Unifi fourth quarter shows growth after covid-19 hit
Fourth quarter and fiscal year results from Unifi, maker of recycled and synthetic yarns, show the group was impacted by shutdowns related to covid-19, but that sales have been improving since April.
Net sales in the fourth quarter of $86.1 million decreased year-over-year from $179.5 million in fiscal 2019, with revenues from Repreve Fiber products representing 28% of consolidated net sales. The operating loss was $20.9 million, compared with an operating income of $5.3 million during the same period in fiscal 2019, due to lower sales and lower fixed cost absorption.
From April 2020 to June 2020, however, core US polyester products experienced sequential monthly sales increases. July 2020, according to Unifi, was its best month since March.
In June, Eddie Ingle rejoined the company as its new CEO.
“At the onset of the pandemic, our management team prioritised safety and took measures to improve our liquidity and cash position while maintaining our long-term focus on innovation and sustainability. During the just completed quarter, we generated significant cash from operations while reducing inventory levels and operating costs,” said Mr Ingle.
“These actions, combined with a joint venture divestiture, allowed for significant debt reduction and an increase in cash. I am confident that our diverse global operations, strong management team, and solid financial position will enable us to overcome these current challenges and regain our momentum as we progress through fiscal 2021.”
He also said the company expects Repreve to “grow in non-traditional markets, as more brands seek out ways to reduce the carbon footprint of their raw materials”.
