Pyxus International Inc.

11/12/2025 | Press release | Distributed by Public on 11/12/2025 06:01

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

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, 2025, and in our other filings with the U.S. 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, the imposition of tariffs and other changes in international trade policies; 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 quantity and 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 conflicts in the Middle East and disruptions affecting shipping in that area; 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 if our 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 proposed regulations to prohibit the sale of cigarettes and certain other tobacco products in the United States other than low-nicotine versions of those products.
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 Company's second quarter results and financial condition reflect the impact of larger crops from our origins in the Southern hemisphere. Sales and other operating revenues of $570.2 million for the three months ended September 30, 2025 were slightly higher by 0.7%, or $3.9 million, when compared to $566.3 million for the same period last year. This slight increase was a result of higher volumes, bolstered by processing and other revenues, and partially offset by lower average sales prices corresponding with lower costs incurred to purchase current crops. The Company's gross margin as a percent of sales increased by 2.1% in the current quarter, mainly due to regional mix.
The Company's year-to-date results include acceleration of shipments related to the larger current crop that have yet to offset the continued impact of lower carry-over sales from the prior fiscal year, which contributed to the 10.2%, or $122.2 million, decline in sales to $1,079.0 million for the six months ended September 30, 2025 from $1,201.2 million for the six months ended September 30, 2024. Despite this reduction in sales and other operating revenues, the Company's year-to-date gross margin as a percent of sales of 14.2% remained relatively stable versus the comparable prior-year period mainly due to product mix.
During the first half of each fiscal year, our working capital requirements typically reach peak levels, coinciding with the buying season in each of our key sourcing regions. First half fiscal year 2026 procurement volumes in Africa and South America exceeded those of the comparable prior-year period, with purchases substantially completed early in the second quarter. Purchasing in the Northern hemisphere commenced during the second quarter, with volumes in North America and Europe comparable to or slightly below prior-year levels. Our total tobacco inventory balance, comprised of both processed and unprocessed tobacco, stands at $1,102.8 million as of September 30, 2025, which will enable us to meet our customers' requirements for leaf that we have sourced from our wide network of growers across the globe.
Results of Operations
Three Months Ended September 30, 2025 and 2024
Three Months Ended September 30,
Change
(in millions, except per kilo amounts) 2025 2024 $ %
Consolidated:
Sales and other operating revenues $ 570.2 $ 566.3 3.9 0.7
Cost of goods and services sold 482.4 490.9 (8.5) (1.7)
Gross profit 87.8 75.4 12.4 16.4
Gross profit as a percent of sales 15.4 % 13.3 %
Selling, general, and administrative expenses $ 40.1 $ 38.8 1.3 3.4
Other expense, net 0.9 3.3 (2.4) (72.7)
Restructuring and asset impairment charges - 0.2 (0.2) (100.0)
Operating income* 46.7 33.0 13.7 41.5
Gain on debt retirement - 6.9 (6.9) (100.0)
Interest expense, net 37.9 35.7 2.2 6.2
Income before income taxes and other items 8.8 4.2 4.6 109.5
Income tax expense 10.3 8.1 2.2 27.2
Income from unconsolidated affiliates, net 0.6 0.5 0.1 20.0
Net loss attributable to Pyxus International, Inc. $ (0.9) $ (3.2) (2.3) (71.9)
Leaf:
Product revenues $ 511.2 $ 515.8 (4.6) (0.9)
Tobacco costs 418.3 428.9 (10.6) (2.5)
Transportation, storage, and other period costs 19.1 18.0 1.1 6.1
Total product cost of goods sold 437.4 446.9 (9.5) (2.1)
Product gross profit 73.8 68.9 4.9 7.1
Product gross profit as a percent of sales 14.4 % 13.4 %
Kilos sold 91.4 86.0 5.4 6.3
Average price per kilo $ 5.59 $ 6.00 (0.41) (6.8)
Average cost per kilo 4.79 5.20 (0.41) (7.9)
Average gross profit per kilo 0.80 0.80 - -
Processing and other revenues $ 55.5 $ 48.3 7.2 14.9
Processing and other costs of services sold 41.2 40.1 1.1 2.7
Processing and other gross profit 14.3 8.2 6.1 74.4
Processing and other gross profit as a percent of sales 25.8 % 17.0 %
All Other:
Sales and other operating revenues $ 3.6 $ 2.2 1.4 63.6
Cost of goods and services sold 3.9 3.9 - -
Gross loss (0.3) (1.7) (1.4) (82.4)
Gross loss as a percent of sales (8.3) % (77.3) %
* Amounts may not equal column totals due to rounding.
