US yarn innovator Unifi's fourth quarter sales leap 114%

Unifi, a US-based innovator in recycled and synthetic yarns, has reported 114 per cent sales growth to $184.4 million in its fourth quarter (Q4) of FY21 ended on June 27, compared to sales of $86 million in the same period of last year. Net income for Q4 improved to $13.4 million (Q4 FY20: loss $20.2 million).

 
“Our fourth quarter fiscal 2021 results demonstrated the resilience of our global business model and the value that our innovative solutions bring to our global customer base. We delivered strong performance across all segments during the period, driven by our team’s commitment to meeting the needs of our customers in what remains a dynamic business environment,” Eddie Ingle, chief executive officer of Unifi, said.
 
Gross profit for the period was $27.4 million (up from a loss of $9.4 million), while operating income rose to $13.9 million (loss: $20.8 million).

The company’s two primary segments polyester and nylon recorded increase in sales to $87.8 million and $47.9 million respectively. Whereas sales from Asia during fourth quarter climbed to $53.3 million and Brazil sales escalated to $23.4 million.
 
“The fourth quarter was underpinned by record sales performance in Asia and strong pricing by our Brazil segment, which achieved a robust gross margin despite pandemic restrictions in April 2021. The polyester segment also benefited from further demand recovery, and momentum for Repreve Fibre products remains strong as our team continues growing our innovative and sustainable product portfolio,” Ingle added.
 
For its upcoming fiscal 2022 year, Unifi said that although Asia and the polyester segment are expected to generate modest profitability growth, the company does not expect the Brazil segment to continue at FY21 levels. Consequently, the company expects sales growth of 10 per cent against FY21, driven by Repreve Fibre sales growth.