Pyxus International (PYYX) 12 Nov 242025 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to today's Pyxus International Fiscal Year 2025 Second Quarter Conference Call.

As a reminder, this call is being recorded. I would now like to introduce your host for today's conference, Mr. Tomas Grigera. Mr. Grigera, you may begin.

operator. you, Thank is Flavia today our and President With our Peter CFO. and Landsberg, CEO; me Sikkel,

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

from that the You non-GAAP may that this an reproduction other website and should not and our commonly this non-GAAP call International, and statements those are as on uncertainties accurate referred the forward-looking contents. accounting any aware of actual are States forward-looking that or these fact. cause financial Any EBITDA in of of intention course and depreciation express be historical and as authorized not a events disclosures not not Pyxus U.S. that to statements in of that of as as EBITDA, may described may risks well belief, during including differ before replay, These these amortization, and reproduction earnings be regarding www.pyxus.com. principles call risks this and provided These and adjusted of reflect its and these reconciliation been an in forward-looking hear prohibited. table, are available be of change is involve or of our at of any reflection call expectation is under measures financial measurements, number unauthorized alternative do materially a call statements. results are statements or expectations a risks generally to uncertainties which other with in results Investors conference in SEC, United XX-K. the today our undertake may the not operations conference filings statements including made measurements. along has or replay management's by recent We accepted any taxes, Form circumstances change considered uncertainties on to to GAAP be not transcript should any other are our measures on interest, including A update and with assumptions discussion in this strictly than to based. Included most call conference detail, as rebroadcast, other

over Now to Peter. the I will hand call

Good us. joining morning, you and thank for

pleased are the to performance capture bottom top and and foundation fiscal a XXXX, at to strong We have line. established first necessary both of stronger-than-expected we've half the concluded the

As our we and a billion for for to $X.XX adjusted million. $X.XX result, to EBITDA $XXX billion and are between be excited increase guidance to million between and $XXX revenues

protect North we on inventory maintaining diverse us and that to footprint positioning Our growth, discipline enables demand serve efficiencies operational of dedicated operating complex America the to and volumes capture returns capabilities current South the working by mix business team also mitigating our proved of from to and the a crops essential the leveraged purchase have investments. healthy, successfully our Asia facilitates Africa. Market and with in and capital and is volumes optimizes customer margins. to to by region demand customer of much the environment, global the particularly short our market These while needed meet offset in risk, to managing

half. well are strong We deliver positioned second to a

like I the to few second and and for moment, details in the our year increase the highlights with our fiscal compared on to are to provide first both EBITDA. Flavia crop is first, full potential adjusted Our and largely crop committed. would guidance second in but decision the year the complete, the that to processed This a share tobacco increased support Pricing year. Southern later in half insight, negotiations inventory opportunities almost the expected year, for the a revenue quarter. Hemisphere is of will half the and fully prior ship combined

as included in gross million included compared the $XX.X and were second revenues quarter lower $XXX.X million revenue this year. by seasonal revenues quarter And to million $X.X This in a of XXXX. to up to was gross fiscal that margin $XXX.X shifts to we've as of from surprise, progresses. performance mix billion a half conditions been to in during America. the a pressure were First South hold the inventory second half revenue and minimum margin expect purchased El pleased market and second now Neither improvement factor Nino

million, last half first second Adjusted of quarter to EBITDA half $XXX.X total in and Adjusted million. the was Turning last to year's profitability. $XX.X for below EBITDA year's the first was million. $XX.X million $XX.X comparable

We second first the the business financial are of see and pleased to through performance the our excited half. with into accelerating half the year

meet profitability adhered we through knew expect half revenues, well would turn to the a operating flow. In were the well-designed drive year. second our results of Financial our into short, that strong and half our the hard Landsberg, a a cash full capturing profit an and Officer. excellent of to customer investments us navigated a convert demand Flavia like number call comments environment first and maintained I difficult We a disciplined expect. I'll year, and Chief We as closing. to we put approach critical that in has to for to towards fought now year position improved we in successes inventory now strategy, the to reserve ensure we the few over

thank and everyone, morning. morning. this for us Good you, you, Thank joining Peter,

