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

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.