On August 21, 2024, Unifi Inc (UFI, Financial) released its 8-K filing detailing the financial results for the fourth fiscal quarter and the fiscal year ended June 30, 2024. Unifi Inc is a multi-national company that manufactures and sells innovative synthetic and recycled products made from polyester and nylon. The company primarily serves yarn manufacturers, knitters, and weavers producing fabric for various markets, including apparel, home furnishings, and automotive.
Performance and Challenges
Unifi Inc (UFI, Financial) reported net sales of $157.5 million for Q4, a 6% increase from the previous quarter, driven by higher sales volumes. Revenues from REPREVE Fiber products rose to $53.6 million, representing 34% of net sales, up from 31% in the prior quarter. Despite these gains, the company posted a net loss of $4.0 million, or $0.22 per share, an improvement from the $10.3 million loss, or $0.57 per share, in the previous quarter.
Challenges remain, particularly in managing costs and navigating market conditions. The company’s gross profit was $10.8 million, with a gross margin of 6.9%, showing sequential improvement across all segments. However, the overall fiscal year results indicate a net loss of $47.4 million, highlighting ongoing financial pressures.
Financial Achievements
Unifi Inc (UFI, Financial) achieved several financial milestones in Q4. The company’s adjusted EBITDA was $5.9 million, a significant improvement from the negative $0.8 million in the previous quarter. This positive trend is crucial for the company’s long-term strategy, focusing on reinvesting cost savings and increased profits into growth areas.
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Net Sales | $157.5M | $151.1M | $582.2M | $623.5M |
| Gross Profit | $10.8M | $6.0M | $16.6M | $14.2M |
| Net Loss | ($4.0M) | ($15.3M) | ($47.4M) | ($46.3M) |
Balance Sheet and Cash Flow
As of June 30, 2024, Unifi Inc (UFI, Financial) reported total assets of $469.2 million, down from $538.8 million the previous year. Cash and cash equivalents stood at $26.8 million, a decrease from $47.0 million. The company’s long-term debt was reduced to $117.8 million from $128.6 million, reflecting efforts to manage liabilities effectively.
CEO Commentary
"We are pleased to close our fiscal 2024 with growing momentum and believe the proactive, strategic initiatives we took throughout the year have positioned UNIFI to pivot to growth and stronger profitability as we move forward," said Eddie Ingle, Chief Executive Officer of Unifi Inc.
Fiscal 2025 Outlook
Looking ahead, Unifi Inc (UFI, Financial) expects double-digit revenue growth and significantly enhanced margins and profitability for fiscal 2025. The company anticipates net sales between $147.0 million and $153.0 million for Q1 FY 2025, with adjusted EBITDA ranging from $1.0 million to $3.0 million. Capital expenditures are projected to be between $10.0 million and $12.0 million for the full year.
Unifi Inc (UFI, Financial) continues to focus on innovation and cost management to drive future growth, particularly in its REPREVE Fiber business and beyond apparel initiatives. The company remains committed to enhancing shareholder value through improved financial performance and strategic investments.
Explore the complete 8-K earnings release (here) from Unifi Inc for further details.
