Pyxus International Reports Revenue Decline but Increased Gross Profit for Fiscal Year Ending March 31, 2026

Pyxus International, Inc. reported a decrease in total revenues for the fiscal year ending March 31, 2026, with sales and other operating revenues amounting to $2.413 billion, down from $2.481 billion in the previous year. This decline of $68.3 million, or 2.8%, was primarily attributed to a 3.8% decrease in the average price per kilogram of tobacco, particularly in Africa, reflecting lower purchasing costs. Despite the revenue drop, the company experienced a slight increase in gross profit, which rose to $347.7 million from $343.0 million, driven by higher sales volumes in South America and increased processing revenues in Africa and North America.

In terms of operational metrics, Pyxus processed 381.7 million kilograms of tobacco, a marginal decrease from 383.4 million kilograms in the prior year. The average price per kilogram sold also fell to $5.86 from $6.09, while the average cost per kilogram decreased to $5.04 from $5.25. The company’s processing and other revenues increased significantly by 24.6% to $169.3 million, indicating a strategic focus on enhancing processing capabilities and services. The overall gross profit margin improved to 14.4%, up from 13.8% in the previous fiscal year.

Strategically, Pyxus has been active in expanding its operational footprint and enhancing its product offerings. The company has leveraged its proprietary SENTRI® track-and-trace technology to provide transparency in the supply chain, which is increasingly important to customers seeking sustainable and traceable products. Additionally, Pyxus has maintained strong relationships with its suppliers, which is critical for ensuring compliance with quality and sustainability standards. As of March 31, 2026, the company employed approximately 3,300 individuals, with 83.3% of its workforce based outside the United States.

Looking ahead, Pyxus anticipates a more favorable market environment as it enters fiscal year 2027, with a total of $786.7 million in tobacco inventories on hand, compared to $732.2 million a year earlier. The company expects to benefit from larger crop volumes in its key sourcing regions, particularly in the Southern Hemisphere. However, it remains cautious about potential challenges, including geopolitical tensions and evolving regulatory landscapes that could impact its operations and market dynamics. The company plans to continue its focus on cost efficiencies and strategic sourcing to navigate these challenges effectively.