gross by I year shipments were we shipments more line little few with our our Peter made in while year some the were regard follow taken discussed, the and on margins. our delayed detail of of second with and In we shipments by out shipments cover Peter and have that to mentioned, corresponding of metrics. With year, our America. accelerated modest $X.XX This revenue which first Also, South to that the to income profit just able mix XX.X% as quarter, performance start some of year second to energized will We increase towards quarter a quarter. shifts a product to credit second Africa disciplined regard third last correspond pleased items impact in despite quarter, from by this protecting are margin, opportunity the second to second a last the margin, the are in from quarter first that kilo per approach made year. With on key a strong some quarter into was the into we're the gross providing is our statement a half compared year. XX.X% seasonal included teams this profit last gross sale the gross half. lower

first gross For as of compared our XXXX. first was XX.X% half the XX.X% half, the margin in to

some volume we able from more the and otherwise purchases we're half, shift Asia, have South purchased to would second the For to replacing North Africa America. and of

cash We third scale gross our to revenue overall return us cost enable regard inventory quarter from key level as economies on expenses, and we will and build full of range we capital, of structure, increasing we and to rely to margin which have improved that expect demand. this growth. our is part drive to geographies to of our regard With of our the mix pleased developing future revenues during and converted fulfill regard into to working SG&A inventory flow. With are maintained the inventories strategy, as discipline and to a fourth with a

half at inventory tobacco million remember, shipments. It with to a inventory XX.X% of time to inventory inventory positions strong to this which can is quarter, company fiscal important second level second capital our early million see us needs. potential tobacco is revenues. utilization for of visibility processed $XXX.X our This $XXX.X you near-term the the compared working excellent is processed finance for the that last the at increased instruments as of our is At year peak total additional Our debt committed, give into year. end to short-term of level

leverage end second of ratio the at reflect and this the quarter. credit key Our

expect versus ratios interest Although was was revenues. X.XXx X.XXx our our X.Xx last we XX leverage our and compared month to coverage as to inventory trailing last into year, convert ratio months trailing year, improve profitable XX ratio we these X.XXx

Now increase. our guidance turn I'm pleased to to

an [ is of both bottom This $X.XX of total between range. about ] new $X.XX $XX the billion revenues for billion. and at Our and top guidance million is increase

expectation of expectations. Thank top both is to back for million range This of increase previous is $XXX will an now you, new bottom turn and I Our the Peter. $XXX of million. to million now adjusted and our EBITDA to $XX

everyone this you, morning. and listening to Thank Flavia,

in We by pleased are of the it global half particularly presence weather-related of light performance challenging reflects market our conditions, as XXXX, and fiscal in of the first our experience. utilization effective

look support. questions. And As we the your our operator, second the to our committed you to we ready now of and forward I strategy on delivering updated remain believe for and into we're take attention move guidance. Thank to year, half

everyone. This is morning, Good Flavia.

September ended not received posted we yet. acceptance. XX-Q the to XX, we let SEC Before technical the the and Forms X-K to those to the been submitted SEC, our notification you that issues for have quarter filings start just know XXXX, with of Due online Q&A, and guys

Now we the can Q&A. with Operator? proceed

[Operator Instructions] our Shaked move Oren at We BTIG. from now first will question to

volume So the have can been expected 'XX? year how us year have this first we kilos Or would that just Flavia, not would you if much give XQ volume half a flavor to into maybe of the the last out on for just shift XQ of up the have shift, happened, impacted sold fiscal year-over-year?

the levels And inventory similar our first the second though look very give the of year. the last us to a year, to pretty million. very, we volumes, have one the And reasons of you say why half position of why strong very when that's we strong year. will by $XX increased we're why highest we can is, at and Even what And guidance we don't -- a strong the reasons QX. our at half

a it. healthy of then, demand, or And you been Understood. as demand guys now Okay. few called strong years it's Peter,

So sense about in of maybe you're to some contributing for the factors are should us think how give take -- maybe a about that step can medium-term? demand? that a this how in going And shift demand are just please? back thinking we the Should forward, you what and

the But shorter since El years some we strong crops extent, of the for to Nino question. impacted last the Yes, particularly that we've really had, that also has situation. for year. the came by We've out Thanks of been, correct. few seen this the exacerbated you're demand crop COVID

of spectrum. a So and ends on demand supply both you've the combination got

we go our we strong demand product. forward, as see So for still

But durations. supply which on. geography through flow the to demand those next X, satisfy do really relatively customer are year, We quarter year next depends next better when that and and It quarter larger to to into anticipating start expecting short our of coming X conditions their on customers be able end of see in many so we we'll and do that. we're are see see which year. We crops into continuing

been have next during situation we demand years. in we'll be for the than last and more few So the we supply sometime year, -- were balanced a than

