Utz Brands Inc · NYSE:UTZ
Utz Brands — Q4 2023 Earnings Presentation
28 slides from Utz Brands's earnings presentation, Feb 29, 2024
Slide 1: Fourth Quarter and Full-Year 2023 Earnings Presentation
Utz Brands, Inc. Fourth Quarter and Full-Year 2023 Earnings Presentation February 29, 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
Business Overview Howard Friedman Chief Executive Officer 4
Slide 5: In 2023 we positioned the Company to capture its full potential
In 2023 we positioned the Company to capture its full potential o Acquired new talent in key areas o Accelerated productivity delivery o Invested in supply chain optimization o Completed accelerated SKU rationalization program and continued IO route conversions o Continued progress on building a bra
Slide 6: 4Q'23 & FY'24 Outlook Key Takeaways
4Q’23 & FY’24 Outlook Key Takeaways ONE TWO Gained dollar, pound, and unit Delivered fourth consecutive share in Q4, finishing as the #3 quarter of year-over-year branded Company in the Salty Adjusted EBITDA margin Category(1) expansion THREE FOUR Closed on recent disposition 2024 outlook highlights
Slide 7: Double-digit Adjusted EBITDA growth and consistent margin expansion
Double-digit Adjusted EBITDA growth and consistent margin expansion Total Net Sales Adjusted EBITDA Adjusted EBITDA Margin YoY Change (in millions) (in millions) (as a % of net sales) -1% +12% +3.0% volume/mix growth ex-SKU rationalization $355 $352 $49 +160bps $44 +90bps +80bps +40bps -120bps -10bp
Slide 8: Significant outperformance for Utz in both dollar sales and volume
Significant outperformance for Utz in both dollar sales and volume 4Q’23 Retail Sales $ Growth 4Q’23 Retail Sales Volume Growth (13-Weeks Ended 12/31/23) (13-Weeks Ended 12/31/23) 5.3% 5.2% 4.1% 4.3% 2.8% -1.9% -3.9% -4.2% Total Salty Total Utz Utz Power Utz Foundation Total Salty Total Utz Utz Powe
Slide 9: Outperformance across most major Salty Snack sub-categories
Outperformance across most major Salty Snack sub-categories Sub-Category Retail Sales Year-over-Year Growth Retail Sales Breakdown (13-Weeks Ended 12/31/23) (By Product Type) Total Sub-Category Other 4.2% Pork 10% Potato Chips 1.5% 3% Dips Tortilla 0.2% 5% Chips 12.8% Potato Chips 38% 4.2% Pretzels
Slide 10: Solid performance in Core, and distribution gains fueling Expansion growth
Solid performance in Core, and distribution gains fueling Expansion growth Core Expansion Geographies Geographies Geographic 8.8% Retail Sales 7.8% Year-over-Year Growth (13-Weeks Ended 12/31/23) 2.7% 3.0% 2.2% 1.4% Total Salty Total Utz Utz Power Total Salty Total Utz Utz Power Category Brands Bran
Slide 11: Financial Review
Financial Review Ajay Kataria Chief Financial Officer 11
Slide 12: Organic Net Sales and Adjusted EBITDA growth in 2023
Organic Net Sales and Adjusted EBITDA growth in 2023 Total Net Sales Adjusted EBITDA Adjusted EBITDA Margin Adjusted EPS (in millions) (in millions) +2% +10% +90bps +4% Organic Net Sales +3% $187 13.0% $1,408 $1,438 12.1% $171 $0.55 $0.57 FY’22 FY’23 FY’22 FY’23 FY’22 FY’23 FY’22 FY’23 Note: See app
Slide 13: 4Q'23 Financial Results Summary
4Q’23 Financial Results Summary Organic Net Sales decrease of (0.3%) 4Q’23 4Q’22 YoY o +0.5% volume/mix offset by pricing of (0.8%) In $ millions, except per 13-weeks ended 13-weeks Ended Change share amounts December 31, 2023 January 1, 2023 o +3.0% volume/mix excluding SKU rationalization of (2.5%
Slide 14: 4Q'23 Net Sales Bridge
4Q’23 Net Sales Bridge o Strong continued volume/mix growth of +3.0% excluding 4Q’23 Net Sales the estimated impact from SKU rationalization YoY Growth Decomposition o SKU optimization actions focused on reductions in private 3.0% label impact of (2.5%) o Pricing of (0.8%) due to lapping +17% price
Slide 15: 4Q'23 Adjusted EBITDA Margin Bridge
4Q’23 Adjusted EBITDA Margin Bridge o Lower net price realization partially offset by favorable 4Q’23 Adjusted EBITDA mix primarily due to SKU rationalization Margin Change Decomposition o Benefits from productivity cost savings o Modest conversion cost and labor inflation 3.5% 0.7% 14.0% 12.4% 0.2%
Slide 16: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights Cash Flow Highlights 52-Weeks Ended December 31, 2023 Net Cash From Operations $76.6M Capital Expenditures $55.7M Dividends and Distributions Paid(1) $31.9M As of Balance Sheet Highlights As of December 31, 2023 January 1, 2023 Cash and Cash Equivalents $52.0M
Slide 17: Net proceeds of ~$150M from recent dispositions deployed to pay down debt
Net proceeds of ~$150M from recent brand and plant dispositions immediately deployed to pay down long-term debt Transactions closed on February 5, 2024 Net Leverage Ratio (Fiscal Year-end) o Disposition of Good Health® and R.W. Garcia® brands and three manufacturing facilities o Net proceeds used to
Slide 18: Fiscal 2024 Outlook
Fiscal 2024 Outlook Fiscal 2024 Growth versus Estimated 2024 Financial Impacts Fiscal 2023 Actual Results from Recent Disposition Transactions Organic Net Sales ~3% or better growth o ~$45M of total net sales impact due to disposition of Good driven by volume growth Health® and R.W. Garcia® Brands A
Slide 19: Looking ahead
Looking ahead Howard Friedman Chief Executive Officer 19
Slide 20: Confident in our ability to deliver both short-term and long-term shareholder value
Confident in our Focus our portfolio Transform ability to deliver to further penetrate our supply chain both short-term our Expansion to fund growth geographies while and margin and long-term holding the Core improvement shareholder value supported by Develop leading Improve balance our fundamental
Slide 21: Our 2024 priorities are consistent with our fundamental strategies
Our 2024 priorities are consistent with our fundamental strategies STRATEGY 2024 PRIORITIES Focus our portfolio to further penetrate o Innovation and consumer support behind Expansion geographies while holding the Core Power Four Brands 1 o Continue westward expansion Transform our supply chain to f
Slide 22: Investments in new product innovation
Investments in new product innovation Deliver Capture Expand “Craveable” Flavor Occasions Positive Choices 22
Slide 23: 4% to 5% Organic Net Sales Growth
Strategies planned to deliver our three-year financial targets introduced at our 2023 Investor Day, updated to reflect faster deleveraging 4% to 5% ~16% Double-digit ~3x Organic Net Adj. EBITDA Adj. EPS Net Sales Growth Margin Growth Leverage CAGR 2023 - 2026 In 2026 CAGR 2023 – 2026 By year-end 202
Slide 24: Appendix
Appendix 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 4Q’23 earnings press release dated February 29, 2024. 25
Slide 26: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 26 See footnotes in Utz’s 4Q’23 earnings press release dated February 29, 2024.
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 4Q’23 earnings press release dated February 29, 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 4Q’23 earnings press release dated February 29, 2024. 28