Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2024.

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______ TO _______.


000-25734
(Commission File Number)

Pyxus International, Inc.

(Exact name of registrant as specified in its charter)


Virginia		85-2386250
(State or other jurisdiction of incorporation)		(I.R.S. Employer Identification No.)

6001 Hospitality Court, Suite 100
Morrisville,	North Carolina	27560
(Address of principal executive offices)		(Zip Code)

(919) 379-4300

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Non-accelerated filer ☒

Accelerated filer ☐

Smaller reporting company ☒

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate by check mark if the registrant has filed all documents and reports required to be filed under Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☒ No ☐

As of July 31, 2024, the registrant had 24,999,947 shares outstanding of Common Stock (no par value).


Pyxus International, Inc. and Subsidiaries
Table of Contents

		Page Number
Part I	Financial Information
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Operations	3

	Condensed Consolidated Statements of Comprehensive Income	4

	Condensed Consolidated Balance Sheets	5

	Condensed Consolidated Statements of Stockholders’ Equity	6

	Condensed Consolidated Statements of Cash Flows	7

	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	30

Part II	Other Information
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	31






Item 5.	Other Information	31
Item 6.	Exhibits	31

	Signature	32

Part I. Financial Information

Item 1. Financial Statements


Pyxus International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)

	Three Months Ended
	June 30,
(in thousands, except per share data)	2024		2023
Sales and other operating revenues	$	634,855	$	477,092
Cost of goods and services sold	551,003		403,947
Gross profit	83,852		73,145
Selling, general, and administrative expenses	40,662		34,063
Other expense, net	2,630		2,624
Restructuring and asset impairment charges	103		40

Operating income	40,457		36,418
Gain on debt retirement	1,323		—



Interest expense, net	33,272		30,844









Income before income taxes and other items	8,508		5,574
Income tax expense	6,119		2,646
(Income) loss from unconsolidated affiliates, net	(2,563)		2,158
Net income	4,952		770
Net income (loss) attributable to noncontrolling interests	310		(34)
Net income attributable to Pyxus International, Inc.	$	4,642	$	804

Earnings per share:
Basic	$	0.18	$	0.03
Diluted	$	0.18	$	0.03

Weighted average number of shares outstanding:
Basic	25,461		25,000
Diluted	25,461		25,000

See "Notes to Condensed Consolidated Financial Statements"


Pyxus International, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)

	Three Months Ended
	June 30,
(in thousands)	2024		2023
Net income	$	4,952	$	770

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment	543		707


Cash flow hedges	(2,237)		862

Total other comprehensive (loss) income, net of tax	(1,694)		1,569
Total comprehensive income	3,258		2,339
Comprehensive income (loss) attributable to noncontrolling interests	310		(34)
Comprehensive income attributable to Pyxus International, Inc.	$	2,948	$	2,373

See "Notes to Condensed Consolidated Financial Statements"


Pyxus International, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited)


(in thousands)	June 30, 2024		June 30, 2023		March 31, 2024
Assets
Current assets
Cash and cash equivalents	$	82,042	$	100,045	$	92,569
Restricted cash	7,061		5,456		7,224
Trade receivables, net	209,053		185,467		168,764
Other receivables	17,042		18,978		18,704
Inventories, net	1,014,527		1,006,437		931,654
Advances to tobacco suppliers, net	43,863		56,408		20,397
Recoverable income taxes	4,070		5,867		4,455
Prepaid expenses	47,270		42,132		50,185
Other current assets	17,219		15,500		16,254
Total current assets	1,442,147		1,436,290		1,310,206
Investments in unconsolidated affiliates	103,818		98,591		101,255
Intangible assets, net	32,728		37,412		33,879
Deferred income taxes, net	8,947		8,879		7,196
Long-term recoverable income taxes	3,985		3,373		2,963
Other noncurrent assets	33,097		45,845		32,617
Right-of-use assets	33,521		40,280		35,639
Property, plant, and equipment, net	134,468		132,324		134,158
Total assets	$	1,792,711	$	1,802,994	$	1,657,913

Liabilities and Stockholders’ Equity
Current liabilities
Notes payable	$	679,399	$	585,408	$	499,312
Accounts payable	115,312		133,854		181,247

Advances from customers	70,985		61,297		90,719
Accrued expenses and other current liabilities	99,052		94,356		96,954
Income taxes payable	8,706		20,081		8,539
Operating leases payable	7,822		9,249		8,100
Current portion of long-term debt	20,445		42		20,294
Total current liabilities	1,001,721		904,287		905,165
Long-term taxes payable	5,373		4,978		2,678
Long-term debt	531,461		643,808		497,734
Deferred income taxes	6,571		10,336		7,934
Liability for unrecognized tax benefits	19,257		13,494		17,742
Long-term leases	22,456		28,219		26,136
Pension, postretirement, and other long-term liabilities	52,760		53,703		53,701
Total liabilities	$	1,639,599	$	1,658,825	$	1,511,090
Commitments and contingencies
Stockholders’ equity
Common Stock—no par value:
Authorized shares (250,000 for all periods)
Issued and outstanding shares (25,000 for all periods)	$	392,820	$	390,290	$	389,789
Retained deficit	(250,649)		(257,150)		(255,291)
Accumulated other comprehensive income	6,092		7,084		7,786
Total stockholders’ equity of Pyxus International, Inc.	148,263		140,224		142,284
Noncontrolling interests	4,849		3,945		4,539
Total stockholders’ equity	153,112		144,169		146,823
Total liabilities and stockholders’ equity	$	1,792,711	$	1,802,994	$	1,657,913

See "Notes to Condensed Consolidated Financial Statements"


Pyxus International, Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders' Equity
(Unaudited)

	Attributable to Pyxus International, Inc.
					Accumulated Other Comprehensive Income
(in thousands)	Common Stock		Retained Deficit		Currency Translation Adjustment		Pensions, Net of Tax		Derivatives, Net of Tax		Noncontrolling Interests		Total Stockholders' Equity
Balance, March 31, 2024	$	389,789	$	(255,291)	$	(5,692)	$	12,766	$	712	$	4,539	$	146,823
Net income	—		4,642		—		—		—		310		4,952
Equity-based compensation	3,031		—		—		—		—		—		3,031
Other comprehensive (loss) income, net of tax	—		—		543		—		(2,237)		—		(1,694)
Balance, June 30, 2024	$	392,820	$	(250,649)	$	(5,149)	$	12,766	$	(1,525)	$	4,849	$	153,112









Balance, March 31, 2023	$	390,290	$	(257,954)	$	(6,392)	$	8,335	$	3,572	$	3,979	$	141,830
Net income (loss)	—		804		—		—		—		(34)		770

Other comprehensive income, net of tax	—		—		707		—		862		—		1,569
Balance, June 30, 2023	$	390,290	$	(257,150)	$	(5,685)	$	8,335	$	4,434	$	3,945	$	144,169

See "Notes to Condensed Consolidated Financial Statements"


Pyxus International, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited)
	Three Months Ended
	June 30,
(in thousands)	2024		2023
Operating Activities:
Net income	$	4,952	$	770
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	5,127		4,606
Debt amortization/interest	2,828		2,682
Gain on debt retirement	(1,323)		—
Loss on foreign currency transactions	978		1,926





Equity-based compensation	3,031		—
(Income) loss from unconsolidated affiliates, net of dividends	(2,563)		2,158

Changes in operating assets and liabilities, net
Trade and other receivables	(72,392)		(33,122)
Inventories and advances to tobacco suppliers	(108,015)		(245,854)
Deferred items	(899)		(1,043)
Recoverable income taxes	(622)		(352)
Payables and accrued expenses	(64,786)		(32,509)
Advances from customers	(18,550)		18,802
Prepaid expenses	3,883		(2,653)
Income taxes	326		1,924
Other operating assets and liabilities	(175)		1,474
Other, net	(3,976)		(4,483)
Net cash used in operating activities	$	(252,176)	$	(285,674)

Investing Activities:
Purchases of property, plant, and equipment	$	(5,097)	$	(3,661)

Collections from beneficial interests in securitized trade receivables	31,741		30,419





Other, net	1,304		283
Net cash provided by investing activities	$	27,948	$	27,041

Financing Activities:
Net proceeds from short-term borrowings	$	182,001	$	205,879



Proceeds from revolving loan facilities	130,000		65,000
Repayment of revolving loan facilities	(86,000)		(40,000)

Debt issuance costs	(2,662)		(3,462)
Repayment of long-term borrowings	(9,104)		—



Other, net	64		(34)
Net cash provided by financing activities	$	214,299	$	227,383

Effect of exchange rate changes on cash	(761)		(2,158)

Decrease in cash, cash equivalents, and restricted cash	(10,690)		(33,408)
Cash and cash equivalents at beginning of period	92,569		136,733
Restricted cash at beginning of period	7,224		2,176
Cash, cash equivalents, and restricted cash at end of period	$	89,103	$	105,501

Other information:
Cash paid for income taxes, net	$	2,679	$	2,542

Cash paid for interest, net	30,833		25,693


Noncash investing activities:


Noncash amounts obtained as a beneficial interest in exchange for transferring trade receivables in a securitization transaction	60,491		36,271





See "Notes to Condensed Consolidated Financial Statements"




Pyxus International, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(in thousands, except per share data)		Page Number
Note 1	Basis of Presentation and Summary of Significant Accounting Policies	9
Note 2	New Accounting Standards	9
Note 3	Revenue Recognition	10
Note 4	Income Taxes	10
Note 5	Earnings Per Share	11
Note 6	Restricted Cash	11
Note 7	Inventories, Net	11
Note 8	Equity Method Investments	12
Note 9	Variable Interest Entities	12
Note 10	Intangible Assets, Net	13
Note 11	Debt Arrangements	14
Note 12	Securitized Receivables	17
Note 13	Guarantees	18
Note 14	Derivative Financial Instruments	18
Note 15	Fair Value Measurements	18
Note 16	Contingencies and Other Information	19
Note 17	Equity-Based Compensation	19
Note 18	Related Party Transactions	20
Note 19	Segment Information	21
Note 20	Subsequent Events	22

1. Basis of Presentation and Summary of Significant Accounting Policies

The accompanying condensed consolidated financial statements represent the consolidation of Pyxus International, Inc. (the "Company", "Pyxus", "we", or "us") and all companies that Pyxus directly or indirectly controls, either through majority ownership or otherwise. These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, the normal and recurring adjustments necessary for fair statement of financial position, results of operations, and cash flows at the dates and for the periods presented have been included. Intercompany accounts and transactions have been eliminated.

These condensed consolidated interim financial statements should be read in conjunction with the Company's consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024 filed on June 6, 2024. Due to the seasonal nature of the Company’s business, the results of operations for a fiscal quarter are not necessarily indicative of the operating results that may be attained for other quarters or a full fiscal year.

2. New Accounting Standards

Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This ASU amends FASB Topic 280 to permit the disclosure of multiple measures of a segment's profit or loss, and requires an entity with a single reportable segment to apply FASB Topic 280 in its entirety. In addition, this ASU requires the following new segment disclosures:

•Significant segment expenses by reportable segment if regularly provided to the Chief Operating Decision Maker ("CODM") and included within the reported measure of segment profit or loss;

•Other segment items, which represents the difference between reported segment revenues less the significant segment expenses less reported segment profit or loss; and

•Title and position of the CODM.

Disclosures required under this new ASU and the existing segment profit or loss and assets disclosures currently required annually by FASB Topic 280 are to be disclosed in interim periods. The annual disclosure requirements are effective for the Company's fiscal year ending March 31, 2025, and the interim period disclosure requirements are effective beginning April 1, 2025. Early adoption is permitted. This new rule will result in additional disclosures for segment reporting, and does not have an impact on the Company's financial condition, results of operations, or cash flows.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures, to provide more disaggregation of income tax information mainly related to the effective tax rate reconciliation and the income taxes paid disclosure requirements. Under the new accounting rules, the tabular effective tax rate reconciliation must include specific categories with certain reconciling items based on the expected tax further disaggregated by nature and/or jurisdiction. Income taxes paid, net of refunds received, must be broken out by federal, state, and foreign taxes, and further disaggregated by individual jurisdictions based on total income taxes paid. These new annual disclosure requirements are effective for the Company's fiscal year ending March 31, 2026. Early adoption is permitted. The Company is currently evaluating the impact that this new accounting standard will have on its income tax disclosures.

3. Revenue Recognition

Product revenue is primarily from the sale of processed tobacco to customers. Processing and other revenues are mainly contracts to process customer-owned green tobacco. During such processing, ownership remains with the customers. All Other revenue is primarily composed of revenue from the sale of e-liquids and non-tobacco agriculture products. The following disaggregates sales and other operating revenues by major source, with the All Other category being included for purposes of reconciliation of the respective balances below of the Leaf segment (the Company's sole reportable segment) to the condensed consolidated financial statements:


	Three Months Ended
	June 30,
	2024		2023
Leaf:
Product revenue	$	589,217	$	450,938
Processing and other revenues	41,746		25,495
Total sales and other operating revenues	630,963		476,433
All Other:
Total sales and other operating revenues	3,892		659
Total sales and other operating revenues	$	634,855	$	477,092

The following summarizes activity in the allowance for expected credit losses:


	Three Months Ended
	June 30,
	2024		2023
Balance, beginning of period	$	(23,940)	$	(24,730)
Additions	(401)		(320)
Write-offs and other adjustments	306		610
Balance, end of period	(24,035)		(24,440)
Trade receivables	233,088		209,907
Trade receivables, net	$	209,053	$	185,467

4. Income Taxes

For each period presented, the Company's quarterly provision for income taxes is not calculated using the annual effective tax rate method ("AETR method"), which applies an estimated annual effective tax rate to pre-tax income or loss. As of the end of the current period, market specific factors coupled with tax rate sensitivity caused the AETR method to produce an unreliable estimate of the Company’s annual effective tax rate; therefore, the Company recorded its interim income tax provision using the discrete method, as allowed under FASB ASC 740-270, Income Taxes - Interim Reporting. Using the discrete method, the Company determined income tax expense as if each of the three-month interim periods reported were an annual period.

The effective tax rate for the three months ended June 30, 2024 and 2023 was 71.9% and 47.5%, respectively. For the three months ended June 30, 2024, the difference between the Company’s effective rate and the U.S. statutory rate of 21.0% is primarily due to U.S. taxation of foreign earnings partially offset by foreign tax credits and additional unrecognized tax benefits reserves.

5. Earnings Per Share

The calculations of basic and diluted earnings per share are based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding, respectively. Under the treasury stock method, restricted stock units will have a dilutive effect when the respective period's average market price of the Company's common stock exceeds the assumed exercise proceeds and the average amount of cost not yet recognized. Performance based stock units are included in diluted earnings per share if the performance targets have been met at the end of the reporting period. Share-based payment awards that provide contingently issuable shares upon a performance or market condition are included in basic and diluted earnings per share only if the condition is met as of the end of the reporting period.

The following summarizes the computation of earnings per share:


	Three Months Ended
	June 30,
	2024		2023
Net income attributable to Pyxus International, Inc.	$	4,642	$	804

Basic weighted average shares outstanding (1)	25,461		25,000
Plus: Dilutive equity awards (2)	—		—
Diluted weighted average shares outstanding	25,461		25,000

Earnings per share:
Basic	$	0.18	$	0.03
Diluted	$	0.18	$	0.03

(1) For the three months ended June 30, 2024, the basic weighted average shares outstanding are adjusted to include 461 weighted average shares outstanding, representing the underlying shares associated with the time-vesting restricted stock units granted prior to May 10, 2024 that were modified on such date to remove the market condition. Refer to "Note 17. Equity-Based Compensation" for additional information.
(2) For the three months ended June 30, 2024, the weighted average number of outstanding restricted stock units not included in the computation of diluted earnings per share because their effect would be antidilutive is 17.

6. Restricted Cash

The following summarizes the composition of restricted cash:



	June 30, 2024		June 30, 2023		March 31, 2024
Compensating balance for short-term borrowings	$	542	$	439	$	516

Escrow	3,209		2,344		2,647
Grants	1,158		696		1,375
Other	2,152		$	1,977	$	2,686
Total	$	7,061	$	5,456	$	7,224

7. Inventories, Net

The following summarizes the composition of inventories, net:


	June 30, 2024		June 30, 2023		March 31, 2024
Processed tobacco	$	605,535	$	642,745	$	585,280
Unprocessed tobacco	375,102		320,470		305,928
Other tobacco related	28,083		34,127		31,213
All Other	5,807		9,095		9,233
Total	$	1,014,527	$	1,006,437	$	931,654

8. Equity Method Investments

The following summarizes the Company's equity method investments as of June 30, 2024:

Investee Name

Location

Primary Purpose

Ownership Percentage

Basis Difference(1)

Adams International Ltd.

Thailand

Purchase and process tobacco

49%

(4,526)

Alliance One Industries India Private Ltd.

India

Purchase and process tobacco

49%

(5,770)

China Brasil Tabaco Exportadora SA

Brazil

Purchase and process tobacco

49%

43,000

Oryantal Tütün Paketleme Sanayi ve Ticaret A.Ş.

