• Q3 profit falls 3% to $9.7m 
  • Sales down 6.3% to $161.3m 
  • Gross margin improves 170 basis points

US yarn manufacturer Unifi posted a mixed third-quarter performance, with both profit and sales falling due to the devaluation of the Brazilian real and the timing of the Easter holidays, while gross margin improved thanks to its international segment. 

Net income dropped to US$9.7m for the three months to 27 March, compared to $10m in the same period of the prior year. 

Sales fell 6.3% to $161.3m from $172.2m, also weighed down by lower sales pricing associated with raw material costs. 

Gross margin, however, improved 170 basis points to 14.5% from 12.8% last year, thanks to the company's mix enrichment strategy, strong volume and margin growth in the international segment, and favourable raw material pricing. 

"These results highlight the success of our strategy to enrich our product mix and grow our premier value-added offerings to enhance returns," said chairman and CEO Bill Jasper. "We were particularly excited to see our international segment benefit from strong market share gains in Brazil and from our growing portfolio in China."

Unifi said it remains on track with capital projects, including its bottle processing operation, and that solid momentum continues from establishing new customers and partners for its Repreve recycled yarn.