Sales and other operating revenues increased $3.9 million, or 0.7%, to $570.2 million for the three months ended September 30, 2025 from $566.3 million for the three months ended September 30, 2024. This slight increase was a result of an increase in processing and other revenues emanating from the larger volumes in Africa and South America, partially offset by a decrease in leaf product revenues as a result of higher volumes sold at a lower average price per kilo.
Cost of goods and services sold decreased $8.5 million, or 1.7%, to $482.4 million for the three months ended September 30, 2025 from $490.9 million for the three months ended September 30, 2024 driven by a 7.9% reduction in average cost per kilo due to the impact of lower inventory costs of the current crop in Africa and South America that has been processed and sold.
Gross profit increased $12.4 million, or 16.4%, to $87.8 million for the three months ended September 30, 2025 from $75.4 million for the three months ended September 30, 2024. This increase was due to larger volumes for processing and other revenues in Africa providing more margin favorability, and increased margins from certain leaf product sales in Africa and Europe.
The gain on debt retirement of $6.9 million for the three months ended September 30, 2024 was due to the repurchase of $34.2 million aggregate principal amount of the 2027 Notes for $26.3 million, a 23.0% discount to par. There were no repurchases of senior secured notes or term loans during the three months ended September 30, 2025. See "Note 11. Debt Arrangements" to the "Notes to Condensed Consolidated Financial Statements" for additional information.
Income tax expense increased $2.2 million, or 27.2%, to $10.3 million for the three months ended September 30, 2025 from $8.1 million for the three months ended September 30, 2024. This increase was primarily due to tax expense related to foreign currency gains in Africa recognized in the current period and the jurisdictional mix of earnings. See "Note 4. Income Taxes" to the "Notes to Condensed Consolidated Financial Statements" for additional information.
Six Months Ended September 30, 2025 and 2024
Six Months Ended September 30,
Change
(in millions, except per kilo amounts) 2025 2024 $ %
Consolidated:
Sales and other operating revenues $ 1,079.0 $ 1,201.2 (122.2) (10.2)
Cost of goods and services sold 925.6 1,041.9 (116.3) (11.2)
Gross profit 153.4 159.3 (5.9) (3.7)
Gross profit as a percent of sales 14.2 % 13.3 %
Selling, general, and administrative expenses 80.5 79.5 1.0 1.3
Other expense, net 5.1 5.9 (0.8) (13.6)
Restructuring and asset impairment charges 0.1 0.3 (0.2) (66.7)
Operating income* 67.7 73.5 (5.8) (7.9)
Gain on debt retirement - 8.2 (8.2) (100.0)
Interest expense, net 67.7 69.0 (1.3) (1.9)
Income before income taxes and other items - 12.7 (12.7) (100.0)
Income tax expense 15.5 14.2 1.3 9.2
(Loss) income from unconsolidated affiliates, net (0.7) 3.1 (3.8) **
Net income attributable to noncontrolling interests 0.5 0.3 0.2 66.7
Net (loss) income attributable to Pyxus International, Inc. $ (16.7) $ 1.4 (18.1) **
Leaf:
Product revenue $ 969.4 $ 1,105.0 (135.6) (12.3)
Tobacco costs 794.0 912.9 (118.9) (13.0)
Transportation, storage, and other period costs 44.2 42.8 1.4 3.3
Total cost of goods sold 838.2 955.7 (117.5) (12.3)
Product revenue gross profit 131.2 149.3 (18.1) (12.1)
Product revenue gross profit as a percent of sales 13.5 % 13.5 %
Kilos sold 158.3 181.7 (23.4) (12.9)
Average price per kilo $ 6.12 $ 6.08 0.04 0.7
Average cost per kilo 5.30 5.26 0.04 0.8
Average gross profit per kilo 0.82 0.82 - -
Processing and other revenues $ 105.6 $ 90.1 15.5 17.2
Processing and other revenues costs of services sold 83.8 77.5 6.3 8.1
Processing and other gross profit 21.8 12.6 9.2 73.0
Processing and other gross profit as a percent of sales 20.6 % 14.0 %
All Other:
Sales and other operating revenues $ 4.0 $ 6.1 (2.1) (34.4)
Cost of goods and services sold 3.7 8.7 (5.0) (57.5)
Gross profit (loss) 0.3 (2.6) 2.9 **
Gross profit (loss) as a percent of sales 7.5 % (42.6) %
* Amounts may not equal column totals due to rounding.