Turkey

Process tobacco

50%

(416)

Purilum, LLC

U.S.

Produce flavor formulations and consumable e-liquids

50%

4,589

Siam Tobacco Export Company

Thailand

Purchase and process tobacco

49%

(6,098)

(1) Basis differences for the Company's equity method investments were due to fair value adjustments recorded during fiscal 2021.

The following summarizes financial information for these equity method investments:


	Three Months Ended
	June 30,
	2024		2023
Statement of operations:
Sales	$	56,771	$	44,831
Gross profit	7,187		7,185
Net income (loss)	5,239		(3,854)


	June 30, 2024		June 30, 2023		March 31, 2024
Balance sheet:
Current assets	$	533,214	$	456,755	$	542,702
Property, plant, and equipment and other assets	57,453		48,498		50,925
Current liabilities	438,293		366,806		446,597
Long-term obligations and other liabilities	3,468		2,685		3,356

9. Variable Interest Entities

The Company holds variable interests in multiple entities that primarily procure or process inventory or are securitization entities. These variable interests relate to equity investments, receivables, guarantees, and securitized receivables. The following summarizes the Company's financial relationships with its unconsolidated variable interest entities:



	June 30, 2024		June 30, 2023		March 31, 2024
Investments in variable interest entities	$	96,903	$	91,587	$	94,609
Receivables with variable interest entities	3,980		4,767		—
Guaranteed amounts to variable interest entities (not to exceed)	16,392		61,041		11,113

10. Intangible Assets, Net

The gross carrying amount and accumulated amortization of intangible assets consist of the following:


	June 30, 2024
	Weighted Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Intangibles subject to amortization:
Customer relationships	8.2 years	$	26,101	$	(8,338)	$	17,763
Technology	4.2 years	12,948		(6,189)		6,759
Trade names	10.2 years	11,300		(3,094)		8,206
Total		$	50,349	$	(17,621)	$	32,728


	June 30, 2023
	Weighted Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Intangibles subject to amortization:
Customer relationships	9.2 years	$	26,101	$	(6,163)	$	19,938
Technology	5.0 years	13,132		(4,671)		8,461
Trade names	11.2 years	11,300		(2,287)		9,013
Total		$	50,533	$	(13,121)	$	37,412


	March 31, 2024
	Weighted Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Intangibles subject to amortization:
Customer relationships	8.4 years	$	26,101	$	(7,794)	$	18,307
Technology	4.4 years	12,948		(5,784)		7,164
Trade names	10.4 years	11,300		(2,892)		8,408
Total		$	50,349	$	(16,470)	$	33,879

The following summarizes amortization expense for definite-lived intangible assets:


	Three Months Ended
	June 30,
	2024		2023
Amortization expense	$	1,151	$	1,160

11. Debt Arrangements

The following summarizes debt and notes payable:



(in thousands)	Interest Rate			June 30, 2024		June 30, 2023		March 31, 2024
Senior secured credit facilities:
ABL Credit Facility	8.6	%	(1)	$	44,000	$	50,000	$	—

Senior secured notes:
10.0% Notes Due 2024 (2)	10.0	%	(1)	20,328		20,004		20,247
8.5% Notes Due 2027 (3)	8.5	%	(1)	178,423		253,779		178,146

Senior secured term loans:
Intabex Term Loans (4)	13.6	%	(1)	186,770		186,307		186,659
Pyxus Term Loans (5)	13.6	%	(1)	122,268		133,284		132,819

Other Debt:
Other long-term debt	8.7	%	(1)	117		476		157
Notes payable (6)	9.8	%	(1)	679,399		585,408		499,312
Total debt				$	1,231,305	$	1,229,258	$	1,017,340

Short-term (6)				$	679,399	$	585,408	$	499,312
Long-term:
Current portion of long-term debt				$	20,445	$	42	$	20,294
Long-term debt				531,461		643,808		497,734
Total				$	551,906	$	643,850	$	518,028

Letters of credit				$	7,669	$	6,018	$	5,070

(1) Weighted average rate for the trailing twelve months ended June 30, 2024 or, for indebtedness outstanding only during a portion of such twelve-month period, for the portion of such period that such indebtedness was outstanding.
(2) The 10.0% Notes due 2024 outstanding of $20,328 is net of a debt discount of $63. Total repayment at maturity is $20,391.
(3) Balance of $178,423 is net of a debt discount of $4,107. Total repayment at maturity is $182,530.
(4) Balance of $186,770 is net of a debt discount of $2,263. Total repayment at maturity is $189,033, which includes a $2,000 exit fee payable upon repayment.
(5) Balance of $122,268 is net of a debt premium of $2,063. Total repayment at maturity is $120,205.
(6) Primarily foreign seasonal lines of credit.

Outstanding Senior Secured Debt

ABL Credit Facility

On February 8, 2022, the Company’s wholly owned subsidiary, Pyxus Holdings, Inc. ("Pyxus Holdings"), certain subsidiaries of Pyxus Holdings (together with Pyxus Holdings, the "Borrowers"), and the Company and its wholly owned subsidiary, Pyxus Parent, Inc. ("Pyxus Parent"), as parent guarantors, entered into an ABL Credit Agreement (as amended, the "ABL Credit Agreement"), dated as of February 8, 2022, by and among Pyxus Holdings, as Borrower Agent, the Borrowers and parent guarantors party thereto, the lenders party thereto, and PNC Bank, National Association, as Administrative Agent and Collateral Agent, to establish an asset-based revolving credit facility (the "ABL Credit Facility"), the proceeds of which may be used to refinance existing senior bank debt, pay fees and expenses related to the ABL Credit Facility, partially fund capital expenditures, and provide for the ongoing working capital needs of the Borrowers. The ABL Credit Agreement was amended on May 23, 2023 to extend the maturity of the ABL Credit Facility to February 8, 2027. The ABL Credit Agreement was amended on October 24, 2023 to, among other things increase the aggregate amount of the revolving loan commitments under the ABL Credit Facility to $120,000. A detailed description of the ABL Credit Agreement is included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

The ABL Credit Facility may be used for revolving credit loans and letters of credit from time to time up to an initial maximum principal amount of $120,000, subject to the limitations described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024. The ABL Credit Facility includes a $20,000 uncommitted accordion feature that permits Pyxus Holdings, under certain conditions, to solicit the lenders under the ABL Credit Facility to provide additional revolving loan commitments to increase the aggregate amount of the revolving loan commitments under the ABL Credit Facility not to exceed a maximum principal amount of $140,000. At June 30, 2024, the Borrowers and the parent guarantors under the ABL Credit Agreement were in compliance with the covenants under the ABL Credit Agreement.

Intabex Term Loans

On February 6, 2023, Pyxus Holdings entered into the Intabex Term Loan Credit Agreement, dated as of February 6, 2023 (the "Intabex Term Loan Credit Agreement"), by and among, Pyxus Holdings, the guarantors party thereto, the lenders party thereto and Alter Domus (US) LLC ("Alter Domus"), as administrative agent and senior collateral agent. The Intabex Term Loan Credit Agreement established a term loan credit facility in an aggregate principal amount of approximately $189,033 (the "Intabex Credit Facility"), under which term loans in the full aggregate principal amount of the Intabex Credit Facility (the "Intabex Term Loans") were deemed made in exchange for certain outstanding term debt of Pyxus Holdings, accrued and unpaid PIK interest thereon, and related fees. The Intabex Term Loans bear interest, at Pyxus Holdings’ option, at either (i) a term SOFR rate (subject to a floor of 1.5%) plus 8.0% per annum or (ii) an alternate base rate plus 7.0% per annum. The Intabex Term Loans are stated to mature on December 31, 2027. A detailed description of the Intabex Term Loan Credit Agreement is included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024. At June 30, 2024, Pyxus Holdings and the guarantors under the Intabex Term Loan Credit Agreement were in compliance with all covenants under the Intabex Term Loan Credit Agreement.

Pyxus Term Loans

On February 6, 2023, Pyxus Holdings entered into the Pyxus Term Loan Credit Agreement, dated as of February 6, 2023 (the "Pyxus Term Loan Credit Agreement"), by and among, Pyxus Holdings, the guarantors party thereto, the lenders party thereto and Alter Domus, as administrative agent and senior collateral agent, to establish a term loan credit facility in an aggregate principal amount of approximately $130,550 (the "Pyxus Credit Facility")., under which term loans in the full aggregate principal amount of the Pyxus Credit Facility (the "Pyxus Term Loans" and, together with the Intabex Term Loans, the "New Term Loans") were deemed made in exchange for certain outstanding term debt of Pyxus Holdings and applicable accrued and unpaid PIK interest thereon. The Pyxus Term Loans bear interest, at Pyxus Holdings’ option, at either (i) a term SOFR rate (subject to a floor of 1.5%) plus 8.0% per annum or (ii) an alternate base rate plus 7.0% per annum. The Pyxus Term Loans are stated to mature on December 31, 2027. A detailed description of the Pyxus Term Loan Credit Agreement is included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024. At June 30, 2024, Pyxus Holdings and the guarantors under the Pyxus Term Loan Credit Agreement were in compliance with all covenants under the Pyxus Term Loan Credit Agreement.

8.50% Senior Secured Notes due 2027

Pursuant to an exchange offer made by Pyxus Holdings and accepted by holders of approximately 92.7% of the aggregate principal amount of the outstanding 10.0% Senior Secured First Lien Notes due 2024 issued by Pyxus Holdings (the "2024 Notes") pursuant to that certain Indenture, dated as of August 24, 2020 (the "2024 Notes Indenture"), by and among Pyxus Holdings, the guarantors party thereto and the trustee, collateral agent, registrar and paying agent thereunder, on February 6, 2023, Pyxus Holdings issued approximately $260,452 in aggregate principal amount of 8.5% Senior Secured Notes due December 31, 2027 (the "2027 Notes") to the exchanging holders of the 2024 Notes for an equal principal amount of 2024 Notes. The 2027 Notes were issued pursuant to the Indenture, dated as of February 6, 2023 (the "2027 Notes Indenture"), among Pyxus Holdings, the guarantors party thereto, and Wilmington Trust, National Association, as trustee, and Alter Domus,

as collateral agent. The 2027 Notes bear interest at a rate of 8.5% per annum, which interest is computed on the basis of a 360-day year comprised of twelve 30-day months. The 2027 Notes are stated to mature on December 31, 2027. A detailed description of the 2027 Notes and the 2027 Notes Indenture is included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024. At June 30, 2024, Pyxus Holdings and the guarantors of the 2027 Notes were in compliance with all covenants under the 2027 Notes Indenture.

Related Party Transactions

Based on a Schedule 13D/A filed with the SEC on March 25, 2024, by Monarch Alternative Capital LP (the "Monarch Investor"), MDRA GP LP and Monarch GP LLC, the Monarch Investor reported beneficial ownership of 6,125 shares of the Company’s common stock, representing approximately 24.5% of the outstanding shares of the Company’s common stock. An individual designated by the Monarch Investor serves as a director of Pyxus.

On March 21, 2024, Pyxus Holdings entered into an agreement (the "Debt Repurchase Agreement") with funds affiliated with the Monarch Investor to purchase $77,922 of aggregate principal amount of their holdings in the 2027 Notes for $60,000, a 23.0% discount to par value, plus accrued and unpaid interest and specified customary fees. The purchase of $77,922 aggregate principal amount of the 2027 Notes for a total of $62,339 (including fees and accrued and unpaid interest) was completed on March 28, 2024.

The Debt Repurchase Agreement also included the right of Pyxus Holdings, at its option, to purchase from such holders an additional $34,191 aggregate principal amount of the 2027 Notes for $26,327, a 23.0% discount to par value, plus accrued and unpaid interest, and $10,345 aggregate principal amount of the Pyxus Term Loans for $9,104, a 12.0% discount to par value, plus accrued and unpaid interest. On April 12, 2024, Pyxus Holdings exercised its rights to complete these repurchases by September 30, 2024.

On May 31, 2024, Pyxus Holdings completed the purchase of $10,345 of aggregate principal amount of the Pyxus Term Loans for a total of $9,435 (including accrued and unpaid interest).

The Debt Repurchase Agreement and the transactions contemplated thereunder were approved and determined to be on terms and conditions at least as favorable to the Company and its subsidiaries as could reasonably have been obtained in a comparable arm's-length transaction with an unaffiliated party by a majority of the disinterested members of the Board of Directors of Pyxus.

Other Outstanding Debt

2024 Notes

On February 6, 2023, the relevant parties to the 2024 Notes Indenture entered into the Second Supplemental Indenture, dated as of February 6, 2023 (the "2024 Notes Supplemental Indenture"), to the 2024 Notes Indenture, pursuant to which the 2024 Notes Indenture, the 2024 Notes and the related intercreditor and security documents were amended to effect these changes. The 2024 Notes bear interest at a rate of 10.0% per year, payable semi-annually in arrears in cash on February 15 and August 15 of each year. The 2024 Notes are stated to mature on August 24, 2024. At June 30, 2024, Pyxus Holdings and the guarantors of the 2024 Notes were in compliance with all covenants under the 2024 Notes Indenture, as amended by the 2024 Notes Supplemental Indenture.

Foreign Seasonal Lines of Credit

Excluding long-term credit agreements, the Company typically finances its non-U.S. operations with uncommitted short-term seasonal lines of credit arrangements with a number of banks. These operating lines are generally seasonal in nature, typically extending for a term of 180 days to 365 days corresponding to the tobacco crop cycle in that location. These facilities are typically uncommitted in that the lenders have the unilateral right to cease making loans and demand repayment of loans at any time or at specified dates. These loans are generally renewed at the outset of each tobacco season. Certain of the foreign seasonal lines of credit are secured by trade receivables and inventories as collateral and are guaranteed by the Company and certain of its subsidiaries. As of June 30, 2024, the total borrowing capacity under individual foreign seasonal lines of credit range up to $152,600. As of June 30, 2024, the aggregate amount available for borrowing under the seasonal lines of credit was $169,703. At June 30, 2024, the Company was permitted to borrow under foreign seasonal lines of credit up to a total $815,646, subject to limitations under the ABL Credit Agreement and the agreements governing the Intabex Term Loans, the Pyxus Term Loans and the 2027 Notes. At June 30, 2024, $542 of cash was held on deposit as a compensating balance. At June 30, 2024, the Company, and its subsidiaries, were in compliance with the covenants associated with its short-term seasonal lines of credit.

12. Securitized Receivables

The Company sells trade receivables to unaffiliated financial institutions under various accounts receivable securitization facilities, two of which are subject to annual renewal.

Under the first facility, with Finacity Corporation (the "Finacity Facility"), the Company continuously sells a designated pool of trade receivables to a special purpose entity, which sells 100% of the receivables to an unaffiliated financial institution. Following the sale and transfer of the receivables to the special purpose entity, the receivables are isolated from the Company and its affiliates, and effective control of the receivables is passed to the unaffiliated financial institution, which has all rights, including the right to pledge or sell the receivables. This facility requires a minimum level of deferred purchase price be retained by the Company in connection with the sales of the receivables to the unaffiliated financial institution. The Company continues to service, administer, and collect the receivables on behalf of the special purpose entity and receives a servicing fee of 0.5% of serviced receivables per annum. As the Company estimates the expected fee it receives in return for its obligation to service these receivables is at fair value, no servicing assets or liabilities are recognized. Servicing fees are recorded as a reduction of selling, general, and administrative expenses within the condensed consolidated statements of operations. As of June 30, 2024, the investment limit of this facility was $120,000 of trade receivables.

Under the second facility, the Company offers trade receivables for sale to an unaffiliated financial institution, which are then subject to acceptance by the unaffiliated financial institution. Following the sale and transfer of the receivables to the unaffiliated financial institution, the receivables are isolated from the Company and its affiliates, and effective control of the receivables is passed to the unaffiliated financial institution, which has all rights, including the right to pledge or sell the receivables. Although the Company continues to service, administer, and collect the receivables on behalf of the unaffiliated financial institution, the Company does not receive a servicing fee, and as a result, has established a servicing liability based upon unobservable inputs, primarily discounted cash flow. As of June 30, 2024, the investment limit under the second facility was $130,000 of trade receivables.

As servicer for the Finacity Facility and the second facility, the Company may receive funds that are due to the unaffiliated financial institutions which are net settled on the next settlement date. As of June 30, 2024 and 2023, and March 31, 2024, trade receivables, net in the condensed consolidated balance sheets has been reduced by $8,219, $908, and $15,036 as a result of the net settlement, respectively. As of March 31, 2024, accrued expenses and other current liabilities in the consolidated balance sheets includes $10,279 of net payables for the Finacity Facility. Refer to "Note 15. Fair Value Measurements" for additional information.

Under the other facilities, the Company offers trade receivables for sale to unaffiliated financial institutions, which are then subject to acceptance by the unaffiliated financial institutions. Following the sale and transfer of the receivables to the unaffiliated financial institution, the receivables are isolated from the Company and its affiliates, and effective control of the receivables is passed to the unaffiliated financial institution, which has all rights, including the right to pledge or sell the receivables. As of June 30, 2024, the investment limits under these other facilities were variable based on qualifying sales.

