Utz Brands Inc · NYSE:UTZ
Utz Brands — Q4 2024 Earnings Presentation
33 slides from Utz Brands's earnings presentation, Feb 20, 2025
Slide 1: Fourth Quarter and Full-Year 2024 Earnings Presentation
Utz Brands, Inc. Fourth Quarter and Full-Year 2024 Earnings Presentation February 20, 2025
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: Strong Execution Against Our Goals in 2024
Strong Execution Against Our Goals in 2024 o Delivered Organic Net Sales growth of 1.3% led by Branded Salty Snacks growth of 3.7% o Gained volume share in both Core and Expansion geographies(1) o Increased marketing spend behind our brands by over 70% o Achieved productivity cost savings of ~$60M o
Slide 6: Progressing Against Our Four Fundamental Strategies
Progressing Against Our Four Fundamental Strategies Focus Our Transform our Build Leading Improve Balance Portfolio Supply Chain Capabilities Sheet o Gained distribution in o Accelerated network o Implemented o Reduced Net Leverage Expansion geographies(1) optimization plans Integrated Business by ~
Slide 7: Consistent Bottom-line Growth and Margin Expansion in 4Q'24
Consistent Bottom-line Growth and Margin Expansion in 4Q’24 Adjusted EBITDA Adjusted EPS Adjusted EBITDA Margin (in millions) YoY Change (as a % of net sales) +8% +38% +160bps +160bps +150bps $53 $0.22 $49 +100bps $0.16 +80bps 4Q’23 4Q’24 4Q’23 4Q’24 4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 Note: See appendix
Slide 8: Introducing New Net Sales Breakdown
Introducing New Net Sales Breakdown Foundation Brands Being Split Into Branded Salty Snacks and Non-Branded & Non-Salty Snacks Previously total company volume split between ..Now showing net sales split between Branded Power and Foundation Brands... Salty Snacks and Non-Branded & Non-Salty Snacks Ol
Slide 9: Branded Salty Snacks Growth Offset by Low-Margin Non-Branded & Non-Salty Snacks
Branded Salty Snacks Growth Offset by Low-Margin Non-Branded & Non-Salty Snacks Components of Organic Net Sales Growth 4Q’24 Percentage Change vs. Prior Year FY’24 Percentage Change vs. Prior Year Total Branded Salty Non-Branded & Total Branded Salty Non-Branded & Company Snacks(1) Non-Salty Snacks
Slide 10: Share Gains with Only Modest Net Price Declines Due to Disciplined Promotions
Share Gains with Only Modest Net Price Declines Due to Disciplined Promotions 4Q’24 MULO+ w/Convenience YoY Growth FY’24 MULO+ w/Convenience YoY Growth Retail Volume (lbs.) Retail Volume (lbs.) 3.9% 4.3% 2.2% 3.2% 0.2% -0.3% -7.2% -2.6% Retail Price/lb. Retail Price/lb. 1.1% 0.5% 0.3% -1.0% -1.3% -1
Slide 11: Gained Volume Share in our Core Geographies in 4Q'24 & FY'24
Gained Volume Share in our Core Geographies in 4Q’24 & FY’24 Core Geographies YoY Retail Growth Retail Volume (lbs.) Retail Sales $ 1.0% 4Q’24 -0.3% -0.5% -0.4% 1.8% -1.3% Full-Year 0.6% -2.6% 2024 0.5% -0.2% -0.2% Total Salty Total Power Four Category Company Brands -1.6% Total Salty Total Power Fo
Slide 12: Sixth Consecutive Quarter of Share Gains in our Expansion Geographies
Sixth Consecutive Quarter of Share Gains in our Expansion Geographies Expansion Geographies YoY Retail Growth Retail Volume (lbs.) Retail Sales $ 7.3% 8.5% 5.5% 5.9% 4Q’24 0.1% -0.2% 7.3% 8.4% Full-Year 6.3% 6.4% 2024 0.4% 0.9% Total Salty Total Power Four Total Salty Total Power Four Category Compa
Slide 13: Growth and Share Gains in Potato Chips, Cheese Snacks, and Pork
Growth and Share Gains in Potato Chips, Cheese Snacks, and Pork Total Sub-Category 4Q’24 Sub-Category Retail Sales YoY Growth Potato Chips Tortilla Chips Pretzels Cheese Snacks Pork Rinds 6.4% 5.2% 1.7% 2.2% 2.2% 1.5% 0.6% -0.8% -2.5% -4.0% % of Utz Retail 38% 19% 14% 10% 3% Sales o Growth impacted
Slide 14: Significant Outperformance by Boulder Canyon in Natural and Traditional Channels
