Pyxus International Inc (NYSE:PYX) has reported revenues of $363.3 million in Q3 2020. It is a drop of 30.7% when compared to the same period last year. The lower revenues are on the backdrop of reduced volumes and average sale prices. It also suffered from higher tariffs in the US and hurricane Florence impact. However, its gross sales profits marginally increased to 15.2%.
Over five different product categories
Chief Executive Officer, President, and Chairman of Pyxus, Pieter Sikkel, said the company achieved considerable progress after two years of the One Tomorrow initiative. It has expanded the products into five different categories. Pyxus is becoming a consumer products goods company and diversified agricultural technology company. The company is committed to quality, sustainability, transparency, and growth considering the marketing demand. It is preparing to become a stronger company to meet the growing demand in the overseas markets.
The long-term debt matures in 2021
Pyxus is developing and evaluating the plans to monetize interests in the subsidiaries to address the long term debt that matures in 2021. The company aims to achieve a positive EBITDA in its Global Specialty Products division next year. Its leaf business will continue to focus on improving efficiency and enhancing the market share.
Pyxus reported lower revenues because of delays in processing in Africa and the differed shipments. The company entered pacts with key clients in Tanzania and Argentina and thus positions itself as a strategic partner in the international arena. It focuses on the uncommitted inventory, which is near the upper range of $150 million.
The trade disputes continue to plague the North American region. Pyxus is pleased that tobacco is included in the agricultural products list in Phase 1 of the China-US trade agreement. Additional steps are to be enacted to begin the leaf exports to China from the US afresh. It is closely monitoring the impact of corona virus. Pyxus expects to post strong results in Q4 2020.
Pyxus’s wholly-owned subsidiary – Figr Brands improves growth during the quarter in terms of product innovation, capacity expansion, and geographic expansion. The demand for legal cannabis expects to reach $135.73 million CAD in November 2019. Figr expects to maintain improved market share in areas where it operates. It has entered the cannabis market in Ontario. The company sells cannabis products through its cannabis store in the province.