Utz Brands, a leading snack maker, experienced a boost in sales for the second quarter ended July 2, despite posting a loss. Here are the key details:
- The company reported sales of $362.9 million, up from $350.1 million in the same period last year. This exceeded analysts’ expectations of $360.6 million.
- Utz Brands recorded adjusted earnings of 13 cents per share, which remained unchanged from the previous year. Analysts had anticipated adjusted earnings of 12 cents per share.
- Unfortunately, Utz swung to a loss of $8.6 million in the second quarter, compared to a net income of $2.5 million in the prior-year period. Analysts had projected a net income of $18.6 million.
Factors Affecting Sales
- The company attributed its sales growth to a 4.3% increase in organic net sales, driven by pricing adjustments made in response to inflation. However, the shift to independent operators and higher sales discounts partially offset this growth.
Outlook for Fiscal 2023
- Utz Brands maintained its projection of sales growth between 3% and 5% for fiscal year 2023. Additionally, the company expects adjusted earnings before interest, taxes, depreciation, and amortization to grow between 8% and 11%. This represents an increase from the previous range of 7% to 10%. Utz anticipates that gross margin expansion and lower delivery costs will offset cost inflation, continued investments, and selling infrastructure.
- Chief Executive Howard Friedman expressed satisfaction with the second quarter results, stating, “Our second quarter results were consistent with our expectations as our momentum continued led by sustained strong demand across our advantaged portfolio of Power Brands.”