross profit as a percent of sales increased to 13.2 percent from 11.8 percent. The company reported a net loss of $9.7 million in the second quarter, compared with net income of $105.9 million for comparable 2020 period.
Adjusted EBITDA increased 32.8 percent to $25.9 million for the quarter.
“We continue to be pleased with the growing momentum of our business,” said Pieter Sikkel, president and CEO of Pyxus, in a statement. “Our new operational and capital structures, supported by our sustainability strategy, are proving to be points of differentiation with our customers, and we are seeing increased demand for our leaf products and growth in market share.
“The leaf business continues to be impacted by Covid-related shipping constraints, including vessel and equipment availability, port congestion and rising freight costs. We are taking proactive steps to mitigate these challenges, including taking steps to accelerate shipments, exploring new ports for product export, and working closely with customers to determine if there are ways to expedite the process flow for their operations.
“With regards to e-liquids, while the regulation and enforcement activities in the e-liquids industry are continuing to mature, we await Premarket Tobacco Product Application (PMTA) approval notification for our pending applications for Humble Juice Co. and Twelfth State Brands and, if our PMTAs are approved, we look forward to the post-PMTA market opportunities.
“Despite Covid-related shipping constraints that face many industries, the first half of fiscal 2022 reflects improved demand, increased leaf volumes, and improved operational performance. As we leverage the savings from fiscal 2021 restructuring initiatives, we continue to expect fiscal 2022 sales to be between $1.65 billion and $1.8 billion, SG&A expense to be between $140 million and $145 million (excluding non-recurring items and potential changes in foreign currency exchange rates), and adjusted EBITDA to be between $150 million and $170 million. The strengthening of our business in a sustainable manner remains a priority as our global team works together to achieve our purpose of growing a better world.”