Utz Brands Inc · NYSE:UTZ

Utz Brands — Q4 2021 Earnings Presentation

32 slides from Utz Brands's earnings presentation, Mar 3, 2022

  1. Slide 1: Utz Brands, Inc. Q4 & Full-Year 2021 Earnings Presentation

    ℠ Utz Brands, Inc. Q4 & Full-Year 2021 Earnings Presentation March 3, 2022 1

  2. 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

  3. Slide 3: Business Overview

    Business Overview Dylan Lissette, Chief Executive Officer 3

  4. Slide 4: Delivering on Our Value Creation Strategies in 2021

    Delivering on Our Value Creation Strategies in 2021 Reinvest to Reduce Costs Continue Accelerate and Enhance Strategic Revenue Margins Acquisitions Growth  Delivered IRI retail sales 2-Year CAGR  Delivered target of ~2%  Closed three value-enhancing of 8.3% and became the 3rd largest productivity

  5. Slide 5: Summary of Fourth Quarter 2021 Results

    Summary of Fourth Quarter 2021 Results  Organic Net Sales growth accelerated to 7.4% in 4Q’21 from 1.0% in 3Q’21 – Excluding the impact from IO route conversion Organic Net Sales increased 8.9% – Highest Organic Net Sales growth quarter of the year and strong finish to 2021  Gross margin primarily

  6. Slide 6: Retail Sales Growth Rates Accelerating

    Retail Sales Growth Rates Accelerating  Total Utz portfolio growth continues to accelerate and share gains are building momentum Retail Sales 2-Year CAGR Rolling 12-Week Trend 14.9% Utz Power Brands 13.5% 12.9% 12.5% 11.7% 12.2% Utz Brands (Total) 11.5% 11.6% 10.6% 10.8% 10.2% 10.1% Total Salty Sna

  7. Slide 7: Gaining Power Brand Share Over Last Two Years

    Gaining Power Brand Share Over Last Two Years  Power brands are 87% of our portfolio, an increase of ~250bps from two years ago  Foundation Brand performance reflects the continued shift in focus to Power Brands, and performance is improving Power Brands Retail Sales Change(1) Foundation Brands Re

  8. Slide 8: Two-Year Growth Across Major Sub-Categories

    Two-Year Growth Across Major Sub-Categories  Power Brands two-year share gains across four of five tracked sub-categories  Double-digit two-year CAGR’s in potato chips, tortilla chips, pretzels, salsa and queso Sub-Category Retail Sales 2-Year CAGR (13-Weeks Ended 1/2/22) Total Sub-Category Power

  9. Slide 9: Robust Growth for ON THE BORDER In All Geographies

    Robust Growth for ON THE BORDER® In All Geographies  Leveraging the Utz sales platform to drive strong double-digit sales growth  Unlocking additional manufacturing capacity and supply through our Festida and R.W. Garcia acquisitions to help support robust ON THE BORDER® growth ON THE BORDER® Reta

  10. Slide 10: Positive Momentum Led by Power Brands Across All Geographies

    Positive Momentum Led by Power Brands Across All Geographies  Expansion and Emerging continue to outperform with two-year total Utz growth rates outpacing the Category by ~340bps and Power Brands growing significantly faster  Core momentum improving with two-year growth rates increasing from 2.9%

  11. Slide 11: Strong Growth Across All Channels

    Strong Growth Across All Channels  One and two-year share gains in the Grocery Channel  Double-digit one and two-year growth in both the Grocery and Mass Channels Retail Channel Retail Sales 2-Year CAGR (13-Weeks Ended 1/2/22) Total Salty Snacks Power Brands MULO + C Grocery Mass Club C-Store 20.3

  12. Slide 12: Optimizing Consumer Marketing Investments

    Optimizing Consumer Marketing Investments  Significant shift from sports sponsorships and planning a ~40% increase vs. 2021 in working media spend focused on more targeted awareness building media  Continued expansion of insights and brand investments to create stronger consumer pull of Utz Power

  13. Slide 13: Looking Ahead to Fiscal 2022

    Looking Ahead to Fiscal 2022  Well-positioned for strong Organic Net Sales growth – Utz retail sales and pricing momentum are off to a strong start with a 16.9% year- over-year sales increase for the 8-week period through February 20, 2022, coupled with an approximately 200bps improvement on Price

  14. Slide 14: Financial Performance

    Financial Performance Ajay Kataria, Chief Financial Officer 14

  15. Slide 15: Fourth Quarter 2021 Financial Results Summary

    Fourth Quarter 2021 Financial Results Summary 4Q’20 4Q’21 14-weeks Ended 13-weeks Ended YoY In $millions, except per share amounts January 3, 2021(1) January 2, 2022 Change Net Sales 246.3 300.9 +22.2% Pro Forma Net Sales 275.5 300.9 +9.2% Adj. Gross Profit 90.5 103.3 +14.1% % of net sales 36.7% 34.

