Q4 2024 Unifi Inc Earnings Call Transcript
Key Points
- Unifi Inc (UFI) reported a 4% year-over-year increase in consolidated net sales for the fourth quarter of fiscal 2024, driven by strong performance in the Brazil segment.
- The company achieved a significant improvement in EBITDA, reaching $5.9 million, attributed to cost reductions implemented in previous quarters.
- Unifi Inc (UFI) is seeing improved market share in North America and is close to booking sales in new categories beyond apparel, such as home, military, automotive, and industrial applications.
- The introduction of innovative products, including the Textile Takeback program and new REPREVE offerings, is expected to generate sales in calendar 2025 and 2026.
- The REPREVE segment saw a meaningful increase, representing 34% of sales in the fourth quarter, driven by recovery trends in Central America and Asia.
- The broader textile and apparel industry sales are recovering slower than expected, with retail sales for apparel and furnishings growing at low single digits, factoring in inflation.
- Despite improvements, the operating environment remains challenging, with customers cautious about rebuilding inventories due to sluggish consumer trends.
- The Americas segment experienced a slowdown due to competitive shuffling and customers pushing out orders, resulting in flat sequential net sales.
- Raw material costs in Brazil are rising due to increased international container costs, which may pressure margins as input costs normalize.
- The anticipated benefits from new product innovations and beyond apparel initiatives will not be realized immediately, with significant impacts expected in fiscal 2026.
Good morning, and thank you for attending Unifi's fourth quarter fiscal 2024 earnings conference call. Today's conference is being recorded, and all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session.
Speakers for today's call include Al Carey, Executive Chairman; Eddie Ingle, Chief Executive Officer; A.J. Eaker, Chief Financial Officer. And during this call, management will be referencing a webcast presentation that can be found in the Investor Relations section of unifi.com. Please familiarize yourself with Page 2 of the slide deck for cautionary statements and non-GAAP measures.
And now I will turn the call over to Al Carey. Al, the floor is yours.
Thank you, Kathleen. Good morning, everybody, and thank you very much for joining us on the call today. I'm going to start with a brief, but broad overview of our performance for Q4 seeing a couple of insights that come out for us. And then I'm going to
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