Pyxus International reports strong financial performance for 2022 Q3

Feb.16.2023
Pyxus International reports strong financial performance for 2022 Q3
Pyxus International reports Q3 2022 revenue of $655.6m and decreased net losses, driven by strong global performance and improved financial flexibility.

Pyxus International has released their financial performance report for the period ending on December 31, 2022.


For the three months ending on December 31st, 2022:


Sales and other operating revenues increased by $226.7 million, up 52.9%, reaching $655.6 million.


Operating profit increased by $11.4 million, reaching $41.6 million.


The net loss belonging to Pyxus International has improved, decreasing from $27.8 million to $2.3 million.


Pieter Sikkel, President and CEO of Pyxus, has expressed his satisfaction with the company's third-quarter results. Despite the challenges posed by La Niña and inflationary pressure, as well as the unpredictability of last year's crop cycle, the increase in operating profit indicates a strong performance on a global scale. The results demonstrate progress made by the company across multiple areas compared to the previous year, which could not have been achieved without the dedication and contributions of its employees.


We successfully utilized our global business network to address the current tobacco supply shortage and achieved our purchasing goals for the 2023 fiscal year. In addition to the normalization of our North and South American shipping plans and increased freight from Asia, the company achieved a year-over-year sales and other operating revenue growth of over 50%. This growth, along with a higher utilization of our securitization plan, resulted in over $100 million in increased operating cash flow for the third quarter compared to the same period last year. Some of these funds were strategically used to fully pay off the outstanding debt on our ABL credit facility, providing the company with greater financial flexibility and more funding support as we approach the next purchasing cycle.


Due to the normalization of shipping schedules, we anticipate that the third quarter will be the biggest sales quarter of the fiscal year. Based on our expectations for continued improvement, we have revised our projected sales for the 2023 fiscal year to be between $1.85 billion and $2 billion, with adjusted EBITDA expectations of $140 million to $155 million.


Pyxus International is a global tobacco company headquartered in North Carolina, United States. The company specializes in procuring, processing, and selling tobacco, and owns multiple tobacco brands. Additionally, Pyxus International also has ventures in other industries such as agriculture and food.



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