Tag: Purilum

  • Pyxus Releases Fourth Quarter, Year End Results

    Pyxus Releases Fourth Quarter, Year End Results

    Photo: snowing12

    Pyxus International announced results for its quarter and fiscal year ended March 31, 2021.

    Combined sales and other operating revenues were $1.33 billion, down 12.8 percent from the prior fiscal year. Combined gross profit as a percent of sales was 12.1 percent, which decreased 2.6 percent from the prior fiscal year.

    Combined selling, general and administrative expenses were $197.9 million, which decreased $1.1 million or 0.6 percent from the prior fiscal year.

    Combined net loss attributable to Pyxus International was $117.7 million, which decreased $147 million, or 55.5 percent, from the prior fiscal year.

    Combined adjusted EBITDA was $93.5 million. Total long-term debt was substantially reduced when compared to the prior fiscal year. Year-end uncommitted inventory was the lowest it has been since fiscal 2016.

    “In what was an unprecedented and challenging year, our company adapted to constant change as we navigated the Covid-19 pandemic,” said Pieter Sikkel, Pyxus’ president and CEO, in a statement. “During fiscal 2021, we implemented a series of restructurings and process changes that allowed our business to continue to operate through the Covid-19 pandemic while also positioning us for success in fiscal 2022 and beyond. Through these actions, we substantially reduced our debt and costs throughout our supply chain. We also made the strategic decision to exit our cash flow negative Canadian cannabis businesses, which further supports our SG&A cost containment efforts.

    Based on expected first quarter results, we are optimistic about fiscal 2022

    Pieter Sikkel, president and CEO, Pyxus International

    “Although our production facilities continued to operate through the pandemic, certain facilities experienced lower production levels than planned due to smaller crop sizes in Africa and the implementation of social distancing requirements and safety practices to reduce the spread of Covid-19 and protect our employees. In addition, the Covid-19 pandemic-related shipping delays of leaf tobacco for certain customer orders resulted in a shift of between $170 million and $180 million of expected revenue and $30 million and $34 million of expected EBITDA from fiscal 2021 into fiscal 2022. However, the impact of Covid-19 on our business yielded innovative changes that will enable us to be more flexible in the future and accelerate certain activities in the crop cycle. Covid-19 has also pushed the tobacco industry to continue to look for ways to reduce supply chain complexity in a responsible manner.

    “For the full year, we are expecting fiscal 2022 sales to be between $1.65 billion and $1.8 billion, SG&A expense to be between $140 million and $145 million (excluding nonrecurring items and potential changes in foreign currency exchange rates) and adjusted EBITDA to be between $150 million and $170 million. Based on expected first quarter results, we are optimistic about fiscal 2022. Lastly, we are also excited about sharing more information about our enhanced global environmental, social and governance strategy, which supports our ability to deliver on our expected results for fiscal 2022.”

  • Pyxus Releases Improved Quarterly Results

    Pyxus Releases Improved Quarterly Results

    Pieter Sikkel (Photo: Pyxus International)

    Pyxus International, parent to e-liquid manufacturer Purilum, announced results for its fiscal quarter ended Dec. 31, 2020.

    Sales and other operating revenues were $379.6 million for the three months ended Dec. 31, 2020, up from $363.3 million for the three months ended Dec. 31, 2019.

    Gross profit as a percent of sales increased to 16.5 percent for the three months ended Dec. 31, 2020, from 15.2 percent for three months ended Dec. 31, 2019.

    Net loss improved 62.7 percent to $8.2 million for the three months ended Dec. 31, 2020.

    Adjusted EBITDA improved 64.9 percent, to $39.9 million for the three months ended Dec. 31, 2020, from $24.2 million for the three months ended Dec. 31, 2019.

    Inventory decreased 11.5 percent to $771.8 million as of Dec. 31, 2020.

    “Fiscal year 2021 continues to be a year of evolution for our business,” said Pieter Sikkel, Pyxus’ president and CEO, in a statement. “Since the completion of our financial restructuring, we have undergone a strategic review of all business units and categories in which we operate in order to develop a stronger, more streamlined strategy to improve financial performance.”

    The developments in the e-liquids category following the September 2020 PMTA submission deadline, paired with increased enforcement of PMTA regulation, provide an encouraging opportunity for potential future growth.”

    In January, Pyxus International announced plans to divest its cannabis business in order to focus on its more profitable tobacco and e-liquid businesses.

    Despite recent challenges, the company continues to manage its working capital closely, according to Sikkel. “At Dec. 31, 2020, inventory decreased $100.1 million, or 11.5 percent, to $771.8 million when compared to Dec. 31, 2019,” he said. “Additionally, we expect our uncommitted inventory to be near the midpoint of our stated range of $50 [million] to $150 million by fiscal year end.”

