Pyxus International reports a 14% year-over-year revenue decline but higher gross margins and improved liquidity in fiscal Q1.
Pyxus International posted first-quarter sales of $437.8 million, down from $508.8 million a year earlier, as lower tobacco prices in key sourcing regions supported disciplined purchasing. Gross margin rose to 14.0% from 12.9% in the same period last year.
The company ended the quarter with $175.9 million in cash and no borrowings under its asset-based lending facility, improving leverage to 4.9 times from 6.8 times. Management reaffirmed its full-year outlook, citing steady demand and ample supply.
Pyxus also highlighted investments in higher-yield tobacco seed varieties and efforts to address an upcoming long-term debt maturity. CEO Pieter Sikkel noted margin protection and cash generation as key achievements.