PYYX - Earnings call transcript Q3 2025 | Pyxus International, Inc.

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Operator

Good day, and welcome to the Pyxus Third Quarter Fiscal Year 2025 Earnings Call. Today's conference is being recorded. I would now like to turn the call over to your host for today's call, Mr. Tomas Grigera. Mr. begin. may you Grigera,

Tomas Grigera

With Executive is our Officer; Officer. operator. President Chief Sikkel, and Chief and us you, Pieter today our Financial Thank Flavia Landsberg,

we would results, few Before our cover points. to a I discussing begin like financial

are events statements are SEC, of may may statements call express described results this forward-looking in along including made which involve are call to and as on risks to change as forward-looking We a course not cause are other the recent number in intention that those on or and these hear most that and statements materially statements undertake risks and XX-K. expectation this historical management's change differ You Form conference uncertainties that in any from detail, the any These well expectations statements. of or our actual do assumptions uncertainties reflect and with during forward-looking uncertainties our in belief, fact. circumstances any to filings a or based. not These with update these risks

our other regarding U.S. www.pyxus.com. alternative accounting at A principles disclosures in available the of table, our of, United before on in and of taxes, today Included adjusted not measures as commonly of be be are as GAAP is measurements. to under measures EBITDA. operations amortization, accepted EBITDA, to well and website interest, referred as a depreciation States as an non-GAAP generally including measurements, and These considered may our non-GAAP financial results discussion not should call earnings including financial reconciliation presentation also of

unauthorized turn other my International, prohibited. reflection of replay been to reproduction and accurate the it's may has than any be the And reproduction Pyxus strictly provided Any replay, as of to this rebroadcast, Thank call transcript over other pleasure you. an not should Pieter. that conference its now is this be authorized of aware not contents. by Investors conference call or call,

J. Sikkel

morning, Good us. for you thank and joining

driven have pleased by upon are We fiscal El quarter, gross average and the our third We the could the per we XXXX. building opportunities capabilities half and a Coming year, volume profit obstacles market increased with associated by range first phenomenon risks on customer on the conditions of footprint. strong outstanding to report into set this knew and weather in material our an kilo, company's a of impact of mitigated Nino focusing global the right performance. market leveraging of

X-month quarter third of Our and strategy. results the highlight this effectiveness

Asia proactive volume quarter driving across third purchasing, in grew our from revenue gains through operations We Africa, and Europe.

improved of Our successfully operating profit performance as year first in and converted and months in investments demand we inventory significantly into our the met flow. customer revenues, X cash the

first billion the X $XXX through for and Revenues of were the EBITDA million was year. the $XXX third $X months through Adjusted X quarter months the million year. for and million of first quarter the third the $XX

of We to profitability fiscal are deliver and the in ability revenue through remainder the year. our confident

million $XXX our are to between of full revenues be we and year guidance increasing and to adjusted for billion year a $XXX billion. to result, EBITDA a full range $X.XX million, As expect $X.X

to We and we we have on-trend performance, challenges faced consecutive financial be years improvement. this fiscal the improved of delivered despite expect several year, year XXXX of another

conditions while our for in estimated and significantly year. progress. and quality sizes already are the income, levels the low it's early crop income, a crop to last promising be annual improved Uncommitted showing compared leverage begun in are pretax and season, America to Africa is South And year. as Flavia continues measurements operating to net remains will healthy. inventory be reported next cycle. income positive still are strong our in discuss, as Purchases As all demand well have at

will sizes demand crop stakeholder larger our expect we continue ability will opportunities meet execution, fiscal value. and working to create the XXXX, management to and strategic customer capital believe for by drive disciplined excited We're

in proud operate. in hold in of and leader are which communities the We position we the and a as valuable we industry the a trusted

The to our our extends sustainability we stakeholders to efforts. deliver also value

our During report, fiscal which environmental positive the more third which than XX% emissions pounds social our quarter, coal our which we annual our million the and to of reduce collaboration indirect with XXX to equivalent is released by impacts XXXX, of sustainability highlights burnt. initiatives, growers include since contracted

for comments to Landsberg, to like few the a now reserve would our turn Flavia call I Financial closing, over I'll Chief and Officer.

