Utz Brands Inc · NYSE:UTZ
Utz Brands — Q3 2024 Earnings Presentation
31 slides from Utz Brands's earnings presentation, Oct 31, 2024
Slide 1: Third Quarter 2024 Earnings Presentation
Utz Brands, Inc. Third Quarter 2024 Earnings Presentation October 31, 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: Third Quarter Key Takeaways
Third Quarter Key Takeaways ONE THREE Organic Net Sales growth of 1.9% led by branded Drove a 7th consecutive quarter of year- volume growth supported by increased over-year Adjusted EBITDA Margin distribution and marketing investments expansion fueled by strong productivity TWO FOUR Gained volume s
Slide 6: Consistent Top and Bottom-line Growth, and Margin Expansion
Consistent Top and Bottom-line Growth, and Margin Expansion Organic Net Sales Adjusted EBITDA Adjusted EPS Adjusted EBITDA Margin (in millions) (in millions) YoY Change (as a % of net sales) +1.9% +3.6% +23.5% +160bps +150bps $359 $366 $52 $54 $0.21 $0.17 +100bps +90bps +80bps 3Q’23 3Q’24 3Q’23 3Q’2
Slide 7: Strong Execution Against a Clearly Defined Portfolio Strategy
Strong Execution Against a Clearly Defined Portfolio Strategy Power Brand (1) volume increased ~4% in 3Q’24 o Strong Power Brand(1) volume led by On The Border® 3Q’24 Measured + Unmeasured Channels and Boulder Canyon® Volume Breakdown(lbs.)(3) o Strong performance in non-measured channels, e.g., clu
Slide 8: Retail Volume Share Gains in a More Promotional Environment
Retail Volume Share Gains in a More Promotional Environment 3Q’24 Measured Channels Year-over-Year o Organic Net Sales growth outpaced retail sales Retail Growth (13-Weeks Ended 9/29/24) growth primarily due to strength in non-measured channels and stronger seasonal shipments vs. LY Retail Volume (l
Slide 9: On Track to Hold Volume Share in our Core Geographies
On Track to Hold Volume Share in our Core Geographies in 2024(1) Measured Channels Year-over-Year Retail Growth Core Geography Third Quarter Highlights Retail Sales $ Retail Volume (lbs.) 1.9% o Performance impacted by competitive promotional 1.0% pricing in potato chips across major tracked channel
Slide 10: 4th Consecutive Quarter of Share Gains in our Expansion Geographies
4th Consecutive Quarter of Share Gains in our ExpansionGeographies(1) Measured Channels Year-over-Year Retail Growth Retail Sales $ Retail Volume (lbs.) Expansion Geography Third Quarter Highlights 6.8% 5.9% o 4th consecutive quarter of share gains in Expansion 5.3% 5.3% geographies led by Utz®, On
Slide 11: Strong Growth in Tortilla Chips, Cheese Snacks, and Golden Flake Pork
Strong Growth in Tortilla Chips, Cheese Snacks, and Golden Flake® Pork Total Sub-Category Measured Channels Sub-Category Retail Sales Year-over-Year Growth (13-Weeks Ended 9/29/24) Potato Chips Tortilla Chips Pretzels Cheese Snacks Pork Rinds 4.8% 2.3% 2.6% 2.0% 1.6% 1.1% -0.4% -1.2% -2.0% -4.7% -4.