The following summarizes the Company's accounts receivable outstanding in the securitization facilities, which represents trade receivables sold into the program that have not been collected from the customer, and related beneficial interests, which represents the Company's residual interest in receivables sold that have not been collected from the customer:


	June 30, 2024		June 30, 2023		March 31, 2024

Receivables outstanding in facility	$	260,973	$	132,313	$	170,267
Beneficial interests	25,640		19,641		15,036

Cash proceeds from the sale of trade receivables is comprised of a combination of cash and a deferred purchase price receivable. Deferred purchase price receivable is realized after the collection of the underlying trade receivables sold by the purchasers. The following summarizes the Company's cash purchase price and deferred purchase price:


	Three Months Ended
	June 30,
	2024		2023
Cash proceeds:
Cash purchase price	$	243,109	$	172,943
Deferred purchase price	31,741		30,419

13. Guarantees

In certain markets, the Company guarantees bank loans for suppliers to finance their crops. The Company also guarantees bank loans of certain unconsolidated subsidiaries. The following summarizes amounts guaranteed and the fair value of those guarantees:



	June 30, 2024		June 30, 2023		March 31, 2024
Amounts guaranteed (not to exceed)	$	79,192	$	138,523	$	97,411
Amounts outstanding under guarantee (1)	41,581		43,563		71,427
Fair value of guarantees	2,611		5,764		5,097
Amounts due to local banks on behalf of suppliers for government subsidized rural credit financing	526		459		34,571
(1) Most of the guarantees outstanding at June 30, 2024 expire within one year.

14. Derivative Financial Instruments

The Company uses forward or option currency contracts to manage risks associated with foreign currency exchange rates on foreign operations. These contracts are for green tobacco purchases, processing costs, and selling, general, and administrative expenses. The Company recorded a net gain of $851 and $1,434 from its derivative financial instruments in cost of goods and services sold for the three months ended June 30, 2024 and 2023, respectively. As of June 30, 2024 and 2023, the Company recorded current derivative liabilities of $1,834 and $11 within accrued expenses and other current liabilities, respectively. Refer to "N ote 15. Fair Value Measurements" for additional information.

The following summarizes the U.S. Dollar notional amount of derivative contracts outstanding:


	June 30, 2024		June 30, 2023		March 31, 2024


U.S. Dollar notional outstanding	$	23,300	$	4,378	$	—

15. Fair Value Measurements

The following summarizes the financial assets and liabilities measured at fair value on a recurring basis:



	June 30, 2024						June 30, 2023						March 31, 2024
	Level 2		Level 3		Total at Fair Value		Level 2		Level 3		Total at Fair Value		Level 2		Level 3		Total at Fair Value
Financial Assets:

Securitized beneficial interests	$	—	$	25,640	$	25,640	$	—	$	19,641	$	19,641	$	—	$	15,036	$	15,036
Total assets	$	—	$	25,640	$	25,640	$	—	$	19,641	$	19,641	$	—	$	15,036	$	15,036
Financial Liabilities:
Derivative financial instruments	$	1,834	$	—	$	1,834	$	11	$	—	$	11	$	—	$	—	$	—
Long-term debt(1)	455,789		160		455,949		492,098		509		492,607		462,987		160		463,147
Guarantees	—		2,611		2,611		—		5,764		5,764		—		5,097		5,097
Total liabilities	$	457,623	$	2,771	$	460,394	$	492,109	$	6,273	$	498,382	$	462,987	$	5,257	$	468,244
(1) This fair value measurement disclosure does not affect the condensed consolidated balance sheets.

The following summarizes the reconciliation of changes in Level 3 instruments measured on a recurring basis:


	Securitized Beneficial Interests		Long-Term Debt		Guarantees
Beginning balance at March 31, 2024	$	15,036	$	160	$	5,097
Issuances of sales of receivables/guarantees	61,029		—		938
Settlements	(45,233)		—		(715)

Losses recognized in earnings	(5,192)		—		(2,709)
Ending balance at June 30, 2024	$	25,640	$	160	$	2,611


	Securitized Beneficial Interests		Long-Term Debt		Guarantees
Beginning balance at March 31, 2023	$	19,522	$	514	$	5,262
Issuances of sales of receivables/guarantees	36,640		—		1,054
Settlements	(33,183)		(5)		(555)

Losses recognized in earnings	(3,338)		—		3
Ending balance at June 30, 2023	$	19,641	$	509	$	5,764

For the three months ended June 30, 2024 and 2023, the impact to earnings attributable to the change in unrealized losses on securitized beneficial interests was $1,250 and $748, respectively. Gains and losses included in earnings are reported in other expense, net.

16. Contingencies and Other Information

Brazilian Tax Credits

The government in the Brazilian State of Parana ("Parana") issued a tax assessment on October 26, 2007 with respect to local intrastate trade tax credits that result primarily from tobacco transferred between states within Brazil. At June 30, 2024, the assessment for intrastate trade tax credits taken is $2,375 and the total assessment including penalties and interest is $9,796. On March 18, 2014, the government in Brazilian State of Santa Catarina also issued a tax assessment with respect to local intrastate trade tax credits that result primarily from tobacco transferred between states within Brazil. At June 30, 2024, the assessment for intrastate trade tax credits taken is $2,050 and the total assessment including penalties and interest is $6,201. The Company believes it has properly complied with Brazilian law and will contest any assessment through the judicial process. Should the Company lose in the judicial process, the loss of the intrastate trade tax credits would have a material impact on the financial statements of the Company.

The Company also has local intrastate trade tax credits in the Brazil State of Rio Grande do Sul. This jurisdiction permits the sale or transfer of excess credits to third parties, however approval must be obtained from the tax authorities. The Company has an agreement with the state government regarding the amounts and timing of credits that can be sold. The tax credits have a carrying value of $20,377 as of June 30, 2024. The intrastate trade tax credits are monitored for impairment in future periods based on market conditions and the Company’s ability to use or sell the tax credits.

Other Matters

In addition to the above-mentioned matters, the Company or certain of its subsidiaries are involved in other litigation or legal matters incidental to their business activities, including tax matters. While the outcome of these matters cannot be predicted with certainty, they are being vigorously defended and the Company does not currently expect that any of them will have a material adverse effect on its business or financial position. However, should one or more of these matters be resolved in a manner adverse to its current expectation, the effect on the Company’s results of operations for a particular fiscal reporting period could be material.

17. Equity-Based Compensation

Pursuant to the Pyxus International, Inc. Amended and Restated 2020 Incentive Plan (the "Incentive Plan"), the Company granted time-vesting restricted stock units, with the vesting of these restricted stock units being subject to continued employment through specified dates and the condition that the Company’s common stock be listed for trading on a national securities exchange or an approved foreign securities exchange by March 31, 2028 (the "Listing Condition"). On May 10, 2024 (the "Modification Date"), the time-vesting restricted stock units granted under the Incentive Plan that were outstanding

immediately prior to that date were amended to extend the period by which the Listing Condition must be satisfied for the vesting of such restricted stock units from March 31, 2028 to March 31, 2031 and to provide that the Listing Condition shall be deemed to be satisfied on March 31, 2031 regardless of whether the Company’s common stock has been listed by that date on a national securities exchange or foreign securities exchange and would vest earlier upon the occurrence of a "Change in Control" (as defined in the Incentive Plan) as a result of a merger, consolidation, share exchange or sale of all or substantially all of the assets of the Company. On the Modification Date, the amended Listing Condition was rendered nonsubstantive, and recipients of all such outstanding time-vesting restricted stock units had satisfied the continued service requirement, meaning the restricted stock units were fully earned for vesting. During the three months ended June 30, 2024, the Company recognized total equity-based compensation expense of $3,031, which is recorded in selling, general, and administrative expenses within the condensed consolidated statements of operations. The modified time-vesting restricted stock units accounted for $2,877 of the total equity-based compensation to reflect the cumulative catch-up required on the Modification Date.

The following summarizes the Company's equity awards granted:


	Three Months Ended
	June 30,
(in thousands, except grant date fair value)	2024		2023
Restricted stock units
Number granted	768		—
Grant date fair value	$	3.50	$	—
Performance-based stock units
Number granted (at target performance level)	576		—
Grant date fair value	$	4.36	$	—

Restricted stock units granted under the Incentive Plan during the three months ended June 30, 2024 are earned ratably over a three-year period, and will vest, subject to continued employment, upon the earlier of March 31, 2031 or the occurrence of a liquidity event as defined under the terms of the restricted stock unit award agreement. Unrecognized compensation costs for restricted stock units is $2,534 as of June 30, 2024, and is expected to be recognized over a weighted average period of 2.75 years, representing the remaining service period related to the awards, subject to adjustments for actual forfeitures.

Under the terms of the performance-based stock units, the amount of shares to be issued (ranging from 0% to 200% of the number of shares to be issued at the target performance level) will be contingent upon the per share price achieved in a liquidity event (as defined under the terms of the performance-based stock unit award agreement), subject to continued employment through the date of a liquidity event. The contingent liquidity event is not probable as of June 30, 2024, and accordingly, no equity-based compensation expense has been recognized for the performance-based stock units granted during the period.

18. Related Party Transactions

The Company engages in transactions with its equity method investees primarily for the procuring and processing of inventory. The following summarizes activities with the Company's equity method investees:


	Three Months Ended
	June 30,
	2024		2023
Sales	$	10,575	$	10,817
Purchases	34,886		38,789

The Company included the following related party balances in its condensed consolidated balance sheets:


	June 30, 2024		June 30, 2023		March 31, 2024		Location in Condensed Consolidated Balance Sheet
Accounts receivable, related parties	$	4,080	$	5,090	$	50	Other receivables


Accounts payable, related parties	12,041		19,776		35,396		Accounts payable
Advances from related parties	1,247		10,061		12,533		Advances from customers

Transactions with Significant Shareholders

Based on a Schedule 13D/A filed with the SEC on June 13, 2024 by Glendon Capital Management, L.P. (the "Glendon Investor"), Holly Kim Olsen, Glendon Opportunities Fund, L.P. and Glendon Opportunities Fund II, L.P., the Glendon Investor reported beneficial ownership of 8,315 shares of the Company’s common stock, representing approximately 33.3% of the outstanding shares of the Company’s common stock. A representative of the Glendon Investor serves as a director of Pyxus. Based on a Schedule 13G/A filed with the SEC on May 6, 2024 by Owl Creek Asset Management, L.P. and Jeffrey A. Altman, Owl Creek Asset Management, L.P. is the investment manager of certain funds and reported beneficial ownership of 2,605 shares of the Company’s common stock on April 30, 2024, representing approximately 10.4% of the outstanding shares of the Company’s common stock. Funds managed by the Glendon Investor, funds managed by the Monarch Investor, and funds managed by Owl Creek Asset Management, L.P., (such funds are collectively referred to as the "Investor-Affiliated Funds") were holders, in part, of the Intabex Term Loans, the Pyxus Term Loans and the 2027 Notes, which are described in "Note 11. Debt Arrangements," during the three months ended June 30, 2024.

Accrued expenses and other current liabilities as presented in the condensed consolidated balance sheets as of June 30, 2024 and 2023, and March 31, 2024, includes $1,894, $3,945, and $4,239, respectively, of interest payable to Investor-Affiliated Funds and CI Investments, Inc. ("CI Investments"), which is also a beneficial owner of greater than five percent of the Company's common stock. Interest expense as presented in the condensed consolidated statements of operations includes $7,261 and $10,075 for the three months ended June 30, 2024 and 2023, respectively, that relates to the Investor-Affiliated Funds and CI Investments.

The holders of senior debt that are parties to the Debt Repurchase Agreement entered into on March 21, 2024 are funds affiliated with the Monarch Investor and of which the Monarch Investor is the investment advisor. The Debt Repurchase Agreement and the transactions contemplated thereby, including the exercise by Pyxus Holdings of its right to purchase the Pyxus Term Loans and additional 2027 Notes thereunder on April 12, 2024, were approved, and determined to be on terms and conditions at least as favorable to the Company and its subsidiaries as could reasonably have been obtained in a comparable arm's-length transaction with an unaffiliated party, by a majority of the disinterested members of the Board of Directors of Pyxus. Under the terms of the Debt Repurchase Agreement, the Company has paid the following amounts to funds affiliated with the Monarch Investor:

•On March 28, 2024, the Company paid a total of $62,339, which included $1,849 of accrued and unpaid interest and $490 in other fees, to retire $77,922 of aggregate principal amount of the 2027 Notes.

•On May 31, 2024, the Company paid a total of $9,435, which included $332 of accrued and unpaid interest, to retire $10,345 of aggregate principal amount of the Pyxus Term Loans.

19. Segment Information

The following summarizes segment information, with the All Other category being included for purposes of reconciliation of the respective balances of the Leaf segment (the Company's sole reportable segment) to the condensed consolidated financial statements:


	Three Months Ended
	June 30,
	2024		2023
Sales and other operating revenues:
Leaf	$	630,963	$	476,433
All Other	3,892		659
Consolidated sales and other operating revenues	$	634,855	$	477,092

Segment operating income (loss):
Leaf	$	42,482	$	37,929
All Other	(1,922)		(1,471)
Segment operating income	40,560		36,458

Restructuring and asset impairment charges	103		40

Consolidated operating income	$	40,457	$	36,418



	June 30, 2024		June 30, 2023		March 31, 2024
Segment assets:
Leaf	$	1,752,886	$	1,761,971	$	1,616,486
All Other	39,825		41,023		41,427
Total assets	$	1,792,711	$	1,802,994	$	1,657,913

20. Subsequent Events

Debt Repurchase

On August 2, 2024, pursuant to the Debt Repurchase Agreement with funds affiliated with the Monarch Investor, Pyxus paid a total of $26,707, which includes $379 for accrued and unpaid interest through the date prior to payment, to retire $34,191 of aggregate principal amount of the 2027 Notes.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Readers are cautioned that the statements contained in this report regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements, which are based on current expectations of future events, may be identified by the use of words such as "guidance", "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets," and other words of similar meaning. These statements also may be identified by the fact that they do not relate strictly to historical or current facts. If underlying assumptions prove inaccurate, or if known or unknown risks or uncertainties materialize, actual results could vary materially from those anticipated, estimated, or projected. These risks and uncertainties include those discussed in this Quarterly Report on Form 10-Q, in our Annual Report on Form 10-K for the year ended March 31, 2024 and in our other filings with the Securities and Exchange Commission. These risks and uncertainties include: our reliance on a small number of significant customers; continued vertical integration by our customers; global shifts in sourcing customer requirements; shifts in the global supply and demand position for tobacco products; variation in our financial results due to growing conditions, customer indications and other factors; loss of confidence in us by our customers, farmers and other suppliers; migration of suppliers who have historically grown tobacco and from whom we have purchased tobacco toward growing other crops; risks related to our advancement of inputs to tobacco suppliers to be settled upon the suppliers delivering us unprocessed tobacco at the end of the growing season; risks that the tobacco we purchase directly from suppliers will not meet our customers’ quality and quantity requirements; weather and other environmental conditions that can affect the marketability of our inventory; international business risks, including unsettled political conditions, uncertainty in the enforcement of legal obligations, including the collection of accounts receivable, fraud risks, expropriation, import and export restrictions, exchange controls, inflationary economies, currency risks and risks related to the restrictions on repatriation of earnings or proceeds from liquidated assets of foreign subsidiaries; many of our operations are located in jurisdictions that pose a high risk of potential violations of the Foreign Corrupt Practices Act; risks and uncertainties related to geopolitical conflicts, including the armed conflict between Israel and Hamas and disruptions affecting Red Sea shipping; impacts of international sanctions on our ability to sell or source tobacco in certain regions; exposure to foreign tax regimes in which the rules are not clear, are not consistently applied and are subject to sudden change; fluctuations in foreign currency exchange and interest rates; competition with the other primary global independent leaf tobacco merchant and independent leaf merchants; disruption, failure or security breaches of our information technology systems and other cybersecurity risks; continued high inflation; regulations regarding environmental matters; risks related to our capital structure, including risks related to our significant debt and our ability to continue to finance our non-U.S. local operations with uncommitted short-term operating credit lines at the local level; our ability to continue to access capital markets to obtain long-term and short-term financing; potential failure of foreign banks in which our subsidiaries maintain deposits or the failure by such banks to transfer funds or honor withdrawals; the risk that, because our ability to generate cash depends on many factors beyond our control, we may be unable to generate the significant amount of cash required to service our indebtedness; our ability to refinance our current credit facilities at the same availability or at similar or reduced interest rates; failure to achieve our stated goals, which may adversely affect our liquidity; developments with respect to our liquidity needs and sources of liquidity; the volatility and disruption of global credit markets; failure by counterparties to derivative transactions to perform their obligations; increasing scrutiny and changing expectations from governments, as well as other stakeholders such as investors and customers, with respect to our environmental, social and governance policies, including sustainability policies; inherent risk of exposure to product liability claims, regulatory action and litigation facing our e-liquids business if its products are alleged to have caused significant loss, injury, or death; certain shareholders have the ability to exercise controlling influence on various corporate matters; reductions in demand for consumer tobacco products; risks and uncertainties related to pandemics or other widespread health crises and any related shipping constraints, labor shortages and supply-chain impacts; legislative and regulatory initiatives that may reduce consumption of consumer tobacco products and demand for our services and increase regulatory burdens on us or our customers; government actions that significantly affect the sourcing of tobacco, including governmental actions to identify and assess crop diversification initiatives and alternatives to leaf tobacco growing in countries whose economies depend upon tobacco production; governmental investigations into the Company's business activities, including but not limited to, leaf tobacco industry buying and other payment practices; and impact of potential regulations to prohibit the sale of cigarettes in the United States other than low-nicotine cigarettes.

