NYSE$UTZ

Utz Brands Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Utz's financial performance declined due to higher than planned inflation across key input costs, partially offset by net sales increase.

Utz Brands reported a 23.1% increase in net sales to $297.9 million, driven by acquisitions and favorable price/mix, though pro forma net sales decreased by 4.0%. Net income increased to $16.2 million, while adjusted EBITDA rose by 9.5% to $35.7 million. The company is experiencing higher commodity, transportation, and labor costs impacting margins, with benefits from pricing actions and productivity initiatives expected in the back half of the year.

  • Net sales increased by 23.1% to $297.9 million, driven by acquisitions and favorable price/mix.
  • Pro forma net sales decreased by 4.0% to $299.2 million compared to the previous year.
  • Net income improved to $16.2 million, primarily due to a gain from remeasurement of warrant liabilities.
  • Adjusted EBITDA increased by 9.5% to $35.7 million but was impacted by higher commodity, transportation, and labor costs.

Headline financials

Total Revenue

$298M

No prior period
EPS (adj)

$0.13

No prior period
Adjusted Gross Profit Margin

35.4%

No prior period
Adjusted EBITDA Margin

12.0%

No prior period
Capital Expenditures

-$10.8M

No prior period
Free Cash Flow

$6.76M

No prior period
Net Income

$17.6M

No prior period
Operating Income

$4.37M

No prior period
Gross Profit

$95.6M

No prior period
Cash & Equivalents

$26.7M

No prior period
Total Assets

$2.64B

No prior period

Revenue & EPS history

Utz · Revenue · Quarterly

$298M

Q2 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The Company believes that consumer demand for its products will remain strong in the second half of fiscal 2021 and continues to believe that sales growth will accelerate. However, given the challenging industry-wide supply chain dynamics, the Company is experiencing higher commodity, transportation, and labor costs. These costs began to rise in the first quarter of fiscal 2021, continued to rise in the second quarter, and impacted the Company’s profitability more than anticipated.

Tailwinds

  • Consumer demand for products will remain strong in the second half of fiscal 2021.
  • Sales growth will accelerate.
  • Taking appropriate actions to help offset the impact, including pricing, productivity, and cost savings actions
  • The benefits are expected to be weighted towards the back half of the year.
  • Actions to help offset inflationary pressures will have a meaningful carry-over benefit to fiscal 2022

Headwinds

  • Challenging industry-wide supply chain dynamics.
  • Experiencing higher commodity, transportation, and labor costs.
  • Costs began to rise in the first quarter of fiscal 2021, continued to rise in the second quarter, and impacted the Company’s profitability more than anticipated.
  • Costs will continue to be more elevated than originally expected for the remainder of fiscal 2021.
  • The benefits are not expected to fully offset the incremental supply chain costs already incurred during fiscal 2021, and expected to occur during the second half of fiscal 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.2%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-1.1%

Avg return

30 days after

55%

12 / 22 earnings

Positive

+15.2%

Q1 2022

Best reaction

-13.4%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%-6.2%-8.1%
Q4 2025-4.8%+2.9%-19.2%
Q3 2025-13.4%-15.4%-18.9%
Q1 2025-8.7%-8.8%-0.5%
Q4 2024+2.8%+5.0%+1.9%
Q3 2024+7.0%+6.3%+7.4%
Q2 2024+9.5%+12.5%+13.8%
Q1 2024+6.1%+4.6%+2.3%
Q4 2023-4.5%-4.0%+0.5%
Q3 2023+1.1%+6.6%+11.5%
Q2 2023+2.3%-1.3%-10.9%
Q1 2023-7.3%-5.4%-13.9%
Q4 2022+5.1%+6.6%+1.0%
Q3 2022+5.4%+8.2%+11.7%
Q2 2022-4.5%-4.3%-9.8%
Q1 2022+15.2%+14.2%+4.1%
Q4 2021-8.9%-3.0%+4.0%
Q3 2021+8.4%+7.2%+0.1%
Q2 2021-9.9%-13.6%-7.2%
Q1 2021-7.1%-8.2%-6.4%
Q3 2020-0.3%-2.1%+12.1%
Q4 2019+0.1%-0.1%+0.2%

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