Utz Brands Inc · NYSE:UTZ
Utz Brands — Q2 2023 Earnings Presentation
27 slides from Utz Brands's earnings presentation, Aug 10, 2023
Slide 1: Second Quarter 2023 Earnings Presentation
Utz Brands, Inc. S E C O N D Q U A R T E R 2 0 2 3 E A R N I N G S P R E S E N T A T I O N A U G U S T 1 0 , 2 0 2 3
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: Business Overview
Business Overview H O W A R D F R I E D M A N C H I E F E X E C U T I V E O F F I C E R UTZ BRANDS, INC. Q2 2023 Earnings Presentation
Slide 4: Second Quarter Key Takeaways
Second Quarter Key Takeaways Organic Net Sales growth of 4.3% on top of 13.6% growth in the prior year period Power Brands’ retail sales growth of 10%(1) led by Boulder Canyon®, Zapp’s®, and On the Border® Adjusted EBITDA margins expanded for the second consecutive quarter Early-stage network optimi
Slide 5: Summary of Second Quarter 2023 Results
Summary of Second Quarter 2023 Results ▪ Results in line with our expectations ▪ Organic net sales growth of +4.3% led by strong Power Brands sales growth ▪ Volume/mix growth of +1.8% when adjusting for SKU rationalization impact of approximately (3.5%) ▪ Productivity benefits and lower delivery cos
Slide 6: Second Quarter Retail Sales Overview
Second Quarter Retail Sales Overview UTZ POWER BRANDS THREE LARGEST POWER BRANDS Retail Sales Year-over-Year Growth RETAIL SALES GROWTH (13-Weeks Ended 7/2/23) Double-digit ~74% 9.9% growth OF TOTAL 2Q’23 IN 2Q’23 IN 2Q’23 RETAIL SALES 11.9% % of Total Retail Sales (13-Weeks Ended 7/2/23) 9.9% 8.8%
Slide 7: Consumption Volume Trends are Improving
Consumption Volume Trends are Improving ▪ Lapping significant growth in 1H’23 due to strong activity in the Mass channel in the prior year ▪ New distribution gains in 2Q’23 primarily in the Mass and Grocery channels ▪ Sustained and resilient Salty Snack category customer demand Utz & Salty Snack Cat
Slide 8: 2Q'23 Retail Sales by Sub-Category
2Q’23 Retail Sales by Sub-Category ▪ Double-digit growth across Potato Chips, Tortilla Chips, and Pretzels ▪ Pork Rind performance improving as we invest in price pack architecture and packaging enhancements ▪ Cheese snacks softness due to lapping incremental programming in the Mass channel last yea
Slide 9: 2Q'23 Retail Sales by Geography
2Q’23 Retail Sales by Geography ▪ Core share performance impacted by lapping strong Utz growth®, Golden Flake performance, and RW Garcia portfolio optimization – Several brands gaining share including On The Border®, Zapp’s®, Hawaiian®, and Boulder Canyon® ▪ Share gains in Expansion led by Utz®, Zap
Slide 10: Driving Share Gains in the Natural Channel
Driving Share Gains in the Natural Channel: 2Q’23 Boulder Canyon® Retail Sales +28% Natural Channel Retail Sales Year-over-Year Growth (13-Weeks Ended 7/2/23) 19.2% Total Salty Snacks 15.8% 10.5% 10.1% 13-Weeks 52-Weeks Ending 7/2/23 Ending 7/2/23 Source: SPINS, Total US – Natural Enhanced Channel (
Slide 11: Accelerating Brand Marketing and Capability Investments
Accelerating Brand Marketing and Capability Investments: Double-Digit Year-over-Year % Increase in Marketing Spend planned for 2H’23 Enhancing Elevating Expanding critical design omnichannel and our marketing reach and impressions with strategic eCommerce strategy to impact via increased design part
Slide 12: Recent On-Trend Innovation Supporting Growth
Recent On-Trend Innovation Supporting Growth: Utz Mike’s Hot Honey® ▪ Hot & Spicy is now the #1 flavor in Salty Snacks, and growing nearly twice the rate of the category(1) ▪ Utz Mike’s Hot Honey® potato chips $ sales already ~400% higher than previously best Utz limited time offer ▪ Strong weekly v
