Slide 1: Second Quarter 2024 Earnings Presentation
Swap out image Utz Brands, Inc. Second Quarter 2024 Earnings Presentation August 1, 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
Swap out image Business Overview Howard Friedman Chief Executive Officer 4
Slide 5: Second Quarter Key Takeaways
Second Quarter Key Takeaways ONE THREE FIVE Organic Net Sales growth of 1.6% led by Drove a sixth consecutive quarter of Modestly revising our FY’24 Organic Net strong branded volume growth year-over-year Adjusted EBITDA Sales outlook given the softer than supported by increased marketing Margin exp
Slide 6: 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) +1.6% +10% $357 $50 +160bps $351 +150bps $45 +100bps +90bps +40bps 2Q’23 2Q’24 2Q’23 2Q’24 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 Note:
Slide 7: Strong execution against a clearly defined portfolio strategy
Strong execution against a clearly defined portfolio strategy Power Brand volume increased ~4% in 2Q’24 o Consistent with our strategy, strong Power Brand volume led by Utz®, On The Border®, and 2Q’24 Total Company Volume (lbs.)(1) Boulder Canyon® o Improving performance in non-measured channels, e.
Slide 8: Investments in geographic expansion and disciplined promotional spending driving share gains
Investments in geographic expansion and disciplined promotional spending driving share gains led by our Power Four brands 2Q’24 Salty Snacks Year-over-Year Growth (13-Weeks Ended 6/30/24) Retail Sales $ Retail Volume (lbs.) 2.8% 4.3% 1.1% 1.7% 3.2% 3.5% 0.2% -0.8% -4.9% -1.3% Total Salty Total Utz U
Slide 9: Gained volume share in both our Core and Expansion geographies
Gained volume share in both our Core and Expansion geographies 2Q’24 Salty Snacks Year-over-Year Growth (13-Weeks Ended 6/30/24) Retail Sales $ Retail Volume (lbs.) Core 0.1% 0.3% Core 3.0% 2.5% 1.8% -0.6% -1.4% 6.9% -0.9% 5.9% 5.3% 5.1% 5.0% 5.2% Expansion Expansion 0.3% -0.7% Total Salty Total Utz
Slide 10: Significant outperformance across Natural and traditional channels
Significant outperformance across Natural and traditional channels Boulder Canyon approaching $100M in retail sales in SPINS + Circana MULO-C SPINS Retail Sales Circana MULO-C Retail Sales Year-over-Year Growth Year-over-Year Growth 13-Weeks Ended 6/30/24 52-Weeks Ended 6/30/24 13-Weeks Ended 6/30/2
Slide 11: Strong growth in Tortilla Chips and Cheese Snacks
Strong growth in Tortilla Chips and Cheese Snacks Growing share in Utz®, On The Border®, and Boulder Canyon® Total Sub-Category Sub-Category Retail Sales Year-over-Year Growth (13-Weeks Ended 6/30/24) Potato Chips Tortilla Chips Pretzels Cheese Snacks Pork Rinds 7.5% 6.2% 2.3% 1.9% -0.3% -0.7% -0.1%
Slide 12: Increased investments in new product innovation
Increased investments in new product innovation Strong early consumer and customer response supporting 2H’24 sales growth Deliver “Craveable” Flavor Capture Occasions Expand Positive Choices 12
Slide 13: Driving awareness with increased media spend and new brand campaigns
New Brand Campaigns Driving awareness with increased media spend and new brand campaigns Marketing Expense 2023 +60% 2024 Launched July 2024 Social and Influencer Connected TV Streaming Digital Video Launched April 2024 13
Slide 14: Positive trends across household penetration, buyers, and buyer repeat rates
Positive trends across household penetration, buyers, and buyer repeat rates Household Penetration Buyers (millions) Total Buyer Repeat Rate (52-Weeks Ended 6/16/24) (52-Weeks Ended 6/16/24) (52-Weeks Ended 6/16/24) +140bps +2.2 Million +60bps Increase Increase Increase 65 70.0% 50 70 69.4% 48.2% 61
Slide 15: Financial Review
Swap out image Financial Review Ajay Kataria Chief Financial Officer 15
Slide 16: 2Q'24 Financial Results Summary
2Q’24 Financial Results Summary 2Q’24 2Q’23 In $ millions, except per 13-weeks ended 13-weeks Ended YoY o Organic Net Sales increase of +1.6% share amounts June 30, 2024 July 2, 2023 Change o +2.3% volume/mix and (0.7%) price Net Sales 356.2 362.9 (1.8%) o Adjusted Gross Margin expansion of +260 bps
Slide 17: 2Q'24 Net Sales Bridge
2Q’24 Net Sales Bridge 2Q’24 Net Sales YoY Growth Decomposition o Pricing of (0.7)% from disciplined promotional spending adjustments 2.3% 1.6% -0.1% o Volume/mix growth of +2.3% primarily driven by our Power Four Brands o IO Conversion impact of (0.1%) o Divestiture impact of (3.3%) from the dispos
Slide 18: 2Q'24 Adjusted EBITDA Margin Bridge
2Q’24 Adjusted EBITDA Margin Bridge 2Q’24 Adjusted EBITDA Margin Change Decomposition o Productivity programs driven by manufacturing and procurement cost savings offsetting higher supply chain costs 4.3% -1.1% o Increased marketing spend to support -0.9% -0.7% -0.2% 14.0% continued branded volume g
Slide 19: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights Cash Flow Highlights 26-Weeks Ended June 30, 2024 Net Cash Used in Operations ($0.2M) Capital Expenditures $37.8M Dividends and Distributions Paid(1) $18.9M As of Balance Sheet Highlights As of June 30, 2024 January 1, 2023 Cash and Cash Equivalents $66.6M Gros
Slide 20: Improving balance sheet flexibility
Improving balance sheet flexibility 2Q’24 Disposition Transactions and Net Leverage Ratio Term Loan Repricing o On April 17, 2024, completed repricing of $630 million Term Loan due in January 2028 resulting in a lower interest rate 5.1x o On April 22, 2024, completed disposition of two manufacturing
Slide 21: Updating our Fiscal 2024 Outlook
Updating our Fiscal 2024 Outlook o Modestly revising Organic Net Sales growth outlook due to a more moderate growth outlook for the Salty Snack Category o Reaffirming Adjusted EBITDA outlook and raising Adjusted EPS Outlook Fiscal 2024 Growth versus Previous Current Fiscal 2023 Actual Results Organi
Slide 22: Closing Remarks
Closing Remarks 22
Slide 23: Well-positioned to drive accelerated sales growth 2H'24
Well-positioned to drive accelerated sales growth 2H’24 o Activating distribution gains in both Core and Expansion geographies across key Grocery, Natural, Mass, and Club customers WA MT ME ND VT OR MN NH ID SD WI NY MA o Continuing significant growth of Boulder Canyon WY IA MI PA CT RI NE NJ NV OH
Slide 24: Strong progress in 2024 against our fundamental strategies
Strong progress in 2024 against our fundamental strategies STRATEGY 2024 Progress Focus our portfolio to further penetrate o Growing share and volume in both Core and Expansion 1 Expansion geographies while holding the o Increasing household penetration Core o Continuing distribution gains Transform
Slide 25: Appendix
Swap out image Appendix 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’24 earnings press release dated August 1, 2024 26
Slide 27: 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’24 earnings press release dated August 1, 2024 27
Slide 28: 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’24 earnings press release dated August 1, 2024 28
Slide 29: 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’24 earnings press release dated August 1, 2024 29
Slide 30: 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’24 earnings press release dated August 1, 2024 30