On February 12, 2025, Pyxus International Inc (PYYX, Financial) released its 8-K filing detailing the financial results for the third quarter of fiscal 2025. Pyxus International Inc, a global agricultural company, is known for delivering value-added products and services across various sectors, including leaf, legal cannabis, industrial hemp and CBD, and e-liquids. The company operates in North America, South America, Europe, Asia, and Africa.
Performance and Challenges
Pyxus International Inc reported a significant increase in third-quarter sales and operating revenues, which rose by 46.9% to $778.3 million compared to $529.8 million in the same quarter of the previous fiscal year. This growth was driven by higher average prices per kilogram across major regions and increased sales volume. Despite facing challenges such as adverse weather conditions due to El Niño in South America and a destructive hurricane season in the U.S., the company managed to maintain strong performance.
Financial Achievements
The company's gross profit for the third quarter increased to $116.5 million from $92.6 million in the prior year, primarily due to a 9.6% rise in average gross profit per kilo. However, gross profit as a percentage of revenues decreased from 17.5% to 15.0%, attributed to regional mix and weather impacts. Net income attributable to Pyxus International Inc surged to $18.9 million, a substantial increase from $3.8 million in the previous year. Adjusted EBITDA also rose to $80.5 million from $64.5 million.
Key Financial Metrics
For the first nine months of fiscal 2025, Pyxus International Inc's sales and operating revenues grew by 21.4% to $2.0 billion. The company's gross profit for this period was $275.8 million, up from $254.4 million in the previous year. Selling, general, and administrative expenses increased to $126.0 million from $116.5 million. The company's net income for the nine months rose to $20.3 million from $12.7 million, with adjusted EBITDA reaching $179.8 million compared to $165.3 million.
Balance Sheet and Liquidity
Pyxus International Inc's total processed tobacco inventory as of December 31, 2024, was $603.3 million, down from $659.0 million a year earlier. The company reported $144.5 million in adjusted free cash flow, with improvements in its credit profile, reducing leverage to 4.6 times from 4.8 times. Interest coverage decreased slightly to 1.5 times from 1.6 times.
Guidance and Outlook
Due to strong third-quarter performance, Pyxus International Inc increased its fiscal 2025 guidance. The company now expects total sales to range between $2.40 billion and $2.55 billion, up from the previous range of $2.15 billion to $2.35 billion. Full-year adjusted EBITDA is anticipated to be between $205 million and $215 million, compared to the prior range of $175 million to $195 million.
"We are pleased to report a strong third quarter; a reflection of the successful initiatives we implemented across our global operations to drive both volume and margin," said Pieter Sikkel, Pyxus' President and Chief Executive Officer.
| Metric | Q3 2025 | Q3 2024 | Change |
|---|---|---|---|
| Sales and Operating Revenues | $778.3 million | $529.8 million | +46.9% |
| Gross Profit | $116.5 million | $92.6 million | +25.8% |
| Net Income | $18.9 million | $3.8 million | +397.4% |
| Adjusted EBITDA | $80.5 million | $64.5 million | +24.8% |
Pyxus International Inc's strategic execution and ability to navigate challenges have resulted in a robust financial performance, positioning the company for continued growth and profitability in the global agricultural sector.
Explore the complete 8-K earnings release (here) from Pyxus International Inc for further details.
