Net income amounted to US$9.7m in the three months ended 25 June, compared to $10.2m a year earlier

Net income amounted to US$9.7m in the three months ended 25 June, compared to $10.2m a year earlier

US yarn manufacturer Unifi booked a mixed fourth-quarter as its operations in Asia and Brazil led sales growth but expenses pushed profit down 4.9%.

Net income amounted to US$9.7m in the three months ended 25 June, compared to $10.2m a year earlier. Gross margin in the period narrowed to 16% from 16.8% in the prior year, while net sales increased to $171.3m from £163.9m last year. Meanwhile, sales growth led by operations in Asia and Brazil were partially offset by challenging domestic market conditions.

For the full year, net income slipped to $32.9m from $34.4m in fiscal 2016. Unifi said this year's profit benefited from a lower effective tax rate, but was unfavourably impacted by higher administrative expenses, a loss of about $1.7m associated with a non-core divestiture, and a decline in earnings of about $2.2m from the group's Parkdale America spinning division.

Meanwhile, gross margin was flat at 14.5% but net sales for the year were up slightly, reaching $647.3m from $643.6m.

"The fourth quarter of fiscal 2017 continued to demonstrate the global opportunity of our growing portfolio of PVA products," said CEO Kevin Hall. "We are pleased that the strength of our international operations allowed us to overcome ongoing headwinds in the domestic retail and apparel markets."

Hall, who has been in the role for just two months, added as Unifi's core competencies continue to provide the platform necessary for future growth, the company expects to invest for growth in PVA revenue and earnings for fiscal 2018.

Looking ahead, Unifi expects revenue growth in the low-single digit percentage range, and operating income and earnings growth in the mid-single digit percentage range.