Hello and welcome to the 2026 Pyxus International, Inc Annual Meeting of Shareholders. It is now my pleasure to turn the meeting over to Pieter Sikkel. Mr. Sikkel, the floor is yours.
Good morning. I am Pieter Sikkel, President, Chief Executive Officer, and Chairman of the Board of Pyxus International, and I welcome you to the company's 2026 annual meeting, which I am pleased to call to order. I would like to begin by introducing the other members of our Board of Directors, John S. Alphin, Jamie J. Ashton, Patrick J. Bartels, Jr., Robert D. George, who is our Lead Independent Director, Cynthia P. Moehring, and Richard J.C. Topping.
In addition, I would like to introduce Mr. Dustin Styons, Chief Financial Officer, and Mr. David Singer, Chief Legal Officer and Secretary of the company. Also attending the meeting is Mr. Brad Hicks and Mr. Carson McLain of Deloitte & Touche, the company's independent public accountants for the fiscal year ended March 31st, 2026. Mr. Hicks and Mr. McLain will be available to answer appropriate questions during the discussion period later in the meeting, and they will have an opportunity to make a statement if they wish to do so. I would also like to introduce Ms. Cheryl Niebeling of The Carideo Group, who has been appointed Inspector of Election for this meeting.
We will follow the agenda posted on the meeting website, first by conducting the business of our annual meeting, and upon adjournment, I will then report on our operating results and strategy. There will then be a period of general discussion, including responding to shareholder questions. Should you wish to submit a question during the meeting, please locate the Ask a Question section located at the bottom left side of your screen. Type your question into the text box, then click the Submit button.
Before proceeding, I want to draw your attention to the rules of this meeting, which are posted to the meeting website. To access and view uploaded documents, please locate the Meeting Materials section located at the bottom right side of your screen. Then click on the document name to view. I would remind everyone that this is a business meeting, and we intend to conduct it in a productive and professional manner. There are three items of business on the agenda for today's meeting, as described in the meeting notice accompanying our 2026 proxy statement.
As no other matters have been submitted to the company for vote as provided under the advance notice provisions of the company's bylaws, only the items of business set forth in the meeting notice will be considered at today's meeting. After all items of business have been introduced, there will be a brief period for responses to any questions on these items. Again, questions on other matters will be addressed after the formal business of the meeting has concluded. Moving now to the business portion of the meeting. I ask that Ms. Niebeling please present a copy of the notice of this meeting and report on the number of shares represented for purposes of establishing a quorum.
Mr. Chairman, I hereby present a copy of the Notice of Annual Meeting of Shareholders, the proxy statement, the form of proxy, and the 2026 annual report, together with proof by affidavit of their mailing on or about July 6, 2026, to each shareholder of record at the close of business on June 12, 2026. On the record date for this meeting, there were 24,607,791 shares of common stock outstanding and entitled to vote.
I can report that a quorum is present based on a majority of the votes entitled to be cast on each matter presented at this annual meeting being represented in person or by proxy at this meeting. Each proxy card has been examined and approved and has been found to be in proper form. The individual proxies named in the proxy card, Mr. Styons and Mr. Singer, are present and entitled to vote shares represented by such proxies.
Thank you, Ms. Niebeling. I now declare the polls open. Holders of legal proxies who have logged into today's meeting using the unique 16-digit control number provided to them may now vote their shares by following the instructions on the website. If you have previously submitted your voting instructions, there is no need to do so again. As described in the 2026 proxy statement, the first item of business at today's meeting is the election of seven directors, each to serve a one-year term expiring at the 2027 annual meeting of shareholders.
The Board's nominees for election as directors are John S. Alphin, Jamie J. Ashton, Patrick J. Bartels Jr., Robert D. George, Cynthia P. Moehring, J. Pieter Sikkel, and Richard J.C. Topping. The election of such nominees is now presented to this meeting for a vote. I would like to remind everyone that the Board of Directors recommends that you vote for the election of all nominees. The second item of business set forth in the notice for this meeting is the ratification of the appointment of Deloitte & Touche LLP as independent auditors of the company for the fiscal year ending March 31st, 2027, which is now presented to this meeting for a vote.
As set forth in the proxy statement, the Board of Directors recommends that you vote for the ratification of the appointment of Deloitte & Touche as the company's independent auditors for the 2027 fiscal year. The third item of business to come before the meeting is the advisory vote on the compensation of the executive officers named in the proxy statement, commonly referred to as a say on pay vote. This advisory vote gives shareholders the opportunity to express their views about the compensation the company pays to our named Executive Officers. The results of the say on pay vote will not be a binding vote.
The final decision on the compensation and benefits of our named Executive Officers remains with the board and the Compensation Committee. However, the Board and the Compensation Committee value the views of our shareholders and will review the results of the vote and take them into consideration in addressing future compensation policies and decisions. The approval of the advisory vote on the compensation of our named Executive Officers is now deemed presented to this meeting for a vote. As described in the proxy statement, the Board of Directors recommends that shareholders vote for this proposal by approving the following resolution.
Resolved, that the shareholders hereby approve, on an advisory basis, the compensation paid to the company's named executive officers as disclosed pursuant to Item 402 of Regulation S-K of the U.S. Securities and Exchange Commission in the company's proxy statement for the 2026 Annual Meeting of Shareholders. Now that all items of business have been presented, I will pause to see if any questions or comments have been submitted on these matters. There being no questions or comments, I now declare the polls closed. Thank you. I will now ask Ms. Niebeling, as voting inspector, to report on the vote.