We do not undertake to update any forward-looking statements that we may make from time to time except to the extent required by law.

Overview

Pyxus is a global agricultural company with businesses having more than 150 years of experience delivering value-added products and services to businesses and customers. The Company is a trusted provider of responsibly sourced, independently verified, sustainable, and traceable products and ingredients.

Executive Summary

The positive momentum from fiscal year 2024 carried into the Company's first quarter of fiscal year 2025 as sales growth remained strong year-over-year. Customer demand remains steady as undersupply conditions persist due to short crops in South America and in certain geographies in Africa. We were successful in adapting to market conditions by leveraging our global geographic footprint to meet the needs of our customers and grow our business.

We also continued to take advantage of opportunities to reduce long-term debt by purchasing $10.3 million of aggregate principal amount of the Pyxus Term Loans for $9.4 million in May 2024 and on August 2, 2024, the Company purchased $34.2 million of the 8.5% Senior Secured Notes for $26.7 million. Our disciplined focus on reducing long-term debt, optimizing working capital, and improving access to liquidity remain paramount to our strategy to enhance stakeholder value.

Our employees kept their focus on operational effectiveness and demonstrated resiliency in the face of external challenges, especially in Southern Brazil where El Niño weather effects dealt this region unprecedented amounts of rainfall in April and May, leading to widespread catastrophic flooding. While the Company was spared from significant damage, our teams provided relief to affected colleagues, contracted farmers, and the local communities, while at the same time working to ensure the safety of our operations and the continuity of our business during the busy crop buying season.

Results of Operations


Three Months Ended June 30, 2024 and 2023
	Three Months Ended June 30,
							Change
(in millions, except per kilo amounts)	2024			2023			$	%
Consolidated:
Sales and other operating revenues	$	634.9		$	477.1		157.8	33.1
Cost of goods and services sold	551.0			404.0			147.0	36.4
Gross profit	83.9			73.1			10.8	14.8
Gross profit as a percent of sales	13.2		%	15.3		%
Selling, general, and administrative expenses	$	40.7		$	34.1		6.6	19.4
Other expense, net	2.6			2.6			—	—
Restructuring and asset impairment charges	0.1			—			0.1	**
Operating income	40.5			36.4			4.1	11.3


Gain on debt retirement	1.3			—			1.3	**
Interest expense, net	33.3			30.8			2.5	8.1
Income tax expense	6.1			2.6			3.5	134.6
(Income) loss from unconsolidated affiliates, net	(2.6)			2.2			(4.8)	(218.2)
Net income (loss) attributable to noncontrolling interests	0.3			—			0.3	**
Net income attributable to Pyxus International, Inc.*	$	4.6		$	0.8		3.8	475.0

Leaf:
Product revenues	$	589.2		$	450.9		138.3	30.7
Tobacco costs	484.0			363.0			121.0	33.3
Transportation, storage, and other period costs	24.8			20.7			4.1	19.8
Total product cost of goods sold	508.8			383.7			125.1	32.6
Product revenue gross profit	80.4			67.2			13.2	19.6
Product revenue gross profit as a percent of sales	13.6		%	14.9		%

Kilos sold	95.7			85.5			10.2	11.9
Average price per kilo	$	6.16		$	5.27		0.89	16.9
Average cost per kilo	5.32			4.49			0.83	18.5
Average gross profit per kilo	0.84			0.78			0.06	7.7

Processing and other revenues	$	41.8		$	25.5		16.3	63.9
Processing and other revenues costs of services sold	37.4			19.9			17.5	87.9
Processing and other gross profit	4.4			5.6			(1.2)	(21.4)
Processing and other gross profit as a percent of sales	10.5		%	22.0		%

All Other:
Sales and other operating revenues	$	3.9		$	0.7		3.2	457.1
Cost of goods and services sold	4.8			0.4			4.4	1,100.0
Gross income (loss)	(0.9)			0.3			(1.2)	(400.0)
Gross income (loss) as a percent of sales	(23.1)		%	42.9		%

* Amounts may not equal column totals due to rounding.
** Not meaningful for comparison purposes.

Sales and other operating revenues were $477.1 million for the three months ended June 30, 2023 and $634.9 million for the three months ended June 30, 2024, an increase of $157.8 million, or 33.1%. This increase was due to a 16.9% increase in average price per kilo driven by higher tobacco prices and a 11.9% increase in volume primarily due to accelerated timing of shipments in North America compared to the prior year.

Cost of goods and services sold were $404.0 million for the three months ended June 30, 2023 and $551.0 million for the three months ended June 30, 2024, an increase of $147.0 million, or 36.4%. This increase was mainly due to the 18.5% increase in average cost per kilo primarily due to undersupply conditions and inflation.

Gross profit as a percent of sales decreased from 15.3% for the three months ended June 30, 2023 to 13.2% for the three months ended June 30, 2024 mainly due to a shift in product mix in Africa and regional mix. Average gross profit per kilo increased 7.7% primarily due to more favorable customer and regional mix.

Selling, general, and administrative expenses were $34.1 million for the three months ended June 30, 2023 and $40.7 million for the three months ended June 30, 2024, an increase of $6.6 million, or 19.4%. This increase was primarily due to the recognition of $3.0 million of equity-based compensation in the current quarter for modified awards, pursuant to the Amended and Restated 2020 Incentive Plan, and earlier recognition of accrued bonus compensation.

Income tax expense was $2.6 million for the three months ended June 30, 2023 and $6.1 million for the three months ended June 30, 2024, an increase of $3.5 million, or 134.6%. This increase was primarily due to higher income during the period, net foreign currency impact, and additional uncertain tax benefits reserves, partially offset by changes in the valuation allowance.

Liquidity and Capital Resources

Overview

Our primary sources of liquidity are cash generated from operations, short-term borrowings under our foreign seasonal lines of credit, availability under our ABL Credit Facility, and cash collections from our securitized receivables. Our liquidity requirements are affected by various factors from our core tobacco leaf business, including crop seasonality, foreign currency and interest rates, green tobacco prices, customer mix, crop size, and quality. Our leaf tobacco business is seasonal, and purchasing, processing, and selling activities have several associated peaks where cash on-hand and outstanding indebtedness may vary significantly compared to year end. The first three quarters of our fiscal year generally represent the peak of our working capital requirements.

Although we believe that our sources of liquidity will be sufficient to fund our anticipated operating needs for the next twelve months, we anticipate periods during which our liquidity needs for operations will approach the levels of our anticipated available cash and permitted borrowings under our credit facilities. Unanticipated developments affecting our liquidity needs, including with respect to the foregoing factors, and sources of liquidity, including impacts affecting our cash flows from operations and the availability of capital resources (including an inability to renew or refinance seasonal lines of credit), may result in a deficiency in liquidity. To address a potential liquidity deficiency, we may undertake plans to minimize cash outflows, which could include exiting operations that do not generate positive cash flow.

Debt Financing

We continue to finance our business with a combination of short-term and long-term credit lines, the long-term debt securities, advances from customers, and cash from operations when available. See "Note 11. Debt Arrangements" to the "Notes to Condensed Consolidated Financial Statements" for a summary of our short-term and long-term debt.

We continuously monitor and, as available, adjust funding sources as needed to enhance and drive various business opportunities. From time to time we may take steps to reduce our debt or otherwise improve our financial position. Such actions could include prepayments, open market debt repurchases, negotiated repurchases, other redemptions or retirements of outstanding debt, and refinancing of debt. The amount of prepayments or the amount of debt that may be repurchased, refinanced, or otherwise retired, if any, will depend on market conditions, trading levels of our debt, our cash position, compliance with debt covenants, and other considerations.

The following summarizes our total borrowing capacity at June 30, 2024 and 2023 under our short-term and long-term credit lines and letter of credit facilities and the remaining available amount after the reduction for outstanding borrowings and amounts reserved for outstanding letters of credit:


	June 30, 2024				June 30, 2023
(in millions)	Total Borrowing Capacity		Remaining Amount Available		Total Borrowing Capacity		Remaining Amount Available
Senior Secured Credit Facilities:
ABL Credit Facility	$	120.0	$	76.0	$	100.0	$	50.0
Foreign seasonal lines of credit	815.6		169.7		702.1		149.1
Other long-term debt	0.4		0.3		0.6		0.2
Letters of credit	10.6		2.9		10.1		4.1
Total	$	946.6	$	248.9	$	812.8	$	203.4

The total borrowing capacity under the ABL Credit Facility increased $20.0 million when compared to the prior period as a result of the Company entering into the Third Amendment to the ABL Credit Agreement on October 24, 2023, which among other things, increased the aggregate amount of revolving loan commitments from $100.0 million to $120.0 million. The amount available under the ABL Credit Facility is limited by a borrowing base consisting of certain eligible accounts receivable and inventory, reduced by specified reserves.

Foreign seasonal lines of credit increased $113.5 million when compared to the prior year and were utilized to purchase green tobacco at higher prices. Many of the foreign seasonal lines of credit are secured by trade receivables and inventories as collateral and are subject to restrictive covenants.

Net Debt

We refer to "Net debt," a non-GAAP measure, as total debt liabilities less cash and cash equivalents. We believe this non-GAAP financial measure is useful to monitor leverage and to evaluate changes to the Company's capital structure. A limitation associated with using net debt is that it subtracts cash and cash equivalents, and therefore, may imply that management intends to use cash and cash equivalents to reduce outstanding debt and that cash held in certain jurisdictions can be applied to repay obligations owing in other jurisdictions and without reduction for applicable taxes. In addition, net debt suggests that our debt obligations are less than the most comparable GAAP measure indicates. The following summarizes the computation of net debt:


(in millions)	June 30, 2024		June 30, 2023		March 31, 2024
Notes payable	$	679.4	$	585.4	$	499.3
Current portion of long-term debt	20.4		—		20.3
Long-term debt (1)	531.5		643.8		497.7
Total debt liabilities*	$	1,231.3	$	1,229.3	$	1,017.3
Less: Cash and cash equivalents	82.0		100.0		92.6
Net debt*	$	1,149.3	$	1,129.2	$	924.7
* Amounts may not equal column totals due to rounding


(1) Fluctuations in long-term debt are due to borrowings and repayments on the outstanding indebtedness under the ABL Credit Facility, along with repurchases of certain long-term debt. Weighted average borrowings outstanding under the ABL Credit Facility during the three months ended June 30, 2024 was $64.0 million.

Net debt increased as of June 30, 2024 when compared to June 30, 2023 as a result of lower cash and cash equivalents on hand, which is driven by higher cash spend on purchases of more expensive green tobacco.

Working Capital

The following summarizes our working capital:


(in millions except for current ratio)	June 30, 2024		June 30, 2023		March 31, 2024
Cash, cash equivalents, and restricted cash	$	89.1	$	105.5	$	99.8
Trade and other receivables, net	226.1		204.4		187.5
Inventories and advances to tobacco suppliers	1,058.4		1,062.8		952.1
Recoverable income taxes	4.1		5.9		4.5
Prepaid expenses and other current assets	64.5		57.6		66.4
Total current assets*	$	1,442.1	$	1,436.3	$	1,310.2

Notes payable	$	679.4	$	585.4	$	499.3
Accounts payable	115.3		133.9		181.2
Advances from customers	71.0		61.3		90.7
Accrued expenses and other current liabilities	99.1		94.4		97.0
Income taxes payable	8.7		20.1		8.5
Operating leases payable	7.8		9.2		8.1
Current portion of long-term debt	20.4		—		20.3
Total current liabilities*	$	1,001.7	$	904.3	$	905.2

Current ratio	1.4 to 1		1.6 to 1		1.4 to 1
Working capital	$	440.4	$	532.0	$	405.0
* Amounts may not equal column totals due to rounding

Working capital declined from June 30, 2023 to June 30, 2024 by $91.6 million, or 17.2%, primarily due to the increase in outstanding short-term lines of credit used to purchase green tobacco at higher prices, as well as the impact of the 10% Notes due August 24, 2024 being classified as current.

Inventories

The following summarizes inventory committed to a customer and uncommitted inventory balances for processed tobacco:


(in millions)	June 30, 2024		June 30, 2023		March 31, 2024
Committed	$	590.8	$	630.8	$	570.4
Uncommitted	14.7		12.0		14.9
Total processed tobacco	$	605.5	$	642.8	$	585.3

Total processed tobacco decreased from June 30, 2023 to June 30, 2024 by $37.3 million, or 5.8%, primarily due to accelerated timing of shipments from North America and smaller crop sizes from certain markets in Africa. Uncommitted levels of processed tobacco continue to remain low as undersupply conditions persist in the global tobacco market. See "Note 7. Inventories, Net" to the "Notes to Condensed Consolidated Financial Statements" for additional information.

Sources and Uses of Cash

We typically finance our non-U.S. tobacco operations with uncommitted short-term foreign seasonal lines of credit, normally extending for a term of 180 to 365 days, corresponding to the tobacco crop cycle in that market. These short-term foreign seasonal lines of credit are typically uncommitted and provide lenders the right to cease making loans and demand repayment of loans. These short-term foreign seasonal lines of credit are generally renewed at the outset of each tobacco season. We maintain

various other financing arrangements to meet the cash requirements of our businesses. See "Note 11. Debt Arrangements" to the "Notes to Condensed Consolidated Financial Statements" for additional information.

We utilize capital in excess of cash flow from operations to finance accounts receivable, inventory, and advances to tobacco suppliers in foreign countries. In addition, we may periodically elect to purchase, redeem, repay, retire, or cancel indebtedness prior to stated maturity under our various foreign credit lines.

As of June 30, 2024, our cash, cash equivalents, and restricted cash was $89.1 million of which approximately $63.4 million was held in non-U.S. jurisdictions, which $44.6 million was subject to exchange controls and tax consequences that could limit our ability to fully repatriate these funds. Fluctuation of the U.S. dollar versus many of the currencies in which we have costs may have an impact on our working capital requirements. We will continue to monitor and hedge foreign currency costs, as needed.

The following summarizes the sources and uses of our cash flows:


	Three Months Ended
	June 30,
(in millions)	2024		2023
Net income	$	5.0	$	0.8
Trade and other receivables	(72.4)		(33.1)
Inventories and advances to tobacco suppliers	(108.0)		(245.9)
Payables and accrued expenses	(64.8)		(32.5)
Advances from customers	(18.6)		18.8
Other	6.6		6.2
Net cash used in operating activities	$	(252.2)	$	(285.7)
Collections from beneficial interests in securitized trade receivables	31.7		30.4
Other	(3.8)		(3.4)
Net cash provided by investing activities	$	27.9	$	27.0
Net proceeds from short-term borrowings	182.0		205.9
Repayment of long-term borrowings	(9.1)		—
Net proceeds of revolving loan facilities	44.0		25.0
Other	(2.6)		(3.5)
Net cash provided by financing activities	$	214.3	$	227.4
Effect of exchange rate changes on cash	(0.8)		(2.2)
Decrease in cash, cash equivalents, and restricted cash*	$	(10.7)	$	(33.4)



* Amounts may not equal column totals due to rounding

The change in cash, cash equivalents, and restricted cash for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 increased by $22.7 million. This increase was mainly driven by the change in inventory, primarily the timing of purchases in Africa and South America compared to the prior year, partially offset by accelerated timing of shipments in North America.

Planned Capital Expenditures

Capital investments in our leaf operations were primarily for routine replacement of machinery and equipment, as well as investments in assets that will add value for our customers and increase our efficiency. We incurred approximately $5.1 million in capital expenditures for the three months ended June 30, 2024, and are expecting to incur an additional $25.2 million for the remainder of the fiscal year ending March 31, 2025, which includes expenditures expected to be funded through government assistance.

Pension and Postretirement Health and Life Insurance Benefits

The following summarizes cash contributions to pension and postretirement health and life insurance benefits:


	Three Months Ended
	June 30,
(in millions)	2024
Contributions made during the period	$	1.3
Contributions expected for the remainder of the fiscal year	3.6
Total	$	4.9

No cash dividends on shares of common stock of Pyxus International, Inc. were paid to shareholders during the three months ended June 30, 2024. As of June 30, 2024, the payment of such dividends is restricted under the terms of our debt agreements.

