Pyxus International, Inc. Reports First Quarter Fiscal 2026 Results; Reiterates Full-Year Guidance

Core Insights - Pyxus International, Inc. reported first quarter results for fiscal year 2026, indicating alignment with financial expectations and a positive outlook for the full year [2][11] - The company experienced a reduction in sales and operating revenues compared to the previous year, primarily due to the acceleration of customer shipments in the prior fiscal year [3][19] - Despite lower sales, the company managed to improve operational efficiencies and maintain a strong customer demand due to record crop sizes in South America and Africa [3][9] Financial Performance - First quarter sales and other operating revenues were $508.8 million, down from $634.9 million in the same quarter last year, attributed to shipment timing [3][19] - Cost of goods and services sold decreased to $443.2 million from $551.0 million year-over-year, reflecting the change in sales [4][19] - Gross profit margin was 12.9%, slightly down from 13.2% in the prior year, influenced by regional and customer mix [5][19] - Operating income fell to $21.0 million from $40.5 million, and net loss attributable to Pyxus was $(15.8) million compared to a profit of $4.6 million in the previous year [6][19] Balance Sheet and Liquidity - As of June 30, 2025, total net debt increased by $90.3 million year-over-year, while inventory rose by $107.3 million, indicating a more normalized business cycle [7][19] - Tobacco inventory at the end of the quarter was $1,089.8 million, up from $980.6 million the previous year, reflecting larger crop availability [8][19] - The company improved its cash conversion, reducing average operating cycle time to 160 days from 172 days in the same period last year [10][19] Guidance and Outlook - The company reiterated its full fiscal year guidance, expecting sales between $2.3 billion and $2.5 billion and adjusted EBITDA between $205 million and $235 million [11][19] - The management expressed confidence in achieving strong performance in the second half of the fiscal year, supported by increased crop volumes and customer demand [3][11]