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Positive results for Unifi

31/10/2019
US-based yarn manufacturer Unifi has credited demand for its recycled brand Repreve for a 16% increase in first quarter 2020 sales. 

The company posted sales of $179.9 million, while income increased 11% to $6.3 million compared with the first quarter of fiscal 2019.

Tom Caudle, Unifi’s president, said: "Profitability was aided by our step-down in operating expenses, along with a more favourable raw material cost environment in the US.

“While we recognise that the current business environment in the US is challenging and our Brazil segment was impacted by elevated raw material costs, we are pleased with our operating cash flows and earnings in the first fiscal quarter and look to carry that momentum into the remainder of fiscal 2020.

"With the assumption that raw material costs remain stable for the remainder of fiscal 2020, we are reaffirming our fiscal 2020 outlook. We continue to project growth from fiscal 2019 that includes continued top-line expansion, a doubling of operating income, substantial improvement in our effective tax rate and a significant increase in net income and earnings."