Unifi, a leading company specializing in recycled and synthetic yarns, has experienced a decline in sales for fiscal year 2020, which ended on June 28. The company’s sales figures dropped to $606.5 million, a decrease from $708.8 million in the previous year. Additionally, Unifi reported a net loss of $57.2 million compared to a net income of $2.4 million in FY19. The operating loss also saw a significant decrease from the operating income of $10.9 million in FY19, amounting to $8.8 million.

The COVID-19 pandemic had a significant impact on Unifi’s apparel and automotive customers, leading to the shutdown or significant reduction of operations. However, the company has witnessed a gradual improvement in monthly sales since April 2020, with July 2020 being the best month since March 2020. This positive trend has given hope to CEO Eddie Ingle, who stated that monthly sales have improved sequentially since April 2020.

While Unifi experienced an overall decline in sales, the company saw varying results in different regions and product categories. Sales of polyester during FY20 decreased by 16.6% to $309.1 million. Brazil witnessed a significant decline of 28.7% in sales, amounting to $73.3 million, while nylon sales dropped by 31.3% to $67.3 million. In contrast, sales in Asia showed growth, with a 15.2% increase reaching $153 million.

Despite the challenges faced, Unifi remains optimistic about the future. Ingle highlighted the progress made in the first nine months of fiscal 2020, including strong growth in the business in Asia, underlying sales and market share growth in US polyester operations, cost reduction actions contributing to performance, and increased sales of Repreve, the company’s sustainable yarn brand, driven by customer demand for sustainability.

Looking ahead, Unifi believes that its innovative and sustainable solutions will drive growth and cater to the changing needs of consumers. Ingle emphasized that the company’s commitment to sustainability and innovation will be the key to meeting the demands of forward-thinking consumers. Unifi expects Repreve to experience growth in non-traditional markets as more brands seek ways to reduce the carbon footprint of their raw materials.

Despite the challenges faced in fiscal year 2020, Unifi remains optimistic about its recovery and future growth. The company aims to continue providing innovative solutions in the recycled and synthetic yarn industry, focusing on sustainability and meeting consumer demands.

Useful Links:
Unifi Official Website
Repreve Website