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Mar 31, 2024
Utz Q1 2024 Earnings Report
Reported strong start to the year with increased market share and Adjusted EPS growth.
Key Takeaways
Utz Brands reported net sales of $346.5 million and a net income of $2.4 million for Q1 2024. The company experienced organic net sales growth of 1.5% and a significant increase in Adjusted Earnings per Share of 27.3%. They are reaffirming Organic Net Sales and Adjusted EBITDA outlook, while raising Adjusted Earnings per Share outlook.
Net sales reached $346.5 million.
Organic Net Sales increased by 1.5%.
Net income was $2.4 million, a significant improvement from the previous year's net loss of $(14.5) million.
Adjusted Earnings per share increased by 27.3% to $0.14.
Forward Guidance
The Company is reaffirming its outlook for Organic Net Sales and Adjusted EBITDA growth, and raising its outlook for Adjusted Earnings per Share growth.
Positive Outlook
- Organic Net Sales growth of ~3% or better driven by volume growth.
- Adjusted EBITDA growth of 5% to 8%, offset by accelerated cost savings and the transition services agreement.
- Adjusted EPS growth of 23% to 28%.
- An effective tax rate in the range of 18% to 20%.
- Net Leverage Ratio of ~3.6x at year-end fiscal 2024.
Challenges Ahead
- Net sales to be impacted by ~$45 million due to the sale of the Good Health® and R.W. Garcia® brands.
- Assumes the estimated impact of the forgone contribution to Adjusted EBITDA from the brand dispositions.
- Interest expense of ~$47 million.
- Capital expenditures in the range of $80 to $90 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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