The rise was primarily due to higher sales volumes in the Brazil segment, partially offset by severe weather and seasonality impacts in the Americas segment, and difficult economic conditions in the Asia segment.
Unifi reported net sales of $147.4 million in the first quarter of fiscal 2025, up 6 per cent from the first quarter of 2024, driven by higher sales volumes, particularly in Brazil.
Gross profit improved to $9.5 million from a loss, with gains in the Americas and Brazil segments.
Operating loss narrowed to $3.2 million, and net loss reduced to $7.6 million.
In the first quarter, gross profit increased to $9.5 million from a gross loss of $0.6 million. Americas segment gross profit improved by $6.0 million, primarily due to higher sales and production levels. Brazil Segment gross profit improved by $5.8 million, primarily due to pricing and market share gains. Asia segment gross profit decreased by $1.7 million, primarily due to unfavourable economic conditions and pricing dynamics in the region, the company said in a press release.
Operating loss was $3.2 million compared to $12.0 million. The underlying improvement was primarily due to the increase in gross profit. Net loss was $7.6 million compared to $13.3 million. EPS was ($0.42) and adjusted EBITDA was $3.3 million, compared to $(0.73) and $(4.8) million, respectively.
“Our financial results for the first quarter were in line with our expectations, highlighting our continued progress toward repositioning our business for future growth. The strategic initiatives that we put into place during the previous fiscal year have continued to benefit our financial results, which is evident by the significant improvement we experienced in gross profit during the period. To help sustain this positive momentum, we continue to take steps to strengthen our balance sheet, which includes entering into a credit agreement that allows us to ensure our capital is deployed to the best long-term investments. We are confident that the improvements we have made to our business so far have positioned us well to enhance our future financial performance and increase shareholder value,” Eddie Ingle, chief executive officer of Unifi, said.
For fiscal 2025, the company expects net sales to increase 10 per cent over fiscal 2024, as underlying portfolio and Repreve Fibre momentum continues while macroeconomic and inflationary uncertainties remain pronounced until calendar 2025.
Gross profit, gross margin, and adjusted EBITDA are expected to increase significantly from fiscal 2024 to fiscal 2025, benefiting from higher sales volumes, initiatives from the previously announced profitability improvement plan, and portfolio strength.
“We are excited about the opportunities that lie ahead of us for both our Repreve Fibre business and our growing beyond apparel initiatives, which we believe are poised to benefit from the growing customer demand for sustainable solutions. As we look ahead, we will continue to focus on diligently managing our operations, maintaining a healthy balance sheet, and driving future growth that will help create value for all our stakeholders,” Ingle concluded.
Fibre2Fashion News Desk (RR)
