Tag: Pyxus International

Pyxus Improves Revenues and Net Loss

Pieter Sikkel (Photo: Pyxus International)
Pyxus International reported sales and other operating revenues of $333.3 million for the three months ended June 30, 2021, up 26.8 percent from $262.8 million for the three months ended June 30, 2020. Gross profit as a percent of sales increased to 12.6 percent from 7.5 percent. Net loss improved 87.5 percent to $11.5 million while adjusted earnings before interest, taxes, depreciation and amortization increased 92.2 percent to $14.8 million.
“Fiscal year 2022 is progressing nicely and is in line with our expectations thus far. In the first quarter, we began to catch up from prior-period shipping delays driven by the pandemic and customer shipping instructions,” said Pieter Sikkel, president and CEO of Pyxus, in a statement.
“In the leaf business, our inventory levels are consistent with our expectations, and our uncommitted inventory decreased compared to the prior year. We continue to see customers look for ways to reduce complexity in their supply chains through partnerships with suppliers who support their environmental, social and governance objectives. British American Tobacco’s Indonesian subsidiary recently adopted a new leaf supply arrangement, which involves shifting contract volumes from its direct operations to one of our tobacco subsidiaries. Effective this crop season, we will begin processing the additional volume in our local facilities prior to its sale to BAT.
“With regards to e-liquids, we are encouraged that the Food and Drug Administration is continuing to take action against illegally marketed tobacco products, as evidenced by the most recent warning letters requesting certain companies remove their flavored disposable e-cigarettes and youth-appealing e-liquid products from the market because they do not have the required premarket tobacco product applications.
“Momentum is building across the business as we leverage the savings from fiscal 2021 restructuring initiatives. We continue to expect fiscal 2022 sales to be between $1.65 billion and $1.8 billion, SG&A expense to be between $140 million and $145 million (excluding nonrecurring items and potential changes in foreign currency exchange rates), and adjusted EBITDA to be between $150 million and $170 million. Our global team is committed to the strengthening of our business while making positive contributions to a sustainable world.”
August 16, 2021
Pyxus Releases Full-Year Financial Results

Photo: snowing12
Pyxus International announced results for its quarter and fiscal year ended March 31, 2021.
Combined sales and other operating revenues were $1.33 billion, down 12.8 percent from the prior fiscal year. Combined gross profit as a percent of sales was 12.1 percent, which decreased 2.6 percent from the prior fiscal year.
Combined selling, general and administrative expenses were $197.9 million, which decreased $1.1 million, or 0.6 percent, from the prior fiscal year.
Combined net loss attributable to Pyxus International was $117.7 million, which decreased $147 million, or 55.5 percent, from the prior fiscal year.
Combined adjusted EBITDA was $93.5 million. Total long-term debt was substantially reduced when compared to the prior fiscal year. Year-end uncommitted inventory was the lowest it has been since fiscal 2016.
“In what was an unprecedented and challenging year, our company adapted to constant change as we navigated the Covid-19 pandemic,” said Pieter Sikkel, Pyxus’ president and CEO, in a statement. “During fiscal 2021, we implemented a series of restructurings and process changes that allowed our business to continue to operate through the Covid-19 pandemic while also positioning us for success in fiscal 2022 and beyond. Through these actions, we substantially reduced our debt and costs throughout our supply chain. We also made the strategic decision to exit our cash flow negative Canadian cannabis businesses, which further supports our SG&A cost containment efforts.”

Based on expected first-quarter results, we are optimistic about fiscal 2022.
Pieter Sikkel, president and CEO, Pyxus International
“Although our production facilities continued to operate through the pandemic, certain facilities experienced lower production levels than planned due to smaller crop sizes in Africa and the implementation of social distancing requirements and safety practices to reduce the spread of Covid-19 and protect our employees. In addition, the Covid-19 pandemic-related shipping delays of leaf tobacco for certain customer orders resulted in a shift of between $170 million and $180 million of expected revenue and $30 million and $34 million of expected EBITDA from fiscal 2021 into fiscal 2022. However, the impact of Covid-19 on our business yielded innovative changes that will enable us to be more flexible in the future and accelerate certain activities in the crop cycle. Covid-19 has also pushed the tobacco industry to continue to look for ways to reduce supply chain complexity in a responsible manner.
“For the full year, we are expecting fiscal 2022 sales to be between $1.65 billion and $1.8 billion, SG&A expense to be between $140 million and $145 million (excluding nonrecurring items and potential changes in foreign currency exchange rates) and adjusted EBITDA to be between $150 million and $170 million. Based on expected first-quarter results, we are optimistic about fiscal 2022. Lastly, we are also excited about sharing more information about our enhanced global environmental, social and governance strategy, which supports our ability to deliver on our expected results for fiscal 2022.”
June 30, 2021
Pyxus Chief Financial Officer to Retire