So as how I to us. we've think been next and this about well. excited positive we're able navigate positively also for looking We're year it's year, at

the in That's new implies obviously, guidance fiscal second helpful. still half. the margin EBITDA pressure some And

And sizes so positive we to trajectory? expect crop the now as inflect come in, back margin to a those EBITDA should larger perhaps

Yes.

the ship what what about end improve to through when guidance, have you on look actually is on second proportionately, improvements and time. that. see really to focused half have do obviously really cycle can we seeing think in out opportunities the we at as year to operating we're I we to at the of in think our to I continue we inventory go What continuing focus we're this the what see and

And performing year end. So we're those about our on out through volumes focus pleased today. positioned getting we're now where and really, is

next [Operator Instructions] Capital. with Sisson to We'll go Odeon Rosemary

I more, to wanted Flavia. bit little just ask a

gross that quality the for product South of reason decline expand mentioned America. part different profit resulting You a on was that? Could from you from just the

that's it, the at El you was Nino. profitability is if per $X.XX. our Yes, way per the measure the business, kilo. our kilo effect profitability But we up actually like Rosemary And actually, of look

kilo So we a consider measure basis, that up. you if our went overall, on profitability per

Okay. That's true.

Okay.

of better purchased the pricing comfortable you So second projections Is in you underneath for that sort effectively gross about if given that forward, might going I why have margins place. at feel a you tobacco and already you that? have look half expect your

Yes.

think the I tobaccos. for strong we second for profitability Southern as negotiations Hemisphere half. expect of We've the the stated, vast majority completed price we the

this to the time. can shipping And by and committed, we're particular, that point is For we're packing we of where still we have Northern year, at focus X. crops not still what about Hemisphere processing the negotiations processing, of the we in that completing have price feeling some have that but the remainder already quarter obviously, But good and complete. only we shipping everything in end of the the we on orders have are

half, your that have visiting every about a look I'm kind on near capital of We now structure. in positive structure you to given agencies, last the fairly just outlook what this see capital curious of quarter, strong talk your but of refinancing like? the for do then course, does And you the that all a future, rating

We're the early but to way goal our interest that Yes. but with it's includes a to say, structure, to refinancing always bit our capital we one the of potential cost, a looking that optimize too of reduced it's have. options and

the would financing, also I rate that And short-term of on would Okay. your in help terms assume.

Correct.

tobacco the just this, on specifically, States probably then more think what And I on just of hurricanes your comments. impact in the on But in already answered you've availability? -- the Okay. opening -- was and United Peter, your the

coming about a that. drop-off was from volumes anticipated There in XX%

an our contracted could as base. job Our teams as acquiring from did they in farmer excellent much

So through replace in to and certain United we finding been year but may volume as by like have held, replacement what affected geographical we've all quality on been regions our have focus the down, States. came the footprint the volumes to volumes this from continued

market had out That's have that and think to might the used you you could you the tobacco because took find Do green Northern from who that buy supply. there actually interesting from that didn't go otherwise it others Hemisphere? have you you share

of our the have Look, exhibited did lot situation. our in through a But I the we're and really We that this at pleased need on they very what really, this. business planning continue we difficult to and with job been this to happy of sales. and lot sits and global our our on And what with year production we customers get of teams entrepreneurship where to focus their throughout point also think a anticipated could a time ifs has tobaccos supplying do. cigarette footprint with

some customers, issues out in that simpler those a And ways, purchase sorting a so have think And next crop to have I for exhibited we've we're, and of have qualities sizes we created supply a little crop -- and -- created. their to crop look and our forward year problem simpler good to trend bit crops to solvers the -- and needs.

Chapin will Mechem with Investors. Northeast [Operator go Instructions] to We next

like buybacks? have more questions you Are know I'm on just repurchases. Actually, and of buying curious, bonds you negotiated term are or I bond open some most in of any negotiations you loan my answered. been that -- market guys have the any doing any

And these invest And always Listen, continue we're we're at out we both balance is what the business. open opportunities. is to we always in in repurchase again debt to back to do us what looking ends. the to have more or process opportunities going for internally, are it's always

Grigera questions to And any with Mr. holding, for back the no remarks. phone other conference additional turn I'll

morning. November available participating for The thank Again, for earnings person interested XXXX this through call any Thank XX, quarter year will for you results XXXX. call call. playback you fiscal in for our our second joining financial remain

and Ladies gentlemen, you today's call. We you. for thank conclude your Thank will participation. that

disconnect at You time. this may