Pyxus International announced results for its fiscal quarter ended Dec. 31, 2022.
Sales and other operating revenues increased $226.7 million, or 52.9 percent, to $655.6 million for the three months ended Dec. 31, 2022.
Operating income increased $11.4 million to $41.6 million for the three months ended Dec. 31, 2022.
Net loss attributable to Pyxus International improved by $27.8 million to $2.3 million for the three months ended Dec. 31, 2022.
“We are excited to share our third-quarter results,” said Pieter Sikkel, president and CEO of Pyxus. “Our improved operating profit illustrates the company’s strong global performance in spite of a dynamic and complicated crop year that was exacerbated by La Nina and inflationary pressures. Our results evidence the progress the company made year-over-year in several ways and would not have been possible without the dedication and contributions of our employees.
“We successfully utilized our global footprint to navigate the current tobacco supply shortage and meet our buying targets overall for fiscal 2023. Combined with continuing normalization of shipping schedules in North and South America and increased volume from Asia, the company delivered an increase of more than 50 percent in sales and other operating revenues year-over-year. This increase and higher utilization of the company’s securitization programs resulted in cash flow from operations in the third quarter increasing by more than $100 million year-over-year. Some of these funds were strategically utilized to fully repay the outstanding indebtedness under the company’s ABL Credit Facility and provides the company with increased financial flexibility as we approach the next buying cycle.
“We anticipate the third quarter to be our largest sales quarter of the fiscal year due to more normalized shipping schedules. Based on our expectations for continued improvement year-over-year, we have revised our expected fiscal 2023 sales to be between $1.85 billion and $2 billion and our adjusted EBITDA expectations to be between $140 million and $155 million.”