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Jul 02, 2023
Unifi Q4 2023 Earnings Report
Unifi's financial performance was pressured by weak demand, but cost control measures and strategic positioning were implemented.
Key Takeaways
Unifi, Inc. reported net sales of $151.1 million, impacted by weak demand. The company faced an operating loss of $13.7 million, including an $8.2 million impairment charge. Despite these challenges, Unifi focused on cost control and market share opportunities.
Net sales reached $151.1 million, influenced by reduced demand and volatile ordering patterns.
REPREVE Fiber products contributed 29% of net sales, totaling $44.5 million, but were affected by lower sales volumes in Asia.
The company experienced an operating loss of $13.7 million, inclusive of an $8.2 million impairment charge.
Cash and cash equivalents amounted to $47.0 million, supported by strict cost control measures.
Unifi
Unifi
Unifi Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comBrazil Revenue
CapyFin.comAsia Revenue
CapyFin.com Forward Guidance
UNIFI expects first quarter fiscal 2024 net sales and Adjusted EBITDA to be generally consistent with fourth quarter fiscal 2023 results. Capital expenditures are expected to (i) trend downward for the first quarter and (ii) be between $14.0 million and $16.0 million for fiscal 2024.
Positive Outlook
- Market share developments in both the Americas and Brazil Segments
- Inventory destocking period is nearing its end
- Capital expenditures are expected to trend downward for the first quarter
- Positioning segments for demand recovery in fiscal 2024
- Restoring profitability
Challenges Ahead
- Demand environment is expected to remain subdued during the balance of calendar 2023
- Continued uncertainty across customer base
- Effective tax rate is expected to demonstrate continued volatility
- Weak global textile environment
- Capital expenditures are expected to be between $14.0 million and $16.0 million for fiscal 2024
Revenue & Expenses
Visualization of income flow from segment revenue to net income