Unifi reported its highest sales for a decade in its financial year to July 31^st 2022 and the company continues to invest in new yarn texturing machinery within the USA and in El Salvador and Brazil.

Net sales were $815.8 million for fiscal 2022 compared to $667.6 million in fiscal 2021 but operating income fell to $28.6 million compared to $38.6 million and net income was $15.2 million, down from $29.1 million.

Revenues from Repreve recycled fibre products represented 36% of consolidated 2022 net sales.

“Our fourth quarter fiscal 2022 results were consistent with our expectations, as we generated double-digit top-line growth and continued to navigate a volatile macro environment,” said CEO Eddie Ingle. “This marks our third consecutive quarter of over $200 million in sales, and we are proud of how our teams around the globe continue to leverage the resilience and agility of our business model.

 “As we look to fiscal 2023, we remain focused on executing our growth strategy, which includes accelerating innovation, expanding our Repreve branding, growing our market share and penetrating new markets. Additionally, we will remain diligent in aligning pricing to stay ahead of inflation, and we expect to continue to make progress towards a stronger and more profitable business in the quarters and years ahead.”

There is short-term uncertainty with regard to global demand and inflation concerns will be a pressure in the next six months, he added.

“Our team remains focused on executing our strategic plans including our long-term financial goals. We continue to make investments in and are realising initial benefits from our new yarn texturing machinery within our USA, El Salvador and Brazil manufacturing operations. The adoption of our Repreve fibre continues to grow as we support numerous customers with their sustainability endeavors. We also continue to make progress with innovative approaches to the labour challenges that have impacted many businesses in the USA and in addition, we remain diligent with pricing actions to offset inflationary pressures.”

Unifi expects sales for fiscal 2023 to grow to between $855 million and $885 million, which would represent an increase of 5% or more from the level achieved in fiscal 2022. This  anticipates that current headwinds from customer demand patterns as well as input cost dynamics will be most pronounced in the Americas segment and will continue for at least the next six months.

The company will invest between $35-40 million in further new yarn texturing machinery over the next year.

www.unifi.com