Flavia Landsberg

Thank good you, morning, and everyone.

combined outperform had our we with when excellent statement. our a income I little start on our previous providing by an quarter. company half Pieter is And to first the more would guidance. As strong have results, third detail explained, to positioned like

For increase of due increases, in to Europe, which a was Asia third were driven stabilization volumes $XXX volume revenues quarter, million, purchase logistics. by The the the and last in XX% to we increase year. sold. sales by average in a of $XXX from Africa, shipping XX% grew price increased to and compared million This improvement benefited an increase XX%

shipments were year quarter the into the year. result, third certain across consolidated a this distributed that were As last X quarters

per $X.XX in Gross profit average kilo profit to $X.XX compared third million year, compared reached prior million rising $XXX the X.X% last to year. gross per due growth quarter in a to This in mix favorable of customer was kilo $XX to driven the by region at impact was procurement Nino mainly increase average price mix. third favorable benefited our levels as more and El Certain by quarter kilo. initiatives per designed to of the gross business profit the such which offset

benefits to expect same fiscal We the occur year. of quarter fourth in the the

South certain in Nino America. third XX% to was in mainly decreased quarter in Gross XXXX, revenues margins. year produce of as adverse growth percentage we a the of XXXX weather third fiscal An of business regional higher-than-average achieved profit mix additional fiscal effects to the XX.X% value-added due of we from in offset the and generally quarter El

in $XX in continued SG&A expenses. $XX quarter these reflecting XXXX XXXX, management the the fiscal of year were of fiscal of quarter expenses careful compared third third million million to

to to revenues the billion. This tobacco high the by $X period, the was fiscal first increase X-month at driven over XX% prices. we Looking average months due a price X in year, XX% sales of by grew

year. We certain in a volumes increase X% and lower increases from and Africa accelerated also which had markets the from quarter South prior of and prior Europe shipments These Asia year. volumes to fourth in America from in the sold helped offset America, occurred South compared the

for XX% Gross more Gross profit profit year. profit This as per mix. kilo in grew product average in $XXX million $XXX to mainly to for Nino customer percentage decreased months last and revenues from to in fiscal the to a months X XX.X% primarily America. X South in fiscal and of weather XXXX, due XXXX compared first first sales the average effects to increase purchase first gross a a increase adverse regional favorable El of the from million of due prices, mix in was X the XX.X% months and the

increase $XXX for in prior SG&A an noncash expense compared across expenses were by year. of partially million $XXX X Benefits first the to million were offset accrued the months scale compensation. in many of categories

quarter uncommitted balance inventory inventory. million end level of resulting last the at tobacco markets, tobacco year. sheet, at $XXX processed conditions total was third end million of in look in the million only of our the Undersupply quarter $XX at persisted compared we at $XXX global As

Our us strong quarter committed improved logistics a give shipping fourth inventory outlook. and

expectations have the markets South a fiscal of we that in With large certain from America in the in XXXX opportunities crop and Africa, ahead. confidence lie

of operating free cycle adjusted accelerate flow. our approach management the third during to by year, working capital compared help days quarter disciplined Our $XXX prior to million the generating XX cash

last quarter year. a improvements of of the the in prior through months, Over results X.Xx quarter same our leverage to third compared credit the X.Xx XX profile the in

these interest continuing to year. key remain X.Xx the reduced last the XX over Our to trend in X.Xx positive ratios. compared on coverage We focused months prior for

flow in and We expect adjusted exploring lower to improve actively we fourth opportunities our costs profile. free strong our quarter borrowing credit as the cash

captured guidance $X.X in turn revenues Now now of the the to to billion expect our X total months, be through increase. to to billion billion. Having year range already $X pleased $X.XX full I'm we

Our million. to is guidance EBITDA million of $XXX $XXX range adjusted new now of a

to Thank turn you. back And I will Pieter. now

J. Sikkel

and who Flavia, all you, Thank to call. you the have joined thank

of excellent quarter and fiscal and operational the performance of financial the X our third first in We months through are XXXX. proud

Our capabilities of your now the to ability while to global questions. industry believe focus our for and on for the and Operator, attention I opportunities take right you set ready position reinforce are for leveraging of and as position company market XXXX. your opportunities our in Thank footprint, customer the we in fiscal support. the leader a

Operator

Sisson Instructions] We with Odeon Capital. will to first Rosemary go [Operator

Rosemary Sisson

of kilo kind a of question. Great profit questions macro reasons results. per couple gross it, then your Flavia, have Congratulations. in detailed the On I a more you mentioned your of and $X.XX, comments.

e-liquids in growth of value-added the those as that opportunities the businesses there. your one business? mentioned You'd Is

Flavia Landsberg

e-liquid. cut not that is It it's out on business. And usually, business higher leaf the than No, regular is margins rag morally business.

Rosemary Sisson

right. it's know, Okay. -- it small, Are I is you your e-liquids All right -- now? you what business doing Are growing? is but

J. Sikkel

Pieter, joining small, relatively for thanks and is Rosemary, this and Rosemary, It's about us. flat.

Rosemary Sisson

of it's up But like there? and Okay. sheet is for million. detail this on quarter, a $XXX on -- And is the wondered, balance going -- a What's versus I trade then question. kind again, your this receivables, second lot

Flavia Landsberg

of sold a a news, until through that's lot, We we that's the washing the normal right? lot, sold and cash. great a a lot, cycle and shipped we receive We

it's great So news. actually

Rosemary Sisson

Good. Good.