** Not meaningful for comparison purposes.
Sales and other operating revenues decreased $122.2 million, or 10.2%, to $1,079.0 million for the six months ended September 30, 2025 from $1,201.2 million for the six months ended September 30, 2024, due largely to the 12.9% decline in kilo volumes sold as a result of the timing of certain customer shipments. In the fourth quarter of fiscal year 2025, certain customer orders were accelerated from Africa and North America, which contributed to the decline in sales and other operating revenues for the current year-to-date period.
Cost of goods and services sold decreased $116.3 million, or 11.2%, to $925.6 million for the six months ended September 30, 2025 from $1,041.9 million for the six months ended September 30, 2024. This decrease was mainly due to the reduction in sales and other operating revenues.
Gross profit decreased $5.9 million, or 3.7%, to $153.4 million for the six months ended September 30, 2025 from $159.3 million for the six months ended September 30, 2024, due to the timing of certain sales, but slightly improved as a percent of sales mainly due to product mix.
The gain on debt retirement of $8.2 million for the six months ended September 30, 2024 was due to the repurchase of $10.3 million of aggregate principal amount of the Pyxus Term Loans for $9.4 million, a 12.0% discount to par, and the repurchase of $34.2 million aggregate principal amount of the 2027 Notes for $26.3 million, a 23.0% discount to par. There were no repurchases of senior secured notes or term loans during the six months ended September 30, 2025. See "Note 11. Debt Arrangements" to the "Notes to Condensed Consolidated Financial Statements" for additional information.
Income tax expense increased $1.3 million, or 9.2%, to $15.5 million for the six months ended September 30, 2025 from $14.2 million for the six months ended September 30, 2024. This increase was due to tax expense related to foreign currency gains recognized in the current period and an increase in the liability for unrecognized tax benefits. See "Note 4. Income Taxes" to the "Notes to Condensed Consolidated Financial Statements" for additional information.
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 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 two 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. It is possible that, depending on the occurrence of events affecting our liquidity needs and sources of liquidity, such plans may not be sufficient to adequately or timely address a liquidity deficiency.
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 September 30, 2025 and 2024 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:
September 30, 2025 September 30, 2024
(in millions) Total Borrowing Capacity Remaining Amount Available Total Borrowing Capacity Remaining Amount Available
Senior Secured Credit Facilities:
ABL Credit Facility $ 150.0 $ 150.0 $ 120.0 $ 85.0
Foreign seasonal lines of credit 1,067.4 162.8 885.2 175.4
Other long-term debt - - 0.4 0.3
Letters of credit 12.3 3.3 10.8 3.0
Total $ 1,229.7 $ 316.1 $ 1,016.4 $ 263.7
The total borrowing capacity under the ABL Credit Facility increased $30.0 million when compared to the prior period as a result of the Fourth Amendment to the ABL Credit Agreement entered into on May 12, 2025, which among other things, increased the aggregate amount of revolving loan commitments from $120.0 million to $150.0 million. The amounts presented as available under the ABL Credit Facility are subject to further limitations from the borrowing base consisting of certain eligible accounts receivable and inventory, reduced by specified reserves.
The total borrowing capacity of our foreign seasonal lines of credit increased $182.2 million when compared to the prior year and were primarily utilized to purchase larger volumes of green tobacco. The amounts presented as the remaining amount available for borrowing under the foreign seasonal lines of credit are subject to limitations based on the level of receivables and inventories as collateral and by certain 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) September 30, 2025 September 30, 2024 March 31, 2025
Notes payable $ 908.0 $ 744.8 $ 395.0
Current portion of long-term debt - 0.1 -
Long-term debt(1)
455.3 489.5 454.9
Total debt liabilities* $ 1,363.3 $ 1,234.3 $ 849.9
Less: Cash and cash equivalents 99.2 123.5 78.3
Net debt* $ 1,264.1 $ 1,110.9 $ 771.6
* Amounts may not equal column totals due to rounding
(1) Fluctuations in long-term debt include borrowings and repayments on the outstanding indebtedness under the ABL Credit Facility. Weighted average borrowings outstanding under the ABL Credit Facility were $35.1 million and $46.3 million for the three and six months ended September 30, 2025, respectively.
Net debt increased as of September 30, 2025 when compared to September 30, 2024 due to higher borrowings on our foreign seasonal lines of credit, partially offset by lower borrowings on the ABL Credit Facility.
