For the six months ended September 30, 2024, Pyxus International, Inc. reported a net income of $1.7 million, a significant decline from $8.7 million in the same period of 2023. The company experienced a net cash outflow from operating activities of $(280.3 million), compared to $(255.4 million) in the prior year. However, cash collections from beneficial interests in securitized trade receivables increased to $101.6 million from $79.3 million, and net cash provided by investing activities rose to $93.5 million from $73.1 million.

The Leaf segment's product revenue for the six months increased to $1.1 billion, up from $1.0 billion in 2023, driven by a 15.6% rise in average sales prices, despite a 7.9% decrease in kilo volumes sold. Total sales and other operating revenues for the Leaf segment also grew to $1.2 billion from $1.1 billion. However, gross profit as a percentage of sales decreased from 14.7% to 13.3%, attributed to regional mix effects from adverse weather conditions and shipping constraints due to geopolitical issues and natural disasters.

The company’s total debt increased to $1.2 billion as of September 30, 2024, from $1.2 billion a year earlier, with long-term debt decreasing slightly to $489.5 million from $574.0 million. The increase in total debt was primarily due to higher borrowings for purchasing green tobacco at elevated prices. Interest expense rose to $69.0 million for the six months, up from $63.8 million, reflecting higher borrowings and increased variable interest rates.

In terms of strategic developments, Pyxus Holdings has been active in managing its debt, with a gain on debt retirement of $8.2 million for the six months ended September 30, 2024. The company repurchased portions of its 2027 Notes and Pyxus Term Loans at discounts, reflecting a proactive approach to debt management.

As of September 30, 2024, total inventories increased to $974.6 million, up from $877.2 million a year prior, with processed tobacco inventories rising to $750.6 million. The increase in inventory levels is attributed to higher procurement costs and delayed shipments, exacerbated by ongoing undersupply conditions in the global tobacco market.

Overall, while Pyxus International, Inc. has seen revenue growth in certain segments, challenges related to profitability, cash flow, and inventory management persist amid a complex market environment.