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Tag: Pyxus

  • Pyxus Reports Sluggish Q1, But Reaffirms Full-Year Guidance

    Pyxus Reports Sluggish Q1, But Reaffirms Full-Year Guidance

    Pyxus International announced fiscal Q1 2026 results, reporting revenue of $508.8 million, down from $634.9 million a year earlier, primarily due to accelerated shipments into Q4 FY2025. Despite the decline, CEO Pieter Sikkel said results were in line with expectations and aligned with the company’s “normalized cycle” of buying early and selling later in the fiscal year.

    Operating income was $21 million, down from $40.5 million Y-Y, while net loss reached $15.8 million versus a $4.6 million profit last year. Adjusted EBITDA dropped to $29.5 million, reflecting lower sales volumes but was supported by strong global demand and improved pricing.

    The company noted a tobacco inventory of $1.1 billion, reflecting larger crop availability in Africa and South America. Uncommitted inventory remained low at 2.4% of processed stock, signaling sustained demand.

    Despite the early numbers, Pyxus reaffirmed its FY2026 guidance of $2.3–$2.5 billion in revenue and $205–$235 million in adjusted EBITDA.

  • Pyxus CFO Resigns

    Pyxus CFO Resigns

    Flavia Landsberg, Pyxus International’s executive vice president and chief financial officer, has resigned effective Feb. 28, 2025. Landsberg, who joined Pyxus in 2021, has elected to pursue an external career opportunity.

    Following Landsberg’s notice of resignation, the company’s board of directors appointed Dustin Styons, Pyxus’ executive vice president, business strategy and sales, as interim CFO and will commence a formal search for Landsberg’s successor.

    “We thank Flavia for her contributions during her tenure, which are evidenced by the significant improvements in all measures of our operating performance and reduction of long-term debt,” said Pyxus President and CEO Pieter Sikkel. “We wish Flavia all the best in her new role as we work to build on the financial strategy she helped put in place.”

  • Pyxus Achieves Supplier Engagement Leadership

    Pyxus Achieves Supplier Engagement Leadership

    Image: Prostock-studio

    Pyxus International has been recognized by environmental nonprofit CDP as a Supplier Engagement Leader. Pyxus ranked among the top tier of companies featured on CDP’s Supplier Engagement Leaderboard for its effectiveness in working with its suppliers, particularly contracted growers, to address climate change.  

    Pyxus’ 2023 Supplier Engagement Rating ranked the company above the industry, North America and global averages and reflects its improved environmental performance, as evidenced by its 11 percent year-over-year reduction of value-chain-related emissions (scope 3), according to a company press release.

    “Our sustainability journey cannot be traveled alone. Collaborating with our contracted farmers and other upstream suppliers to reduce our company’s scope 3 emissions is pivotal to achieving our carbon neutrality targets and delivering stakeholder value,” said Pyxus President and CEO Pieter Sikkel in a statement. “We are honored to receive Supplier Engagement Leadership status, CDP’s highest level of recognition, confirming that we are truly working together to grow a better world.”

    A company’s Supplier Engagement Rating is derived from information submitted during CDP’s annual climate change disclosure process and assesses a business’ governance, targets, scope 3 emissions and supplier engagement performance. In February, Pyxus achieved Leadership status in CDP’s climate change category.

  • Pyxus Reorganizes

    Pyxus Reorganizes

    Photo: Pyxus

    Pyxus International has announced a new, streamlined organizational structure designed to increase operational efficiencies, drive organizational effectiveness and create stakeholder value. 

    The company will split the role and responsibilities of the Alliance One president, creating two new leadership positions—executive vice president, chief operating officer (COO) and executive vice president, business strategy & sales.

    In addition, it will redesign of the company’s current business services function and rebrand the company’s current communications, sustainability and external affairs function, positioning it as a standalone corporate affairs department

    Alliance One’s president, Alex Strohschoen, has departed the company to pursue new opportunities. Additionally, the organizational structure changes align with Herbert Weatherford, Alliance One senior vice president, business relationship manager’s intent to retire in March 2024 after 34 years of service.    

    “In line with one of Pyxus’ key themes for fiscal year 2024—simplification—our updated organizational structure connects our core business functions with our strategic priorities to drive accountability and operational results while reducing unnecessary or burdensome complexities,” said Pyxus President and CEO Pieter Sikkel. “We have assembled a strong, diverse leadership team and I am confident this new structure further positions Pyxus as a future-facing, agile business as we continue prioritization of growth and long-term success.”