Working Capital
The following summarizes our working capital:
(in millions except for current ratio) September 30, 2025 September 30, 2024 March 31, 2025
Cash, cash equivalents, and restricted cash $ 106.4 $ 130.9 $ 85.5
Trade and other receivables, net 214.2 237.5 204.3
Inventories and advances to tobacco suppliers, net 1,221.7 1,052.6 792.7
Recoverable income taxes 13.1 3.0 6.6
Prepaid expenses and other current assets 71.4 62.1 69.0
Total current assets* $ 1,626.9 $ 1,486.1 $ 1,158.2
Notes payable $ 908.0 $ 744.8 $ 395.0
Accounts payable 134.2 152.6 132.9
Advances from customers 82.3 75.8 135.6
Accrued expenses and other current liabilities 109.2 103.4 90.9
Income taxes payable 12.4 13.6 11.0
Operating leases payable 9.1 8.3 8.5
Current portion of long-term debt - 0.1 -
Total current liabilities* $ 1,255.3 $ 1,098.5 $ 773.9
Current ratio 1.3 to 1 1.4 to 1 1.5 to 1
Working capital $ 371.6 $ 387.6 $ 384.3
* Amounts may not equal column totals due to rounding
Working capital declined from September 30, 2024 to September 30, 2025 by $16.0 million, or 4.1%. Lower working capital was a result of the increase in borrowings on our foreign seasonal lines of credit used to fund the purchases of larger volumes of green tobacco, particularly in Africa and South America, partially offset by decreases in cash and receivables as a result of timing that softened the impact of the growth in inventory.
Inventories
The following summarizes inventory committed to a customer and uncommitted inventory balances for processed tobacco:
(in millions) September 30, 2025 September 30, 2024 March 31, 2025
Committed $ 691.5 $ 733.9 $ 482.8
Uncommitted 19.5 16.7 7.6
Total processed tobacco $ 711.0 $ 750.6 $ 490.4
Total processed tobacco decreased from September 30, 2024 to September 30, 2025 by $39.6 million, or 5.3%. This decrease is primarily driven by timing of shipments made in the current quarter from certain African origins. Uncommitted levels of processed tobacco remain low due to steady demand from our customers. While undersupply conditions have persisted in the global tobacco market in recent periods, more favorable weather conditions have resulted in larger crops harvested, particularly in Africa and South America, which is anticipated to provide a more balanced position through the remainder of the fiscal year. 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 committed and 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. For uncommitted facilities, the lenders have the right to cease making loans and demand repayment of loans. These short-term 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 September 30, 2025, our cash, cash equivalents, and restricted cash was $106.4 million, of which approximately $80.5 million was held in non-U.S. jurisdictions for non-U.S. working capital needs, a majority of which is subject to exchange controls and a portion of which is subject to tax consequences upon repatriation, which 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:
Six Months Ended
September 30,
(in millions) 2025 2024
Net (loss) income $ (16.2) $ 1.7
Trade and other receivables (111.1) (150.6)
Inventories and advances to tobacco suppliers (428.0) (100.7)
Payables and accrued expenses 15.2 (20.3)
Advances from customers (54.3) (14.1)
Other 13.5 3.7
Net cash used in operating activities $ (580.9) $ (280.3)
Collections from beneficial interests in securitized trade receivables 108.8 101.6
Other (7.0) (8.1)
Net cash provided by investing activities $ 101.8 $ 93.5
Net proceeds from short-term borrowings 506.0 244.2
Net proceeds from revolving loan facilities - 35.0
Repayment of long-term borrowings - (55.8)
Other (3.5) (3.4)
Net cash provided by financing activities $ 502.5 $ 220.0
Effect of exchange rate changes on cash (2.4) (2.1)
Increase in cash, cash equivalents, and restricted cash* $ 20.9 $ 31.1
* Amounts may not equal column totals due to rounding
The change in cash, cash equivalents, and restricted cash for the six months ended September 30, 2025 compared to the six months ended September 30, 2024 decreased by $10.2 million. This decrease was driven by the cash used in operations to fund purchases of larger crops, partially offset by higher net proceeds received from foreign seasonal lines of credit and the non-recurrence of partial repayments made on long-term debt in the prior-year period.
Planned Capital Expenditures
Capital investments in our leaf operations were primarily for routine replacement of machinery and equipment, as well as investments in assets to enhance our sustainability efforts or increase efficiencies, which we believe will add value to our customers. We incurred approximately $9.7 million in capital expenditures for the six months ended September 30, 2025, and are expecting to incur an additional $16.4 million for the remainder of the fiscal year ending March 31, 2026.
Pension and Postretirement Health and Life Insurance Benefits
The following summarizes cash contributions to pension and postretirement health and life insurance benefits:
Six Months Ended
(in millions) September 30, 2025
Contributions made during the period $ 2.1
Contributions expected for the remainder of the fiscal year 2.4
Total $ 4.5
Critical Accounting Estimates
There have been no material changes to our critical accounting estimates since March 31, 2025. For information regarding our critical accounting estimates, see 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, 2025.
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