Operating income increased 11 per cent to $6.3 million compared to $5.7 million in the first quarter of fiscal 2019. Revenues from premium value-added products represented a record 54 per cent of consolidated net sales, up from 43 per cent compared to the first quarter of fiscal 2019.
"Underlying sales growth was led by our Repreve-branded products, as our strategy and portfolio in Asia continue to be validated, helping us to achieve our revenue expectations for the first quarter of fiscal 2020," said Tom Caudle, president and chief operating officer of Unifi. "Profitability was aided by our previously communicated step-down in SG&A, along with a more favorable raw material cost environment in the US. While we recognise that the current business environment in the US is challenging and our Brazil segment was impacted by elevated raw material costs, we are pleased with our operating cash flows and earnings in the first fiscal quarter and look to carry that momentum into the remainder of fiscal 2020."
"Consistent with the timeline we have previously communicated, before the end of calendar 2019, we expect finalisation of our October 2018 trade petitions and look forward to providing further updates in due time," added Caudle.
For fiscal 2020, the company reaffirmed its previously announced expectations. Assuming no significant volatility in raw material costs, the company expects high-single-digit percentage growth from fiscal 2019 for sales volumes; mid-single-digit percentage growth from fiscal 2019 for net sales; operating income between $22-$27million, over 100 per cent growth from fiscal 2019;
"With the assumption that raw material costs remain stable for the remainder of fiscal 2020, we are reaffirming our fiscal 2020 outlook. We continue to project growth from fiscal 2019 that includes continued top-line expansion, a doubling of operating income, substantial improvement in our effective tax rate and a significant increase in net income and Adjusted EBITDA," concluded Caudle.
Unifi, Inc, is a global textile solutions provider and one of the world's leading innovators in manufacturing synthetic and recycled performance fibres. The company's proprietary Profiber technologies offer increased performance, comfort and style advantages, enabling customers to develop products that perform, look and feel better. Through Repreve, one of Unifi's proprietary technologies and the global leader in branded recycled performance fibres, Unifi has transformed more than 16 billion plastic bottles into recycled fibre for new apparel, footwear, home goods and other consumer products. Unifi continually innovates technologies to meet consumer needs in moisture management, thermal regulation, antimicrobial protection, UV protection, stretch, water resistance and enhanced softness.
Fibre2Fashion News Desk (PC)
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