Utz Brands Provides Business Update at 2024 Barclays Global Consumer Staples Conference
Utz Brands (NYSE: UTZ) has updated its full-year 2024 financial outlook at the Barclays Global Consumer Staples Conference. The company is revising its Organic Net Sales growth projection to 2% - 2.5%, down from the previous 3% estimate, due to a more competitive promotional environment. Despite this, Utz is reaffirming its outlook for Adjusted EBITDA growth (5% - 8%), Adjusted Earnings per Share growth (28% - 32%), and Net Leverage Ratio (approximately 3.6x at year-end).
CEO Howard Friedman highlighted a strong first half of the year but noted moderated consumption trends in Q3. The company plans to adjust promotional activities while maintaining focus on long-term demand. Utz remains confident in meeting its 2026 targets and navigating the current dynamic environment.
Utz Brands (NYSE: UTZ) ha aggiornato le sue previsioni finanziarie per l'intero anno 2024 durante la Barclays Global Consumer Staples Conference. L'azienda sta rivisitando la sua previsione di crescita delle vendite nette organiche a una percentuale compresa tra il 2% e il 2,5%, in calo rispetto alla precedente stima del 3%, a causa di un ambiente promozionale più competitivo. Nonostante ciò, Utz rimane ferma nella sua previsione di crescita dell'Adjusted EBITDA (5% - 8%), della crescita degli utili per azione rettificati (28% - 32%) e del rapporto di indebitamento netto (circa 3,6x a fine anno).
Il CEO Howard Friedman ha sottolineato un forte primo semestre dell'anno, ma ha notato tendenze di consumo moderate nel terzo trimestre. L'azienda prevede di adeguare le attività promozionali mantenendo però un focus sulla domanda a lungo termine. Utz rimane fiduciosa nel raggiungimento dei suoi obiettivi per il 2026 e nella gestione dell'attuale ambiente dinamico.
Utz Brands (NYSE: UTZ) ha actualizado su perspectiva financiera para el año completo 2024 en la Barclays Global Consumer Staples Conference. La compañía está revisando su proyección de crecimiento de ventas netas orgánicas a un 2% - 2.5%, por debajo de la estimación anterior del 3%, debido a un entorno promocional más competitivo. A pesar de esto, Utz reafirma su pronóstico de crecimiento del EBITDA ajustado (5% - 8%), crecimiento de ganancias por acción ajustadas (28% - 32%) y Ratio de Apalancamiento Neto (aproximadamente 3.6x al cierre del año).
El CEO Howard Friedman destacó un fuerte primer semestre del año, pero señaló tendencias de consumo moderadas en el tercer trimestre. La compañía planea ajustar las actividades promocionales mientras mantiene el enfoque en la demanda a largo plazo. Utz sigue confiando en alcanzar sus objetivos de 2026 y en navegar el actual entorno dinámico.
Utz Brands (NYSE: UTZ)는 Barclays Global Consumer Staples Conference에서 2024년 전체 연도 재무 전망을 업데이트했습니다. 이 회사는 유기적인 순매출 성장 예측을 2% - 2.5%로 수정하고 있습니다, 이전의 3% 추정치에서 하향 조정된 것입니다. 더 경쟁적인 프로모션 환경 때문입니다. 그럼에도 불구하고 Utz는 조정된 EBITDA 성장에 대한 전망(5% - 8%), 조정된 주당 순이익 성장(28% - 32%), 그리고 순부채 비율(연말에 약 3.6배)을 재확인하고 있습니다.
CEO 하워드 프리드먼은 올해 상반기가 강했지만, 3분기에는 소비 추세가 완화되었다고 언급했습니다. 회사는 장기적인 수요에 집중하면서 프로모션 활동을 조정할 계획입니다. Utz는 2026년 목표 달성에 대한 자신감을 유지하며 현재의 역동적인 환경을 잘 헤쳐나갈 것으로 보입니다.
Utz Brands (NYSE: UTZ) a mis à jour ses perspectives financières pour l'année complète 2024 lors de la Barclays Global Consumer Staples Conference. L'entreprise révise sa prévision de croissance des ventes nettes organiques à 2 % - 2,5 %, en baisse par rapport à l'estimation précédente de 3 %, en raison d'un environnement promotionnel plus compétitif. Malgré cela, Utz réaffirme ses prévisions de croissance de l'EBITDA ajusté (5 % - 8 %), de croissance du bénéfice par action ajusté (28 % - 32 %) et de ratio d'endettement net (environ 3,6x à la fin de l'année).