Mr. Chairman, each of the nominees for Director named in the proxy statement has been elected. The appointment of Deloitte & Touche LLP has been ratified, and the resolution approving, on an advisory basis, the compensation paid to the company's named executive officers, has been adopted.
You have heard the inspector's report. All Director nominees have been elected. The appointment of Deloitte & Touche LLP as the company's independent certified public accountants for the 2027 fiscal year has been ratified, and the resolution approving, on an advisory basis, the compensation paid to the company's named Executive Officers has been adopted. Vote totals for each of these matters will be reported by the company promptly in a Form 8-K report to be filed with the SEC.
The matters for which this meeting was called have been completed, and the business meeting of shareholders is therefore adjourned. I will now report on the company's operating results and business strategy. Following that, we will respond to general questions submitted prior to or during the course of today's meeting. Fiscal year 2026 reflected our continued financial and operational momentum and demonstrated what can be achieved when clear strategic priorities are paired with disciplined execution.
Our teams worked diligently to deliver on key objectives targeted at the beginning of the year, concentrating on the actions within our control to serve customers, support contracted farmers, enhance efficiency, improve our financial metrics, and reinforce the flexibility of our business. This global alignment delivered one of the strongest years in our recent history while advancing our strategy and helping position Pyxus for sustained long-term value creation. We concluded the year from a position of strength, with a 6.1% increase in full-year operating income.
Net income reaching $14.5 million and record adjusted EBITDA of $226.7 million, marking the fourth consecutive year of adjusted EBITDA growth. We also maintained strong margins and improved key credit metrics, demonstrating the strength and resilience of our operating structure and the discipline of our global organization. Our integrated supply chain model is a key differentiator for Pyxus, connecting contracted farmers and consumer product manufacturers through capabilities that span the full leaf value chain.
This includes agronomic support, sustainability programs, sourcing, processing, value-added services, and logistics. This approach enables us to provide reliable, traceable products and deliver solutions that meet evolving customer requirements across global markets. As fiscal 2026 unfolded, our expectation of larger crop sizes came to fruition. We were prepared for this shift and executed a demand-driven approach informed by our strong understanding of our customers' requirements. With strong market demand, purchasing remained accelerated in select strategic markets early in the year, which secured the crop quality and volume needed to support sales and second-half shift.
As a result, we concluded the year with $2.4 billion in sales and effectively maintained our gross margin per kilo. Our ability to sustain margins amid changing market dynamics was supported by mix optimization, increased third-party processing, and improved cost absorption from higher volumes moving through our facilities. Our results also reflect the dedication and operational excellence of our teams around the globe, who executed with agility, focus, and a clear commitment to how we operate, not just what we deliver. Building on this momentum, we remain focused on strengthening the core capabilities that position Pyxus as the market leader.
This includes continued investment in our global supply chain to enhance sourcing capabilities, optimize processing operations, improve efficiency, and deliver greater value to our stakeholders. For example, during fiscal year 2026, we continued to progress with strategic initiatives such as the centralization and robotic automation of our processing and receiving capabilities in South America. As a result, we will drive longer-term efficiencies and operational innovation while reducing the cost structure of the business.
To deepen our farmer relationships, we launched our proprietary mobile app, Pyxus Alliance, in March. The platform is designed to empower farmers to securely self-submit contract-related data, view and manage their profile and farm-related information, and request and track the status of crop inputs. Early results show the app is reducing the time farmers spend on the contracting process by up to 80%, while also streamlining administrative work for the company's field staff.
This allows both farmers and our teams to spend less time on paperwork and more time focusing on what matters most, the production of high-quality, sustainable, and compliant crops that meet continued strong customer demand. We see this platform as more than a digital tool. It is the beginning of a broader shift in how farmers interact with our business, and we intend to leverage initial insights to make further enhancements, positioning the platform to evolve in response to real-world needs. In fiscal 2026, we introduced our refreshed sustainability strategy, consolidating from 12- 8 focus areas, prioritizing where we can drive the most significant measurable impact going forward.
We also received external recognition from CDP, a leading sustainability disclosure nonprofit, for our strong performance and transparency related to climate change, forestry, and supplier engagement. CDP ranked Pyxus among the top tier of responding companies, awarding us leadership status, its highest recognition in all three categories, providing validation of our refreshed sustainability strategy and the approach we are taking to address our most material environmental priorities.
We view this progress as important, not only because it reflects responsible business practices, but also because our customers increasingly consider supply chain sustainability paramount when evaluating long-term partners. As we close fiscal 2026, I want to recognize the people and partnerships behind our progress. Across our global operations, our teams executed with discipline, supported contracted farmers, served customers reliably, and advanced to strengthen our company. I also want to thank our customers, investors, and partners.
To growing a better world and a stronger company by operating responsibly, enhancing our financial performance, and making thoughtful investments in the capabilities that will support long-term value creation for our stakeholders. I am now prepared to answer any appropriate question. When posing a question, please identify yourself, state whether you are a shareholder or represent an organization that is a shareholder, and indicate the number of shares held by you or the organization that you represent. There being no questions or comments, I would like to thank you for attending Pyxus' Annual Meeting of Shareholders. This concludes the meeting.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.