Pyxus International Reports 22.1% Revenue Growth to $2.48 Billion for Fiscal Year Ending March 31, 2025

Pyxus International, Inc. reported a significant increase in its financial performance for the fiscal year ending March 31, 2025, with total sales and other operating revenues rising by 22.1% to $2.48 billion, compared to $2.03 billion in the previous fiscal year. This growth was primarily driven by an 18.0% increase in the average price per kilogram of tobacco, influenced by short crop yields in certain markets and inflationary pressures. Additionally, the company experienced a 3.4% increase in kilo volume, attributed to growth in Africa and Asia, alongside accelerated shipments from these regions and North America. However, this growth was partially offset by a decline in volume from South America due to adverse weather conditions, specifically the effects of El Niño.

Gross profit for the fiscal year also saw an increase, rising to $343 million from $312 million in the prior year, marking a 9.8% growth. This improvement was attributed to the increased kilo volume and a favorable customer and product mix, which led to a 7.7% rise in average gross profit per kilo. Despite the increase in revenues, the gross profit margin as a percentage of sales decreased to 13.8% from 15.4%, reflecting higher costs associated with goods sold, which rose by 24.3% to $2.14 billion.

In terms of operational developments, Pyxus maintained a workforce of approximately 3,100 employees as of March 31, 2025, and continued to focus on enhancing its supply chain through its proprietary SENTRI® track and trace technology. This system provides transparency throughout the agricultural product lifecycle, allowing for better decision-making and quality control. The company also reported a reduction in its processed tobacco inventory to $490 million from $585 million a year earlier, indicating a tight supply environment in the market.

Looking ahead, Pyxus has expressed optimism regarding its operational strategies and market conditions. The company plans to invest approximately $26.1 million in capital expenditures for fiscal 2026, focusing on routine equipment replacements and sustainability initiatives. Additionally, the company has successfully reduced its senior debt by repaying or repurchasing $64.9 million in principal during the fiscal year, following a previous repurchase of $77.9 million in March 2024. This proactive approach to debt management, combined with anticipated improvements in market conditions, positions Pyxus for continued growth in the upcoming fiscal periods.