Pyxus International is a tobacco company that operates globally.
Pyxus International has reported that its sales and other operating revenues for the fiscal year ending on June 30th, 2022 reached $343.9 million, representing a 3.2% increase from the same period in 2021. However, its net losses increased by 27.8%, amounting to $14.7 million, primarily due to a decrease in tax benefits by $7.6 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 17.1% to $17.3 million.
In a statement, Pyxus CEO Pieter Sikkel said, "As expected, our first quarter results were in line with the previous fiscal year. Demand from Asia increased and shipping times have become more normalized, but this was partially offset by longer shipping times from Africa and South America.
As of June 30th, 2022, our inventory has increased by $126 million compared to the previous year. This is primarily due to rising prices and processing costs for new crop green tobacco in South America, as well as the accelerated purchase activity for new crops in certain key markets. Additionally, over 90% our processed tobacco inventory is still allocated to specific customers.
The overall increase in inventory and the processing tobacco inventory levels we committed to have enabled us to meet current demand, and we anticipate strong shipment volumes for subsequent quarters in fiscal year 2023, consistent with historical trends. Despite higher green tobacco prices and processing costs in South America, we have effectively managed working capital to achieve our procurement objectives for the current crop cycle.
Due to unfavorable weather patterns from the La Niña season, crop yields in certain markets in Africa, Asia, and South America have fallen below expectations, exacerbating supply shortages. We are maintaining transparent dialogue with our clients regarding the impact of La Niña and inflation on our business. To address these and other market dynamics, we have accelerated purchasing activities in key markets and continue to invest in research trials, local projects, and additional training for our global agronomy team to further support our efforts to maximize grower efficiency and yields in unpredictable weather patterns.
We continue to anticipate that sales for the fiscal year 2023 will fall between $1.75 billion and $1.95 billion, while adjusted EBITDA will fall between $130 million and $160 million. Looking ahead, we are committed to restoring crop size and ensuring that the quantities in the upcoming years align with customers' expectations as we strive to provide value to stakeholders and work together towards a better world.
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