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Jul 02, 2023
Utz Q2 2023 Earnings Report
Reported second quarter results and raised fiscal 2023 Adjusted EBITDA outlook.
Key Takeaways
Utz Brands reported a 3.6% increase in net sales to $362.9 million, driven by a 4.3% increase in Organic Net Sales. The company experienced a net loss of $(8.6) million, but Adjusted EBITDA increased 7.1% to $45.2 million. The company is raising its full-year Adjusted EBITDA outlook.
Net sales increased 3.6% year-over-year to $362.9 million.
Organic Net Sales increased 4.3% year-over-year.
Net loss of $(8.6) million vs. net income of $2.5 million in the year-ago period.
Adjusted EBITDA increased 7.1% year-over-year to $45.2 million.
Forward Guidance
The Company is reaffirming its Net Sales outlook and raising its Adjusted EBITDA outlook for fiscal 2023.
Positive Outlook
- Total net sales growth of 3% to 5% and Organic Net Sales growth of 4% to 6%, with the Company’s continued shift to IOs impacting total net sales growth by approximately (1.0%).
- Net sales growth is expected to be driven by net price realization, increased marketing and innovation, and continued distribution gains of the Company’s Power Brands, partially offset by the estimated impact of approximately (3%) from the Company’s SKU rationalization program.
- Based on these assumptions, the Company expects volume / mix consistent with fiscal 2022.
- Adjusted EBITDA growth of 8% to 11% (previously 7% to 10% growth) as gross margin expansion and lower delivery costs are expected to more than offset cost inflation, and continued investments in brand marketing, people, capabilities, and selling infrastructure.
- Net Leverage Ratio below 4.5x at year-end fiscal 2023.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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