Le PDG Howard Friedman a souligné un bon premier semestre mais a noté des tendances de consommation modérées au troisième trimestre. L'entreprise prévoit d'ajuster ses activités promotionnelles tout en restant concentrée sur la demande à long terme. Utz reste confiante quant à la réalisation de ses objectifs pour 2026 et à naviguer dans l'environnement dynamique actuel.
Utz Brands (NYSE: UTZ) hat seine Finanzprognose für das Gesamtjahr 2024 auf der Barclays Global Consumer Staples Conference aktualisiert. Das Unternehmen passt seine Wachstumsprognose für organische Nettoumsätze auf 2% - 2,5% an, was einen Rückgang von der vorherigen Schätzung von 3% darstellt, aufgrund eines wettbewerbsintensiveren Promotionsumfelds. Trotz dieser Anpassung bestätigt Utz seine Prognose für das Wachstum des bereinigten EBITDA (5% - 8%), das Wachstum des bereinigten Gewinns pro Aktie (28% - 32%) und das Netto-Verschuldungsverhältnis (ca. 3,6x zum Jahresende).
CEO Howard Friedman hob die starke erste Jahreshälfte hervor, bemerkte jedoch gemäßigte Verbrauchstrends im 3. Quartal. Das Unternehmen plant, die Promotionsaktivitäten anzupassen und gleichzeitig auf die langfristige Nachfrage konzentriert zu bleiben. Utz bleibt zuversichtlich, seine Ziele für 2026 zu erreichen und sich in dem aktuellen dynamischen Umfeld zurechtzufinden.
- Reaffirmed Adjusted EBITDA growth outlook of 5% - 8%
- Maintained Adjusted Earnings per Share growth projection of 28% - 32%
- Confirmed Net Leverage Ratio target of approximately 3.6x at year-end fiscal 2024
- Strong performance in the first half of the year
- Executing well on distribution growth opportunities
- Revised Organic Net Sales growth outlook down to 2% - 2.5% from 3%
- Moderated consumption trends in Q3 due to competitive promotional environment
- Increased consumer value-seeking behavior impacting sales
Insights
Utz Brands' revised outlook presents a mixed picture for investors. The company's reduction in Organic Net Sales growth expectations to 2-2.5% from 3% signals challenges in the competitive landscape. This adjustment, driven by increased promotional activity due to consumer value-seeking behavior, could pressure margins and profitability.
However, the reaffirmation of Adjusted EBITDA growth (5-8%) and Adjusted EPS growth (28-32%) suggests effective cost management and productivity initiatives. The maintained Net Leverage Ratio target of 3.6x indicates financial stability.
Investors should monitor Utz's ability to balance promotional activities with long-term brand building. The company's focus on geographic expansion and productivity savings could provide growth opportunities, but execution will be key in this challenging environment.
The moderation in Utz's consumption trends reflects broader shifts in consumer behavior. The more competitive promotional environment indicates a sector-wide response to value-seeking consumers, potentially signaling a trend that could impact other snack food manufacturers.
Utz's strategy to adjust promotional activities while remaining disciplined is crucial. This approach could help maintain brand equity long-term but may result in short-term market share challenges. The company's focus on geographic expansion and accelerated productivity savings could provide a competitive edge, especially if consumer spending remains constrained.
Investors should watch for industry-wide promotional trends and Utz's ability to capture new markets while defending its current position in this evolving landscape.
"We experienced a strong start in the first half of the year, thanks to our continued focus on our growth strategies and value creation initiatives,” said Howard Friedman, Chief Executive Officer of Utz. “Further, we are executing well on our distribution growth opportunities, which we expect will continue into 2025 and beyond. However, our consumption trends in the third quarter to date moderated more than we expected due to a more competitive promotional environment primarily in response to consumer value-seeking behavior. We will continue to make appropriate adjustments to our promotional activities to meet consumer value expectations but will remain disciplined and focused on building sustainable long-term demand. As a result, today we are revising our 2024 Organic Net Sales growth outlook.”
Friedman continued, “Our accelerated productivity cost savings give us the flexibility to expand our margins and increase investments in our brands to support our geographic expansion. We remain confident that we are well-positioned to deliver the 2026 targets that we introduced at our Investor Day in December 2023, and that we will successfully navigate this dynamic environment.”
