Unifi, Inc. reported its financial results for the three months ended September 29, 2024, showing a notable improvement in revenue and profitability compared to the same period in the previous fiscal year. Net sales increased by 6.1% to $147.4 million, up from $138.8 million in the prior year. This growth was driven by a 7.7% increase in consolidated sales volume across all reportable segments, particularly in Brazil, where net sales rose by 14.7% due to higher average selling prices and improved market share.
The company achieved a gross profit of $9.5 million, a significant turnaround from a gross loss of $0.6 million in the prior year. This improvement was attributed to increased sales volumes, variable cost savings, and enhanced productivity. The Americas segment, despite still reporting a gross loss of $1.4 million, improved significantly from a loss of $7.4 million in the previous year, while Brazil's gross profit surged to $7.9 million from $2.2 million.
Unifi's operating loss narrowed to $3.2 million, a 73.3% improvement from the $12.0 million loss reported in the same quarter last year. The loss before income taxes also decreased by 60.3% to $5.5 million, and the net loss was reduced by 42.5% to $7.6 million, compared to $13.3 million in the prior year. The net loss per share improved to $(0.42) from $(0.73).
Despite these positive trends, Unifi faced challenges, including a decrease in cash and cash equivalents, which fell to $13.7 million from $26.8 million at the end of the previous quarter. Total assets decreased slightly to $467.0 million, while total liabilities increased to $207.3 million. Retained earnings also declined to $251.8 million from $259.4 million.
Strategically, Unifi entered into a new credit agreement with Wells Fargo Bank for a $25 million revolving credit facility, maturing in 2027. The company also amended its existing credit agreement, which included provisions for the sale of a real estate asset. Additionally, Unifi dissolved its interest in U.N.F. Industries, Ltd., incurring a contract termination cost of $2.8 million.
Overall, Unifi's performance in the latest quarter reflects a recovery in sales and profitability, although it continues to navigate economic challenges such as inflation and fluctuating demand in global markets.
About UNIFI INC
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