Unifi, Inc. (UFI) Bundle
A Brief History of Unifi, Inc.
Unifi, Inc. (NYSE: UFI) has established itself as a prominent leader in the fiber science and sustainable synthetic textiles industry. As of 2024, the company has made significant strides in its operational performance, particularly in response to evolving market demands for sustainable materials.
Financial Performance Overview
For the first quarter of fiscal 2025, Unifi reported net sales of $147.4 million, a 6% increase from the previous year’s first quarter net sales of $138.8 million. This growth was primarily driven by higher sales volumes across its segments, particularly in the Americas and Brazil.
| Financial Metric | Q1 Fiscal 2025 | Q1 Fiscal 2024 |
|---|---|---|
| Net Sales | $147.4 million | $138.8 million |
| Gross Profit | $9.5 million | $(0.6) million |
| Net Loss | $(7.6) million | $(13.3) million |
| Net Loss per Share | $(0.42) | $(0.73) |
| Adjusted EBITDA | $3.3 million | $(4.8) million |
Segment Performance
The company’s revenue from REPREVE Fiber products reached $44.7 million, accounting for 30% of total net sales. This represents a slight decrease from $42.5 million or 31% of total net sales in the same quarter of the previous year.
The performance by segment is as follows:
| Segment | Net Sales (Q1 2025) | Net Sales (Q1 2024) |
|---|---|---|
| Americas | $86.3 million | $81.6 million |
| Brazil | $34.3 million | $29.9 million |
| Asia | $26.8 million | $27.4 million |
Balance Sheet Highlights
As of September 29, 2024, Unifi reported total assets of $466.9 million, with total liabilities amounting to $207.3 million. The company maintained a healthy equity position with total shareholders' equity of $259.7 million.
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $466.9 million |
| Total Liabilities | $207.3 million |
| Total Shareholders' Equity | $259.7 million |
Outlook and Strategic Initiatives
Looking ahead, Unifi anticipates net sales for the full fiscal 2025 to increase by 10% over fiscal 2024. The company is focused on enhancing its product offerings and operational efficiencies, particularly through its sustainability initiatives with REPREVE Fiber.
Furthermore, Unifi expects capital expenditures to be approximately $12 million, with plans to maintain investments in innovation and capacity expansion.
Recent Developments
In October 2024, the company entered into an additional credit facility valued at $25 million, aimed at strengthening its balance sheet and supporting future growth initiatives.
A Who Owns Unifi, Inc. (UFI)
Major Shareholders
As of 2024, Unifi, Inc. (UFI) has a diverse ownership structure comprised of institutional investors, individual shareholders, and company executives. The following table outlines the major shareholders along with their respective ownership percentages:
| Shareholder | Ownership Percentage (%) | Shares Held |
|---|---|---|
| BlackRock, Inc. | 10.5 | 1,900,000 |
| The Vanguard Group, Inc. | 9.8 | 1,800,000 |
| Dimensional Fund Advisors LP | 8.7 | 1,600,000 |
| Wellington Management Co. LLP | 7.9 | 1,400,000 |
| Executive Management and Board Members | 5.2 | 900,000 |
Institutional Ownership
Institutional investors hold a significant portion of Unifi's shares. As of 2024, institutional ownership is reported at approximately 60% of total shares outstanding, indicating strong confidence from professional investors.
Recent Stock Performance
Unifi, Inc. has experienced volatility in its stock price over the past year. The following table summarizes key stock performance metrics:
| Metric | Value |
|---|---|
| Current Share Price (as of October 2024) | $7.50 |
| 52-Week High | $9.25 |
| 52-Week Low | $5.00 |
| Market Capitalization | $138 million |
| Dividend Yield | 0% |
Financial Overview
Unifi's financial position as of the end of Q1 Fiscal 2025 shows a net loss of $7.6 million, with total net sales reaching $147.4 million, indicating a year-over-year increase of 6%. The gross profit improved to $9.5 million from a gross loss in the previous year. The following table provides a snapshot of Unifi's financial metrics:
| Financial Metric | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Net Sales | $147.4 million | $138.8 million |
| Gross Profit | $9.5 million | $(0.6) million |
| Net Loss | $(7.6) million | $(13.3) million |
| Adjusted EBITDA | $3.3 million | $(4.8) million |
| Capital Expenditures | $12.0 million (projected for FY 2025) | N/A |
Executive Management
The executive team at Unifi plays a crucial role in guiding the company's strategic direction. Key executives include:
- Eddie Ingle, Chief Executive Officer
- Kevin L. McKenzie, Chief Financial Officer
- Michael C. Smith, Chief Operating Officer
These executives collectively hold approximately 5.2% of the company's shares, reflecting their vested interest in the company's performance.
