Category: News This Week

Pyxus Announces Third-Quarter Results

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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.”
February 15, 2023
South Korea: Cigarette Sales Up

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Cigarette sales in South Korea increased by 1.1 percent in 2022 compared to the prior year, according to the finance ministry, according to The Korea Herald.
In 2022, smokers purchased 3.63 billion packs of cigarettes compared to 3.59 billion in 2021.
Sales decreased 16.8 percent from 2014, the year before the government raised cigarette prices by 80 percent to help reduce smoking.
Heat-not-burn product demand increased by 21.3 percent while conventional cigarette demand dropped by 1.8 percent.
February 15, 2023
BAT Rothmans Releases New Glo Device

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BAT Rothmans has released the glo Hyper X2 heat-not-burn device to the South Korean market, reports The Korea Times.
“Glo Hyper X2 is a next-generation e-cigarette device that will lead the BAT Group’s smoke-free product business,” said Kim Eun-ji, BAT Rothmans’ country manager for South Korea. “We have not only increased the users’ convenience of the platform but also improved its design and portability.”
February 15, 2023
JT Reports Strong Results for 2022

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Japan Tobacco reported revenue of ¥2.66 trillion ($19.97 billion) in 2022, up 14.3 percent over the previous fiscal year.
Operating profit increased by 31 percent to ¥653.6 billion. Profit increased by 30.8 percent to ¥442.7 billion.
For full-year 2023, revenue is forecast to decrease by 1.1 percent to ¥2,629 billion. Operating profit is forecast to decrease by 6.4 percent to ¥612 billion. Profit attributable to owners of the parent company is forecast to decrease by 0.6 percent to ¥440 billion.
Masamichi Terabatake
“The JT Group reported another strong performance in 2022, driven by solid pricing and sustained market share gains in the tobacco business, overcoming the global challenges,” said Masamichi Terabatake, president and CEO of the JT Group, in a statement. “We continued to make progress in the reduced-risk products category, with Ploom X increasing share in the HTS (heated-tobacco sticks) segment in Japan and the launch of Ploom X in London.”
February 14, 2023
THR Summit to Take Place in Spain

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The Tobacco Harm Reduction Summit Spain 2023 is scheduled to take place Feb. 23, 2023, in Madrid at the Universidad Rey Juan Carlos.
The Tobacco Harm Reduction Summit Spain 2023 aims to provide a space for evaluation and debate on the impact that harm reduction strategies can have in the field of smoking, offering a range of international perspectives ranging from scientific analysis of the issue to its political and regulatory implications, according to the website. It provides a forum to contribute to the generation of new proposals for tackling the problem of smoking, providing new points of reflection for scientists, professionals, technical and political decision-makers.
February 14, 2023
Singapore Tobacco Excise Duty to Increase

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Singapore’s government is raising the excise duty on all tobacco products by 15 percent, effective Feb. 14, 2023, according to Channel News Asia. The move is aimed at discouraging consumption, according to Finance Minister Lawrence Wong’s budget speech.
The increase is expected to generate about $100 million in additional annual revenue, according to Wong.
The tobacco tax was last raised in Singapore in 2018 when it increased by 10 percent.
February 14, 2023
Zimbabwe Marketing Dates Announced

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The auction tobacco marketing season opens March 8 with contract tobacco sales opening the next day, reports The Herald.
“All stakeholders are advised that the 2023 auction tobacco marketing season opens on Wednesday, 8 March,” said Emmanuel Matsvaire, acting chief executive of the Tobacco Industry and Marketing Board. “Sales at licensed auction floors will start at 9 a.m. Contract tobacco sales will open on Thursday, 9 March.”
February 14, 2023
Larger Leaf Quality and Volume Expected

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A significantly higher volume and quality of tobacco leaf is expected in Zimbabwe this year due to good rains during the farming season, reports Xinhua News.
The quality of the crops is good and will likely bring in high prices, according to George Seremwe, president of the Zimbabwe Tobacco Growers Association.
“This year, we have got a very good crop,” said Seremwe. “Even the dry land crop, which is rain-fed, is looking like the irrigated crop because the rains were quite good.”
The Tobacco Industry and Marketing Board is still assessing crops to determine the expected output.
February 13, 2023
Technology Facilitates Regulation in Zambia

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The Tobacco Board of Zambia (TBZ) has captured over 40,000 farmers on its electronic registration and monitoring system introduced two years ago, reports Zambia Daily Mail.
In 2020, the TBZ introduced the Bright Leaf System to regulate the production, buying and selling of tobacco in the country.
TBZ information communication technology officer Maximillian Kasonde said the system has brought relief to the board in that it is now aware not only of the exact number of farmers in the country but also of their identities and their locations.
“It has made the marketing and registration system easier,” Kasonde said.
February 13, 2023
Elf Bar Comments on E-Liquid Controversy

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After U.K. retailers announced they would remove Elf Bar 600 products from shelves due to illegal levels of e-liquid, Elf Bar called a meeting with the Medicines and Healthcare products Regulatory Agency (MHRA). Elf Bar subsequently released a statement regarding the controversy.
“Recent press reports alleged questions around the compliance of the Elf Bar 600 on the U.K. market,” a company press release stated. “Subsequent to these allegations, we immediately initiated a full investigation of the Elf Bar 600 in the U.K. market and have found that some products exceeded the permitted e-liquid fill level. Although this issue means the products are not compliant in full with U.K. regulations, we did not find any issues with nicotine strength or anything that might mean the products’ safety is compromised in any way.
“MHRA indicated that their recommendation is for the product to be withdrawn from the market.
“We agree with this recommendation and will voluntarily carry out a withdrawal of noncompliant Elf Bar 600s from the U.K. market. We will be assisted in ensuring the withdrawal is carried out effectively, and without causing any unnecessary market disruption, by a Trading Standards Primary Authority. We will update all of our distribution and retail partners when we have agreed how this corrective action will be enacted.
“Although the investigation and definition of corrective actions for the Elf Bar 600 has been undertaking, we have also committed to investigate all other vape products that we export to the U.K. We will take any actions we deem to be required to ensure compliance across our entire product set.”
Elf Bar was joined by the U.K. Vaping Industry Association (UKVIA) and the IBVTA in the meeting.
“Although Elf Bar is not a member of the UKVIA, as the industry’s lead trade association, it was key that we were present at such a critical meeting to represent the interests of all businesses in the sector impacted by this highly regrettable situation,” the UKVIA said in a statement. “The decision by Elf Bar to voluntarily withdraw its noncompliant products, recently highlighted in the media, is absolutely the right one.
“If the industry is going to be accepted as playing a leading role in helping Britain achieve its smoke-free targets, it has to demonstrate the highest levels of compliance, standards and responsibility, which the UKVIA expects.”
February 13, 2023