  16. Slide 16: Full-Year 2021 Financial Results Summary

    Full-Year 2021 Financial Results Summary FY’20 FY’21 YoY 53-weeks Ended 52-weeks Ended In $millions, except per share amounts January 3, 2021(1) January 2, 2022 Change Net Sales 964.3 1,180.7 +22.4% Pro Forma Net Sales 1,173.4 1,184.3 +0.9% Adj. Gross Profit 365.4 424.9 +16.3% % of net sales 37.9% 3

  17. Slide 17: Good Liquidity and No Significant Debt Maturities Until 2028

    Good Liquidity and No Significant Debt Maturities Until 2028 Good Liquidity Covenant-lite Debt Structure  ~$139M liquidity as of 1/2/22 (Fiscal YE ‘2021)  No financial maintenance covenants on Term Loan B – $41.9M Cash + $96.9M available on ABL  ABL springing covenant FCCR 1.0x required  1% prin

  18. Slide 18: 4Q'21 Net Sales Bridge

    4Q’21 Net Sales Bridge  Growth driven by acquisitions and Organic Net Sales growth of 7.4% (+8.9% excluding IO discounts)  Price/mix improvement ramping up and building momentum as we exit 4Q'21  Volume growth positive post COVID-19 overlap despite continued supply disruptions  Pro Forma Net Sal

  19. Slide 19: 4Q'21 Adjusted EBITDA Margin Bridge

    4Q’21 Adjusted EBITDA Margin Bridge  Favorable price/mix as benefits from pricing actions continue to build  Momentum increasing on productivity initiatives  Volume up slightly despite continued supply chain disruptions  Higher gross input cost inflation which includes commodities, transportatio

  20. Slide 20: Price Actions Continue to Help Offset Rising Inflation

    Price Actions Continue to Help Offset Rising Inflation  Pricing actions accelerated in the third and fourth quarters but continue to lag rising gross input cost inflation  Exited the year with a price/mix contribution as a % of Net Sales above 6%  Additional pricing actions taken mid-February 202

  21. Slide 21: Fiscal 2022 Outlook

    Fiscal 2022 Outlook  Expect to build on our sales momentum exiting 2021 and deliver strong Organic Net Sales growth in 2022  Anticipate modest Adjusted EBITDA growth as benefits from our pricing and productivity actions offset input cost inflation, while we continue to make investments to support

  22. Slide 22: Confident in Our Long-term Margin Opportunity

    Confident in Our Long-term Margin Opportunity  Pricing actions to provide higher long-term baseline that will compound the benefits of volume and distribution growth  Productivity programs on track to achieve 3% to 4% of COGS goal by 2023, with improving future benefits  Improving manufacturing a

  23. Slide 23: Appendix

    Appendix yp VEGGIE STRAW ed AVOCADO OIL § CLASSIC SEA SALT @ KETTLE STYLE POTATO CHIPS Fe] ©

  24. Slide 24: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures Net Sales and Pro Forma Net Sales - One Week Adjustment 14-Weeks Ended 1-Week Ended 13-Weeks Ended 53-Weeks Ended 1-Week Ended 52-Weeks Ended (Combined Successor and (Combined Successor (Successor) (Successor) (Successor) P

  25. Slide 25: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures Organic Net Sales Three Months Ended January 2, 2022 January 2, 2022 % Change Net Sales as Impact of Organic Net Net Sales as Impact of Impact of 53rd Organic Net Net Sales as Organic Net (dollars in millions) Reported Acqu

  26. Slide 26: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures Gross Profit, Adjusted Gross Profit and PF Adj Gross Profit 13-Weeks Ended 52-Weeks Ended (dollars in millions) January 2, 2022 December 27, 2020 January 2, 2022 December 27, 2020 Gross Profit $ 90.5 $ 76.7 $ 383.9 $ 327.8

  27. Slide 27: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures Adjusted Selling, General and Administrative Expense - One Week Adjustment 14-Weeks Ended 1-Week Ended 13-Weeks Ended 53-Weeks Ended 1-Week Ended 52-Weeks Ended (Combined Successor and (Combined Successor (Successor) (Succe

  28. Slide 28: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures Depreciation and Amortization Expense 13-Weeks Ended 52-Weeks Ended (dollars in millions) January 2, 2022 December 27, 2020 January 2, 2022 December 27, 2020 Core D&A - Non-Acquisition-related included in Gross Profit $ 6.4

  29. Slide 29: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures Adjusted Net Income 13-Weeks Ended 14-Weeks Ended 52-Weeks Ended 53-Weeks Ended January 2, 2022 January 3, 2021 January 2, 2022 January 3, 2021 (Combined Successor and (dollars in millions, except per share data) (Successor

  30. Slide 30: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures EBITDA and Adjusted EBITDA - One Week Adjustment 14-Weeks Ended 1-Week Ended 13-Weeks Ended 53-Weeks Ended 1-Week Ended 52-Weeks Ended (Combined (Combined Successor and Successor and (Successor) (Successor) (Successor) Pred

  31. Slide 31: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures EBITDA, Adjusted EBITDA and Further Adjusted EBITDA 13-Weeks Ended 52-Weeks Ended (dollars in millions) January 2, 2022 December 27, 2020 January 2, 2022 December 27, 2020 Net (Loss) Income $ (16.2) $ (90.7) $ 8.0 $ (107.6)

  32. Slide 32: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures Further and Normalized Further Adjusted EBITDA FY 2020 FY 2021 (dollars in millions) Q1 Q2 Q3 Q4 FY 2020 Q1 Q2 Q3 Q4 FY 2021 Further Adjusted EBITDA $ 40.8 $ 51.5 $ 53.6 $ 41.4 $ 187.3 $ 41.0 $ 38.1 46.3 $ 38.8 $ 164.2 Acqu

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