Utz Brands Inc · NYSE:UTZ
Utz Brands — Q1 2023 Earnings Presentation
27 slides from Utz Brands's earnings presentation, May 11, 2023
Slide 1: Utz Brands, Inc. First Quarter 2023 Earnings Presentation
Utz Brands, Inc. F I R S T 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 M A Y 1 1 , 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. Q1 2023 Earnings Presentation
Slide 4: First Quarter Key Takeaways
First Quarter Key Takeaways Power Brands retail sales growth of 9.8%(1) while continuing our geographic expansion Net sales volume performance as expected as we lapped a very strong prior year, and rationalized our portfolio focused on reducing private label and partner brands Increased consumer inv
Slide 5: Summary of First Quarter 2023 Results
Summary of First Quarter 2023 Results Organic Net Sales growth of 4.0% ▪ Lapping 20.7% comparable growth in 1Q’22 ▪ Excludes the negative impact of Independent Operator (“IO”) route conversions and positive impact of acquisitions Gross margin improvement represents benefits from pricing actions and
Slide 6: First Quarter Retail Sales Overview
First Quarter Retail Sales Overview UTZ POWER BRANDS THREE LARGEST POWER BRANDS Retail Sales Year-over-Year Growth RETAIL SALES GROWTH (13-Weeks Ended 4/2/23) Double-digit ~75% 9.8% growth OF TOTAL 1Q’23 IN 1Q’23 IN 1Q’23 RETAIL SALES 14.8% % of Total Retail Sales (13-Weeks Ended 4/2/23) 9.4% 9.8% A
Slide 7: Our 2-Year Performance is in-line with the Salty Snacks Category
Our 2-Year Performance is in-line with the Salty Snacks Category Utz Power Brands Gained Share vs. 2-Years ago Retail Sales Year-over-Year Change in the Prior Year Retail Sales 2-year Change 1Q’22 vs. 1Q’21 1Q’23 vs. 1Q’21 +130bps 31.9% 30.6% 29.8% +650bps 20.1% 18.6% 13.6% Total Salty Total Utz Bra
Slide 8: 1Q'23 Retail Sales by Sub-Category
1Q’23 Retail Sales by Sub-Category ▪ Strong double-digit growth across Potato Chips and Pretzels which were ~55% of retail sales ▪ Tortilla Chip and Cheese Snacks share performance impacted by lapping strong performance in the Mass Channel in the prior year ▪ 2-year Utz tortilla chip growth of 37.6%
Slide 9: 1Q'23 Retail Sales by Geography
1Q’23 Retail Sales by Geography ▪ Core share performance impacted by lapping strong Utz® brand share gains and declines in Golden Flake® Pork, Good Health®, and TORTIYAHS® ▪ Expansion share performance impacted by On The Border® lapping strong activity in the Mass channel ▪ 2-year Power Brands’ grow
Slide 10: 2023 Innovation Focus on Flavor & Occasions
2023 Innovation Focus on Flavor & Occasions Capturing Pretzels Occasions On-Trend + Flavor Flavors Scaling Zapp’s Seasoned Pretzels New Seasonal Offerings and Utz Peanut and Assortments Hot & Spicy Limited Butter-filled Pretzels in Multipacks Time Offerings and Line Extensions UTZ BRANDS, INC. Q1 20
Slide 11: Building on Our Momentum with Focused Execution in 2023
Building on Our Momentum with Focused Execution in 2023 ✓ Drive strong organic growth enabled by our resilient and recession-resistant Salty Snack sub-categories ✓ Expand the reach of our Power Brands through increased distribution, advertising, and enhanced innovation ✓ Increase supply chain and se
Slide 12: 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. Q1 2023 Earnings Presentation
Slide 13: First Quarter Financial Results Summary
First Quarter Financial Results Summary 1Q’23 1Q’22 In $ millions, except per share 13-weeks ended 13-weeks Ended YoY amounts April 2, 2023 April 3, 2022 Change “Our margins continued to Net Sales 351.4 340.8 +3.1% recover from inflation as we Organic Net Sales 354.4 340.8 +4.0% execute our margin-
Slide 14: 1Q'23 Net Sales Bridge
1Q’23 Net Sales Bridge 1Q’23 Net Sales ▪ Total net sales growth of 3.1% and Organic Net YoY Growth Decomposition Sales growth of +4.0% ▪ Net price realization as a result of inflation- justified actions in fiscal 2022 9.7% -5.7% ▪ Organic volume growth impacted by SKU rationalization focused on priv
Slide 15: Perspective on 1Q'23 Organic Net Sales Growth
Perspective on 1Q’23 Organic Net Sales Growth ▪ Lapping 20.7% Organic Net Sales growth and 11.3% Trending Organic Net Sales Year-over-Year Growth volume growth in 1Q’22 ▪ Continued to aggressively trim lower-quality volume and rationalized private label and partner brand items Price Volume/Mix 20.7%
Slide 16: 1Q'23 Adjusted EBITDA Margin Bridge
1Q’23 Adjusted EBITDA Margin Bridge 1Q’23 Adjusted EBITDA ▪ Pricing and productivity fully offset higher Margin Decomposition gross input cost inflation – Benefits from inflation-justified pricing actions and improved mix 2.1% -1.3% – Momentum increasing on productivity initiatives 1.9% -11.6% 9.7%
Slide 17: Building Momentum Across Margin-Enhancing Initiatives
Building Momentum Across Margin- Enhancing Initiatives Adjusted EBITDA Margin YoY Change Managing cost inflation with FY’22 pricing execution ✓ with strategic revenue management programs ongoing (as % of Net Sales) +80bps -10bps ✓ Improving margin mix through the continued reduction of private label
Slide 18: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights Cash Flow Highlights 13-Weeks Ended April 2, 2023 Net Cash Used in Operations ($8.4M) Capital Expenditures $13.9M Dividends Paid(1) $8.0M Balance Sheet Highlights As April 2, 2023 As of Cash and Cash Equivalents January 1, 2023 $57.9M Gross Debt(2) $949.7M Net
Slide 19: 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 20: Save the Date 2023 Investor Day
Save the Date 2023 Investor Day DATE: DECEMBER 15, 2023 LOCATION: NEW YORK, NY More Details To Follow
Slide 21: Appendix
Appendix UTZ BRANDS, INC. Q1 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 1Q’23 earnings press release dated May 11, 2023. UTZ BRANDS, INC. Q1 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 1Q’23 earnings press release dated May 11, 2023. UTZ BRANDS, INC. Q1 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 1Q’23 earnings press release dated May 11, 2023. UTZ BRANDS, INC. Q1 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 1Q’23 earnings press release dated May 11, 2023. UTZ BRANDS, INC. Q1 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 1Q’23 earnings press release dated May 11, 2023. UTZ BRANDS, INC. Q1 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. Q1 2023 Earnings Presentation 27