Critical Accounting Policies and Estimates

As of the date of this report, there are no material changes to the critical accounting policies and estimates previously disclosed in Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no significant changes to our market risk exposures since March 31, 2024. For a discussion of our exposure to market risk, see Part II, Item 7A "Quantitative and Qualitative Disclosures About Market Risk" contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) designed to provide reasonable assurance that the information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that this information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. Due to inherent limitations, our disclosure controls and procedures, however well designed and operated, can provide only reasonable assurance (not absolute) that the objectives of the disclosure controls and procedures are met.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as required by Rule 13a-15(b) of the Exchange Act), as of June 30, 2024. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) were effective to provide reasonable assurance as of June 30, 2024.

Changes in Internal Control over Financial Reporting

As required by Rule 13a-15(d) under the Exchange Act, our management, including our Chief Executive Officer and Chief Financial Officer, have evaluated our internal control over financial reporting to determine whether any changes occurred during the quarter covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

There were no changes that occurred during the three months ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II. Other Information

Item 1. Legal Proceedings

See "Note 16. Contingencies and Other Information" to the "Notes to Condensed Consolidated Financial Statements" for additional information with respect to legal proceedings, which are incorporated by reference herein.

Item 1A. Risk Factors

In addition to the other information set forth in this report and in our other filings with the Securities and Exchange Commission, investors should carefully consider our risk factors, which could materially affect our business, financial condition, or operating results. As of the date of this report, there are no material changes or updates to the risk factors previously disclosed in Part I, Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

Item 5. Other Information

During the three months ended June 30, 2024, none of the Company's directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" (as such terms are defined in Item 408 of Regulation S-K).

Item 6. Exhibits


10.01						Form of Restricted Stock Unit Award Agreement (2024), incorporated by reference to Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on May 14, 2024 (File No. 000-25734)
10.02						Form of Performance-based Stock Unit Award Agreement (2024), incorporated by reference to Exhibit 10.2 to the registrant's Current Report on Form 8-K filed on May 14, 2024 (File No. 000-25734)
10.03						Pyxus International, Inc. Executive Severance Plan, incorporated by reference to Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on June 14, 2024 (File No. 000-25734)
31.01						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.02						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32						Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (filed herewith)
101.SCH						Inline XBRL Taxonomy Extension Schema (filed herewith)
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase (filed herewith)
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase (filed herewith)
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase (filed herewith)
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase (filed herewith)
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)



SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


						Pyxus International, Inc.



Date: August 7, 2024						/s/ Philip C. Garofolo
						Philip C. Garofolo
						Senior Vice President Finance and Chief Accounting Officer
						(Principal Accounting Officer)

Exhibit 31.01

CERTIFICATION

I, J. Pieter Sikkel, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Pyxus International, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


/s/ J. Pieter Sikkel
J. Pieter Sikkel President and Chief Executive Officer
August 7, 2024

Exhibit 31.02

CERTIFICATION

I, Flavia B. Landsberg, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Pyxus International, Inc.;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


/s/ Flavia B. Landsberg
Flavia B. Landsberg Executive Vice President and Chief Financial Officer
August 7, 2024

Exhibit 32

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

In connection with the Quarterly Report on Form 10-Q of Pyxus International, Inc. (the "Company") for the period ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned officers hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), to their knowledge, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 7, 2024


/s/ J. Pieter Sikkel
J. Pieter Sikkel President and Chief Executive Officer

/s/ Flavia B. Landsberg
Flavia B. Landsberg Executive Vice President and Chief Financial Officer

Cover - shares	3 Months Ended
Cover - shares	Jun. 30, 2024	Jul. 31, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	000-25734
Entity Registrant Name	Pyxus International, Inc.
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	85-2386250
Entity Address, Address Line One	6001 Hospitality Court, Suite 100
Entity Address, City or Town	Morrisville,
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	27560
City Area Code	919
Local Phone Number	379-4300
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Emerging Growth Company	false
Entity Shell Company	false
Entity Bankruptcy Proceedings, Reporting Current	true
Entity Common Stock, Shares Outstanding		24,999,947
Entity Central Index Key	0000939930
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Amendment Flag	false
Current Fiscal Year End Date	--03-31

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Sales and other operating revenues	$ 634,855	$ 477,092
Cost of goods and services sold	551,003	403,947
Gross profit	83,852	73,145
Selling, general, and administrative expenses	40,662	34,063
Other expense, net	2,630	2,624
Restructuring and asset impairment charges	103	40
Operating income	40,457	36,418
Gain on debt retirement	1,323	0
Interest expense, net	33,272	30,844
Income before income taxes and other items	8,508	5,574
Income tax expense	6,119	2,646
(Income) loss from unconsolidated affiliates, net	(2,563)	2,158
Net income	4,952	770
Net income (loss) attributable to noncontrolling interests	310	(34)
Net income attributable to Pyxus International, Inc.	$ 4,642	$ 804
Earnings per share:
Basic (in USD per share)	$ 0.18	$ 0.03
Diluted (in USD per share)	$ 0.18	$ 0.03
Weighted average number of shares outstanding:
Basic (in shares)	25,461	25,000
Diluted (in shares)	25,461	25,000

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 4,952	$ 770
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment	543	707
Cash flow hedges	(2,237)	862
Total other comprehensive (loss) income, net of tax	(1,694)	1,569
Total comprehensive income	3,258	2,339
Comprehensive income (loss) attributable to noncontrolling interests	310	(34)
Comprehensive income attributable to Pyxus International, Inc.	$ 2,948	$ 2,373

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Current assets
Cash and cash equivalents	$ 82,042	$ 92,569	$ 100,045
Restricted cash	7,061	7,224	5,456
Trade receivables, net	209,053	168,764	185,467
Other receivables	17,042	18,704	18,978
Inventories, net	1,014,527	931,654	1,006,437
Advances to tobacco suppliers, net	43,863	20,397	56,408
Recoverable income taxes	4,070	4,455	5,867
Prepaid expenses	47,270	50,185	42,132
Other current assets	17,219	16,254	15,500
Total current assets	1,442,147	1,310,206	1,436,290
Investments in unconsolidated affiliates	103,818	101,255	98,591
Intangible assets, net	32,728	33,879	37,412
Deferred income taxes, net	8,947	7,196	8,879
Long-term recoverable income taxes	3,985	2,963	3,373
Other noncurrent assets	33,097	32,617	45,845
Right-of-use assets	33,521	35,639	40,280
Property, plant, and equipment, net	134,468	134,158	132,324
Total assets	1,792,711	1,657,913	1,802,994
Current liabilities
Notes payable	679,399	499,312	585,408
Accounts payable	115,312	181,247	133,854
Advances from customers	70,985	90,719	61,297
Accrued expenses and other current liabilities	99,052	96,954	94,356
Income taxes payable	8,706	8,539	20,081
Operating leases payable	7,822	8,100	9,249
Current portion of long-term debt	20,445	20,294	42
Total current liabilities	1,001,721	905,165	904,287
Long-term taxes payable	5,373	2,678	4,978
Long-term debt	531,461	497,734	643,808
Deferred income taxes	6,571	7,934	10,336
Liability for unrecognized tax benefits	19,257	17,742	13,494
Long-term leases	22,456	26,136	28,219
Pension, postretirement, and other long-term liabilities	52,760	53,701	53,703
Total liabilities	1,639,599	1,511,090	1,658,825
Commitments and contingencies
Common Stock
Common Stock—no par value: Authorized shares (250,000 for all periods) Issued shares (250,000 for all periods)	392,820	389,789	390,290
Retained deficit	(250,649)	(255,291)	(257,150)
Accumulated other comprehensive income	6,092	7,786	7,084
Total stockholders’ equity of Pyxus International, Inc.	148,263	142,284	140,224
Noncontrolling interests	4,849	4,539	3,945
Total stockholders’ equity	153,112	146,823	144,169
Total liabilities and stockholders’ equity	$ 1,792,711	$ 1,657,913	$ 1,802,994

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Statement of Financial Position [Abstract]
Common stock, no par value (in USD per share)	$ 0	$ 0	$ 0
Common stock, shares authorized (in shares)	250,000,000	250,000,000	250,000,000
Common stock, shares, issued (in shares)	25,000,000	25,000,000	25,000,000
Common stock, shares, outstanding (in shares)	25,000,000	25,000,000	25,000,000

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Retained Deficit	Currency Translation Adjustment	Pensions, Net of Tax	Derivatives, Net of Tax	Noncontrolling Interests
Balance at beginning of period at Mar. 31, 2023	$ 141,830	$ 390,290	$ (257,954)	$ (6,392)	$ 8,335	$ 3,572	$ 3,979
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	770		804				(34)
Other comprehensive (loss) income, net of tax	1,569			707		862
Balance at end of period at Jun. 30, 2023	144,169	390,290	(257,150)	(5,685)	8,335	4,434	3,945
Balance at beginning of period at Mar. 31, 2024	146,823	389,789	(255,291)	(5,692)	12,766	712	4,539
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	4,952		4,642				310
Equity-based compensation	3,031	3,031
Other comprehensive (loss) income, net of tax	(1,694)			543		(2,237)
Balance at end of period at Jun. 30, 2024	$ 153,112	$ 392,820	$ (250,649)	$ (5,149)	$ 12,766	$ (1,525)	$ 4,849

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating Activities:
Net income	$ 4,952	$ 770
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	5,127	4,606
Debt amortization/interest	2,828	2,682
Gain on debt retirement	(1,323)	0
Loss on foreign currency transactions	978	1,926
Equity-based compensation	3,031	0
(Income) loss from unconsolidated affiliates, net of dividends	(2,563)	2,158
Changes in operating assets and liabilities, net
Trade and other receivables	(72,392)	(33,122)
Inventories and advances to tobacco suppliers	(108,015)	(245,854)
Deferred items	(899)	(1,043)
Recoverable income taxes	(622)	(352)
Payables and accrued expenses	(64,786)	(32,509)
Advances from customers	(18,550)	18,802
Prepaid expenses	3,883	(2,653)
Income taxes	326	1,924
Other operating assets and liabilities	(175)	1,474
Other, net	(3,976)	(4,483)
Net cash used in operating activities	(252,176)	(285,674)
Investing Activities:
Purchases of property, plant, and equipment	(5,097)	(3,661)
Collections from beneficial interests in securitized trade receivables	31,741	30,419
Other, net	1,304	283
Net cash provided by investing activities	27,948	27,041
Financing Activities:
Net proceeds from short-term borrowings	182,001	205,879
Proceeds from revolving loan facilities	130,000	65,000
Repayment of revolving loan facilities	(86,000)	(40,000)
Debt issuance costs	(2,662)	(3,462)
Repayment of long-term borrowings	(9,104)	0
Other, net	64	(34)
Net cash provided by financing activities	214,299	227,383
Effect of exchange rate changes on cash	(761)	(2,158)
Decrease in cash, cash equivalents, and restricted cash	(10,690)	(33,408)
Cash and cash equivalents at beginning of period	92,569	136,733
Restricted cash at beginning of period	7,224	2,176
Cash, cash equivalents, and restricted cash at end of period	89,103	105,501
Other information:
Cash paid for income taxes, net	2,679	2,542
Cash paid for interest, net	30,833	25,693
Noncash investing activities:
Noncash amounts obtained as a beneficial interest in exchange for transferring trade receivables in a securitization transaction	$ 60,491	$ 36,271

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements represent the consolidation of Pyxus International, Inc. (the "Company", "Pyxus", "we", or "us") and all companies that Pyxus directly or indirectly controls, either through majority ownership or otherwise. These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, the normal and recurring adjustments necessary for fair statement of financial position, results of operations, and cash flows at the dates and for the periods presented have been included. Intercompany accounts and transactions have been eliminated. These condensed consolidated interim financial statements should be read in conjunction with the Company's consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024 filed on June 6, 2024. Due to the seasonal nature of the Company’s business, the results of operations for a fiscal quarter are not necessarily indicative of the operating results that may be attained for other quarters or a full fiscal year.

New Accounting Standards	3 Months Ended
New Accounting Standards	Jun. 30, 2024
Accounting Policies [Abstract]
New Accounting Standards	New Accounting Standards Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This ASU amends FASB Topic 280 to permit the disclosure of multiple measures of a segment's profit or loss, and requires an entity with a single reportable segment to apply FASB Topic 280 in its entirety. In addition, this ASU requires the following new segment disclosures: •Significant segment expenses by reportable segment if regularly provided to the Chief Operating Decision Maker ("CODM") and included within the reported measure of segment profit or loss; •Other segment items, which represents the difference between reported segment revenues less the significant segment expenses less reported segment profit or loss; and •Title and position of the CODM. Disclosures required under this new ASU and the existing segment profit or loss and assets disclosures currently required annually by FASB Topic 280 are to be disclosed in interim periods. The annual disclosure requirements are effective for the Company's fiscal year ending March 31, 2025, and the interim period disclosure requirements are effective beginning April 1, 2025. Early adoption is permitted. This new rule will result in additional disclosures for segment reporting, and does not have an impact on the Company's financial condition, results of operations, or cash flows. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures, to provide more disaggregation of income tax information mainly related to the effective tax rate reconciliation and the income taxes paid disclosure requirements. Under the new accounting rules, the tabular effective tax rate reconciliation must include specific categories with certain reconciling items based on the expected tax further disaggregated by nature and/or jurisdiction. Income taxes paid, net of refunds received, must be broken out by federal, state, and foreign taxes, and further disaggregated by individual jurisdictions based on total income taxes paid. These new annual disclosure requirements are effective for the Company's fiscal year ending March 31, 2026. Early adoption is permitted. The Company is currently evaluating the impact that this new accounting standard will have on its income tax disclosures.

Revenue Recognition

3 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition


	Three Months Ended
	June 30,
	2024		2023
Leaf:
Product revenue	$	589,217	$	450,938
Processing and other revenues	41,746		25,495
Total sales and other operating revenues	630,963		476,433
All Other:
Total sales and other operating revenues	3,892		659
Total sales and other operating revenues	$	634,855	$	477,092

The following summarizes activity in the allowance for expected credit losses:


	Three Months Ended
	June 30,
	2024		2023
Balance, beginning of period	$	(23,940)	$	(24,730)
Additions	(401)		(320)
Write-offs and other adjustments	306		610
Balance, end of period	(24,035)		(24,440)
Trade receivables	233,088		209,907
Trade receivables, net	$	209,053	$	185,467

Income Taxes	3 Months Ended
Income Taxes	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For each period presented, the Company's quarterly provision for income taxes is not calculated using the annual effective tax rate method ("AETR method"), which applies an estimated annual effective tax rate to pre-tax income or loss. As of the end of the current period, market specific factors coupled with tax rate sensitivity caused the AETR method to produce an unreliable estimate of the Company’s annual effective tax rate; therefore, the Company recorded its interim income tax provision using the discrete method, as allowed under FASB ASC 740-270, Income Taxes - Interim Reporting. Using the discrete method, the Company determined income tax expense as if each of the three-month interim periods reported were an annual period. The effective tax rate for the three months ended June 30, 2024 and 2023 was 71.9% and 47.5%, respectively. For the three months ended June 30, 2024, the difference between the Company’s effective rate and the U.S. statutory rate of 21.0% is primarily due to U.S. taxation of foreign earnings partially offset by foreign tax credits and additional unrecognized tax benefits reserves.

Earnings Per Share

3 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

The following summarizes the computation of earnings per share:


	Three Months Ended
	June 30,
	2024		2023
Net income attributable to Pyxus International, Inc.	$	4,642	$	804

Basic weighted average shares outstanding (1)	25,461		25,000
Plus: Dilutive equity awards (2)	—		—
Diluted weighted average shares outstanding	25,461		25,000

Earnings per share:
Basic	$	0.18	$	0.03
Diluted	$	0.18	$	0.03

(1) For the three months ended June 30, 2024, the basic weighted average shares outstanding are adjusted to include 461 weighted average shares outstanding, representing the underlying shares associated with the time-vesting restricted stock units granted prior to May 10, 2024 that were modified on such date to remove the market condition. Refer to "Note 17. Equity-Based Compensation" for additional information.
(2) For the three months ended June 30, 2024, the weighted average number of outstanding restricted stock units not included in the computation of diluted earnings per share because their effect would be antidilutive is 17.

Restricted Cash

3 Months Ended

Jun. 30, 2024

Cash and Cash Equivalents [Abstract]

Restricted Cash

The following summarizes the composition of restricted cash:



	June 30, 2024		June 30, 2023		March 31, 2024
Compensating balance for short-term borrowings	$	542	$	439	$	516

Escrow	3,209		2,344		2,647
Grants	1,158		696		1,375
Other	2,152		$	1,977	$	2,686
Total	$	7,061	$	5,456	$	7,224

Inventories, Net

3 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Inventories, Net

The following summarizes the composition of inventories, net:


	June 30, 2024		June 30, 2023		March 31, 2024
Processed tobacco	$	605,535	$	642,745	$	585,280
Unprocessed tobacco	375,102		320,470		305,928
Other tobacco related	28,083		34,127		31,213
All Other	5,807		9,095		9,233
Total	$	1,014,527	$	1,006,437	$	931,654

Equity Method Investments

3 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The following summarizes the Company's equity method investments as of June 30, 2024:

Investee Name

Location

Primary Purpose

Ownership Percentage

Basis Difference(1)

Adams International Ltd.