  • Bantam Vape Moves to FDA’s Substantive Review Phase

    Bantam Vape Moves to FDA’s Substantive Review Phase

    Bantam e-liquids
    Bantam is seeking marketing orders from FDA for its suite of e-liquid products. Credit: Bantam Vape

    Bantam Vape has received a filing letter for its premarket tobacco product application (PMTA). The filing letter signifies completion of FDA’s preliminary review of Bantam’s PMTA and the progression of its application into the formal substantive review phase. Bantam is seeking marketing orders from FDA for its suite of e-liquid products.

    During this phase, the U.S. Food and Drug Administration (FDA) will conduct an in-depth evaluation of the scientific studies and other materials submitted in conjunction with Bantam’s application. Bantam, a provider of high-quality, science-based e-liquid products submitted its PMTA to FDA on Sept. 2 and received its initial acceptance notification from the agency the following month.

    “Bantam is pleased its PMTA has been formally filed and will be entering the scientific review phase of this process. Bantam looks forward to engaging with FDA as it reviews the submission and scientific research provided in support of the filing,” said Bantam spokesperson Anthony Dillon. “Bantam’s goal has always been to provide consumers with high-quality, science-based e-liquid products that can be enjoyed for years to come. News of the filing brings Bantam one step closer to reaching that goal.”

    Bantam has invested significant resources into the PMTA process and remains confident that the content and quality of materials in its submission will result in the receipt of the necessary marketing orders from FDA, according to a press release.

  • Purilum and EAS Enter Into Exclusive Supply Agreement

    Purilum and EAS Enter Into Exclusive Supply Agreement

    E-liquid manufacturer Purilum has entered into an exclusive, long-term supply agreement with E-Alternative Solutions (EAS), the manufacturer and supplier of Leap Vapor products.The Leap products containing e-liquids provided by Purilum have been on the market since prior to August 8, 2016, and are currently under review by the U.S. Food and Drug Administration (FDA).

    “We look forward to working with EAS while leveraging our decades of experience, technical knowledge and expansive flavor library,” said Bianca Iodice, president of Purilum. “At Purilum, we set the standard for excellence in flavor formulation and e-liquid production through rigorous product testing and quality verification. This agreement is a recognition of our investment in a scientific, data-driven approach to flavor delivery, and we are excited for the opportunity to support EAS in its efforts to elevate the consumer experience.”

    The contract “extends and enhances Purilum and EAS’s close and long-standing relationship, as well as offers the option for renewal of the exclusive supply agreement on a rolling basis,” according to a press release. Purilum’s e-liquids have been tested through a rigorous research and development process to meet EAS’s exact criteria for compliance adherence, product quality and consumer experience.

    “At EAS, we have always held ourselves to the highest standards when supplying adult consumers with products they can trust,” said Jacopo D’Alessandris, President and Chief Executive Officer at EAS. “The quality and consistency of Purilum’s products are exemplary, and we are excited to continue working with them over the decades to come.”

  • Bantam E-Liquids Garners Acceptance Letter for PMTA

    Bantam E-Liquids Garners Acceptance Letter for PMTA

    The legal e-liquid market continues to grow. Bantam Vape announced yesterday that it had received an acceptance letter for its premarket tobacco product application (PMTA) from the U.S. Food and Drug Administration (FDA). The brand’s application now moves to the next step in the PMTA process—a preliminary scientific review to ensure the application contains all required items to permit a substantive review by the FDA.

    Bantam submitted its application to the FDA on Sept. 2.

    “Bantam has been anticipating and planning for these regulations since entering the e-liquids category,” said Bantam spokesperson Anthony Dillon. “The receipt of this acceptance letter is a significant milestone for Bantam. It reiterates a commitment to providing adult-use consumers with high-quality, science-based and compliant e-liquid products that can be enjoyed for years to come.”

    In preparation for its submission, Bantam worked with highly-qualified labs to conduct the in-depth product-specific and non-product specific testing needed for its PMTA, including: storage and stability testing; toxicity testing; and pharmacokinetic and topography studies. Bantam also submitted an extensive review of available literature on electronic nicotine delivery systems (ENDS) products.

    “Bantam has always supported the need for science-based regulation for the e-liquids industry. And while the PMTA process is complex and resource intensive, it is necessary to establish much needed standards and oversight across the board,” said Dillon. “Bantam is confident in the content and quality of materials prepared by its hardworking team of experts, and remains committed to working with the FDA throughout the PMTA process.”