Unifi Q4 Earnings Tops Estimates; Provides Upbeat Outlook

Unifi Inc UFI reported fourth-quarter FY21 sales growth of 114.3% year-on-year, to $184.4 million, beating the analyst consensus of $181.53 million.
The Asia segment sales rose 162% Y/Y, and Polyester sales rose 83%. Revenues from REPREVE Fiber products represented 38% of net sales, versus 28% last year.
Gross profit was $27.4 million, with a gross margin of 14.9%. The operating margin was 7.6%, and the operating income at $14 million.
Adjusted EBITDA was $20.4 million, compared to $(14.0) million last year.
The company held $78.3 million in cash and equivalents as of June 27, 2021.
Net cash provided by operating activities amounted to $36.7 million for FY21.
Adjusted EPS of $0.37 beat the analyst consensus of $0.19.
"The fourth quarter was underpinned by record sales performance in Asia and strong pricing by our Brazil Segment, which achieved a robust gross margin despite pandemic restrictions in April 2021," said CEO Eddie Ingle.
Outlook: Unifi sees Q1 FY22 net sales growth of 3%-5% Q/Q. The company expects an adjusted EBITDA of $14 million - $16 million.
For FY22, the company expects sales volume and REPREVE Fiber sales growth to drive a 10% or more sales increase.
Price action: UFI shares closed higher by 4.56% at $22.22 on Wednesday.