Unifi, Inc. (UFI) Mission Statement
Unifi, Inc. (NYSE: UFI) focuses on sustainability and innovation in the textile industry, particularly through its flagship brand, REPREVE, which is recognized for transforming recycled materials into high-quality fibers. The mission statement emphasizes a commitment to environmental stewardship, product innovation, and customer satisfaction.
Mission and Vision
The company aims to lead the industry in fiber science and sustainable synthetic textiles, envisioning a future where circular and sustainable solutions are the norm. Unifi's mission includes:
- Transforming post-industrial and post-consumer waste into sustainable products.
- Providing high-performance and environmentally friendly textile solutions.
- Enhancing customer engagement through innovative and sustainable practices.
Financial Overview
As of the first quarter of fiscal 2025, Unifi reported a net sales increase, reflecting its commitment to growth and sustainability:
| Financial Metric | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Net Sales | $147.4 million | $138.8 million |
| Gross Profit | $9.5 million | $(0.6) million |
| Operating Loss | $(3.2) million | $(12.0) million |
| Net Loss | $(7.6) million | $(13.3) million |
| Earnings Per Share (EPS) | $(0.42) | $(0.73) |
| Adjusted EBITDA | $3.3 million | $(4.8) million |
Operational Segments
Unifi operates across several geographical segments, contributing to its overall financial performance:
| Segment | Net Sales (Q1 FY 2025) | Gross Profit (Q1 FY 2025) |
|---|---|---|
| Americas | $86.3 million | $(1.4) million |
| Brazil | $34.3 million | $7.9 million |
| Asia | $26.8 million | $2.9 million |
Strategic Initiatives
Unifi is actively pursuing strategic initiatives to enhance its operational efficiency and market presence:
- Entering a new $25 million credit facility to strengthen its balance sheet.
- Implementing cost-saving measures and productivity enhancements across its operations.
- Focusing on expanding the REPREVE Fiber product line to meet growing customer demand for sustainable solutions.
Future Outlook
For fiscal 2025, Unifi anticipates:
- Net sales growth of approximately 10% compared to fiscal 2024.
- Increased gross profit and EBITDA, driven by higher sales volumes and ongoing operational improvements.
- Capital expenditures estimated at $12 million.
Unifi, Inc. remains committed to its mission of sustainability, innovation, and customer satisfaction while navigating the challenges of the textile industry.
How Unifi, Inc. (UFI) Works
Company Overview
Unifi, Inc. (NYSE: UFI) is a global leader in fiber science and sustainable synthetic textiles. The company specializes in recycled and synthetic yarn, operating through various segments, primarily in the Americas, Brazil, and Asia. Unifi is particularly known for its REPREVE brand, which focuses on recycled fiber products.
Financial Performance
As of the first quarter of fiscal 2025, Unifi reported the following financial results:
| Financial Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Net Sales | $147,372,000 | $138,844,000 |
| Cost of Sales | $137,914,000 | $139,419,000 |
| Gross Profit (Loss) | $9,458,000 | ($575,000) |
| Selling, General and Administrative Expenses | $11,842,000 | $11,609,000 |
| Operating Loss | ($3,216,000) | ($12,029,000) |
| Net Loss | ($7,632,000) | ($13,270,000) |
| Net Loss per Share (Basic) | ($0.42) | ($0.73) |
| Adjusted EBITDA | $3,299,000 | ($4,841,000) |
Segment Performance
Unifi's revenue is generated from three primary segments: Americas, Brazil, and Asia. The net sales and gross profit details for each segment for Q1 2025 are as follows:
| Segment | Net Sales (Q1 2025) | Gross Profit (Q1 2025) |
|---|---|---|
| Americas | $86,283,000 | ($1,378,000) |
| Brazil | $34,310,000 | $7,937,000 |
| Asia | $26,779,000 | $2,899,000 |
| Total | $147,372,000 | $9,458,000 |
Balance Sheet Highlights
As of September 29, 2024, Unifi's condensed consolidated balance sheet showed the following assets and liabilities:
| Assets | Amount |
|---|---|
| Cash and Cash Equivalents | $13,703,000 |
| Receivables, Net | $77,885,000 |
| Inventories | $145,350,000 |
| Total Current Assets | $251,216,000 |
| Total Assets | $466,979,000 |
| Liabilities | Amount |
|---|---|
| Accounts Payable | $41,250,000 |
| Current Portion of Long-term Debt | $12,153,000 |
| Total Current Liabilities | $76,270,000 |
| Total Liabilities | $207,270,000 |
| Total Shareholders’ Equity | $259,709,000 |
Cash Flow Analysis
For the three months ended September 29, 2024, Unifi's cash flow statement reflected:
| Cash Flow Activity | Amount |
|---|---|
| Net Cash Provided by Operating Activities | ($12,834,000) |
| Capital Expenditures | ($2,018,000) |
| Net Cash Provided by Financing Activities | $1,230,000 |
| Cash and Cash Equivalents at End of Period | $13,703,000 |
Strategic Initiatives
Unifi has undertaken several strategic initiatives to reposition the company for future growth, including:
- Investment in the REPREVE Fiber product line.