Slide 13: Well-Positioned for a Strong Second Half of 2023
Well-Positioned for a Strong Second Half of 2023 ✓ Sales volumes building momentum ✓ Brand investments increasing ✓ Productivity projects on track ✓ Adj. Gross and EBITDA margin expanding ✓ Balance sheet deleveraging UTZ BRANDS, INC. Q2 2023 Earnings Presentation 13
Slide 14: Financial Performance
Financial Performance A J A Y K A T A R I A C H I E F F I N A N C I A L O F F I C E R UTZ BRANDS, INC. Q2 2023 Earnings Presentation
Slide 15: Second Quarter Financial Results Summary
Second Quarter Financial Results Summary 2Q’23 2Q’22 In $ millions, except per share 13-weeks ended 13-weeks Ended YoY ▪ Organic Net Sales growth of 4.3% amounts July 2, 2023 July 3, 2022 Change ▪ Net price realization of +6.0% partially offset by volume / mix of (1.7%), impacted by SKU rationalizat
Slide 16: 2Q'23 Net Sales Bridge
2Q’23 Net Sales Bridge 2Q’23 Net Sales ▪ Total net sales growth of 3.6% and Organic Net YoY Growth Decomposition Sales growth of +4.3% ▪ Net price realization benefit as a result of inflation-justified actions in fiscal 2022 1.8% -3.5% ▪ Volume/mix growth of 1.8% excluding the impact from SKU ration
Slide 17: 2Q'23 Adjusted EBITDA Margin Bridge
2Q’23 Adjusted EBITDA Margin Bridge 2Q’23 Adjusted EBITDA ▪ Higher net price realization from 2022 actions Margin Decomposition to counter inflation ▪ Favorable sales mix primarily due to SKU rationalization ▪ Benefits from productivity initiatives 2.7% -1.0% -7.8% 6.0% 0.7% ▪ Increased investments
Slide 18: Building Momentum Across Margin-Enhancing Initiatives
Building Momentum Across Margin-Enhancing Initiatives Managing cost inflation with FY’22 pricing Delivering productivity expected to approach 4% ✓ execution and strategic revenue management programs ongoing ✓ in FY’23 Network optimization underway within Utz ✓ Improving margin mix through the contin
Slide 19: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights Cash Flow Highlights 26-Weeks Ended July 2, 2023 Net Cash Used in Operations $4.3M Capital Expenditures $30.2M Dividends and Distributions Paid(1) $16.0M Balance Sheet Highlights As July 2, 2023 As of Cash and Cash Equivalents January 1, 2023 $73.7M Gross Debt(
Slide 20: Fiscal 2023 Outlook
Fiscal 2023 Outlook Fiscal 2023 Growth versus Fiscal 2022 Actual Results Net Sales +3% to 5% Total growth ▪ Organic Net Sales growth led by price and volume/mix consistent with fiscal 2022 +4% to 6% Organic growth (unchanged) ▪ IO route conversion negative impact of ~1% on total net sales growth and
Slide 21: Appendix
Appendix UTZ BRANDS, INC. Q2 2023 Earnings Presentation
Slide 22: 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 2Q’23 earnings press release dated August 10, 2023. UTZ BRANDS, INC. Q2 2023 Earnings Presentation 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 2Q’23 earnings press release dated August 10, 2023. UTZ BRANDS, INC. Q2 2023 Earnings Presentation 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 2Q’23 earnings press release dated August 10, 2023. UTZ BRANDS, INC. Q2 2023 Earnings Presentation 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 2Q’23 earnings press release dated August 10, 2023. UTZ BRANDS, INC. Q2 2023 Earnings Presentation 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 2Q’23 earnings press release dated August 10, 2023. UTZ BRANDS, INC. Q2 2023 Earnings Presentation 26
Slide 27: Utz Geographic Classifications
Utz Geographic Classifications WA MT ME ND OR VT MN NH ID SD WI MA NY WY MI CT RI IA PA NE NJ NV IL IN OH DE UT CO WV Core MD CA KS MO VA KY DC Expansion NC TN AZ OK NM AR SC GA MS AL TX LA AK HI FL UTZ BRANDS, INC. Q2 2023 Earnings Presentation 27