Utz Brands Inc · NYSE:UTZ
Utz Brands — Q1 2024 Earnings Presentation
26 slides from Utz Brands's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024 Earnings Presentation
Utz Brands, Inc. First Quarter 2024 Earnings Presentation May 2, 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Certain statements made herein are not historical facts but are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are acco
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) Projected Financial Information This presentation contains financial forecasts, which were prepared in good faith by the Company on a basis believed to be reasonable. Such financial forecasts have not been prepared in conformity with U.S. generally accepted accounting principles (
Slide 4: Business Overview
Business Overview Howard Friedman Chief Executive Officer 4
Slide 5: Key Takeaways
Key Takeaways ONE TWO Gained dollar, pound, and unit Delivered fifth consecutive quarter share in in the Salty Snacks of year-over-year Adjusted EBITDA Category in 1Q’24(1) margin expansion THREE FOUR Executing against our Reaffirming our 2024 Organic fundamental strategies and Net Sales and Adjuste
Slide 6: Good, early progress in 2024 against our fundamental strategies
Good, early progress in 2024 against our fundamental strategies STRATEGY 2024 Progress Focus our portfolio to further penetrate o Gaining market share 1 Expansion geographies while holding the o Increasing household penetration Core o Continuing distribution gains Transform our supply chain to fund
Slide 7: Organic Net Sales growth and continued margin expansion
Organic Net Sales growth and continued margin expansion Organic Net Sales Adjusted EBITDA Adjusted EBITDA Margin YoY Change (in millions) (in millions) (as a % of net sales) +1.5% +7.4% $343 $348 $43 +160bps $40 +100bps +80bps +90bps +40bps 1Q’23 1Q’24 1Q’23 1Q’24 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 Note:
Slide 8: Continued retail outperformance for Utz Brands led by the Power Four Brands
Continued retail outperformance for Utz Brands led by the Power Four Brands 1Q’24 Retail Sales $ Growth 1Q’24 Retail Sales Volume Growth (13-Weeks Ended 3/31/24) (13-Weeks Ended 3/31/24) 6.0% 5.8% 5.3% 4.9% 4.6% 4.1% 1.4% -0.3% -4.0% -4.0% Total Salty Total Utz Utz Power Utz Power Utz Total Salty To
Slide 9: Significant outperformance in Tortilla Chips and Cheese Snacks
Significant outperformance in Tortilla Chips and Cheese Snacks Sub-Category Retail Sales Year-over-Year Growth (13-Weeks Ended 3/31/24) Total Sub-Category 14.9% 13.1% Lapping Zapp’s pretzels sell-in 3.8% 4.3% 2.9% 2.6% 1.5% 1.7% -0.9% -2.3% -1.9% -2.2% -3.4% -5.5% Potato Chips Tortilla Chips Pretzel
Slide 10: Gained market share in both our Core and Expansion geographies
Gained market share in both our Core and Expansion geographies Core Expansion Geographies Geographies Geographic 10.8% Retail Sales Year-over-Year 8.9% 8.2% Growth (13-Weeks Ended 3/31/24) 2.6% 2.0% 1.0% 1.2% 1.7% Total Salty Total Utz Utz Power Utz Power Total Salty Total Utz Utz Power Utz Power Ca
Slide 11: Driving share gains in the natural channel
Driving share gains in the natural channel SPINS Retail Sales Year-over-Year Growth 12-Weeks Ended 3/24/24 52-Weeks Ended 3/24/24 31.3% 29.4% 21.9% 21.1% 5.9% 3.9% Total Salty Total Utz Total Salty Total Utz Category Brands Category Brands Source: SPINS, Total US – Natural Enhanced Channel (TPL) 11
Slide 12: Investments in new product innovation
Investments in new product innovation Deliver “Craveable” Flavor Capture Occasions Expand Positive Choices 12
Slide 13: Increasing consumer support behind our Power Four Brands
Increasing consumer support behind our Power Four Brands Utz Brands Marketing Expense 40%+ 2023 2024E 13
Slide 14: Financial Review
Financial Review Ajay Kataria Chief Financial Officer 14
Slide 15: 1Q'24 Financial Results Summary
1Q’24 Financial Results Summary 1Q’24 1Q’23 In $ millions, except per 13-weeks ended 13-weeks Ended YoY o Organic Net Sales increase of 1.5% share amounts March 31, 2024 April 2, 2023 Change o +1.1% volume/mix and +0.4% price Net Sales 346.5 351.4 (1.4%) o Adjusted Gross Margin expansion of +280 bps
Slide 16: 1Q'24 Net Sales Bridge
1Q’24 Net Sales Bridge 1Q’24 Net Sales YoY Growth Decomposition o Pricing of +0.4% from price pack architecture enhancements and partner brand pricing 1.1% 1.5% o Volume/mix growth of +1.1% primarily driven by our Power -0.4% Four Brands 0.4% o IO Conversion impact of (0.4%) o Divestiture impact of
Slide 17: 1Q'24 Adjusted EBITDA Margin Bridge
1Q’24 Adjusted EBITDA Margin Bridge 1Q’24 Adjusted EBITDA Margin Change Decomposition o Higher net price realization o Productivity programs driven by manufacturing 4.0% -2.2% plant and procurement cost savings -0.4% -0.8% 0.4% 12.5% 11.5% o Favorable commodity costs offset by higher supply chain co
Slide 18: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights Cash Flow Highlights 13-Weeks Ended March 31, 2024 Net Cash Used in Operations ($9.1M) Capital Expenditures $13.6M Dividends and Distributions Paid(1) $8.0M As of Balance Sheet Highlights As of March 31, 2024 January 1, 2023 Cash and Cash Equivalents $47.0M Gro
Slide 19: Strong progress in optimizing our supply chain network
Strong progress in optimizing our supply chain network Reduced manufacturing plants from 16 active at year-end 2021 to 8 primary plants today Fitchburg Disposed of five manufacturing plants to Divested Our Home™ in 2024 which accelerates our Lititz network optimization strategy and Divested simplifi
Slide 20: Improving balance sheet flexibility
Improving balance sheet flexibility 2024 Disposition Transactions and Net Leverage Ratio Term Loan Repricing (Fiscal Year-end) o Disposition of Good Health® and R.W. Garcia® brands and five manufacturing facilities o Net proceeds used to pay down long-term debt of ~$160M 5.0x 4.6x o Completed a repr
Slide 21: Reaffirming fiscal 2024 outlook and raising Adjusted EPS outlook
Reaffirming our fiscal 2024 Organic Net Sales and Adjusted EBITDA Outlook, and raising our Adjusted EPS outlook Fiscal 2024 Growth versus Previous Current Fiscal 2023 Actual Results Organic Net Sales ~3% or better growth ~3% or better growth driven by volume growth driven by volume growth Adjusted E
Slide 22: Appendix
Appendix 22
Slide 23: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures See footnotes in Utz’s 1Q’24 earnings press release dated May 2, 2024 23
Slide 24: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures See footnotes in Utz’s 1Q’24 earnings press release dated May 2, 2024 24
Slide 25: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures See footnotes in Utz’s 1Q’24 earnings press release dated May 2, 2024 25
Slide 26: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures See footnotes in Utz’s 1Q’24 earnings press release dated May 2, 2024 26