NYSE$UTZ

Utz Brands Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Utz reported solid results on both the top and bottom line, with strong growth of their Power Brands, particularly in their Expansion geographies.

Utz Brands reported a 2.5% increase in net sales to $371.9 million and a net income of $16.2 million for Q3 2023. Organic Net Sales increased by 3.1%. The company's supply chain and portfolio optimization efforts negatively impacted volume, but productivity and cost savings helped maintain Adjusted EBITDA guidance.

  • Net sales increased 2.5% year-over-year to $371.9 million.
  • Organic Net Sales increased 3.1% year-over-year.
  • Net income of $16.2 million vs. net income of $1.5 million in the year-ago period.
  • Adjusted EBITDA increased 9.2% year-over-year to $52.1 million.

Headline financials

Total Revenue

$372M

Previous: $363M+2.5%
EPS (adj)

$0.17

Previous: $0.16+6.3%
Organic Net Sales Growth

3.1%

Previous: 362800000.0%-100.0%
Adjusted EBITDA Margin

14.0%

Previous: 13.1%+6.9%
Capital Expenditures

-$45.7M

Previous: -$68.7M+33.5%
Free Cash Flow

-$29.7M

Previous: -$69.6M+57.3%
Net Income

$16M

Previous: -$888K+1901.0%
Operating Income

$5.28M

Previous: $15M-64.8%
Gross Profit

$119M

Previous: $118M+0.8%
Cash & Equivalents

$60.1M

Previous: $51.8M+16.0%
Total Assets

$2.8B

Previous: $2.82B-0.8%
Stock-Based Comp

$2.87M

Previous: $2.04M+40.6%

Revenue & EPS history

Utz · Revenue · Quarterly

$372M

Q3 2023+2.5%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The Company is updating its previously-issued full-year fiscal 2023 financial outlook.

Tailwinds

  • Net sales growth is expected to be driven by net price realization.
  • Net sales growth is expected to be driven by increased marketing and innovation.
  • Net sales growth is expected to be driven by continued distribution gains of the Company’s Power Brands.
  • Adjusted EBITDA growth of 8% to 11% driven by stronger operating performance led by the Company’s productivity programs.
  • An effective tax rate in the range of 17% to 18%.

Headwinds

  • Company now expects total net sales growth of 2% to 3% (previously 3% to 5%).
  • Company now expects Organic Net Sales growth of 3% to 4% (previously 4% to 6%).
  • Shift to IOs expected to impact total net sales growth by approximately (-1.0%).
  • The revised range reflects the impact of our aggressive supply chain optimization actions and normalizing Salty Snack category growth with some channel shifting by consumers.
  • The estimated impact of approximately (-3%) from the Company’s SKU rationalization program.

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 Q3 2023

Historical avgQ3 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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