American firm Unifi, the company known for its Repreve recycled fibre products, has reported net sales of $582.2 million for fiscal 2024 (FY24), down from $623.52 million in fiscal 2023. Despite this overall decline, the fourth quarter (Q4) of FY24 saw a positive turn, with net sales increasing to $157.5 million, up from $151.1 million in the same period of the previous year. This growth was primarily driven by higher sales volumes across all segments, although it was partially offset by lower average selling prices resulting from changes in the sales mix and reduced raw material costs, particularly in the Americas Segment.

The company’s Repreve fibre products, a cornerstone of Unifi’s sustainable offerings, generated revenues of $53.6 million in the fourth quarter, representing 34 per cent of net sales. This marks an increase from $46.8 million, or 31 per cent of net sales, in the previous quarter, highlighting the growing demand for sustainable materials, the company said in a press release.

Unifi also reported a significant improvement in gross profit for the fourth quarter, which rose to $10.8 million from $6 million in the prior year’s quarter. This increase was largely attributed to the Brazil Segment, where gross profit improved by $3.9 million due to pricing and market share gains. The Asia Segment also contributed to this improvement, with a $1 million increase in gross profit driven by higher sales volumes.

The company reported an operating loss of $0.8 million in Q4 FY24, a significant improvement compared to an operating loss of $13.7 million in the same quarter of FY23. Net loss for the fourth quarter was $4 million, a substantial reduction from the $15.3 million net loss reported in the prior year’s fourth quarter.

Unifi’s adjusted earnings per share (EPS) for Q4 FY24 was negative $0.22, compared to negative $0.39 in the same period of FY23. Adjusted EBITDA for the quarter also showed improvement, rising to $5.9 million from $1.7 million in the previous year’s quarter.

“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. Our financial performance over the last few quarters has shown consistent top-line growth, and we reported our third consecutive quarter of gross profit improvement,” said Eddie Ingle, chief executive officer of Unifi.

Fibre2Fashion News Desk (DP)