    In line with one of Pyxus’ key themes for fiscal year 2024—simplification—our updated organizational structure connects our core business functions with our strategic priorities to drive accountability and operational results while reducing unnecessary or burdensome complexities.

    Pieter Sikkel, president and CEO, Pyxus

    Pyxus has appointed Scott Burmeister to the newly created position of executive vice president, COO. Burmeister has served the company in several capacities since joining in 1996, most recently leading the business’ Europe, Middle East and Africa region. As COO, he will focus on the company’s global operations, quality and output, with oversight of the business’ regional director positions, and the global agronomy department and value-added agricultural products division.

    Dustin Styons has been named Pyxus’ executive vice president, business strategy and sales, responsible for business-to-business strategy, business relationship management, business development and the company’s e-liquids division. Styons joined the company in 2005, most recently serving as vice president, corporate finance and business development.  

    Tracy Purvis, who has led the Pyxus’ global business services function since 2018, has been tasked with its redesign under the new title of executive vice president, global business & information services. Purvis, who joined the company in 1990, will leverage Pyxus’ IT assets to drive cost competitiveness, efficiencies and effectiveness with a focus on process automation and simplification, data analytics, validation and visualization, and productivity collaboration.

    To align with the business’ strategic focus area of environmental, social and governance (ESG), as well as the growing importance of addressing all stakeholders equally to mitigate risk, enhance brand value and ensure consistent, transparent messaging, Miranda Kinney has been promoted to senior vice president, global communications & sustainability. She will lead the company’s newly formed global corporate affairs department and will remain responsible for internal and external communications, crisis management, sustainability and ESG, and external and government affairs. 

    All four positions will report to Pyxus’ president and CEO.  

  • USAID and Pyxus Partner in Malawi

    USAID and Pyxus Partner in Malawi

    Photo: PAM

    The U.S. Agency for International Development (USAID) will award Pyxus Agriculture Malawi (PAM) $14.6 million over the next five years, Pyxus announced on its website. The money will support the company in maximizing its operational effectiveness and minimizing its exposure to financial risk as it continues to drive sustainable agriculture developments in Malawi.

    The USAID award compliments PAM’s investment to date and offsets certain company expenditures going forward as both entities work to increase the availability of high-quality, climate-smart groundnut seed varieties, boost groundnut production and processing, support improved farmer livelihood and counteract the nation’s high rate of deforestation.

    “Our company has a 30-year history of operating in Malawi and has one of the largest networks of smallholder farmers—most operating on two hectares of land or less—in the country. We have worked diligently to help our contracted farmers successfully grow and market high-quality, sustainable crops, thus improving the livelihood of the farmer, their families, their communities and the country as a whole,” said Pyxus President and CEO Pieter Sikkel, during the partnership signing ceremony at PAM’s state-of-the-art groundnut processing facility in Lilongwe, Malawi.

    “Pyxus is honored to receive this $14.6 million award from USAID, which helps our company to further build capacity, expand impact throughout the legume and forestry value chains, and unlock value for Malawi and its farmers,” added Sikkel.

    Pyxus is honored to receive this $14.6 million award from USAID, which helps our company to further build capacity, expand impact throughout the legume and forestry value chains, and unlock value for Malawi and its farmers.

    Pieter Sikkel, president and CEO, Pyxus

    The agreement aligns with Pyxus’ global environmental, social and governance goals and identifies five focus areas to achieve success: improve Malawi’s legume seed production system through the acceleration of PAM’s current research, breeding and distribution of new high-yielding, climate-resilient, market-demanded and more nutritious legume seed varieties; increase farmer access to high-quality crop inputs and hands-on training of good agricultural practices while simultaneously working to diversify PAM’s contracted farmer base—these efforts enable farmers to increase yields, sales and incomes, driving the development of the country’s commercial agriculture sector; help address smallholder farmer financing roadblocks, which currently put a significant limitation on crop production and overall market success, through fair and affordable crop input financing—minimizing financial roadblocks can help farmers increase yields and improve their overall livelihood; enhance the quality and value of Malawi groundnuts through increased processing capacity of PAM’s groundnut facility, driving job growth, the country’s export opportunities and value addition, resulting in a more impactful private sector contribution to Malawi’s economic growth; and combat deforestation and forest and soil degradation by further developing PAM’s sustainable forestry operation and the introduction of new, innovative energy solutions and soil health amendments to the farmer.

