Tag: Pyxus International

  • Pyxus Recognized as Environmental Leader

    Pyxus Recognized as Environmental Leader

    Image: blacksalmon

    Pyxus International has been recognized as a leader in climate change transparency and performance by the environmental nonprofit CDP. CDP ranked Pyxus among the top tier of responding companies in the climate change category, earning the business “Leadership” status, the highest level of achievement.

    “Achieving CDP’s Leadership status is a testament to our global teams’ hard work, ingenuity and commitment to growing a better world,” said Pyxus President and CEO Pieter Sikkel in a statement. “We are pleased that our unified approach to sustainable action and core belief in transparency has earned us this coveted recognition, and as we move forward in our net-zero journey, it will serve as a reminder that our efforts, large and small, make an impact.”

    Pyxus’ A- score for its actions to mitigate climate change ranked higher than the industry, North America and global averages of B, C and C, respectively, and reflects the company’s 11 percent year-over-year reduction of greenhouse gas emissions as reported in its FY2023 Sustainability Report and its CDP disclosure. Additionally, the company earned a B score in both the water security and forestry categories, which indicates it has addressed the environmental impacts of the business and has implemented good environmental management practices specific to water and forestry.

    Pyxus’ scores reflect data compiled from its family of companies and brands, and were determined by CDP-accredited scoring partners on a scale ranging from A to D- and then measured against more than 21,000 entities as part of the 2023 process.

    Pyxus began reporting its greenhouse gas emissions to CDP in 2009, its water data in 2014 and its forestry data in 2020.

  • Pyxus Completes Sale of Canadian Cannabis Operations

    Pyxus Completes Sale of Canadian Cannabis Operations

    Photo: Pyxus International

    Pyxus International has completed the sale of assets of FIGR Norfolk, the final key step in the company’s strategic decision to exit its cash flow negative cannabinoid operations.

    With the completion of this sale, which occurred on Jan. 28, 2022, no subsidiaries of the company produce or sell Canadian cannabis in any capacity. In addition, the company is no longer involved in activities related to industrial hemp or CBD.

    “Since announcing our intention to focus on tobacco and e-liquids last year, we have made tremendous strides in streamlining our operations and reducing our SG&A costs,” said Pieter Sikkel, president and CEO of Pyxus International, in a statement. “Moving forward, we will continue to focus on our tobacco-related businesses while leveraging the company’s strengths in agronomy, traceability and sustainability in order to deliver value to our stakeholders.”

  • Pyxus International Announces New ESG Framework

    Pyxus International Announces New ESG Framework

    Pieter Sikkel (Photo: Pyxus International)

    Pyxus International has announced the framework of its environmental, social and governance (ESG) strategy, which builds off of the company’s legacy of sustainable agricultural production. With a focus on advancing progress on key global issues, such as climate change, farmer prosperity and human rights, the company is working across its operations and supply chain to enhance the sustainability of the business and deliver value to its stakeholders.

    Pyxus’ ESG strategy includes three key pillars: Implementing solutions that further improve the company’s environmental performance while reducing its environmental footprint (environment); supporting its employees, contracted farmers and communities while protecting human rights and providing an equal opportunity for success to all (social); and operating responsibly and ethically in every action its takes (governance).

    “Pyxus’ ESG strategy provides the connection between our purpose and our business priorities,” said Pieter Sikkel, president and CEO of Pyxus, in a statement. “As our company continues on its journey, the implementation of this strategy is expected to strengthen our business as well as help to recruit and retain top talent. This is an important milestone for Pyxus, and we are excited about the impact this strategy will have on our business, our supply chain and the world.”

     

  • Pyxus Picks Landsberg as New Chief Financial Officer

    Pyxus Picks Landsberg as New Chief Financial Officer

    Photo: akub Jirsák | Dreamstime.com

    Pyxus International has appointed Flavia Landsberg as its new executive vice president and chief financial officer.

    Landsberg joins Pyxus with more than 20 years of financial experience, most recently serving as CFO of High Ridge Brands, a private equity-backed company. Throughout the course of her career, she has also served as CFO of Westminster Foods, EOS Products, and Bunge Limited’s Food & Ingredients division. Landsberg began her career in investment banking and holds a Master of Business Administration from the New York University Stern School of Business.

    “On behalf of Pyxus and the Board of Directors, I am pleased to welcome Flavia to the company. Her impressive background in global agricultural finance, strategic planning and data-driven analytics, coupled with her proven track record of delivering profitable growth, makes her the ideal candidate as we continue to execute on opportunities to drive the business forward,” said Pyxus president and CEO Pieter Sikkel in a statement. “I am confident that Flavia’s invaluable financial leadership experience will complement the company’s vision for the future.”

    Landsberg reports to Sikkel and is responsible for all aspects of the company’s financial strategy and operations, including financial planning and analysis, investor relations, treasury, financial reporting, tax and accounting. She succeeds Joel L. Thomas, who announced his retirement in June. Thomas will remain with the company in an advisory capacity through June 30, 2022, to help ensure a smooth transition.

    “The Board and I would like to thank Joel for providing his financial leadership and dedication to the Company for the past 16 years, including the seven years he has served as CFO,” said Sikkel. “Joel has been pivotal in our company’s transformation, positioning the business for long-term success. It has been a privilege to work with him and we wish him all the best in his retirement.”

  • 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 Announces Retirement of Chief Financial Officer

    Pyxus Announces Retirement of Chief Financial Officer

    Photo: bortnikau

    Joel L. Thomas will be retiring from his position as executive vice president and chief financial officer at Pyxus International upon the appointment of his successor. Thereafter, Thomas will continue to serve as a strategic advisor to facilitate the transition of his responsibilities until he retires from that position on or before June 30, 2022. The company has initiated an executive search for Thomas’ successor.

    “On behalf of Pyxus and the board of directors, I would like to thank Joel for his dedication and contributions to the company,” said Pieter Sikkel, president and CEO of Pyxus International, in a statement.

    “Throughout his time with the company, Joel has provided financial leadership and implemented innovative financing structures to meet our evolving global requirements. His leadership and dedication were critical over the past year as we navigated the impact of the Covid-19 pandemic and implemented significant restructuring efforts that have positioned our business for long-term success. Joel’s passion for the business, our shareholders, our employees and our customers is evident to anyone who interacts with him, and I wish him all the best in the next chapter of his journey.”

    Thomas has spent the past 16 years of his career with the Pyxus International, including serving the last seven years as CFO. 

    “It has been a privilege to work and serve alongside our talented global team,” said Thomas. “I’m proud of the steps we have taken to create a solid foundation for the company that will enable it to achieve long-term success.” 

  • 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.”