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Oct 01, 2023
Utz Q3 2023 Earnings Report
Utz reported solid results on both the top and bottom line, with strong growth of their Power Brands, particularly in their Expansion geographies.
Key Takeaways
Utz Brands reported a 2.5% increase in net sales to $371.9 million and a net income of $16.2 million for Q3 2023. Organic Net Sales increased by 3.1%. The company's supply chain and portfolio optimization efforts negatively impacted volume, but productivity and cost savings helped maintain Adjusted EBITDA guidance.
Net sales increased 2.5% year-over-year to $371.9 million.
Organic Net Sales increased 3.1% year-over-year.
Net income of $16.2 million vs. net income of $1.5 million in the year-ago period.
Adjusted EBITDA increased 9.2% year-over-year to $52.1 million.
Forward Guidance
The Company is updating its previously-issued full-year fiscal 2023 financial outlook.
Positive Outlook
- Net sales growth is expected to be driven by net price realization.
- Net sales growth is expected to be driven by increased marketing and innovation.
- Net sales growth is expected to be driven by continued distribution gains of the Company’s Power Brands.
- Adjusted EBITDA growth of 8% to 11% driven by stronger operating performance led by the Company’s productivity programs.
- An effective tax rate in the range of 17% to 18%.
Challenges Ahead
- Company now expects total net sales growth of 2% to 3% (previously 3% to 5%).
- Company now expects Organic Net Sales growth of 3% to 4% (previously 4% to 6%).
- Shift to IOs expected to impact total net sales growth by approximately (-1.0%).
- The revised range reflects the impact of our aggressive supply chain optimization actions and normalizing Salty Snack category growth with some channel shifting by consumers.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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