Slide 12: Significant Outperformance by Boulder Canyon in Natural and Traditional Channels
Significant Outperformance by Boulder Canyon® in Natural and Traditional Channels Boulder Canyon® on track to reach $100M in annual retail sales in 2024 SPINS Retail Sales (natural channel) Circana MULO-C Retail Sales (traditional channels) Year-over-Year Growth Year-over-Year Growth 13-Weeks Ended
Slide 13: On-trend Innovation Supporting Continued Sales Growth for Boulder Canyon
On-trend Innovation Supporting Continued Sales Growth for Boulder Canyon® Boulder Canyon® Boulder Canyon® enters Wavy enters Cheese Potato Chip Snacks Sub- Segment Category Launch builds on Boulder’s continued potato chip Boulder Canyon® moves beyond potato chips with double-digit growth across chan
Slide 14: Driving Awareness with Increased Media Spend and New Brand Campaigns
New Brand Campaigns Driving Awareness with Increased Media Spend and New Brand Campaigns Marketing Investment 2023 +60% 2024 Launched July 2024 Social and Influencer Connected TV Streaming Digital Video Launched April 2024 14
Slide 15: Positive Trends Across Household Penetration and Buyers, and Strong Buyer Repeat Rates
Positive Trends Across Household Penetration and Buyers, and Strong Buyer Repeat Rates Household Penetration Buyers (millions) Total Buyer Repeat Rate (52-Weeks Ended 9/29/24) (52-Weeks Ended 9/29/24) (52-Weeks Ended 9/29/24) +180bps +2.7M Flattish vs. vs. vs. Salty Snacks Category +30bps Salty Snac
Slide 16: Financial Review
Financial Review Ajay Kataria Chief Financial Officer 16
Slide 17: 3Q'24 Financial Results Summary
3Q’24 Financial Results Summary 3Q’24 3Q’23 In $ millions, except per 13-weeks ended 13-weeks Ended YoY o Organic Net Sales increase of +1.9% share amounts September 29, 2024 October 1, 2023 Change o +2.4% volume/mix and (0.5%) price Net Sales 365.5 371.9 (1.7%) o Adjusted Gross Margin expansion of
Slide 18: 3Q'24 Net Sales Bridge
3Q’24 Net Sales Bridge 3Q’24 Net Sales YoY Growth Decomposition o Pricing impact of (0.5)% from implementing a disciplined pricing strategy 2.4% 1.9% o Volume/mix growth of +2.4% primarily driven by our Power Four Brands o Divestiture impact of (3.6%) from the disposition of R.W. Garcia® and Good He
Slide 19: 3Q'24 Adjusted EBITDA Margin Bridge
3Q’24 Adjusted EBITDA Margin Bridge 3Q’24 Adjusted EBITDA Margin Change Decomposition o Productivity programs driven by manufacturing and procurement cost savings more than offsetting higher supply chain costs 4.0% -1.1% -1.0% o Increased marketing spend to support -0.6% -0.5% 14.8% 14.0% continued
Slide 20: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights Cash Flow Highlights 39-Weeks Ended September 29, 2024 Net Cash Provided by Operations $52.0M Capital Expenditures $60.9M Dividends and Distributions Paid(1) $30.8M As of Balance Sheet Highlights As of September 29, 2024 January 1, 2023 Cash and Cash Equivalent
Slide 21: Reaffirming Fiscal 2024 Outlook
Reaffirming Fiscal 2024 Outlook Fiscal 2024 Growth versus Current(1) Versus Previous as of Fiscal 2023 Actual Results Sept. 5, 2024 Organic Net Sales +2% to +2.5% growth Unchanged Adjusted EBITDA +5% to +8% growth Unchanged Adjusted EPS +28% to 32% growth Unchanged Additional Outlook Assumptions: Ef
Slide 22: Closing Remarks
Closing Remarks 22
Slide 23: Well-positioned to Drive Accelerated Sales Growth in 4Q'24
Well-positioned to Drive Accelerated Sales Growth in 4Q’24 o Activating distribution gains in both Core and Expansion geographies across key grocery, natural, WA mass, and club retailers MT ND ME VT OR MN NH ID SD WI NY MA WY MI CT o Driving growth and momentum of our Utz®, On The NE IA PA NJ RI NV
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 volume share in Core and Expansion Expansion geographies while holding the Core geographies 1 o Increasing household penetration o Continuing distribution gains Transf
Slide 25: Appendix
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 3Q’24 earnings press release dated October 31, 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 3Q’24 earnings press release dated October 31, 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 3Q’24 earnings press release dated October 31, 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 3Q’24 earnings press release dated October 31, 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 3Q’24 earnings press release dated October 31, 2024 30
Slide 31: Utz Core and Expansion Geography State Groupings
Utz Core and Expansion Geography State Groupings WA MT ME ND VT OR MN NH ID SD WI MA NY WY MI CT RI IA PA NE NJ NV OH IL IN DE UT CO WV MD CA KS MO VA KY DC NC TN AZ OK NM AR SC GA MS AL TX LA AK FL HI Core Geographies Expansion Geographies 31