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Jun 30, 2024
Utz Q2 2024 Earnings Report
Reported strong momentum with dollar, pound, and unit share gains in the Salty Snack category for the third consecutive quarter, delivered sixth consecutive quarter of year-over-year Adjusted EBITDA Margin expansion, and increased Adjusted Earnings per Share.
Key Takeaways
Utz Brands reported second quarter net sales of $356.2 million. Organic Net Sales increased 1.6%. Net income was $25.4 million, with earnings per share of $0.23. Adjusted Earnings per share increased 46.2% to $0.19.
Net Sales of $356.2 million.
Organic Net Sales increased 1.6%.
Gross Profit Margin expansion of 260bps.
Adjusted Earnings per share increased 46.2% to $0.19.
Forward Guidance
The Company is modestly revising its outlook for Organic Net Sales growth from ~3% or better to now ~3%, reaffirming its outlook for Adjusted EBITDA growth of 5%-8%, and raising its outlook for Adjusted Earnings per Share growth from 23%-28%, to 28%-32%.
Positive Outlook
- Organic Net Sales growth driven by volume growth.
- Increased marketing investments.
- Product innovation.
- Already achieved distribution gains.
- Easier second half growth comparison.
Challenges Ahead
- Revised outlook due to a more moderate growth outlook for the Salty Snack Category.
- Net sales will be impacted by ~$45 million due to the sale of the Good Health® and R.W. Garcia® brands.
- Effective tax rate in the range of 17%-19%.
- Interest expense of ~$47 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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