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Dec 31, 2023
Utz Q4 2023 Earnings Report
Utz's Q4 2023 results reflected a slight decrease in net sales, but adjusted EBITDA increased.
Key Takeaways
Utz Brands reported a decrease in net sales by 0.7% to $352.1 million for Q4 2023. However, adjusted EBITDA increased by 12.0% to $49.4 million. The company experienced a net loss of $(33.2) million compared to a net income of $13.8 million in the prior year period.
Net sales decreased (0.7)% year-over-year to $352.1 million.
Organic Net Sales decreased (0.3)% year-over-year.
Net loss of $(33.2) million vs. net income of $13.8 million in the year-ago period.
Adjusted EBITDA increased 12.0% year-over-year to $49.4 million.
Forward Guidance
In fiscal 2024, the Company expects organic net sales growth of ~3% or better driven by volume growth, and assumes total net sales to be impacted by ~$45 million due to the recently closed transaction for the dispositions of the Good Health® and R.W. Garcia® brands and manufacturing facilities. Adjusted EBITDA growth of 5% to 8% and Adjusted EPS growth of 16% to 21%.
Positive Outlook
- Organic Net Sales growth of ~3% or better driven by volume growth.
- Adjusted EBITDA growth of 5% to 8%.
- Adjusted EPS growth of 16% to 21%.
- Effective tax rate (normalized GAAP basis tax expense, which excludes one-time items) in the range of 19% to 21%.
- Net Leverage Ratio of ~3.6x at year-end fiscal 2024.
Challenges Ahead
- Total net sales to be impacted by ~$45 million due to the recently closed transaction for the dispositions of the Good Health® and R.W. Garcia® brands and manufacturing facilities.
- Assumes the estimated impact of the forgone contribution to Adjusted EBITDA from the brand dispositions are mostly offset by accelerated cost savings and the transition services agreement.
Historical Earnings Impact
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