Photo: bortnikau
Joel L. Thomas will be retiring from his position as executive vice president and chief financial officer at Pyxus International upon the appointment of his successor. Thereafter, Thomas will continue to serve as a strategic advisor to facilitate the transition of his responsibilities until he retires from that position on or before June 30, 2022. The company has initiated an executive search for Thomas’ successor.
“On behalf of Pyxus and the board of directors, I would like to thank Joel for his dedication and contributions to the company,” said Pieter Sikkel, president and CEO of Pyxus International, in a statement.
“Throughout his time with the company, Joel has provided financial leadership and implemented innovative financing structures to meet our evolving global requirements. His leadership and dedication were critical over the past year as we navigated the impact of the Covid-19 pandemic and implemented significant restructuring efforts that have positioned our business for long-term success. Joel’s passion for the business, our shareholders, our employees and our customers is evident to anyone who interacts with him, and I wish him all the best in the next chapter of his journey.”
Thomas has spent the past 16 years of his career with Pyxus International, including serving the last seven years as CFO.
“It has been a privilege to work and serve alongside our talented global team,” said Thomas. “I’m proud of the steps we have taken to create a solid foundation for the company that will enable it to achieve long-term success.”
June 30, 2021
Pyxus Secures Working Capital Funding

Photo: Pyxus International
Pyxus International announced that one of its indirect subsidiaries has entered into a term loan credit agreement with the company and certain of its other subsidiaries as guarantors, with certain funds managed by Glendon Capital Management and Monarch Alternative Capital as lenders and Alter Domus (U.S.) as administrative agent and collateral agent.
The credit agreement establishes a $120 million delayed-draw term loan credit facility with a maturity date in July 2022.
“Covid-19 has caused delays in shipment of leaf tobacco, which, as a result, has pushed fulfillment of certain customer orders from the fourth quarter of fiscal 2021 into fiscal 2022,” said Pieter Sikkel, president and CEO of Pyxus International, in a statement.
“The combination of these delays along with increasing customer demand for 2021 crops has created the need for a short-term financing to fund working capital. We anticipate a portion of this loan will be repaid once Covid-19-related delays have been resolved, though a portion may be left outstanding to fund increased purchases of this year’s crop in line with our improving sales expectations.”
April 30, 2021
Pyxus Releases Improved Results

Pieter Sikkel (Photo: Pyxus International)
Pyxus International announced results for its fiscal quarter ended Dec. 31, 2020.
Sales and other operating revenues were $379.6 million for the three months ended Dec. 31, 2020, up from $363.3 million for the three months ended Dec. 31, 2019.
Gross profit as a percent of sales increased to 16.5 percent for the three months ended Dec. 31, 2020, from 15.2 percent for three months ended Dec. 31, 2019.
Net loss improved 62.7 percent to $8.2 million for the three months ended Dec. 31, 2020.
Adjusted EBITDA improved 64.9 percent to $39.9 million for the three months ended Dec. 31, 2020, from $24.2 million for the three months ended Dec. 31, 2019.
Inventory decreased 11.5 percent to $771.8 million as of Dec. 31, 2020.
“Fiscal year 2021 continues to be a year of evolution for our business,” said Pieter Sikkel, Pyxus’ president and CEO, in a statement. “Since the completion of our financial restructuring, we have undergone a strategic review of all business units and categories in which we operate in order to develop a stronger, more streamlined strategy to improve financial performance.”
“We see the potential for increased leaf tobacco volume in fiscal year 2022 from countries including the United States and Brazil. In addition, the developments in the e-liquids category following the September 2020 PMTA submission deadline, paired with increased enforcement of PMTA regulation, provide an encouraging opportunity for potential future growth.”
In January, Pyxus International announced plans to divest its cannabis business in order to focus on its more profitable tobacco and e-liquid businesses.
According to Sikkel, Pyxus International continues to experience Covid-19-related disruption in its supply chain and distribution channels. “While the volume of customer orders is in line with expectations and we have adequate supply of product to meet demand, we have been impacted by procedural delays with regards to fulfillment of customer orders,” he said. “This has resulted in the timing of fulfillment of certain customer orders shifting to the fourth quarter of fiscal year 2021 and others to the first quarter of fiscal year 2022.”
Despite these challenges, the company continues to manage its working capital closely, according to Sikkel. “At Dec. 31, 2020, inventory decreased $100.1 million, or 11.5 percent, to $771.8 million when compared to Dec. 31, 2019,” he said. “Additionally, we expect our uncommitted inventory to be near the midpoint of our stated range of $50 [million] to $150 million by fiscal year end.”
February 10, 2021