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Fibres/​Yarns/​Fabrics

Premium value-added products drive income growth at Unifi

Unifi has reported a net income growth of US$ 1.4 million, or a 17% increase, for the first quarter of the fiscal 2017.

1st November 2016

Innovation in Textiles
 |  Greensboro, NC

Clothing/​Footwear, Sports/​Outdoor

According to the company, its global strategy and focus on premium value-added (PVA) products drove favourable operating results compared to the prior fiscal year first quarter. "I am pleased to report strong first quarter results, which reflect the success of our strategy of providing the highest-quality innovative and sustainable products for our customers around the world," said Tom Caudle, President of Unifi.

"We are especially pleased with the performance of our international operations in Asia and Brazil where we experienced growth that offset soft market conditions in our domestic business. The opening of the Repreve Bottle Processing Center marked the completion of a significant leg of our capital allocation programme. By investing for the future, we will be capable of producing 75 million pounds of plastic bottle flake annually, enhancing our support of Repreve."

Operating results

Net sales were US$ 160.0 million for the first quarter of fiscal 2017, compared to net sales of US$ 162.2 million for the first quarter of fiscal 2016. Consolidated volumes, as measured in pounds sold, increased by 11%, driven by strong PVA performance in Asia and Brazil that offset weaker sales in the domestic market; however, net sales were adversely impacted by a decline in raw material prices.

The strength of the company's international PVA business continued to drive solid operating results. Operating income grew in the first quarter of fiscal 2017 by US$ 2.9 million, or 30%, to US$ 12.6 million, compared to US$ 9.7 million in the first quarter of fiscal 2016. Operating margin improved by 190 basis points to 7.9% in the first quarter of fiscal 2017, compared to 6.0% in the first quarter of fiscal 2016.

Strong operating results, along with a lower effective tax rate, drove net income for the first quarter of fiscal 2017 up to US$ 9.4 million, compared to US$ 8.0 million for the first quarter of fiscal 2016, despite US$ 1.7 million of comparatively lower pre-tax earnings from PAL, in which the company has a 34% interest.

Unifi

Unifi is a multi-national manufacturing company that produces and sells recycled and other processed yarns designed to meet customer specifications, and premium value-added (PVA) yarns with enhanced performance characteristics. 

Unifi maintains one of the textile industry's most comprehensive polyester and nylon product offerings. In addition to its flagship Repreve products – a family of eco-friendly yarns made from recycled materials – key Unifi brands include: SORBTEK, REFLEXX, aio – all-in-one performance yarns, SATURA, AUGUSTA A.M.Y., MYNX UV, and MICROVISTA.  Unifi's yarns are readily found in the products of major brands in the apparel, hosiery, automotive, home furnishings, industrial and other end-use markets.

www.repreve.com

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