Utz Brands Inc · NYSE:UTZ
Utz Brands — Q3 2023 Earnings Presentation
25 slides from Utz Brands's earnings presentation, Nov 9, 2023
Slide 1: Third Quarter 2023 Earnings Presentation
Utz Brands, Inc. T H I R 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 N O V E M B E R 9 , 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. Q3 2023 Earnings Presentation
Slide 4: Third Quarter Key Takeaways
Third Quarter Key Takeaways Organic Net Sales growth of 3.1% on top of 12.6% growth in the prior year quarter Power Brands’ retail sales growth of 5%(1) led by Boulder Canyon®, On The Border®, Zapp’s®, and Utz® potato chips Aggressive actions to optimize supply chain and product portfolio impacted v
Slide 5: Aggressive Actions to Optimize Supply Chain and Product Portfolio
Aggressive Actions to Optimize Supply Chain and Product Portfolio ▪ On target to deliver FY’23 productivity savings of 4% Utz Manufacturing Plant Network ▪ Reducing manufacturing plants from 17 to 13 ▪ Continued insourcing of co-manufactured volume (4 plants to 3 plants) Carlisle St. plant to be ▪ R
Slide 6: Summary of Third Quarter 2023 Results
Summary of Third Quarter 2023 Results ▪ Organic Net Sales growth led by Power Brands ▪ Third consecutive quarter of Adjusted EBITDA margin year-over-year expansion Net Sales Adj. EBITDA Adjusted EBITDA Margin YoY Change (in Millions) (in Millions) (as % of Net Sales) +3% +9% $362.8 $371.9 $52.1 +80b
Slide 7: Third Quarter Retail Sales Overview
Third Quarter Retail Sales Overview ▪ Power Brand momentum led by Utz® Potato Chips, On The Border®, Zapp’s®, and Boulder Canyon® ▪ Foundation Brands primarily impacted by supply chain transitions and SKU rationalization Utz Retail Sales Year-over-Year Growth 3Q’23 Retail (in Millions) Sales Growth
Slide 8: Consumption Volume Trends are Improving
Consumption Volume Trends are Improving ▪ Lapped significant prior year growth in the first half of 2022 ▪ Power Brands’ volume growing faster than the category in 3Q’23 Utz & Salty Snack Category Retail Volume Quarterly Trends vs. the Prior-Year Period 0.5% -0.5% -0.5% -0.9% -1.0% -0.9% Total Salty
Slide 9: 3Q'23 Retail Sales by Sub-Category
3Q’23 Retail Sales by Sub-Category ▪ Delivering growth across our three largest sub-categories ▪ Cheese impacted by lapping Mass channel promotional features; Pork performance is being addressed Sub-Category Retail Sales Year-over-Year Growth Retail Sales Breakdown(1) (13-Weeks Ended 10/1/23) By Pro
Slide 10: 3Q'23 Retail Sales by Geography
3Q’23 Retail Sales by Geography ▪ Core performance due to lapping Utz® brand prior year growth of 20% and Foundation Brand declines ▪ Expansion share gains led by Power Brands with strong distribution gains CORE EXPANSION 8.4% Geographic Retail Sales Year-over-Year Growth (13-Weeks Ended 10/1/23) 6.
Slide 11: 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. Q3 2023 Earnings Presentation
Slide 12: Third Quarter Financial Results Summary
Third Quarter Financial Results Summary 3Q’23 3Q’22 In $ millions, except per share 13-weeks ended 13-weeks Ended YoY ▪ Organic Net Sales growth of +3.1% amounts October 1, 2023 October 2, 2022 Change – +3.7% price realization partially offset by (0.6%) volume/mix Net Sales 371.9 362.8 +2.5% – +2.7%
Slide 13: 3Q'23 Net Sales Bridge
3Q’23 Net Sales Bridge 3Q’23 Net Sales ▪ Total net sales growth of +2.5% and Organic Net YoY Growth Decomposition Sales growth of +3.1% ▪ Supply chain and product portfolio optimization actions impacted volume greater than anticipated 2.7% -3.3% ▪ Volume/mix growth of +2.7% excluding the estimated i
Slide 14: 3Q'23 Adjusted EBITDA Margin Bridge
3Q’23 Adjusted EBITDA Margin Bridge 3Q’23 Adjusted EBITDA ▪ Net price realization from 2022 actions to Margin Decomposition counter inflation ▪ Volume/mix flat with favorable mix primarily due to SKU rationalization offset by lower volume ▪ Benefits from productivity 2.8% -0.4% -5.3% ▪ Lower adminis
Slide 15: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights Cash Flow Highlights 39-Weeks Ended October 1, 2023 Net Cash From Operations $49.1M Capital Expenditures $45.7M Dividends and Distributions Paid(1) $24.1M Balance Sheet Highlights As October 1, 2023 As of Cash and Cash Equivalents January 1, 2023 $60.1M Gross D
Slide 16: Strong Liquidity and No Significant Debt Maturities Until 2028
Strong Liquidity and No Significant Debt Maturities Until 2028 ▪ ~70% of total long-term debt fixed at ~4.7% via Debt Maturities Schedule (in $M as of 10/1/23(2)) interest rate swaps, which are significantly favorable to the market 773 ▪ Liquidity of ~$209M with ABL availability of 273 ~$149M as of
Slide 17: Updating Fiscal 2023 Outlook
Updating Fiscal 2023 Outlook ▪ Adjusting our Net Sales outlook to reflect supply chain transition impacts and consumer trends ▪ Reaffirming Adjusted EBITDA guidance due to stepped up pace of productivity and other cost savings Fiscal 2023 Growth versus Fiscal 2022 Actual Results Net Sales +2% to 3%
Slide 18: Well-Positioned for Fiscal 2024 and Beyond
Well-Positioned for Fiscal 2024 and Beyond Advantaged Power Brand portfolio with significant geographic expansion opportunity in attractive Salty Snack category Aggressive supply chain and portfolio optimization actions enabling margin expansion Capabilities enhanced with investments in people, proc
Slide 19: Appendix
Appendix UTZ BRANDS, INC. Q3 2023 Earnings Presentation
Slide 20: 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 3Q’23 earnings press release dated November 9, 2023. UTZ BRANDS, INC. Q3 2023 Earnings Presentation 20
Slide 21: 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 3Q’23 earnings press release dated November 9, 2023. UTZ BRANDS, INC. Q3 2023 Earnings Presentation 21
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 3Q’23 earnings press release dated November 9, 2023. UTZ BRANDS, INC. Q3 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 3Q’23 earnings press release dated November 9, 2023. UTZ BRANDS, INC. Q3 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 3Q’23 earnings press release dated November 9, 2023. UTZ BRANDS, INC. Q3 2023 Earnings Presentation 24
Slide 25: 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. Q3 2023 Earnings Presentation 25