The net sales of US-based textile manufacturing company Unifi Inc have reached $138.9 million in the second quarter (Q2) of fiscal 2025 (FY25), an increase of 1.4 per cent year-over-year (YoY).

The cost of sales rose to $138.35 million from $135.28 million, resulting in a gross profit of $0.53 million, down from $1.64 million. Selling, general, and administrative (SG&A) expenses increased to $12.92 million from $12.41 million. The operating loss improved to $7.56 million from $17.64 million, while the net loss stood at $11.39 million, down from $19.85 million, Unifi Inc said in a press release.

The revenues from Repreve (recycled polyester fibre) products were $43.3 million and represented 31 per cent of net sales, compared to $45.7 million or 33 per cent of net sales in Q2 of fiscal 2024.

Basic and diluted net loss per share for the quarter stood at $0.62, compared to $1.10.

“While our results for the second quarter came in slightly below our expectations due to global and localised pressures, we’ve taken numerous proactive actions to position the business for more durable and profitable future growth. This is evident by the recent increase in customer orders and interest we are seeing for some of our Beyond Apparel initiatives and Repreve Fiber products,” said Eddie Ingle, chief executive officer (CEO) of Unifi, Inc.

“Further, to help support this expected growth and make Unifi a stronger operating company, we are taking steps to optimise our business by consolidating our U.S. manufacturing footprint, which will make us a leaner and more profitable organisation without having to sacrifice our ability to service the market. As a result, we believe we are in a better position to drive long-term shareholder value,” added Ingle.

The operating loss improved to $7.6 million from $17.6 million. The company witnessed a net loss of $11.4 million compared to $19.8 million. Adjusted net loss was $15.7 million, compared to adjusted net loss of $14.7 million in Q2 FY25. The adjusted EBITDA was $5.8 million compared to $5.5 million, and each excluded the same adjustments.

For the six-month period, the net sales of the company reached $286.25 million, up from $275.76 million, with a gross profit of $9.99 million compared to $1.06 million. The operating loss improved to $10.78 million from $29.67 million, while net loss stood at $19.02 million, a reduction from $33.12 million in the same period of the prior year. The basic and diluted net loss per share was $1.04 versus $1.83.

Outlook

For the third quarter (Q3) of FY25, Unifi expects net sales and adjusted EBITDA to improve sequentially from Q2 FY25, primarily driven by higher revenues for the Americas segment. Capital expenditures are expected to be between $5.0 million and $6.0 million.

For the full year FY25, Unifi expects net sales to be nearly same as FY24 with second half of fiscal 2025 revenues improving sequentially from the first half. The gross profit, gross margin, and adjusted EBITDA are expected to increase from FY24 to FY25. The capital expenditures are estimated to be between $14.0 million and $16.0 million.

“We are excited about the future, and we are well-positioned to support our customers’ needs as the demand for sustainable and innovative solutions continues to grow. As we look ahead, our focus will continue to remain on optimising our business, improving our profitability, and making strategic investments in innovation that will drive future growth and create value for all our stakeholders,” concluded Ingle.

Fibre2Fashion News Desk (SG)