Pyxus International, Inc. · OTC:PYYX
Pyxus International — Pyxus Intl Inc New — Q2 2024 Earnings Presentation
23 slides from Pyxus International's earnings presentation, Nov 14, 2023
Slide 1: Second Quarter and First Half of Fiscal Year 2024 Results
2 Quarter and First nd Half of Fiscal Year 2024 Results November 14, 2023
Slide 2: Forward-looking statements and other matters
Forward-looking statements and other matters Cautionary Statement Regarding Forward-Looking Statements. This presentation includes statements regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are "forward-looking st
Slide 3: Agenda
Agenda Q2 Overview and Key Achievements Financial Review Closing Remarks and Guidance Questions 3
Slide 4: Built Momentum through First Half of FY24
Built Momentum through First Half of FY24 Second Revenue and margin Continued to Enhanced liquidity Strengthening credit consecutive improved from business improve seasonal through disciplined profile, ongoing quarter of positive growth and accelerated operating cycles to working capital improvement
Slide 5: Revenue – Q2
Pyxus Fiscal 2024 Q2 - Revenue • Revenue improved by $116 million year- over-year. • Volume increase primarily due to Revenue – Q2 business growth and accelerated shipments from North America and South America, partially offset by volume from Africa accelerated into Q1 FY2024 from Q2 FY2024. • Price
Slide 6: Stronger Sales Volumes, Prices, and Margins – Q2
Stronger Sales Volumes, Prices, and Margins – Q2 Regional Volume Sales Volume Regional Volume Average Sales Price per Kilo Increases/Decreases 120 111.7 Increases/Decreases $7.00 101.4 100 Africa $6.00 $0.79 86.3 Africa $0.70 80 Asia $5.00 $0.62 $0.51 Asia $4.00 $0.53 60 $0.56 Europe $3.00 Europe $4
Slide 7: Adj EBITDA – Q2
Pyxus Fiscal 2024 Q2 – Adjusted EBITDA Adj EBITDA – Q2 • Adjusted EBITDA improved by $14.2 million year-over-year. • Drivers for volume and margin improvements are consistent with revenue. 7
Slide 8: Stronger, more efficient purchasing - YTD
Stronger, more efficient purchasing - YTD Inventory Purchases Seasonal Lines Cash Conversion Cycle 1200 700 300 1,049.4 600 548.5 570.0 235 1000 250 879.9 500 457.7 199 800 712.3 200 400 164 600 150 300 400 100 200 200 100 50 0 0 0 1H FY22 1H FY23 1H FY24 9/30/2021 9/30/2022 9/30/2023 1H FY22 1H FY2
Slide 9: Improving Credit Profile
Improving Credit Profile Net Debt to Adj. EBITDA* LTM Interest Coverage* 12 1.7 1.6 1.58 IMPROVING PYXUS’ CREDIT 10 9.31 1.5 PROFILE 8 7.45 1.4 1.29 • Improved mid-year net-debt-to- 6 5.25 1.3 adjusted EBITDA* for three 1.2 consecutive years. 4 1.1 1.02 • Grew mid-year interest coverage for 1 2 thir
Slide 10: Tightening Full-Year Guidance to Higher End of Range
Tightening Full-Year Guidance to Higher End of Range Full-Year Revenue Guidance now $2.0 Billion to $2.1 Billion $100 million lift to bottom end of prior range of $1.9 billion to $2.1 billion • Continuation of generally underserved market and elevated price environment • Accurately planned and execu
Slide 11: Appendix
APPENDIX
Slide 12: Revenue - YTD
Pyxus Fiscal 2024 YTD at a glance • Revenue improved by $249.1 million year-over-year. • Revenue - YTD Volume increase due to accelerated shipments from North America and South America as well as business growth in Africa and Asia. • Price increase primarily due to higher global tobacco prices and i
Slide 13: Stronger Sales Volumes, Prices, and Margins - YTD
Stronger Sales Volumes, Prices, and Margins - YTD Sales Volume Regional Volume 250 Regional Volume Increases/Decreases Average Sales Price per Kilo Increases/Decreases 197.2 $7.00 200 173.5 Africa $0.79 155.4 Africa $6.00 $0.74 150 Asia $5.00 $0.51 $0.57 Asia $0.55 $4.00 $0.56 100 Europe Europe $3.0
Slide 14: Stronger, more efficient purchasing – Q2
Stronger, more efficient purchasing – Q2 Inventory Purchases Seasonal Lines Cash Conversion Cycle 700 700 300 600 600 548.5 570.0 235 250 500 500 457.7 199 408.6 200 400 350.0 164 400 294.5 150 300 300 200 100 200 100 50 100 0 0 Q2 FY22 Q2 FY23 Q2 FY24 0 9/30/2021 9/30/2022 9/30/2023 Q2 FY22 Q2 FY23
Slide 15: Appendix – Adjusted EBITDA – Q2
Appendix – Adjusted EBITDA – Q2 15
Slide 16: Appendix – Adjusted EBITDA – 1H YTD
Appendix – Adjusted EBITDA – 1H YTD 16
Slide 17: Appendix – Adjusted EBITDA – Q2 LTM
Appendix – Adjusted EBITDA – Q2 LTM * Items for the twelve months ended September 30, 2023 and 2022 are derived by adding the items for the six months ended September 30, 2023 and 2022 and the fiscal year ended March 31, 2023 and 2022 and subtracting the items for the six months ended September 30,
Slide 18: Appendix – Adjusted EBITDA Footnotes
Appendix – Adjusted EBITDA Footnotes (1) Earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") are not measures of results of operations under generally accepted accounting principles in
Slide 19: Appendix – Adjusted EBITDA – Fiscal Year
Appendix – Adjusted EBITDA – Fiscal Year *Combined (Non-GAAP). Refer to the Form 10-K for the fiscal year ended March 31, 2022 for the combined presentation of the twelve-month period ended March 31, 2021. (1) EBITDA, Adjusted EBITDA, Free Cash Flow, and Net Debt are not measures of results of opera
Slide 20: Appendix – Adjusted EBITDA Fiscal Year Footnotes
Appendix – Adjusted EBITDA Fiscal Year Footnotes (2) Amounts incurred during the twelve months ended March 31, 2023 included employee separation and asset impairment charges primarily related to the restructuring of certain non-leaf agriculture operations and related inventory write-offs classified
Slide 21: Appendix – Net Debt to Adjusted EBITDA and Interest Coverage
Appendix – Net Debt to Adjusted EBITDA and Interest Coverage * Items for the twelve months ended September 30, 2023 and 2022 are derived by adding the items for the six months ended September 30, 2023 and 2022 and the fiscal year ended March 31, 2023 and 2022 and subtracting the items for the six mo
Slide 22: Appendix – Adjusted Free Cash Flow
Appendix – Adjusted Free Cash Flow (1) Represents cash receipts from the beneficial interests in sold receivables under the Company's accounts receivable securitization programs and were classified as investing activities within the condensed consolidated statements of cash flows. (2) Adjusted Free
Slide 23: TM
TM