The company’s revenues from Repreve fibre products in Q2 FY23 represented 31 per cent of net sales, or $42.9 million, compared to 40 per cent, or $81.5 million, in Q2 FY22, primarily impacted by lower sales volumes in Asia.

Gross loss was $8 million compared to gross profit of $16.9 million for the second quarter of fiscal 2022, primarily impacted by lower facility utilisation and lower sales. Gross margin was minus 5.9 per cent compared to 8.4 per cent for Q2 FY22, Unifi said in a press release.

The company’s operating loss was $19.8 million in Q2 FY23 compared to operating income of $4.6 million for Q2 FY22.

In Q2 FY23, net loss was $18 million, or $1 per share, compared to net income of $0.9 million, or $0.05 per share, for the second quarter of fiscal 2022. Adjusted net loss was $21.8 million compared to $0.9 million of adjusted net income for Q2 FY22. Furthermore, the adjusted EBITDA was minus $13 million compared to $10.9 million for Q2 FY22.

Unifi’s net debt decreased from $79.8 million on October 2, 2022, to $79.6 million on January 1, 2023.

The company’s year-to-date FY23 net sales were $315.7 million compared to $397.4 million. Revenues from Repreve fibre products represented 29 per cent of net sales, or $92 million, compared to 39 per cent, or $153.4 million in the corresponding period of FY22. Gross margin was minus 0.5 per cent compared to 10.8 per cent. Furthermore, the operating loss was $24.5 million compared to operating income of $17.8 million.

For Q3 FY23, Unifi expects revenue to increase sequentially, but adversely impacted by the Lunar New Year holiday in Asia; sequential operating performance improvement; continued volatility and unfavorability in the effective tax rate; and slightly lower sequential capital expenditures, with further reductions anticipated during the fourth quarter of fiscal 2023.

Fibre2Fashion News Desk (DP)