For the full year fiscal 2024, Utz is reaffirming its outlook for Adjusted EBITDA and Adjusted Earnings per Share growth and Net Leverage Ratio, and revising its Organic Net Sales growth outlook(1):
-
Organic Net Sales are now expected to grow between
2% -2.5% compared to its previous expectation of approximately3% . The revised outlook is primarily due to the expectation for a more competitive promotional environment in the second half of 2024. -
Adjusted EBITDA is expected to grow
5% -8% , which is consistent with the Company’s prior expectation. -
Adjusted Earnings per Share are expected to grow
28% -32% , which is consistent with the Company’s prior expectation. - Net Leverage Ratio is expected to be approximately 3.6x at year-end fiscal 2024, which is consistent with the Company’s prior expectation.
The Company’s full year fiscal 2024 outlook is based on the following expectations that all remain unchanged:
-
An effective tax rate (normalized GAAP basis tax expense, which excludes one-time items) in the range of
17% -19% . -
Interest expense of approximately
$47 million -
Capital expenditures in the range of
$80 $90 million
(1) Organic Net Sales, Adjusted EBITDA, Adjusted Earnings Per Share and Net Leverage Ratio are each non-GAAP financial measures. A quantitative reconciliation is not available for such financial measures without unreasonable efforts due to the high variability, complexity, and low visibility with respect to certain items which are excluded from Organic Net Sales, Adjusted EBITDA, Adjusted Earnings Per Share and Net Leverage Ratio, respectively. We expect the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future financial results. Please see “Non-GAAP Financial Measure” below for a description of the Company’s use of non-GAAP financial measures. |
About Utz Brands, Inc.
Utz Brands, Inc. (NYSE: UTZ) manufactures a diverse portfolio of savory snacks through popular brands, including Utz®, On The Border® Chips & Dips, Zapp’s®, and Boulder Canyon®, among others.
After a century with a strong family heritage, Utz continues to have a passion for exciting and delighting consumers with delicious snack foods made from top-quality ingredients. Utz's products are distributed nationally through grocery, mass merchandisers, club, convenience, drug, and other channels. Based in
Investors and others should note that Utz announces material financial information to its investors using its Investor Relations website,
Forward-Looking Statements
This press release includes certain statements that are not historical facts but are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are accompanied by or include, without limitation, forward-looking or conditional statements such as “will”, “expect”, “intends”, “goal”, “flexibility,” “positioned” or other similar words, phrases or expressions. These forward-looking statements include future plans for the Company, the estimated or anticipated future results and benefits of the Company’s future plans and operations, including with respect to promotional activities and efforts to build sustainable long-term demand for the Company’s products; plans related to transformation of the Company’s supply chain; the Company’s product mix; the Company’s ability to reduce debt and anticipated interest expense savings; the Company’s cost savings plans and the Company’s logistics optimization efforts; the estimated or anticipated future results and benefits of the Company’s plans and operations; the effects of inflation or supply chain disruptions on the Company or its business; the benefits of the Company’s productivity initiatives; the effects of the Company’s marketing and innovation initiatives; future capital structure; future opportunities for the Company; the Company’s projected balance sheet and liabilities, including net leverage; and other statements that are not historical facts. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties and the Company’s business and actual results may differ materially. Factors that may cause such differences include, but are not limited to: the risk that the Company’s gross profit margins may be adversely impacted by a variety of factors, including variations in raw materials pricing, retail customer requirements and mix, sales velocities and required promotional support; changes in consumers’ loyalty to the Company’s brands due to factors beyond the Company’s control, including changes in consumer spending due to factors such as increasing household debt; changes in demand for the Company’s products affected by changes in consumer preferences and tastes or if the Company is unable to innovate or market its products effectively, particularly in the Company’s Expansion geographies; costs associated with building brand loyalty and interest in the Company’s products which may be affected by actions by the Company’s competitors’ that result in the Company’s products not being suitably differentiated from the products of their competitors; consolidation of key suppliers to the Company; any inability of the Company to adopt efficiencies into its manufacturing processes, including automation and labor optimization, its network, including through plant consolidation and lowest landed cost for shipping its products, or its logistics operations; fluctuations in results of operations of the Company from quarter to quarter because of changes in promotional activities; the possibility that the Company may be adversely affected by other economic, business, or competitive factors; the risk that recently completed business combinations and other acquisitions recently completed by the Company (collectively, the “Business Combinations”) or dispositions that disrupt plans and operations; the ability to recognize the anticipated benefits of such Business Combinations or dispositions, which may be affected by, among other things, competition and the ability of the Company to grow and manage growth profitably and retain its key employees; the outcome of any legal proceedings that may be instituted against the Company following the consummation of such Business Combinations or dispositions; changes in applicable law or regulations; costs related to the Business Combinations or dispositions; the ability of the Company to maintain the listing of the Company’s Class A Common Stock on the New York Stock Exchange; the ability of the Company to develop and maintain effective internal controls; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Forward-Looking Statements” in the Company’s Annual Report on Form 10-K filed with the Commission, for the fiscal year ended December 31, 2023, and other reports filed by the Company with the Commission. In addition, forward-looking statements provide the Company’s expectations, plans or forecasts of future events and views as of the date of this communication. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication. The Company cautions investors not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as otherwise required by law.
