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Expense reductions boost Unifi to highest quarterly profit in three years | Local

usscmc by usscmc
January 28, 2021
The Briefcase: Supply chain company expands in Winston-Salem | Business
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Revenue from its Repreve fibers represented 37% of net sales, a quarterly record.

Repreve, introduced in 2006, is polyester yarn made from chips that come mainly from recycled bottles. Sorbtek is its moisture management yarn. Repreve-based yarns are used to make products for the apparel, outdoor, home textiles and automotive sectors.

Unifi continues to recover from the impact of the COVID-19 pandemic on the apparel and automobile industries during the first half of calendar 2020. Many manufacturers drastically reduced production or shut plants temporarily for several weeks or months.

Ingle said Unifi has been focused on “positioning our business to capitalize on industry recovery as we near normal demand levels.”

“Additionally, we have been able to sustain many of the efficiencies implemented during the beginning of the pandemic, which have begun to positively impact our long-term profitability and inventory levels as sales volumes returned.”

Unifi closed on Dec. 27 the nylon assets of Fiber and Yarn Products Inc. for an undisclosed price.

Unifi provided limited third-quarter financial guidance.

Net sales are projected to return to the pre-pandemic level of the March 2020 quarter, which were just under $171 million. It also projects raw-material cost pressures due to recent increases in petroleum prices.

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