NYSE$UTZ

Utz Brands Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported second quarter results and raised fiscal 2023 Adjusted EBITDA outlook.

Utz Brands reported a 3.6% increase in net sales to $362.9 million, driven by a 4.3% increase in Organic Net Sales. The company experienced a net loss of $(8.6) million, but Adjusted EBITDA increased 7.1% to $45.2 million. The company is raising its full-year Adjusted EBITDA outlook.

  • Net sales increased 3.6% year-over-year to $362.9 million.
  • Organic Net Sales increased 4.3% year-over-year.
  • Net loss of $(8.6) million vs. net income of $2.5 million in the year-ago period.
  • Adjusted EBITDA increased 7.1% year-over-year to $45.2 million.

Headline financials

Total Revenue

$363M

Previous: $350M+3.6%
EPS (adj)

$0.13

Previous: $0.13+0.0%
Organic Net Sales Growth

4.3%

Previous: 0.0%
Gross Profit Margin

32.4%

Previous: 31.9%+1.6%
Adjusted Gross Profit Margin

35.0%

Previous: 36.0%-2.8%
Capital Expenditures

-$30.2M

Previous: -$60.3M+50.0%
Free Cash Flow

-$34.3M

Previous: -$57.1M+40.0%
Net Income

-$4.12M

Previous: $3.18M-229.7%
Operating Income

$2.66M

Previous: $5.29M-49.7%
Gross Profit

$117M

Previous: $112M+5.3%
Cash & Equivalents

$73.7M

Previous: $20.1M+265.9%
Total Assets

$2.84B

Previous: $2.77B+2.4%
Stock-Based Comp

$4.31M

Previous: $3.76M+14.6%

Revenue & EPS history

Utz · Revenue · Quarterly

$363M

Q2 2023+3.6%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The Company is reaffirming its Net Sales outlook and raising its Adjusted EBITDA outlook for fiscal 2023.

Tailwinds

  • Total net sales growth of 3% to 5% and Organic Net Sales growth of 4% to 6%, with the Company’s continued shift to IOs impacting total net sales growth by approximately (1.0%).
  • Net sales growth is expected to be driven by net price realization, increased marketing and innovation, and continued distribution gains of the Company’s Power Brands, partially offset by the estimated impact of approximately (3%) from the Company’s SKU rationalization program.
  • Based on these assumptions, the Company expects volume / mix consistent with fiscal 2022.
  • Adjusted EBITDA growth of 8% to 11% (previously 7% to 10% growth) as gross margin expansion and lower delivery costs are expected to more than offset cost inflation, and continued investments in brand marketing, people, capabilities, and selling infrastructure.
  • Net Leverage Ratio below 4.5x at year-end fiscal 2023.

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 2023

Historical avgQ2 2023

-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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