Non-GAAP Financial Measures:
Utz uses non-GAAP financial information and believes it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying operating results, and provides additional insight and transparency on how we evaluate the business. We use non-GAAP financial measures to budget, make operating and strategic decisions, and evaluate our performance. These non-GAAP financial measures do not represent financial performance in accordance with generally accepted accounted principles in
Management believes that non-GAAP financial measures should be considered as supplements to the GAAP measures reported, should not be considered replacements for, or superior to, the GAAP measures, and may not be comparable to similarly named measures used by other companies. The Company’s calculation of the non-GAAP financial measures may differ from methods used by other companies. We believe that these non-GAAP financial measures provide useful information to investors regarding certain financial and business trends relating to the financial condition and results of operations of the Company to date when considered with both the GAAP results and the reconciliations to the most comparable GAAP measures, and that the presentation of non-GAAP financial measures is useful to investors in the evaluation of our operating performance compared to other companies in the Salty Snack industry, as similar measures are commonly used by the companies in this industry. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. The non-GAAP financial measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures. As new events or circumstances arise, these definitions could change. When the definitions change, we will provide the updated definitions and present the related non-GAAP historical results on a comparable basis.
Utz uses the following non-GAAP financial measures in this press release, and in the future could use others:
- Organic Net Sales
- Adjusted Net Income
- Adjusted Earnings Per Share
- EBITDA
- Adjusted EBITDA
- Normalized Adjusted EBITDA
- Net Leverage Ratio
Organic Net Sales is defined as net sales excluding the impacts of acquisitions, divestitures and independent operator route conversions.
Adjusted Net Income is defined as Net Income excluding the additional Depreciation and Amortization expense, a non-cash item, related to the Business Combination with Collier Creek Holdings and the acquisitions of Kennedy Endeavors, Kitchen Cooked, Inventure, Golden Flake, Truco Enterprises, R.W. Garcia and Festida. In addition, Adjusted Net Income is also adjusted to exclude deferred financing fees, interest income, and expense relating to IO loans and certain non-cash items, such as those related to stock-based compensation, hedging, and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives, remeasurement of warrant liabilities and financing-related costs. Lastly, Adjusted Net Income normalizes the income tax provision to account for the above-mentioned adjustments.
Adjusted Earnings Per Share is defined as Adjusted Net Income (as defined, herein) divided by the weighted average shares outstanding for each period on a fully diluted basis, assuming the Private Placement Warrants are net settled and the shares of Class V Common Stock held by Continuing Members are converted to Class A Common Stock.
EBITDA is defined as Net Income Before Interest, Income Taxes, and Depreciation and Amortization.
Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash items, such as stock-based compensation, hedging and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives; and financing-related costs. Adjusted EBITDA is one of the key performance indicators we use in evaluating our operating performance and in making financial, operating, and planning decisions. We believe Adjusted EBITDA is useful to the users of this release because the financial information contained in the release can be used in the evaluation of Utz’s operating performance compared to other companies in the Salty Snack industry, as similar measures are commonly used by companies in this industry. We also provide in this release, Adjusted EBITDA as a percentage of Net Sales, as an additional measure for readers to evaluate our Adjusted EBITDA Margin on Net Sales.
Normalized Adjusted EBITDA is defined as Adjusted EBITDA after giving effect to pre-acquisition Adjusted EBITDA for certain acquisitions and dispositions from time to time.
Net Leverage Ratio is defined as Normalized Adjusted EBITDA divided by Net Debt. Net Debt is defined as Gross Debt less Cash and Cash Equivalents.
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Investor Contact
Kevin Powers
Utz Brands, Inc.
kpowers@utzsnacks.com
Media Contact
Kevin Brick
Utz Brands, Inc.
kbrick@utzsnacks.com
Source: Utz Brands, Inc.
FAQ
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