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Oct 03, 2021
Utz Q3 2021 Earnings Report
Utz reported strong consumer demand with accelerated sales growth and delivered two-year market share gains.
Key Takeaways
Utz Brands reported a 26.1% increase in net sales to $312.7 million compared to the third quarter of 2020. Pro Forma Net Sales increased 1.4%. Net income increased to $31.4 million compared to a net loss of $(25.3) million in the prior-year period. Adjusted EBITDA increased 17.3% to $44.8 million.
Net sales increased 26.1% to $312.7 million.
Pro Forma Net Sales increased 1.4% to $312.7 million.
Net income of $31.4 million increased compared to a net loss of $(25.3) million in the prior-year period.
Adjusted EBITDA increased 17.3% to $44.8 million.
Forward Guidance
The Company continues to expect fiscal 2021 net sales to be consistent with fiscal 2020 Pro Forma Net Sales with modest organic sales growth year over year. The Company expects to towards the low-end of its previous Adjusted EBITDA expectations and is reaffirming its Adjusted Earnings Per Share expectations.
Positive Outlook
- Fiscal 2021 net sales are expected to be consistent with fiscal 2020 Pro Forma Net Sales.
- Modest organic sales growth year over year is expected.
- Projected pro forma two-year CAGR for fiscal 2021 of approximately 6% is above the Company’s long-term organic growth outlook of 3 – 4%.
- A more favorable tax rate is expected.
- Lower interest expense is expected.
Challenges Ahead
- Rising supply chain cost inflation is expected.
- Commodity inflation of approximately 7% is expected.
- Higher transportation costs than previously expected in 2Q’21.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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