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Apr 04, 2021
Utz Q1 2021 Earnings Report
Utz Brands reported financial results for the first quarter of 2021, showing increased net sales and adjusted EBITDA.
Key Takeaways
Utz Brands reported an 18.0% increase in net sales to $269.2 million, driven by acquisitions and favorable price/mix, despite volume declines due to transitory events. Adjusted EBITDA increased by 29.8% to $37.9 million, with margin expansion primarily due to the acquisition of Truco. The company reaffirms its full-year outlook.
Net sales increased by 18.0% to $269.2 million, driven by acquisitions and favorable price/mix.
Pro Forma Net Sales decreased 2.2% to $269.2 million compared to the previous year.
Adjusted EBITDA increased 29.8% to $37.9 million, with margin expansion to 14.1%.
The company is reaffirming its full-year outlook, expecting modest organic sales growth and Adjusted EBITDA between $180 and $190 million.
Forward Guidance
For the 52-week fiscal year ending January 2, 2022, the Company is reaffirming its full-year outlook previously provided on March 18, 2021.
Positive Outlook
- Net sales consistent with 2020 Pro Forma Net Sales of $1.16B with modest organic sales growth year over year.
- The Company’s projected pro forma two-year CAGR for fiscal 2020 and 2021 of approximately 6% is above the Company’s long-term growth outlook of 3 – 4%.
- Adjusted EBITDA of $180 – $190 million versus 2020 Further Adjusted EBITDA of $181 million, delivering a margin of approximately 16%.
- Adjusted Earnings Per Share of $0.70 – $0.75, which excludes step-up depreciation & amortization (“D&A”), stock compensation expense, and non-recurring items.
- Expecting 200 – 250 Independent Route (“IO”) conversions
Challenges Ahead
- The Company’s full-year outlook excludes the impact of the pending acquisition of Festida Foods, which is expected to close in the second quarter of 2021.
- Expecting commodity inflation of approximately 4%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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