Unifi Upbeat on Q3 Results
Unifi achieved better than expected operating results for the third quarter of fiscal 2021, according to the company’s report. Net sales were $178.9 million, an increase of 4.6 percent year-over-year, and an increase of 9.9 percent sequentially from the second quarter of fiscal 2021. Additionally, revenues from REPREVE Fiber products represented 33 percent of consolidated net sales, compared to 29 percent for the third quarter of fiscal 2020. Gross profit was $25.6 million, a 66 percent increase year-over-year, while gross margin was 14.3 percent, an increase of 530 basis points year-over-year, primarily due to improvements in the Brazil and Asia Segments. Net income was $4.8 million, or $0.25 of diluted earnings per share ("EPS"), up from net loss of $41.1 million, or $2.23 per share, year-over-year. The prior year results included a $45.2 million impairment charge in connection with the Company's sale of its 34 percent interest in Parkdale America, LLC ("PAL").
Eddie Ingle, Unifi’s CEO, said, "Third quarter fiscal 2021 results reflected our team's ability to effectively leverage the strength of our global business model during the continued economic recovery. We have remained focused on positioning the business to take advantage of building economic momentum around the world as we return to a more normalized demand environment.”
Ingle highlighted how the Brazil segment outperformed expectations again — “achieving exceptional profitability with a record 41.2 percent gross margin driven by strong pricing levels” — while the Asia segment benefited from an improving business climate and recaptured pre-pandemic momentum, allowing the segment to return to top-line growth.
The outlook going forward is very positive. The Company expects demand levels and trends across the business to remain strong and anticipates current inflationary pressures from raw material fluctuations to be mostly offset by selling price adjustments.