The net sales of Unifi, one of the world’s leading innovators in synthetic and recycled yarns, went up to $164.2 million for the first quarter of 2018, compared to net sales of $160.0 million for the first quarter of 2017. Revenue growth was driven by an overall increase in sales volume, as the company continued to benefit from strength in Brazil and Asia.
The company’s gross profit as a percentage of sales was 14.2 per cent for the first quarter of fiscal 2018, compared to 14.7 per cent for the first quarter of fiscal 2017, reflecting higher costs and increased sales of lower-margin products in our international businesses in the first quarter of fiscal 2018.
“We are pleased with the first quarter results, as we grew domestic and international sales despite continued market pressures,” said Kevin Hall, CEO of Unifi. “Our PVA brands like Repreve continue to take hold within the marketplace and exhibit our strong and growing partnerships with global brands and retailers. Overall, PVA products now account for more than 40 per cent of our consolidated sales, driving another strong quarter, with contributions from our Repreve platform of products. We remain focused on recycling and innovation to fuel our growth, and are proud to maintain the portfolio diversity we believe is necessary to succeed over the long term.”
For the reported period, operating income was $10.2 million, compared to $12.6 million for the first quarter of fiscal 2017, as first quarter fiscal 2018 operating income reflected the company’s investment in its strategic growth initiatives. Net income was $9.0 million for the first quarter of fiscal 2018, compared to net income of $9.4 million for the first quarter of fiscal 2017. Net income for the first quarter of fiscal 2018 benefited from higher earnings from Parkdale America, LLC (“PAL”) and a lower effective tax rate, but was unfavourably impacted by higher administrative expenses and higher interest rates. Diluted EPS was $0.48 for the first quarter of fiscal 2018, compared to $0.51 for the first quarter of fiscal 2017.
Adjusted EBITDA was $15.8 million for the first quarter of fiscal 2018, compared to $17.9 million for the first quarter of fiscal 2017. The decrease in adjusted EBITDA primarily resulted from higher operating expenses in the first quarter of fiscal 2018.
“I am also excited about our newly expanded executive team. With this significant new talent and a strong competitive position, we expect to become the global textile industry leader in recycling and an innovation partner of choice, collaborating with world-class operations and prominent brands,” added Hall.
“We continue to expect growth in both revenue and earnings during fiscal 2018. As we remain focused on combining recycling, innovation and technology with our superior supply chain capabilities, we are excited about our growth opportunities in fiscal 2018 and beyond,” Hall concluded.