In the third quarter of fiscal 2019, Pyxus International (PYX) posted revenue of $524.5 million, a rise of 9.8% from $477.8 million in the third quarter of fiscal 2018. This revenue growth was driven primarily by an increase of 14.2% in volumes in Africa due to larger crop sizes.
However, some of the expansion was offset by a delay in the shipment of tobacco from South America, lower average sales prices, a decline in North American volumes due to Hurricane Florence, and foreign tariffs on US tobacco.
For 2019, Pyxus International’s management has set its revenue guidance for fiscal 2019 in the range of $1.8 billion–$1.9 billion. As part of its “One Tomorrow” transformation strategy, the company is focusing on expanding its presence in the Canadian legal cannabis, industrial hemp, and e-liquid spaces.
The company’s management announced that FIGR, a wholly-owned indirect subsidiary of Pyxus International, would be expanding its two facilities in Simcoe, Ontario, and Prince Edward Island to raise its annual production capacity of cannabis products to more than 100,000 kilograms.
In December, Criticality, Pyxus International’s industrial hemp joint venture, launched Korent, a new line of cannabidiol oil products, which are available in vanilla, mint, and grape flavors.
In the e-liquids category, the company posted double-digit revenue growth in the third quarter, with Nicotine River and Humble Juice Company posting strong performances. The company stated that it would launch 72 new SKUs in the coming months under the Bantam banner. All these initiatives are expected to drive Pyxus International’s revenue.
Next, let’s look at Pyxus International’s EPS.