Q1 2025 Pyxus International Inc Earnings Call Transcript
Key Points
- Pyxus International Inc (PYYX) reported a 33.1% increase in sales, reaching $634.9 million for the first quarter.
- The company achieved a 26% increase in adjusted EBITDA, amounting to $55 million compared to the same quarter last year.
- Gross profit per kilo increased from $0.78 to $0.84, driven by a favorable mix by customer and geography.
- The company successfully repurchased $122.5 million of long-term debt, reducing its long-term debt by a total of $142.9 million.
- Pyxus International Inc (PYYX) achieved a significant milestone in its sustainability goals, with the Science Based Targets Initiative validating its near-term emissions reduction targets.
- The company expects margin pressure in coming quarters, particularly related to shipments out of South America due to El Nino impacts and shipping container shortages.
- SG&A spending increased to $40.7 million, including $6 million of noncash compensation items not present in the first quarter last year.
- The competitive market environment has led to higher costs for acquiring products from farmers, compressing margins on lower and medium quality tobaccos.
- Shipping container shortages and increased costs, particularly from Asia, are expected to continue throughout the year, potentially delaying shipment timing.
- The company's borrowings from notes payable to banks remain relatively high, and efforts to reduce the cost of debt are ongoing but not yet realized.
Good morning, ladies and gentlemen, and welcome to today's Pyxus International fiscal year -- I'm sorry, 2025 first-quarter conference call. (Operator Instructions)
As a reminder, this call is being recorded.
I would now like to introduce your host for today's conference call, Mr. Tomas Grigera. Mr. Grigera, you may begin.
Thank you, operator. With me today is Peter Sikkel, our President and CEO; and Flavia Landsberg, our CFO. Before we begin discussing our financial results, I would like to cover a few points: you may hear statements during the course of this call that express a belief, expectation or intention as well as those that are not historical fact. These statements are forward-looking and involve a number of risks and uncertainties that may cause actual events and results to differ materially from these forward-looking statements. These risks and uncertainties are described in detail, along with other risks and uncertainties in our filings with the SEC, including our most
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