The following is a summary of the Unifi, Inc. (UFI) Q2 2024 Earnings Call Transcript:
Financial Performance:
Unifi recorded $136.9 million in net sales in Q2 2024, nearly flat compared to $136.2 million in Q2 of 2023. Sales volumes were offset by lower average prices due to reduced raw material costs.
The company anticipates a reduction in expenses by approximately $2.5 million per quarter on a run rate basis starting in 2025.
Unifi recorded $1.3 million of bad debt provision due to customer financial difficulties and $5.1 million in restructuring costs.
Gross profit improved due to lower raw material costs and variable cost management but was hindered by weak apparel demand.
Net debt increased by $6.8 million from the previous quarter and $2.8 million from the previous year-end, primarily due to working capital needs and continued weak demand.
Business Progress:
Unifi has undertaken a review of its organizational structure, resulting in significant cost-cutting and improved operational efficiency.
The company has initiated the implementation of a profitability improvement plan, targeting over $20 million in cumulative profitability benefit.
Unifi is focusing on growth potential areas such as REPREVE and beyond the apparel initiatives.
For Q3 of fiscal 2024, Unifi forecasts net sales between $149 million and $154 million, adjusted EBITDA between minus $2 million and $1 million, and capital expenditures between $4 million and $5 million.
The company has made strategic appointments across its leadership team to drive growth and focus on innovation.
More details: Unifi IR
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