Thailand

Purchase and process tobacco

49%

(4,526)

Alliance One Industries India Private Ltd.

India

Purchase and process tobacco

49%

(5,770)

China Brasil Tabaco Exportadora SA

Brazil

Purchase and process tobacco

49%

43,000

Oryantal Tütün Paketleme Sanayi ve Ticaret A.Ş.

Turkey

Process tobacco

50%

(416)

Purilum, LLC

U.S.

Produce flavor formulations and consumable e-liquids

50%

4,589

Siam Tobacco Export Company

Thailand

Purchase and process tobacco

49%

(6,098)

(1) Basis differences for the Company's equity method investments were due to fair value adjustments recorded during fiscal 2021.

The following summarizes financial information for these equity method investments:


	Three Months Ended
	June 30,
	2024		2023
Statement of operations:
Sales	$	56,771	$	44,831
Gross profit	7,187		7,185
Net income (loss)	5,239		(3,854)


	June 30, 2024		June 30, 2023		March 31, 2024
Balance sheet:
Current assets	$	533,214	$	456,755	$	542,702
Property, plant, and equipment and other assets	57,453		48,498		50,925
Current liabilities	438,293		366,806		446,597
Long-term obligations and other liabilities	3,468		2,685		3,356

Variable Interest Entities

3 Months Ended

Jun. 30, 2024

Variable Interest Entities [Abstract]

Variable Interest Entities



	June 30, 2024		June 30, 2023		March 31, 2024
Investments in variable interest entities	$	96,903	$	91,587	$	94,609
Receivables with variable interest entities	3,980		4,767		—
Guaranteed amounts to variable interest entities (not to exceed)	16,392		61,041		11,113

Intangible Assets, Net

3 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

The gross carrying amount and accumulated amortization of intangible assets consist of the following:


	June 30, 2024
	Weighted Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Intangibles subject to amortization:
Customer relationships	8.2 years	$	26,101	$	(8,338)	$	17,763
Technology	4.2 years	12,948		(6,189)		6,759
Trade names	10.2 years	11,300		(3,094)		8,206
Total		$	50,349	$	(17,621)	$	32,728


	June 30, 2023
	Weighted Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Intangibles subject to amortization:
Customer relationships	9.2 years	$	26,101	$	(6,163)	$	19,938
Technology	5.0 years	13,132		(4,671)		8,461
Trade names	11.2 years	11,300		(2,287)		9,013
Total		$	50,533	$	(13,121)	$	37,412


	March 31, 2024
	Weighted Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Intangibles subject to amortization:
Customer relationships	8.4 years	$	26,101	$	(7,794)	$	18,307
Technology	4.4 years	12,948		(5,784)		7,164
Trade names	10.4 years	11,300		(2,892)		8,408
Total		$	50,349	$	(16,470)	$	33,879

The following summarizes amortization expense for definite-lived intangible assets:


	Three Months Ended
	June 30,
	2024		2023
Amortization expense	$	1,151	$	1,160

Debt Arrangements

3 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Debt Arrangements

The following summarizes debt and notes payable:



(in thousands)	Interest Rate			June 30, 2024		June 30, 2023		March 31, 2024
Senior secured credit facilities:
ABL Credit Facility	8.6	%	(1)	$	44,000	$	50,000	$	—

Senior secured notes:
10.0% Notes Due 2024 (2)	10.0	%	(1)	20,328		20,004		20,247
8.5% Notes Due 2027 (3)	8.5	%	(1)	178,423		253,779		178,146

Senior secured term loans:
Intabex Term Loans (4)	13.6	%	(1)	186,770		186,307		186,659
Pyxus Term Loans (5)	13.6	%	(1)	122,268		133,284		132,819

Other Debt:
Other long-term debt	8.7	%	(1)	117		476		157
Notes payable (6)	9.8	%	(1)	679,399		585,408		499,312
Total debt				$	1,231,305	$	1,229,258	$	1,017,340

Short-term (6)				$	679,399	$	585,408	$	499,312
Long-term:
Current portion of long-term debt				$	20,445	$	42	$	20,294
Long-term debt				531,461		643,808		497,734
Total				$	551,906	$	643,850	$	518,028

Letters of credit				$	7,669	$	6,018	$	5,070

(1) Weighted average rate for the trailing twelve months ended June 30, 2024 or, for indebtedness outstanding only during a portion of such twelve-month period, for the portion of such period that such indebtedness was outstanding.
(2) The 10.0% Notes due 2024 outstanding of $20,328 is net of a debt discount of $63. Total repayment at maturity is $20,391.
(3) Balance of $178,423 is net of a debt discount of $4,107. Total repayment at maturity is $182,530.
(4) Balance of $186,770 is net of a debt discount of $2,263. Total repayment at maturity is $189,033, which includes a $2,000 exit fee payable upon repayment.
(5) Balance of $122,268 is net of a debt premium of $2,063. Total repayment at maturity is $120,205.
(6) Primarily foreign seasonal lines of credit.

Outstanding Senior Secured Debt

ABL Credit Facility

Intabex Term Loans

Pyxus Term Loans

8.50% Senior Secured Notes due 2027

Related Party Transactions

On May 31, 2024, Pyxus Holdings completed the purchase of $10,345 of aggregate principal amount of the Pyxus Term Loans for a total of $9,435 (including accrued and unpaid interest).

Other Outstanding Debt

2024 Notes

Foreign Seasonal Lines of Credit

Securitized Receivables

3 Months Ended

Jun. 30, 2024

Transfers and Servicing [Abstract]

Securitized Receivables

The Company sells trade receivables to unaffiliated financial institutions under various accounts receivable securitization facilities, two of which are subject to annual renewal.


	June 30, 2024		June 30, 2023		March 31, 2024

Receivables outstanding in facility	$	260,973	$	132,313	$	170,267
Beneficial interests	25,640		19,641		15,036


	Three Months Ended
	June 30,
	2024		2023
Cash proceeds:
Cash purchase price	$	243,109	$	172,943
Deferred purchase price	31,741		30,419

Guarantees

3 Months Ended

Jun. 30, 2024

Guarantees [Abstract]

Guarantees



	June 30, 2024		June 30, 2023		March 31, 2024
Amounts guaranteed (not to exceed)	$	79,192	$	138,523	$	97,411
Amounts outstanding under guarantee (1)	41,581		43,563		71,427
Fair value of guarantees	2,611		5,764		5,097
Amounts due to local banks on behalf of suppliers for government subsidized rural credit financing	526		459		34,571
(1) Most of the guarantees outstanding at June 30, 2024 expire within one year.

Derivative Financial Instruments

3 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

The following summarizes the U.S. Dollar notional amount of derivative contracts outstanding:


	June 30, 2024		June 30, 2023		March 31, 2024


U.S. Dollar notional outstanding	$	23,300	$	4,378	$	—

Fair Value Measurements

3 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following summarizes the financial assets and liabilities measured at fair value on a recurring basis:



	June 30, 2024						June 30, 2023						March 31, 2024
	Level 2		Level 3		Total at Fair Value		Level 2		Level 3		Total at Fair Value		Level 2		Level 3		Total at Fair Value
Financial Assets:

Securitized beneficial interests	$	—	$	25,640	$	25,640	$	—	$	19,641	$	19,641	$	—	$	15,036	$	15,036
Total assets	$	—	$	25,640	$	25,640	$	—	$	19,641	$	19,641	$	—	$	15,036	$	15,036
Financial Liabilities:
Derivative financial instruments	$	1,834	$	—	$	1,834	$	11	$	—	$	11	$	—	$	—	$	—
Long-term debt(1)	455,789		160		455,949		492,098		509		492,607		462,987		160		463,147
Guarantees	—		2,611		2,611		—		5,764		5,764		—		5,097		5,097
Total liabilities	$	457,623	$	2,771	$	460,394	$	492,109	$	6,273	$	498,382	$	462,987	$	5,257	$	468,244
(1) This fair value measurement disclosure does not affect the condensed consolidated balance sheets.

The following summarizes the reconciliation of changes in Level 3 instruments measured on a recurring basis:


	Securitized Beneficial Interests		Long-Term Debt		Guarantees
Beginning balance at March 31, 2024	$	15,036	$	160	$	5,097
Issuances of sales of receivables/guarantees	61,029		—		938
Settlements	(45,233)		—		(715)

Losses recognized in earnings	(5,192)		—		(2,709)
Ending balance at June 30, 2024	$	25,640	$	160	$	2,611


	Securitized Beneficial Interests		Long-Term Debt		Guarantees
Beginning balance at March 31, 2023	$	19,522	$	514	$	5,262
Issuances of sales of receivables/guarantees	36,640		—		1,054
Settlements	(33,183)		(5)		(555)

Losses recognized in earnings	(3,338)		—		3
Ending balance at June 30, 2023	$	19,641	$	509	$	5,764

Contingencies and Other Information	3 Months Ended
Contingencies and Other Information	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Other Information	Contingencies and Other Information Brazilian Tax Credits The government in the Brazilian State of Parana ("Parana") issued a tax assessment on October 26, 2007 with respect to local intrastate trade tax credits that result primarily from tobacco transferred between states within Brazil. At June 30, 2024, the assessment for intrastate trade tax credits taken is $2,375 and the total assessment including penalties and interest is $9,796. On March 18, 2014, the government in Brazilian State of Santa Catarina also issued a tax assessment with respect to local intrastate trade tax credits that result primarily from tobacco transferred between states within Brazil. At June 30, 2024, the assessment for intrastate trade tax credits taken is $2,050 and the total assessment including penalties and interest is $6,201. The Company believes it has properly complied with Brazilian law and will contest any assessment through the judicial process. Should the Company lose in the judicial process, the loss of the intrastate trade tax credits would have a material impact on the financial statements of the Company. The Company also has local intrastate trade tax credits in the Brazil State of Rio Grande do Sul. This jurisdiction permits the sale or transfer of excess credits to third parties, however approval must be obtained from the tax authorities. The Company has an agreement with the state government regarding the amounts and timing of credits that can be sold. The tax credits have a carrying value of $20,377 as of June 30, 2024. The intrastate trade tax credits are monitored for impairment in future periods based on market conditions and the Company’s ability to use or sell the tax credits. Other Matters In addition to the above-mentioned matters, the Company or certain of its subsidiaries are involved in other litigation or legal matters incidental to their business activities, including tax matters. While the outcome of these matters cannot be predicted with certainty, they are being vigorously defended and the Company does not currently expect that any of them will have a material adverse effect on its business or financial position. However, should one or more of these matters be resolved in a manner adverse to its current expectation, the effect on the Company’s results of operations for a particular fiscal reporting period could be material.

Equity-Based Compensation

3 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Equity-Based Compensation

The following summarizes the Company's equity awards granted:


	Three Months Ended
	June 30,
(in thousands, except grant date fair value)	2024		2023
Restricted stock units
Number granted	768		—
Grant date fair value	$	3.50	$	—
Performance-based stock units
Number granted (at target performance level)	576		—
Grant date fair value	$	4.36	$	—

Related Party Transactions

3 Months Ended

Jun. 30, 2024

Related Party Transactions


	Three Months Ended
	June 30,
	2024		2023
Sales	$	10,575	$	10,817
Purchases	34,886		38,789

The Company included the following related party balances in its condensed consolidated balance sheets:


	June 30, 2024		June 30, 2023		March 31, 2024		Location in Condensed Consolidated Balance Sheet
Accounts receivable, related parties	$	4,080	$	5,090	$	50	Other receivables


Accounts payable, related parties	12,041		19,776		35,396		Accounts payable
Advances from related parties	1,247		10,061		12,533		Advances from customers

Transactions with Significant Shareholders

•On May 31, 2024, the Company paid a total of $9,435, which included $332 of accrued and unpaid interest, to retire $10,345 of aggregate principal amount of the Pyxus Term Loans.

Segment Information

3 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Information


	Three Months Ended
	June 30,
	2024		2023
Sales and other operating revenues:
Leaf	$	630,963	$	476,433
All Other	3,892		659
Consolidated sales and other operating revenues	$	634,855	$	477,092

Segment operating income (loss):
Leaf	$	42,482	$	37,929
All Other	(1,922)		(1,471)
Segment operating income	40,560		36,458

Restructuring and asset impairment charges	103		40

Consolidated operating income	$	40,457	$	36,418



	June 30, 2024		June 30, 2023		March 31, 2024
Segment assets:
Leaf	$	1,752,886	$	1,761,971	$	1,616,486
All Other	39,825		41,023		41,427
Total assets	$	1,792,711	$	1,802,994	$	1,657,913

Subsequent Events	3 Months Ended
Subsequent Events	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Debt Repurchase On August 2, 2024, pursuant to the Debt Repurchase Agreement with funds affiliated with the Monarch Investor, Pyxus paid a total of $26,707, which includes $379 for accrued and unpaid interest through the date prior to payment, to retire $34,191 of aggregate principal amount of the 2027 Notes.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income attributable to Pyxus International, Inc.	$ 4,642	$ 804

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	The accompanying condensed consolidated financial statements represent the consolidation of Pyxus International, Inc. (the "Company", "Pyxus", "we", or "us") and all companies that Pyxus directly or indirectly controls, either through majority ownership or otherwise. These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, the normal and recurring adjustments necessary for fair statement of financial position, results of operations, and cash flows at the dates and for the periods presented have been included. Intercompany accounts and transactions have been eliminated. These condensed consolidated interim financial statements should be read in conjunction with the Company's consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024 filed on June 6, 2024. Due to the seasonal nature of the Company’s business, the results of operations for a fiscal quarter are not necessarily indicative of the operating results that may be attained for other quarters or a full fiscal year.
Accounting Pronouncements Not Yet Adopted	Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This ASU amends FASB Topic 280 to permit the disclosure of multiple measures of a segment's profit or loss, and requires an entity with a single reportable segment to apply FASB Topic 280 in its entirety. In addition, this ASU requires the following new segment disclosures: •Significant segment expenses by reportable segment if regularly provided to the Chief Operating Decision Maker ("CODM") and included within the reported measure of segment profit or loss; •Other segment items, which represents the difference between reported segment revenues less the significant segment expenses less reported segment profit or loss; and •Title and position of the CODM. Disclosures required under this new ASU and the existing segment profit or loss and assets disclosures currently required annually by FASB Topic 280 are to be disclosed in interim periods. The annual disclosure requirements are effective for the Company's fiscal year ending March 31, 2025, and the interim period disclosure requirements are effective beginning April 1, 2025. Early adoption is permitted. This new rule will result in additional disclosures for segment reporting, and does not have an impact on the Company's financial condition, results of operations, or cash flows. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures, to provide more disaggregation of income tax information mainly related to the effective tax rate reconciliation and the income taxes paid disclosure requirements. Under the new accounting rules, the tabular effective tax rate reconciliation must include specific categories with certain reconciling items based on the expected tax further disaggregated by nature and/or jurisdiction. Income taxes paid, net of refunds received, must be broken out by federal, state, and foreign taxes, and further disaggregated by individual jurisdictions based on total income taxes paid. These new annual disclosure requirements are effective for the Company's fiscal year ending March 31, 2026. Early adoption is permitted. The Company is currently evaluating the impact that this new accounting standard will have on its income tax disclosures.

Revenue Recognition (Tables)

3 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Revenue Disaggregated by Major Source

The following disaggregates sales and other operating revenues by major source, with the All Other category being included for purposes of reconciliation of the respective balances below of the Leaf segment (the Company's sole reportable segment) to the condensed consolidated financial statements:


	Three Months Ended
	June 30,
	2024		2023
Leaf:
Product revenue	$	589,217	$	450,938
Processing and other revenues	41,746		25,495
Total sales and other operating revenues	630,963		476,433
All Other:
Total sales and other operating revenues	3,892		659
Total sales and other operating revenues	$	634,855	$	477,092

Schedule of Allowance for Doubtful Accounts and Activity of Claims Allowances

The following summarizes activity in the allowance for expected credit losses:


	Three Months Ended
	June 30,
	2024		2023
Balance, beginning of period	$	(23,940)	$	(24,730)
Additions	(401)		(320)
Write-offs and other adjustments	306		610
Balance, end of period	(24,035)		(24,440)
Trade receivables	233,088		209,907
Trade receivables, net	$	209,053	$	185,467

Earnings Per Share (Tables)

3 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings Per Share

The following summarizes the computation of earnings per share:


	Three Months Ended
	June 30,
	2024		2023
Net income attributable to Pyxus International, Inc.	$	4,642	$	804

Basic weighted average shares outstanding (1)	25,461		25,000
Plus: Dilutive equity awards (2)	—		—
Diluted weighted average shares outstanding	25,461		25,000

Earnings per share:
Basic	$	0.18	$	0.03
Diluted	$	0.18	$	0.03

(1) For the three months ended June 30, 2024, the basic weighted average shares outstanding are adjusted to include 461 weighted average shares outstanding, representing the underlying shares associated with the time-vesting restricted stock units granted prior to May 10, 2024 that were modified on such date to remove the market condition. Refer to "Note 17. Equity-Based Compensation" for additional information.
(2) For the three months ended June 30, 2024, the weighted average number of outstanding restricted stock units not included in the computation of diluted earnings per share because their effect would be antidilutive is 17.