    PAM Managing Director Ronald Ngwira (right) with employees at the company’s groundnut facility in Lilongwe (Photo: Taco Tuinstra)

    “The partnership we’ve launched today, with USAID and Pyxus, will invest in Malawians to accelerate opportunities for more sustainable, inclusive and resilient economic growth,” said USAID Deputy Administrator Isobel Coleman during the signing ceremony.

    Coleman added that the partnership contributes to soil health improvements, utilization of clean energy generated from recycled agricultural waste and increasing availability of nutritious food for the Malawian people. 

    The PAM operation was founded in 2019 under Pyxus’ Value-Added Agricultural Products division. Since its inception, PAM has opened one of the largest groundnut processing facilities in Africa, gained government approval to commercialize five new legume seed varieties, cultivated and maintained more than 7,000 hectares of forestry, and unlocked additional income potential for over 20,000 smallholder farmers.

    Tobacco Reporter visited Pyxus Groundnut factory in the first half of 2023 and reported on the operation in its June print edition (see “A Gamble on Goobers“).

  • Pyxus Revenues Jump Nearly 40 Percent

    Pyxus Revenues Jump Nearly 40 Percent

    Image: Monster Ztudio

    Pyxus International announced results for its fiscal quarter ended June 30, 2023.

    Sales and other operating revenues were $477.1 million, up 38.7 percent compared to 2022. Operating income increased $29.4 million to $36.4 million. Net income was $0.8 million, improving $15.5 million. Adjusted EBITDA increased $27.5 million to $43.5 million.

    For the full 2024 fiscal year, Pyxus continues to expect sales to be between $1.9 billion and $2.1 billion and adjusted EBITDA to be between $155 million and $180 million.

    “Fiscal 2024 is off to a strong start with higher tobacco prices, accelerated timing of shipments and a favorable shift in customer mix fueling a 39 percent increase in revenue and improved profitability compared to the prior year,” said Pyxus President and CEO Pieter Sikkel in a statement.

    “In the first quarter of fiscal 2024, we believe we reached the peak of our fiscal 2024 tobacco purchases as we significantly accelerated our buying, using our geographic footprint to acquire tobacco inventory from multiple markets to meet higher current crop supply requirements and customer demand for fiscal 2024. Customer shipments in fiscal 2024 will utilize a higher percentage of tobacco purchased during the current fiscal year to fulfill orders compared to the prior year given our uncommitted inventory continues to be historically low.

    “Our continued focus on aggressively managing our working capital provided sufficient liquidity through short-term borrowings under our foreign seasonal lines of credit, availability under the ABL Credit Facility, cash generated from operations and cash collections from our securitized receivables to purchase larger volumes of more expensive tobacco compared to the prior year. In the first quarter of fiscal 2024, we increased our purchases of inventory by more than $100 million compared to the prior year using $40 million of incremental foreign seasonal lines of credit and our improved cash conversion cycle.

    “We anticipate ongoing strong demand as undersupply conditions are expected to persist through fiscal 2024. We believe our positive first-quarter results position the company to achieve our previously announced fiscal 2024 guidance for sales between $1.9 billion and $2.1 billion and adjusted EBITDA between $155 million and $180 million. We are proud of the progress our global teams have made thus far and thank them for their unwavering commitment to our customers and their focus on achieving the company’s objectives so that together we can grow a better world.”

    The company held a conference call to report financial results for the period ended June 30, 2023, on Aug. 10, 2023, at 9:00 a.m. Eastern Time. For those who were unable to listen to the live event, a telephonic replay of the conference call will be available by dialing (647) 362-9199 or (800) 770-2030 and entering the access code 2624736.

  • Pyxus Commences Exchange Offer

    Pyxus Commences Exchange Offer

    Image: Scott Maxwell | Adobe Stock

    Pyxus International’s wholly owned subsidiary, Pyxus Holdings, has commenced a private offer to exchange any and all of the issuer’s outstanding 10 percent senior secured first lien notes due 2024 for an equal principal amount of new 8.5 percent senior secured notes due 2027 to be issued by the issuer, according to the company.