Okay.

Xx view of at be a best structure to you lower quite think view your So at you and and X, then look question. capital that? When kind value How think, for forward you you of I way? at UVV get versus, can How a you in whatnot? going Xx. compare multiple might of that? do do TEV on in UVVs, How your opportunities your I at do stakeholders that it's the terms basis How a do kind macro your it bit look

Flavia Landsberg

We of undervalue. the have policy, always that the thinking with same you continue the about cash Yes, Rosemary, the to it's What's and to in into continue we growing going the definitely We're generate right? stock, structure, agree debt debt. in -- and and future somehow business question. paying next of capital on on probably same the terms refinancing our it's off the

nothing perspective. changed from that So

Operator

Shaked next We'll BTIG. Oren with to go

Oren Shaked

wondering, adjusted I million. I So just a in mentioned think fiscal last flow. was Flavia, fourth fourth cash for And quarter $XX was about you year's quarter quarter the strong fiscal

that generation maybe fourth quarter you Just reference number? for should we the fiscal in next about just cash can a the of frame directionally us in flow that give think below us be help So quarter? above to or number how

Flavia Landsberg

cash the with thinking question. bit That's -- here. guidance can a we on even flow, a give I I don't little help you give though great can

the additional So $XX guidance, as to for million. going is be to our million $XX EBITDA

So that's what.

into the that's our what from see quarter last can year you So that, baseline.

there's year. in being quarter. is year last Now couple we between crop and of in purchased quarter what that differences the main versus the later last difference expect a the is this Basically, Brazilian

So additional to $XX also is would that the our probably and one flow. that we're improve $XX that's And the embedded million a cash improve thing the in shipments still normalizing second cash bit thing. That's can flow. million EBITDA

it's So positive all news.

Oren Shaked

it. Got

be think Helpful. as shortly. we fiscal that's to quite starting here And then 'XX, about Okay. obviously going

improved You've the referenced markets. few crop position different in a now

on as And not fiscal what line well, much the the for in fiscal now, to 'XX see maybe profile in normalize think should 'XX. improvement the see growth, trying as but a dynamic maybe margin of mean you to to sense margins the to perhaps get are obviously, Just fiscal better with versus versus selling top pricing that the the reversion size, start therefore, the 'XX? about the crop with so in that, we business some is margin way and in

J. Sikkel

Yes.

to to impacted clearly that's in this margin think and recovery talked us terms the particularly American obviously, going of significant are South sizes. we'll to it, I of in actually crop continue on before. about growth out, see a year. profile we quarter than throughout And bulk a we've do buying through prices X. and about rather the XX% and it's good year, last quality. the year, crop purchasing grown It's in purchasing has by has that than quality But that And larger as crop reverted size

margin scale us it better through we through next So South our that didn't and going America volumes, the facilities year. throughput on out higher into should you, give plus of see a obviously, better -- benefits this gives volumes of that year profile

year, expectations the and in obviously, crops And volumes. then It's now, in into later bit are Africa the right are crops there, to we anticipating a early give those but in growth ground full

conditions in had so Tanzania. And and reasonable Zimbabwe, growing we've Malawi far,

We in again. in of recover in this because impacted well. of Zimbabwe in particular, there the U.S.A., impacted far, year reduction that Brazil but so processing So, and positive as were next That year. third-party looking this should us in in volumes terms year fact the

this with feeling we're as for we're along time, those -- again. So XXXX positive up reasonable scale feeling volumes point demand at in

Oren Shaked

helpful, Super Pieter.

clearly And now years at so supply the horizon just Anything on somehow more demand pretty would end growth. put of lastly slow down? that benign. or strong that It's picture a on few that, would been that that picture the an

J. Sikkel

we think footprint I we're from benefited and located. our global where

future think moment, us from as years, the overcome demand very looks of and it like customer with markets well. but happy these looks also I we're certain how that the footprint shortages how in helped what last it's face over at the few

much global tobacco the we're very as looking continue a to we marketplace. you And global So to know, from are supplier. that in benefit

in So you on. in end see see parts while downturns markets the and certain in user United may Middle States, growth of consumption so and like end you Asia East, markets

can our So to how growth to that have the that on benefit we from that's we efficiencies gain. continue and really those opportunities footprint how from maximize outcome focus the the to and

Operator

for Instructions] today's turn to portion Grigera Q&A like [Operator conference. would any the the over to call I conclude This back closing of comments. does Tomas

Tomas Grigera

Thank our the our to full forward you quarter. quarter year X look earnings fiscal upon call. for results sharing completion year fourth XXXX our of We joining

Operator

conference This does conclude today's call.

disconnect. You may now

Pyxus International (PYYX) 12 Feb 252025 Q3 Earnings call transcript