Utz Brands faced a setback in its fourth-quarter sales due to a lower price realization and its strategic move to reduce private-label offerings.
Financial Performance
The snack manufacturer reported a fourth-quarter loss of $27.7 million, or 34 cents a share, marking a significant decrease from the previous year’s profit of $14.9 million, or 18 cents a share. Adjusted earnings stood at 16 cents per share, in line with analysts’ forecasts.
Sales Figures
Total sales for the quarter dropped by almost 1% to $352.1 million, falling short of analysts’ expectations of $354.6 million. Organic sales experienced a slight decline of 0.3%, as a 0.5% increase in volume and product mix was offset by a 0.8% decrease in realized pricing.
Impact of Strategic Initiatives
Utz attributed the decline in sales to its strategic decision to reduce private-label and partner-brand offerings during the quarter. This move impacted overall revenue figures.
Future Outlook
Looking ahead to 2024, Utz Brands aims for organic sales growth of 3% or higher, primarily driven by volume expansion. The company also anticipates adjusted earnings to grow between 16% and 21% in the coming year.
For more information, visit Utz Brands’ official website.
