Utz Brands Inc · NYSE:UTZ

Utz Brands — Q2 2022 Earnings Presentation

26 slides from Utz Brands's earnings presentation, Aug 11, 2022

  1. Slide 1: Utz Brands, Inc. Second Quarter 2022 Earnings Presentation

    ℠ Utz Brands, Inc. Second Quarter 2022 Earnings Presentation August 11, 2022 1

  2. 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

  3. Slide 3: Business Overview

    Business Overview Dylan Lissette, Chief Executive Officer 3

  4. Slide 4: 2Q'22 Key Messages

    2Q’22 Key Messages  Record second quarter net sales as Organic Net sales increased 13.6%  Share gains in the Salty Snacks category for the 13-week period ended July 3, 2022(1)  Adjusted Gross margin expanded, and Adjusted EBITDA increased 18.2% as actions to mitigate inflation and margin-enhancin

  5. Slide 5: Summary of Second Quarter 2022 Results

    Summary of Second Quarter 2022 Results  Organic Net Sales growth of 13.6% – Excludes the impact of acquisitions and excludes the impact of Independent Operator (“IO”) route conversions – Price/Mix +13.0% and Volume +0.6%  Gross margin improvement represents gradual recovery from significant inflat

  6. Slide 6: Power Brands Growth Outpacing Salty Snacks Category

    Power Brands Growth Outpacing Salty Snacks Category  3rd consecutive quarter of share gains for Utz Power Brands, with double digit growth in Utz®, ON THE BORDER®, Boulder Canyon®, and TORTIYAHS!® Power Brands Retail Sales Change(1) Foundation Brands Retail Sales Change(1)(2) (13-Weeks Ended 7/3/22

  7. Slide 7: Strong Growth Across Major Sub-Categories

    Strong Growth Across Major Sub-Categories  Double digit growth across 4 of 5 major subcategories representing ~80% of sales  Utz® potato chip growth of 27.8% and Utz® pretzels growth of 21.7%  Strong ON THE BORDER® and TORTIYAHS!® tortilla chip growth (15.4% and 17.2%) and a 51% combined growth i

  8. Slide 8: Strong Growth Across All Geographies

    Strong Growth Across All Geographies  Double digit growth across all geographies and second consecutive quarter of share gains in the Core  Share performance in Expansion primarily impacted by the timing of promotional features vs. last year for ON THE BORDER® tortilla chips; Utz® growth in Expans

  9. Slide 9: Ramping up Investments to Build Brand Equity & Awareness

    Ramping up Investments to Build Brand Equity & Awareness Right Message, Right Consumer, Right Place Right Consumer Right Message High Attention Family Crafted Flavors​ Zapp’s Daringly Different Platforms Advanced Targeting Strategic Influencers Right Place People Like Utz​ Power Brand Support Digita

  10. Slide 10: 2H'22 Innovation Capturing Demand in Fast-Growing Segments

    2H’22 Innovation Capturing Demand in Fast-Growing Segments Iconic Unique Flavors Twists Classic Snacks with a Zapp’s Iconic Flavors in High-Growth Unique Halloween Twist Flavored Pretzels Segment Driving Strong 2H'22 Seasonal Business Multi- Packs Expanding Multipack offerings for incremental occasi

  11. Slide 11: Well-positioned to Navigate the Current Environment

    Well-positioned to Navigate the Current Environment  Pure-play snacking company competing in recession-resistant sub-categories  Minimal private label share of 4.6% in the Salty Snacks category(1)  Strong brand equities and participate in sector with low price elasticity  Significant white space

  12. Slide 12: Financial Performance

    Financial Performance Ajay Kataria, Chief Financial Officer 12

  13. Slide 13: Second Quarter Financial Results Summary

    Second Quarter Financial Results Summary 2Q’22 2Q’21 13-weeks Ended 13-weeks Ended YoY In $millions, except per share amounts July 3, 2022 July 4, 2021 Change Net Sales 350.1 297.9 +17.5% Organic Net Sales 338.4 297.9 +13.6% Adj. Gross Profit 126.0 105.4 +19.6% % of net sales 36.0% 35.4% +63 bps Adj

  14. Slide 14: Cash Flow and Balance Sheet Highlights

    Cash Flow and Balance Sheet Highlights Cash Cash Flow Flow (26-weeks (26-weeks ended July 3, 2022) ended July 3, 2022) Credit Structure Credit Structure  Net Cash used in Operations of ($26.3M)  Term Loan B priced at L+300bps with no floor – Impacted by $23M buyout of multiple third-party DSD righ

  15. Slide 15: 2Q'22 Net Sales Bridge

    2Q’22 Net Sales Bridge  Growth driven by Organic Net Sales growth of +13.6% and acquisitions of +5.1%  Price/mix improvement from inflation-justified pricing actions  Organic volume growth impacted by SKU rationalization to include strategic reductions in private label and certain partner brands,

  16. Slide 16: 2Q'22 Adjusted EBITDA Margin Bridge

    2Q’22 Adjusted EBITDA Margin Bridge  Pricing and productivity fully offset inflation – Favorable price/mix of 13%, including down-weights, as benefits from pricing actions continue to build – Momentum increasing on productivity initiatives  Higher gross input cost inflation which includes commodit

  17. Slide 17: Price Actions and Productivity to Help Offset Rising Inflation

    Price Actions and Productivity to Help Offset Rising Inflation  Inflation-justified pricing actions taken in February ’22 and May ’22 – Strategic and selective pricing actions are being implemented in 2H’22  Price elasticity has been better than anticipated; expect more elasticity impact in 2H’22

  18. Slide 18: Fiscal 2022 Outlook

    Fiscal 2022 Outlook  Raising net sales outlook to reflect our year-to-date performance, continued strong consumer demand, and better than expected price elasticity  Raising Adjusted EBITDA outlook due to stronger sales outlook and accelerating benefits from pricing and productivity actions to full

  19. Slide 19: Confident in Our Long-term Margin Opportunity

    Confident in Our Long-term Margin Opportunity  Inflation-justified pricing actions helping cover higher input costs and enable continued investment in our brands, people, and supply chain  Productivity programs on track to achieve 3 to 4% of COGS goal by 2023  Improving manufacturing, logistics a

  20. Slide 20: Appendix

    Appendix yp VEGGIE STRAW ed AVOCADO OIL § CLASSIC SEA SALT @ KETTLE STYLE POTATO CHIPS Fe] ©

  21. Slide 21: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 21 ℠

  22. Slide 22: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 22 ℠

  23. 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 Q2 2022 earnings press release dated August 11, 2022. 23 ℠

  24. 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 Q2 2022 earnings press release dated August 11, 2022. 24 ℠

  25. 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 Q2 2022 earnings press release dated August 11, 2022. 25 ℠

  26. Slide 26: Utz Geographic Classifications

    Utz Geographic Classifications Core Emerging Expansion 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 MD CA KS MO VA KY DC NC TN AZ OK NM AR SC GA MS AL TX LA AK HI FL 26 ℠

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