    In conjunction with the exchange offer, the issuer is soliciting consents from the holders of the existing notes to amend the indenture, dated as of Aug. 24, 2020, among the issuer, the guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent, the existing notes and the related intercreditor and security documents as necessary to, among other things, eliminate most of the restrictive covenants and certain of the affirmative covenants applicable to the existing notes; eliminate the change of control repurchase obligation in the existing notes indenture and the existing notes; subordinate in right of payment the existing notes to the issuer’s existing and future senior indebtedness, including the new notes, the new term loans, the existing term loans and the ABL credit agreement; and eliminate certain events of default and release all of the collateral securing the existing notes.

    This follows Pyxus’ previous announcement of its agreement with creditors.

  • Pyxus Enters Agreement with Creditors

    Pyxus Enters Agreement with Creditors

    Image: makibestphoto | Adobe Stock

    Pyxus International and certain of its subsidiaries, including Pyxus Holdings, entered into a Support and Exchange Agreement with a group of creditors, including Glendon Capital Management, Monarch Alternative Capital, Nut Tree Capital Management, Intermarket Corporation and Owl Creek Asset Management, on behalf of certain funds managed by them and/or certain of their advisory clients as applicable, according to a company press release.

    Pursuant to the Support Agreement, the company and its subsidiaries intend to launch comprehensive exchange transactions offered to all qualified holders of its secured debt, by which such holders will be offered the opportunity to exchange all of their secured debt at par for newly issued secured debt, maturing on Dec. 31, 2027. If consummated, the exchange transactions will result in a significant portion of the secured debt being replaced with longer dated debt.

    “The company appreciates the support received from our lenders and noteholders, which demonstrates their confidence in our long-term strategy and the resilience of our business,” said Pyxus President and CEO Pieter Sikkel. “The exchange transactions will provide us with additional flexibility and extend near-term maturities to December 2027, allowing us to focus on the continued growth of our business and driving stakeholder value.”

    The support agreement and the exchange transactions were recommended by a special committee of the board of directors of the company comprising a majority of the disinterested members and approved by the board of directors of the company.

  • Pyxus Releases 2022 Sustainability Report

    Pyxus Releases 2022 Sustainability Report

    Image: Tobacco Reporter archive

    Pyxus International released its Fiscal Year 2022 Sustainability Report. This is Pyxus’ first sustainability report following the release of its environmental, social and governance (ESG) framework in December 2021.

    “This report marks a significant milestone in Pyxus’ sustainability journey. It provides stakeholders with a comprehensive understanding of how our ESG framework and business strategy are intertwined and reaffirms our commitment to transparent reporting as we execute against our measurable ESG goals,” said Pyxus President and CEO Pieter Sikkel in a statement. “We are excited to share tangible examples of our progress as we work to transform people’s lives and improve the communities in which we operate.”

    “I am proud of the progress made against our global ESG goals, which was achieved in spite of operational hurdles, including two consecutive years of La Nina. This is a prime example as to why we must continue to identify innovative solutions and collaborate with like-minded companies to drive the greatest global impact so that together we can grow a better world,” said Sikkel.

  • Hausmann Retires From Pyxus International

    Hausmann Retires From Pyxus International

    Three empty beach chairs sitting on a dock facing the water
    Photo: jovannig | Adobe Stock

    Carl L. Hausmann intends to retire from the Pyxus International’s board of directors effective as of the 2022 annual shareholders meeting, according to a company press release.

    Hausmann was appointed to Pyxus’ board of directors in October 2020 and serves on the environmental, social, governance and nominating committee as well as the audit committee. Additionally, Hausmann served as a member of the board of directors of Pyxus International’s predecessor, Alliance One International, from June 2013 to August 2018.

    “On behalf of the board of directors, as well as Pyxus’ management team, we thank Carl for his guidance and many contributions over the years,” said Pyxus President and CEO Pieter Sikkel. “His extensive experience in the agricultural industry, thorough understanding of our operations and support of our ESG framework has been instrumental in establishing the foundation necessary to position Pyxus for success moving forward. It has been a privilege to work with Carl during both of his board appointments, and we wish him all the best in the years to come.”

    The board of directors plans to fill Hausmann’s seat with an independent director, though this may not occur until after the company’s 2022 annual shareholders meeting.