Restricted Cash (Tables)

3 Months Ended

Jun. 30, 2024

Cash and Cash Equivalents [Abstract]

Schedule of Restricted Cash Balance

The following summarizes the composition of restricted cash:



	June 30, 2024		June 30, 2023		March 31, 2024
Compensating balance for short-term borrowings	$	542	$	439	$	516

Escrow	3,209		2,344		2,647
Grants	1,158		696		1,375
Other	2,152		$	1,977	$	2,686
Total	$	7,061	$	5,456	$	7,224

Inventories, Net (Tables)

3 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Inventories, Net

The following summarizes the composition of inventories, net:


	June 30, 2024		June 30, 2023		March 31, 2024
Processed tobacco	$	605,535	$	642,745	$	585,280
Unprocessed tobacco	375,102		320,470		305,928
Other tobacco related	28,083		34,127		31,213
All Other	5,807		9,095		9,233
Total	$	1,014,527	$	1,006,437	$	931,654

Equity Method Investments (Tables)

3 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Equity Method Investments

The following summarizes the Company's equity method investments as of June 30, 2024:

Investee Name

Location

Primary Purpose

Ownership Percentage

Basis Difference(1)

Adams International Ltd.

Thailand

Purchase and process tobacco

49%

(4,526)

Alliance One Industries India Private Ltd.

India

Purchase and process tobacco

49%

(5,770)

China Brasil Tabaco Exportadora SA

Brazil

Purchase and process tobacco

49%

43,000

Oryantal Tütün Paketleme Sanayi ve Ticaret A.Ş.

Turkey

Process tobacco

50%

(416)

Purilum, LLC

U.S.

Produce flavor formulations and consumable e-liquids

50%

4,589

Siam Tobacco Export Company

Thailand

Purchase and process tobacco

49%

(6,098)

(1) Basis differences for the Company's equity method investments were due to fair value adjustments recorded during fiscal 2021.

The following summarizes financial information for these equity method investments:


	Three Months Ended
	June 30,
	2024		2023
Statement of operations:
Sales	$	56,771	$	44,831
Gross profit	7,187		7,185
Net income (loss)	5,239		(3,854)


	June 30, 2024		June 30, 2023		March 31, 2024
Balance sheet:
Current assets	$	533,214	$	456,755	$	542,702
Property, plant, and equipment and other assets	57,453		48,498		50,925
Current liabilities	438,293		366,806		446,597
Long-term obligations and other liabilities	3,468		2,685		3,356

Variable Interest Entities (Tables)

3 Months Ended

Jun. 30, 2024

Variable Interest Entities [Abstract]

Schedule of Variable Interest Entities

The following summarizes the Company's financial relationships with its unconsolidated variable interest entities:



	June 30, 2024		June 30, 2023		March 31, 2024
Investments in variable interest entities	$	96,903	$	91,587	$	94,609
Receivables with variable interest entities	3,980		4,767		—
Guaranteed amounts to variable interest entities (not to exceed)	16,392		61,041		11,113

Intangible Assets, Net (Tables)

3 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill and Intangible Asset Rollforward

The gross carrying amount and accumulated amortization of intangible assets consist of the following:


	June 30, 2024
	Weighted Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Intangibles subject to amortization:
Customer relationships	8.2 years	$	26,101	$	(8,338)	$	17,763
Technology	4.2 years	12,948		(6,189)		6,759
Trade names	10.2 years	11,300		(3,094)		8,206
Total		$	50,349	$	(17,621)	$	32,728


	June 30, 2023
	Weighted Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Intangibles subject to amortization:
Customer relationships	9.2 years	$	26,101	$	(6,163)	$	19,938
Technology	5.0 years	13,132		(4,671)		8,461
Trade names	11.2 years	11,300		(2,287)		9,013
Total		$	50,533	$	(13,121)	$	37,412


	March 31, 2024
	Weighted Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Intangibles subject to amortization:
Customer relationships	8.4 years	$	26,101	$	(7,794)	$	18,307
Technology	4.4 years	12,948		(5,784)		7,164
Trade names	10.4 years	11,300		(2,892)		8,408
Total		$	50,349	$	(16,470)	$	33,879

Schedule of Amortization Expense for Definite-Lived Intangible Assets

The following summarizes amortization expense for definite-lived intangible assets:


	Three Months Ended
	June 30,
	2024		2023
Amortization expense	$	1,151	$	1,160

Debt Arrangements (Tables)

3 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Debt Financing

The following summarizes debt and notes payable:



(in thousands)	Interest Rate			June 30, 2024		June 30, 2023		March 31, 2024
Senior secured credit facilities:
ABL Credit Facility	8.6	%	(1)	$	44,000	$	50,000	$	—

Senior secured notes:
10.0% Notes Due 2024 (2)	10.0	%	(1)	20,328		20,004		20,247
8.5% Notes Due 2027 (3)	8.5	%	(1)	178,423		253,779		178,146

Senior secured term loans:
Intabex Term Loans (4)	13.6	%	(1)	186,770		186,307		186,659
Pyxus Term Loans (5)	13.6	%	(1)	122,268		133,284		132,819

Other Debt:
Other long-term debt	8.7	%	(1)	117		476		157
Notes payable (6)	9.8	%	(1)	679,399		585,408		499,312
Total debt				$	1,231,305	$	1,229,258	$	1,017,340

Short-term (6)				$	679,399	$	585,408	$	499,312
Long-term:
Current portion of long-term debt				$	20,445	$	42	$	20,294
Long-term debt				531,461		643,808		497,734
Total				$	551,906	$	643,850	$	518,028

Letters of credit				$	7,669	$	6,018	$	5,070

(1) Weighted average rate for the trailing twelve months ended June 30, 2024 or, for indebtedness outstanding only during a portion of such twelve-month period, for the portion of such period that such indebtedness was outstanding.
(2) The 10.0% Notes due 2024 outstanding of $20,328 is net of a debt discount of $63. Total repayment at maturity is $20,391.
(3) Balance of $178,423 is net of a debt discount of $4,107. Total repayment at maturity is $182,530.
(4) Balance of $186,770 is net of a debt discount of $2,263. Total repayment at maturity is $189,033, which includes a $2,000 exit fee payable upon repayment.
(5) Balance of $122,268 is net of a debt premium of $2,063. Total repayment at maturity is $120,205.
(6) Primarily foreign seasonal lines of credit.

Securitized Receivables (Tables)

3 Months Ended

Jun. 30, 2024

Transfers and Servicing [Abstract]

Schedule of Accounts Receivable Securitization Information


	June 30, 2024		June 30, 2023		March 31, 2024

Receivables outstanding in facility	$	260,973	$	132,313	$	170,267
Beneficial interests	25,640		19,641		15,036


	Three Months Ended
	June 30,
	2024		2023
Cash proceeds:
Cash purchase price	$	243,109	$	172,943
Deferred purchase price	31,741		30,419

Guarantees (Tables)

3 Months Ended

Jun. 30, 2024

Guarantees [Abstract]

Schedule of Guarantees and Associated Fair Values

The following summarizes amounts guaranteed and the fair value of those guarantees:



	June 30, 2024		June 30, 2023		March 31, 2024
Amounts guaranteed (not to exceed)	$	79,192	$	138,523	$	97,411
Amounts outstanding under guarantee (1)	41,581		43,563		71,427
Fair value of guarantees	2,611		5,764		5,097
Amounts due to local banks on behalf of suppliers for government subsidized rural credit financing	526		459		34,571
(1) Most of the guarantees outstanding at June 30, 2024 expire within one year.

Derivative Financial Instruments (Tables)

3 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following summarizes the U.S. Dollar notional amount of derivative contracts outstanding:


	June 30, 2024		June 30, 2023		March 31, 2024


U.S. Dollar notional outstanding	$	23,300	$	4,378	$	—

Fair Value Measurements (Tables)

3 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Recurring Fair Value Measurements

The following summarizes the financial assets and liabilities measured at fair value on a recurring basis:



	June 30, 2024						June 30, 2023						March 31, 2024
	Level 2		Level 3		Total at Fair Value		Level 2		Level 3		Total at Fair Value		Level 2		Level 3		Total at Fair Value
Financial Assets:

Securitized beneficial interests	$	—	$	25,640	$	25,640	$	—	$	19,641	$	19,641	$	—	$	15,036	$	15,036
Total assets	$	—	$	25,640	$	25,640	$	—	$	19,641	$	19,641	$	—	$	15,036	$	15,036
Financial Liabilities:
Derivative financial instruments	$	1,834	$	—	$	1,834	$	11	$	—	$	11	$	—	$	—	$	—
Long-term debt(1)	455,789		160		455,949		492,098		509		492,607		462,987		160		463,147
Guarantees	—		2,611		2,611		—		5,764		5,764		—		5,097		5,097
Total liabilities	$	457,623	$	2,771	$	460,394	$	492,109	$	6,273	$	498,382	$	462,987	$	5,257	$	468,244
(1) This fair value measurement disclosure does not affect the condensed consolidated balance sheets.

Schedule of Assets Measured on Recurring Basis

The following summarizes the reconciliation of changes in Level 3 instruments measured on a recurring basis:


	Securitized Beneficial Interests		Long-Term Debt		Guarantees
Beginning balance at March 31, 2024	$	15,036	$	160	$	5,097
Issuances of sales of receivables/guarantees	61,029		—		938
Settlements	(45,233)		—		(715)

Losses recognized in earnings	(5,192)		—		(2,709)
Ending balance at June 30, 2024	$	25,640	$	160	$	2,611


	Securitized Beneficial Interests		Long-Term Debt		Guarantees
Beginning balance at March 31, 2023	$	19,522	$	514	$	5,262
Issuances of sales of receivables/guarantees	36,640		—		1,054
Settlements	(33,183)		(5)		(555)

Losses recognized in earnings	(3,338)		—		3
Ending balance at June 30, 2023	$	19,641	$	509	$	5,764

Equity-Based Compensation (Tables)

3 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Compensation Awards

The following summarizes the Company's equity awards granted:


	Three Months Ended
	June 30,
(in thousands, except grant date fair value)	2024		2023
Restricted stock units
Number granted	768		—
Grant date fair value	$	3.50	$	—
Performance-based stock units
Number granted (at target performance level)	576		—
Grant date fair value	$	4.36	$	—

Related Party Transactions (Tables)

3 Months Ended

Jun. 30, 2024

Schedule of Related Party Transactions

The following summarizes activities with the Company's equity method investees:


	Three Months Ended
	June 30,
	2024		2023
Sales	$	10,575	$	10,817
Purchases	34,886		38,789

The Company included the following related party balances in its condensed consolidated balance sheets:


	June 30, 2024		June 30, 2023		March 31, 2024		Location in Condensed Consolidated Balance Sheet
Accounts receivable, related parties	$	4,080	$	5,090	$	50	Other receivables


Accounts payable, related parties	12,041		19,776		35,396		Accounts payable
Advances from related parties	1,247		10,061		12,533		Advances from customers

Segment Information (Tables)

3 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information by Segment


	Three Months Ended
	June 30,
	2024		2023
Sales and other operating revenues:
Leaf	$	630,963	$	476,433
All Other	3,892		659
Consolidated sales and other operating revenues	$	634,855	$	477,092

Segment operating income (loss):
Leaf	$	42,482	$	37,929
All Other	(1,922)		(1,471)
Segment operating income	40,560		36,458

Restructuring and asset impairment charges	103		40

Consolidated operating income	$	40,457	$	36,418



	June 30, 2024		June 30, 2023		March 31, 2024
Segment assets:
Leaf	$	1,752,886	$	1,761,971	$	1,616,486
All Other	39,825		41,023		41,427
Total assets	$	1,792,711	$	1,802,994	$	1,657,913

Revenue Recognition - Revenue Disaggregated by Product or Service (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Consolidated sales and other operating revenues	$ 634,855	$ 477,092
Leaf
Disaggregation of Revenue [Line Items]
Consolidated sales and other operating revenues	630,963	476,433
Leaf \| Product revenue
Disaggregation of Revenue [Line Items]
Consolidated sales and other operating revenues	589,217	450,938
Leaf \| Processing and other revenues
Disaggregation of Revenue [Line Items]
Consolidated sales and other operating revenues	41,746	25,495
All Other
Disaggregation of Revenue [Line Items]
Consolidated sales and other operating revenues	$ 3,892	$ 659

Revenue Recognition - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period	$ (23,940)	$ (24,730)
Additions	(401)	(320)
Write-offs and other adjustments	306	610
Balance, end of period	(24,035)	(24,440)
Trade receivables	233,088	209,907
Trade receivables, net	$ 209,053	$ 185,467

Income Taxes (Details)	3 Months Ended
Income Taxes (Details)	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate (as a percent)	71.90%	47.50%

Earnings Per Share - Schedule of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Pyxus International, Inc.	$ 4,642	$ 804
Basic weighted average shares outstanding (in shares)	25,461,000	25,000,000
Plus: Dilutive equity awards (in shares)	0	0
Diluted weighted average shares outstanding (in shares)	25,461,000	25,000,000
Earnings per share:
Basic (in USD per share)	$ 0.18	$ 0.03
Diluted (in USD per share)	$ 0.18	$ 0.03
Time-vesting Restricted Stock Units
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Basic weighted average shares outstanding (in shares)	461,000
Restricted stock units
Earnings per share:
Antidilutive securities excluded from computation of earnings per share (in shares)	17,000

Restricted Cash - Composition of Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Cash and Cash Equivalents [Abstract]
Compensating balance for short-term borrowings	$ 542	$ 516	$ 439
Escrow	3,209	2,647	2,344
Grants	1,158	1,375	696
Other	2,152	2,686	1,977
Total	$ 7,061	$ 7,224	$ 5,456

Inventories, Net - Schedule of Inventories, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Inventory Disclosure [Abstract]
Processed tobacco	$ 605,535	$ 585,280	$ 642,745
Unprocessed tobacco	375,102	305,928	320,470
Other tobacco related	28,083	31,213	34,127
All Other	5,807	9,233	9,095
Total	$ 1,014,527	$ 931,654	$ 1,006,437

Equity Method Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Statement of operations:
Gross profit	$ 83,852	$ 73,145
Net income (loss)	4,952	770
Equity Method Investment, Summarized Financial Information [Abstract]
Current assets	1,442,147	1,436,290	$ 1,310,206
Current liabilities	1,001,721	904,287	905,165
Equity Method Investment
Statement of operations:
Sales	56,771	44,831
Gross profit	7,187	7,185
Net income (loss)	5,239	(3,854)
Equity Method Investment, Summarized Financial Information [Abstract]
Current assets	533,214	456,755	542,702
Property, plant, and equipment and other assets	57,453	48,498	50,925
Current liabilities	438,293	366,806	446,597
Long-term obligations and other liabilities	$ 3,468	$ 2,685	$ 3,356
Adams International Ltd.
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	49.00%
Basis difference	$ (4,526)
Alliance One Industries India Private Ltd.
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	49.00%
Basis difference	$ (5,770)
China Brasil Tabaco Exportadora SA
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	49.00%
Basis difference	$ 43,000
Oryantal Tütün Paketleme Sanayi ve Ticaret A.Ş.
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	50.00%
Basis difference	$ (416)
Purilum, LLC
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	50.00%
Basis difference	$ 4,589
Siam Tobacco Export Company
Schedule of Equity Method Investments [Line Items]
Ownership interest (as a percent)	49.00%
Basis difference	$ (6,098)

Variable Interest Entities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Variable Interest Entity [Line Items]
Investments in variable interest entities	$ 103,818	$ 101,255	$ 98,591
Receivables with variable interest entities	209,053		185,467
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Investments in variable interest entities	96,903	94,609	91,587
Receivables with variable interest entities	3,980	0	4,767
Guaranteed amounts to variable interest entities (not to exceed)	$ 16,392	$ 11,113	$ 61,041

Intangible Assets, Net - Goodwill and Intangible Asset Rollforward (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Schedule of Intangible Assets [Line Items]
Gross Carrying Amount	$ 50,349	$ 50,349	$ 50,533
Accumulated Amortization	(17,621)	(16,470)	(13,121)
Intangible Assets, Net	$ 32,728	$ 33,879	$ 37,412
Customer relationships
Schedule of Intangible Assets [Line Items]
Weighted Average Remaining Useful Life	8 years 2 months 12 days	8 years 4 months 24 days	9 years 2 months 12 days
Gross Carrying Amount	$ 26,101	$ 26,101	$ 26,101
Accumulated Amortization	(8,338)	(7,794)	(6,163)
Intangible Assets, Net	$ 17,763	$ 18,307	$ 19,938
Technology
Schedule of Intangible Assets [Line Items]
Weighted Average Remaining Useful Life	4 years 2 months 12 days	4 years 4 months 24 days	5 years
Gross Carrying Amount	$ 12,948	$ 12,948	$ 13,132
Accumulated Amortization	(6,189)	(5,784)	(4,671)
Intangible Assets, Net	$ 6,759	$ 7,164	$ 8,461
Trade names
Schedule of Intangible Assets [Line Items]
Weighted Average Remaining Useful Life	10 years 2 months 12 days	10 years 4 months 24 days	11 years 2 months 12 days
Gross Carrying Amount	$ 11,300	$ 11,300	$ 11,300
Accumulated Amortization	(3,094)	(2,892)	(2,287)
Intangible Assets, Net	$ 8,206	$ 8,408	$ 9,013