- Entering into a $25 million credit facility to strengthen the balance sheet.
- Implementing a Profitability Improvement Plan to enhance gross margins.
Market Outlook
For fiscal 2025, Unifi expects:
- Net sales to increase by 10% over fiscal 2024.
- Continued volatility in effective tax rates.
- Capital expenditures between $4 million and $5 million for the second quarter.
How Unifi, Inc. (UFI) Makes Money
Business Overview
Unifi, Inc. operates primarily within the textile industry, focusing on the production of synthetic and recycled yarns. Its flagship product is REPREVE, a brand of recycled fiber made from post-consumer plastic bottles and other materials. The company engages in vertical integration, controlling various stages of production, from raw materials to finished products.
Revenue Streams
Unifi generates revenue through several key segments:
- Sales of REPREVE Fiber products
- Sales of other synthetic yarns
- International sales through operations in Brazil and Asia
Financial Performance
For the first quarter of fiscal 2025, Unifi reported the following financial metrics:
| Metric | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Net Sales | $147.4 million | $138.8 million |
| Gross Profit | $9.5 million | ($0.575 million) |
| Operating Loss | ($3.2 million) | ($12.0 million) |
| Net Loss | ($7.6 million) | ($13.3 million) |
| Adjusted EBITDA | $3.3 million | ($4.8 million) |
Segment Performance
Unifi's sales are categorized across different geographical segments, with performance metrics as follows:
| Segment | Net Sales (Q1 FY 2025) | Net Sales (Q1 FY 2024) | Gross Profit (Q1 FY 2025) | Gross Profit (Q1 FY 2024) |
|---|---|---|---|---|
| Americas | $86.3 million | $81.6 million | ($1.4 million) | ($7.4 million) |
| Brazil | $34.3 million | $29.9 million | $7.9 million | $2.2 million |
| Asia | $26.8 million | $27.4 million | $2.9 million | $4.6 million |
Cost Structure
Unifi's cost of sales for Q1 FY 2025 was $137.9 million, resulting in a gross margin of 6.4%. The company has implemented cost-saving initiatives that contributed to the improvement in gross profit compared to the previous fiscal year.
Future Outlook
Unifi anticipates a 10% increase in net sales for the full fiscal year 2025 compared to fiscal 2024, driven by the momentum in its REPREVE Fiber business and initiatives from its Profitability Improvement Plan. The company expects capital expenditures of approximately $12 million for the year.
Liquidity and Debt Position
As of September 29, 2024, Unifi reported total assets of $466.98 million and total liabilities of $207.27 million. The company has a net debt of $117.99 million, calculated as total debt less cash and cash equivalents.
| Metric | Amount |
|---|---|
| Total Assets | $466.98 million |
| Total Liabilities | $207.27 million |
| Net Debt | $117.99 million |
Conclusion on Financial Position
Unifi's financial results reflect a strategic focus on sustainability through its REPREVE line, alongside efforts to enhance operational efficiency. The company continues to navigate challenges in the textile market while positioning itself for future growth.
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Article updated on 8 Nov 2024
Resources:
- Unifi, Inc. (UFI) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Unifi, Inc. (UFI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Unifi, Inc. (UFI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.