Pyxus Posts $437.8 Million Q1 Sales Drop as Gross Margin Rate Rises to 14.0%

1 articles · Updated · Yahoo Finance · Aug 9

$437.8 million in first-quarter sales marked a decline from $508.8 million a year earlier, while Pyxus said results were in line with expectations and reaffirmed its full-year outlook.
Lower tobacco crop prices in Africa and South America let the company buy more selectively and at lower cost, lifting gross margin rate to 14.0% from 12.9% even as gross margin dollars slipped to $61.4 million.
$175.9 million in cash, no borrowings on its asset-based lending facility and leverage improved to 4.9 times from 6.8 times underscored stronger liquidity and credit metrics.
Management said shipment volumes should strengthen, with quarterly shipping broadly consistent with last year, as it works through a long-term debt maturity and invests in higher-yield tobacco seed varieties.