Intangible Assets, Net - Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1,151	$ 1,160

Debt Arrangements - Schedule of Debt Financing (Details) - USD ($) $ in Thousands		3 Months Ended
	Feb. 06, 2023	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Interest Rate
Total debt		$ 1,231,305	$ 1,017,340	$ 1,229,258
Notes payable		679,399	499,312	585,408
Current portion of long-term debt		20,445	20,294	42
Long-term debt		531,461	497,734	643,808
Total		551,906	518,028	643,850
Letters of credit		$ 7,669	5,070	6,018
Senior secured credit facilities: \| ABL Credit Facility
Interest Rate
Interest rate (as a percent)		8.60%
Total debt		$ 44,000	0	50,000
Senior secured credit facilities: \| DDTL Term Loans
Interest Rate
Debt instrument, unamortized discount (premium), net		2,063
Senior secured notes: \| DDTL Term Loans
Interest Rate
Original issue discount		$ 4,107
Intabex Term Loan
Interest Rate
Weighted-average interest rate (as a percent)		13.60%
Total debt		$ 186,770	186,659	186,307
Pyxus Term Loan
Interest Rate
Weighted-average interest rate (as a percent)		13.60%
Total debt		$ 122,268	132,819	133,284
Other long-term debt
Interest Rate
Weighted-average interest rate (as a percent)		8.70%
Total debt		$ 117	157	476
Notes Payable to Banks
Interest Rate
Weighted-average interest rate (as a percent)		9.80%
Total debt		$ 679,399	499,312	585,408
10.0% Notes Due 2024 \| New Pyxus Credit Facility
Interest Rate
Interest rate (as a percent)		10.00%
10.0% Notes Due 2024 \| Senior secured notes:
Interest Rate
Interest rate (as a percent)		10.00%
Total debt		$ 20,328	20,247	20,004
Repayments of debt, net of original issue discount		20,391
Original issue discount		63
8.5% Notes Due 2027 \| New Pyxus Credit Facility
Interest Rate
Repayments of debt, net of original issue discount	$ 182,530
8.5% Notes Due 2027 \| Intabex Term Loans
Interest Rate
Repayments of debt, net of original issue discount	189,033
Face amount of debt instrument	189,033
Debt instrument, fee amount	2,000
8.5% Notes Due 2027 \| Senior secured credit facilities: \| DDTL Term Loans
Interest Rate
Original issue discount		$ 2,263
8.5% Notes Due 2027 \| Senior secured notes:
Interest Rate
Interest rate (as a percent)		8.50%
Total debt		$ 178,423	$ 178,146	$ 253,779
Term Loan Credit Agreement \| Pyxus Credit Facility
Interest Rate
Repayments of debt, net of original issue discount	120,205
Face amount of debt instrument	$ 130,550

Debt Arrangements - Narrative (Details) - USD ($)						3 Months Ended
Debt Arrangements - Narrative (Details) - USD ($)	Apr. 12, 2024	Mar. 31, 2024	Mar. 28, 2024	Mar. 21, 2024	Feb. 06, 2023	Jun. 30, 2024	Oct. 24, 2023	Jun. 30, 2023	Jan. 23, 2023	Feb. 08, 2022	Aug. 24, 2020
Debt Instrument [Line Items]
Total debt		$ 1,017,340,000				$ 1,231,305,000		$ 1,229,258,000
Compensating balance for short-term borrowings		516,000				542,000		439,000
Senior secured credit facilities:
Debt Instrument [Line Items]
Maximum borrowing capacity						169,703,000
Short-term debt, maximum outstanding amount						152,600,000
Compensating balance for short-term borrowings						$ 542,000
Monarch Alternative Capital LP \| Equity Method Investee
Debt Instrument [Line Items]
Number of common stock owned by related party (in shares)									6,125
Proportion of common stock outstanding owned by related party (as a percent)									24.50%
Minimum \| Senior secured credit facilities:
Debt Instrument [Line Items]
Term of debt instrument						180 days
Maximum \| Senior secured credit facilities:
Debt Instrument [Line Items]
Term of debt instrument						365 days
Senior secured notes: \| 8.5% Notes Due 2027
Debt Instrument [Line Items]
Interest rate (as a percent)						8.50%
Total debt		178,146,000				$ 178,423,000		253,779,000
Senior secured notes: \| 8.50% Senior Secured Notes Due 2027
Debt Instrument [Line Items]
Interest rate (as a percent)					8.50%
Senior secured notes: \| 10.0% Notes Due 2024
Debt Instrument [Line Items]
Interest rate (as a percent)						10.00%
Shareholder election percent											92.70%
Debt instrument, percentage of outstanding											10.00%
Total debt		20,247,000				$ 20,328,000		$ 20,004,000
Senior secured notes: \| Debt Repurchase Agreement
Debt Instrument [Line Items]
Debt instrument, increase, accrued interest		9,435,000	$ 62,339,000
Senior secured notes: \| Debt Repurchase Agreement \| Period Two
Debt Instrument [Line Items]
Face amount of debt instrument		$ 10,345,000		$ 77,922,000
Senior secured notes: \| Debt Repurchase Agreement \| Period Three
Debt Instrument [Line Items]
Face amount of debt instrument	$ 9,104,000			34,191,000
Redemption price (as a percent)	12.00%
Senior secured notes: \| Debt Repurchase Agreement 2027 Notes \| Period Two
Debt Instrument [Line Items]
Face amount of debt instrument				$ 60,000,000
Redemption price (as a percent)				23.00%
Senior secured notes: \| Debt Repurchase Agreement 2027 Notes \| Period Three
Debt Instrument [Line Items]
Face amount of debt instrument	$ 26,327,000
Redemption price (as a percent)	23.00%
ABL Credit Facility \| Revolving Loans Facilities
Debt Instrument [Line Items]
Maximum borrowing capacity							$ 120,000
PNC ABL Credit Facility \| Revolving Loans Facilities
Debt Instrument [Line Items]
Maximum borrowing capacity										$ 140,000
Additional borrowing capacity										20,000
PNC ABL Credit Facility \| Senior secured credit facilities:
Debt Instrument [Line Items]
Maximum borrowing capacity										$ 120,000,000
Intabex Term Loans \| 8.5% Notes Due 2027
Debt Instrument [Line Items]
Face amount of debt instrument					$ 189,033,000
Intabex Term Loans \| Term Loan Credit Agreement \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)					7.00%
Intabex Term Loans \| Minimum \| Term Loan Credit Agreement \| Base Rate
Debt Instrument [Line Items]
Interest rate (as a percent)					1.50%
Intabex Term Loans \| Maximum \| Term Loan Credit Agreement \| SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)					8.00%
Pyxus Credit Facility \| Term Loan Credit Agreement
Debt Instrument [Line Items]
Face amount of debt instrument					$ 130,550,000
Pyxus Term Loan \| Term Loan Credit Agreement \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)					7.00%
Pyxus Term Loan \| Minimum \| Term Loan Credit Agreement \| Base Rate
Debt Instrument [Line Items]
Interest rate (as a percent)					1.50%
Pyxus Term Loan \| Maximum \| Term Loan Credit Agreement \| SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)					8.00%
New Pyxus Credit Facility \| 8.50% Senior Secured Notes Due 2027
Debt Instrument [Line Items]
Face amount of debt instrument					$ 260,452,000
Interest rate (as a percent)					8.50%
New Pyxus Credit Facility \| 10.0% Notes Due 2024
Debt Instrument [Line Items]
Interest rate (as a percent)						10.00%
Foreign seasonal lines of credit \| Senior secured credit facilities:
Debt Instrument [Line Items]
Total debt						$ 815,646,000

Securitized Receivables - Narrative (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Jun. 30, 2024 USD ($) account	Jun. 30, 2023 USD ($)	Mar. 31, 2024 USD ($)
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Number of accounts with automatic annual renewal \| account	2
Receivables sold, face value discounted (as a percent)	100.00%
Reductions of trade and other receivables due to settlements	$ 8,219	$ 908	$ 15,036
Accrued expenses and other current liabilities due to settlements			$ 10,279
Accounts Receivable Securitization, Program One
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Servicing fee rate (as a percent)	0.50%
Accounts Receivable Securitization, Program One \| Minimum
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Receivable securitization programs, designated receivable amount	$ 120,000
Accounts Receivable Securitization, Program Two \| Minimum
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Receivable securitization programs, designated receivable amount	$ 130,000

Securitized Receivables - Schedule of Accounts Receivable Securitization Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Transfers and Servicing [Abstract]
Receivables outstanding in facility	$ 260,973	$ 132,313	$ 170,267
Beneficial interests	25,640	19,641	$ 15,036
Cash proceeds:
Cash purchase price	243,109	172,943
Deferred purchase price	$ 31,741	$ 30,419

Guarantees (Details) - USD ($) $ in Thousands	3 Months Ended
Guarantees (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Guarantees [Abstract]
Amounts guaranteed (not to exceed)	$ 79,192	$ 97,411	$ 138,523
Amounts outstanding under guarantee	41,581	71,427	43,563
Fair value of guarantees	2,611	5,097	5,764
Amounts due to local banks on behalf of suppliers for government subsidized rural credit financing	$ 526	$ 34,571	$ 459
Guarantor obligations, term	1 year

Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain on derivatives	$ 851	$ 1,434
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Cost of goods and services sold	Cost of goods and services sold
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Derivative financial instruments	$ 1,834	$ 11

Derivative Financial Instruments - Derivative Contracts Outstanding (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
U.S. Dollar notional outstanding	$ 23,300	$ 0	$ 4,378

Fair Value Measurements - Input Hierarchy of Items Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	$ 1,834		$ 11
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Long-term debt	Long-term debt	Long-term debt
Estimate of Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securitized beneficial interests	$ 25,640	$ 15,036	$ 19,641
Total assets	25,640	15,036	19,641
Derivative financial instruments	1,834	0	11
Long-term debt	455,949	463,147	492,607
Guarantees	2,611	5,097	5,764
Total liabilities	460,394	468,244	498,382
Level 2 \| Estimate of Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securitized beneficial interests	0	0	0
Total assets	0	0	0
Derivative financial instruments	1,834	0	11
Long-term debt	455,789	462,987	492,098
Guarantees	0	0	0
Total liabilities	457,623	462,987	492,109
Level 3 \| Estimate of Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securitized beneficial interests	25,640	15,036	19,641
Total assets	25,640	15,036	19,641
Derivative financial instruments	0	0	0
Long-term debt	160	160	509
Guarantees	2,611	5,097	5,764
Total liabilities	$ 2,771	$ 5,257	$ 6,273

Fair Value Measurements - Reconciliation of Change in Recurring Level 3 Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Long-Term Debt
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 160	$ 514
Settlements	0	(5)
Losses recognized in earnings	0	0
Balance at end of period	160	509
Securitized Beneficial Interests
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	15,036	19,522
Issuances of sales of receivables/guarantees	61,029	36,640
Settlements	(45,233)	(33,183)
Losses recognized in earnings	(5,192)	(3,338)
Balance at end of period	25,640	19,641
Guarantees
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	5,097	5,262
Issuances of sales of receivables/guarantees	938	1,054
Settlements	(715)	(555)
Losses recognized in earnings	(2,709)	3
Balance at end of period	$ 2,611	$ 5,764

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Securitized Beneficial Interests
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Unrealized losses for securitized beneficial interests	$ 1,250	$ 748

Contingencies and Other Information (Details) - Tax Assessment - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 18, 2014	Oct. 26, 2007
Brazilian State of Parana
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss	$ 9,796		$ 2,375
Brazilian State of Santa Catarina
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss	6,201	$ 2,050
Brazil State of Rio Grande do Sul and the State of Santa Catarina
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss	$ 20,377

Equity-Based Compensation - Narrative (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2024 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense	$ 3,031
Award vesting period (in years)	3 years
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense	$ 2,877
Unrecognized compensation costs	$ 2,534
Total unrecognized stock-based compensation, expected period	2 years 9 months
Performance-based stock units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based awards, target performance percentage range	200.00%
Performance-based stock units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based awards, target performance percentage range	0.00%

Equity-Based Compensation - Equity Awards Granted (Details) - $ / shares shares in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number granted Number granted (at target performance level) (in shares)	768	0
Grant date fair value (in USD per share)	$ 3.50	$ 0
Performance-based stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number granted Number granted (at target performance level) (in shares)	576	0
Grant date fair value (in USD per share)	$ 4.36	$ 0

Related Party Transactions - Schedule of Related Party Transactions (Details) - Related Party - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Related Party Transaction [Line Items]
Sales	$ 10,575	$ 10,817
Purchases	$ 34,886	$ 38,789

Related Party Transactions - Schedule of Related Party Balances in Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023
Related Party Transaction [Line Items]
Accounts receivable, related parties	$ 209,053	$ 168,764	$ 185,467
Accounts payable, related parties	115,312	181,247	133,854
Other receivables \| Related Party
Related Party Transaction [Line Items]
Accounts receivable, related parties	4,080	50	5,090
Accounts payable \| Related Party
Related Party Transaction [Line Items]
Accounts payable, related parties	12,041	35,396	19,776
Advances from customers \| Related Party
Related Party Transaction [Line Items]
Advances from related parties	$ 1,247	$ 12,533	$ 10,061

Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended
	Mar. 31, 2024	Mar. 28, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 13, 2024	Apr. 30, 2024	Mar. 21, 2024
Related Party Transaction [Line Items]
Debt instrument, increase, accrued interest and unpaid interest	$ 332	$ 1,849
Debt instrument, collateral fee		490
Debt Repurchase Agreement \| Senior secured notes:
Related Party Transaction [Line Items]
Debt instrument, increase, accrued interest	9,435	$ 62,339
Debt Repurchase Agreement \| Senior secured notes: \| Period Two
Related Party Transaction [Line Items]
Face amount of debt instrument	10,345						$ 77,922
Equity Method Investee
Related Party Transaction [Line Items]
Interest payable, related parties	$ 4,239		$ 1,894	$ 3,945
Related Party
Related Party Transaction [Line Items]
Interest expense			$ 7,261	$ 10,075
Glendon Investor \| Beneficial Owner
Related Party Transaction [Line Items]
Beneficial ownership (in shares)					8,315
Ownership interest (as a percent)					33.30%
Owl Creek Asset Management, LP \| Beneficial Owner
Related Party Transaction [Line Items]
Beneficial ownership (in shares)						2,605
Ownership interest (as a percent)						10.40%

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Segment Reporting Information [Line Items]
Consolidated sales and other operating revenues	$ 634,855	$ 477,092
Segment and Consolidated operating income	40,457	36,418
Restructuring and asset impairment charges	103	40
Total assets	1,792,711	1,802,994	$ 1,657,913
Operating Segments
Segment Reporting Information [Line Items]
Segment and Consolidated operating income	40,560	36,458
Leaf
Segment Reporting Information [Line Items]
Consolidated sales and other operating revenues	630,963	476,433
Total assets	1,752,886	1,761,971	1,616,486
Leaf \| Operating Segments
Segment Reporting Information [Line Items]
Segment and Consolidated operating income	42,482	37,929
All Other
Segment Reporting Information [Line Items]
Consolidated sales and other operating revenues	3,892	659
Total assets	39,825	41,023	$ 41,427
All Other \| Operating Segments
Segment Reporting Information [Line Items]
Segment and Consolidated operating income	$ (1,922)	$ (1,471)

Subsequent Events (Details) - USD ($)	Aug. 02, 2024	Mar. 31, 2024	Mar. 28, 2024	Apr. 12, 2024	Mar. 21, 2024
Subsequent Event
Subsequent Event [Line Items]
Debt instrument, increase, accrued interest	$ 379,000
Subsequent Event \| Debt Repurchase Agreement
Subsequent Event [Line Items]
Face amount of debt instrument	26,707,000
Senior secured notes: \| Debt Repurchase Agreement
Subsequent Event [Line Items]
Debt instrument, increase, accrued interest		$ 9,435,000	$ 62,339,000
Senior secured notes: \| Debt Repurchase Agreement \| Period Three
Subsequent Event [Line Items]
Face amount of debt instrument				$ 9,104,000	$ 34,191,000
Senior secured notes: \| Subsequent Event \| Debt Repurchase Agreement \| Period Three
Subsequent Event [Line Items]
Face amount of debt instrument	$ 34,191,000