Pyxus International reported strong top and bottom line results for the quarter that ended Sept. 20. Net income was $8.1 million compared with a loss of $1.54 million in the comparable 2022 period. Sales and other revenues were $624.25 million during the quarter compared with sales and other revenues of $505.28 million in the second quarter of 2022.
“The momentum we built during the first quarter continued in the second quarter,” said Pyxus President and CEO Pieter Sikkel in a statement. “We delivered solid revenue growth, increased profitability, exercised operating discipline and continued to manage working capital efficiency.
Contributing to the company’s performance was a volume increase of 10.2 percent and an increase in average market prices of 11.7 percent over the same quarter last year. The increase in leaf volume was primarily due to the accelerated timing of shipments from North America and South America and growth from Africa and Asia. Pyxus considers the higher pricing to be a feature of a market that remains generally undersupplied. The company believes the undersupplied condition of the market is also evidenced by its success in seizing opportunities to capture additional business.
Buoyed by its quarterly performance, Pyxus revised its guidance for fiscal 2024 upward and now expects full-year sales to be in the range of $2 billion to $2.1 billion and for full-year adjusted EBITDA to be in the range of $170 million to $180 million.