International agricultural company Pyxus International Inc. (NYSE: PYX), which also has extensive cannabis operations, reported its financial results for the fiscal third quarter after Monday's closing bell. The company also provided updates on the progress of its cannabis subsidiaries.
Pyxus said its third-quarter earnings amounted to $524.5 million, up by 9.8 percent on the year. The increase was primarily attributed to higher volume in Africa due to larger crop sizes.
The company posted a net loss of 56 cents per diluted share, down from a net income of $9.80 reported for the same quarter of the last year. The net loss was due to $9.6 million in SG&A costs associated with the launch of new businesses.
Why This Is Important
Last year, Pyxus announced its "One Tomorrow" transformation strategy. As part of the strategy, the company's FIGR subsidiary acquired majority stakes in two cannabis producers. In its earnings release, the company said the execution of the strategy is ongoing. More specifically, the subsidiary has registered some progress to increase the annual production capacity to more than 100,000 kilograms.
In addition, Pyxus's industrial hemp joint venture Criticality launched Korent, a new hemp-derived CBD and e-liquid line. Criticality is currently building a 55,000-square foot facility in Wilson, North Carolina.
Pyxus President, CEO and Chairman Pieter Sikkel said the company expects revenue between $1.8 billion and $1.9 billion for full fiscal 2019 and EBITDA between $150 million and $160 million.
Shares were up 6.5 percent in after-hours trading.
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