Tag: Pyxus

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.
March 13, 2024
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.
September 14, 2023
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“).
September 11, 2023
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.
August 10, 2023
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.
January 6, 2023
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.
January 5, 2023
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.
January 3, 2023
Hausmann Retires From Pyxus International

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.
May 6, 2022
Pyxus to Divest Cannabis Business

Photo: Pyxus International
Pyxus International intends to divest its cannabis business in order to focus on its more profitable tobacco and e-liquid businesses. In addition, the company has taken action to restructure its industrial hemp and CBD operations to minimize financial investment in that business.
“Our strategic decision to exit cash-flow negative cannabinoid operations will allow us to reduce corporate SG&A [Selling, general and administrative expense] and sharpen our focus on growing our more profitable tobacco and e-liquid businesses such that these complementary businesses can fully leverage Pyxus’ 145-year heritage and existing relationships,” said Pieter Sikkel, president and CEO of Pyxus International, in a statement.
“We maintain our belief that there is value in FIGR and its growth can be accelerated with the right capital structure and partner. The completion of our financial restructuring, global operations efficiency program, and continued investment in agronomy, traceability and sustainability are proving to be of significant value to our tobacco customers as we have started to work together on long-term strategic partnerships that support our objective of growing our market share.”
In connection with the plan, the company’s three Canadian cannabis subsidiaries, FIGR Brands, Canada’s Island Garden (FIGR East) and FIGR Norfolk filed for and received protection from their creditors under the Companies’ Creditors Arrangement Act (Canada).

January 25, 2021
Pyxus Appoints New Board Members

Pyxus International has appointed Robert George, Carl Hausmann, Cynthia Moehring and Richard Topping to its board of directors effective Oct. 12, 2020. These individuals join previously announced board members Holly Kim, Patrick Fallonand Pieter Sikkel.
“The addition of the new members to Pyxus’ board of directors is a key milestone in its transformation strategy,” said Sikkel, who also serves as president and CEO of Pyxus, in a statement. “We believe this mix of directors brings proven financial and operational track records and diverse perspectives that will contribute to Pyxus’ future success, and we look forward to working with this group of proven leaders to accelerate the company’s growth.”
George brings extensive financial and operational experience in public, private and private equity-backed diversified industrial businesses. Most recently, he served as executive vice president, chief financial officer and corporate development for Esterline Technologies. Prior to joining Esterline, George held various leadership positions with Zurn Industries and Elgin Electronics. He is a member of the board of directors of Advanced Integration Technology.
Hausmann brings more than 35 years of experience in the agribusiness and food industries. He retired in June 2012 as managing director of global government and corporate affairs of Bunge Limited, having spent a decade serving in executive roles with Bunge affiliates in North America and Europe. Prior to joining Bunge, Hausmann served as chair and CEO of Cereol and held various leadership positions with Continental Grain Co. in Europe, South America, Africa and the United States. Following his retirement from Bunge, Hausmann served as a member of the board of directors of Pyxus International’s predecessor, Alliance One International, from June 2013 to August 2018.
Moehring is the founder and executive chair of the Business Integrity Leadership Initiative at the University of Arkansas Sam M. Walton College of Business. She brings more than 25 years of experience as a strategic senior executive, including 20 years at Walmart where she served as senior vice president, U.S. chief ethics and compliance officer and senior vice president, global chief ethics officer, among other leadership positions. She has broad experience in many areas, including enterprise risk management, effective global governance practices, mergers and acquisitions, IPOs, diversity and inclusion and sustainability.
Topping has four decades of experience in the tobacco industry. He has held a variety of global leadership positions throughout the supply chain, working with both tobacco leaf merchants and cigarette manufacturers. He most recently worked with Japan Tobacco International and its predecessor companies and served as vice president of global leaf sourcing prior to retiring in June 2018. Topping has wide-ranging global expertise, from both the merchant and cigarette manufacturer perspective, in leaf sourcing and procurement strategies, logistics, operations and sales throughout North and South America, Europe, Asia and Africa.
October 14, 2020