Significant Outperformance by Boulder Canyon® in Natural and Traditional Channels Boulder Canyon® surpasses $100M in retail sales in 2024 SPINS Retail Sales (natural channel) Circana MULO+ w/ Convenience Retail Sales YoY Growth YoY Growth 4Q’24 Full-Year 2024 4Q’24 Full-Year 2024 110.0% 66.7% 33.5%
Slide 15: Positive Trends Across Household Penetration, Buyers, and Buyer Repeat Rates
Positive Trends Across Household Penetration, Buyers, and Buyer Repeat Rates Ended 2024 with Household Penetration at an All-Time High Utz Household Penetration Utz Buyers (millions) Total Utz Buyer Repeat Rate 65 63.1 69.6% 70 69.4% 50 61.2 48.5% 47.3% 60 68 45 66 55 64 40 50 62 35 45 60 2023 2024
Slide 16: Financial Review
Financial Review Ajay Kataria Chief Financial Officer 16
Slide 17: Strong Margin Expansion and Bottom-line Growth in Fiscal Year 2024
Strong Margin Expansion and Bottom-line Growth in Fiscal Year 2024 Organic Net Sales Adjusted EBITDA Adjusted EBITDA Margin Adjusted EPS (in millions) (in millions) +1% +7% +120bps +35% $1,394 $1,411 $200 14.2% $0.77 $187 13.0% $0.57 FY’23 FY’24 FY’23 FY’24 FY’23 FY’24 FY’23 FY’24 Note: See appendix
Slide 18: 4Q'24 Financial Results Summary
4Q’24 Financial Results Summary 4Q’24 4Q’23 In $ millions, except per 13-weeks ended 13-weeks Ended YoY o Organic Net Sales flat share amounts December 29, 2024 December 31, 2023 Change o +0.2% volume/mix and (0.2%) price Net Sales 341.0 352.1 (3.2%) o Branded Salty Snacks +2.9% Organic Net Sales 34
Slide 19: 4Q'24 Net Sales Bridge
4Q’24 Net Sales Bridge 4Q’24 Net Sales YoY Growth Decomposition o Modest pricing impact of (0.2%) from following a disciplined pricing strategy 0.2% 0.0% o Volume/mix growth of +0.2% -0.2% o Branded Salty Snacks growth of +3.6% led by Power Four Brands growth o Non-Branded & Non-Salty Snacks decline
Slide 20: 4Q'24 Adjusted EBITDA Margin Bridge
4Q’24 Adjusted EBITDA Margin Bridge 4Q’24 Adjusted EBITDA Margin Change Decomposition o Productivity savings across manufacturing and procurement more than offset higher supply chain costs 4.1% -1.1% -0.7% -0.5% o Higher selling and admin expense primarily to -0.2% 15.6% 14.0% support distribution g
Slide 21: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights o Strong working capital performance in 2H’24 Cash Flow Highlights 52-Weeks Ended December 29, 2024 Net Cash Provided by Operations $106.2M o Capital investments to support manufacturing Capital Expenditures $98.6M plant automation and Kings Mountain build-out
Slide 22: Full Year 2025 Outlook
Full Year 2025 Outlook Continued organic growth, strong margin expansion, and double-digit earnings growth FY’25 Growth versus Key Assumptions FY’24 Actual Results Organic Net Sales Low-single digits Continued Branded Salty Snacks growth, particularly the Power Four Brands, and less decline in Non-B
Slide 23: Looking Ahead
Looking Ahead 23
Slide 24: Targeting Low-Single Digit Organic Net Sales Growth in FY'25
Targeting Low-Single Digit Organic Net Sales Growth in FY’25 Accelerating growth Increasing Introducing new Leverage in Expansion marketing innovation our go-to-market geographies investments by 40% focused on model with supported by new primarily behind our craveable flavors operational distributio
Slide 25: Integrated Supply Chain Strategy Cost Savings from 2024-2026 Expected to Exceed Original Target
Integrated Supply Chain Strategy Cost Savings(1) from 2024 – 2026 Expected to Exceed Original Target of ~$135M and Deliver $150M+ Supplier of Sourcing Choice Excellence Integrated Continuous Business Improvement Management Network Optimization Automation 25 (1) Cost savings is measured assuming prod
Slide 26: Geographic Expansion Combined with Increased Investments Will Support Power Four Brands
Our Geographic Expansion Combined with Increased Investments Will Support Continued Momentum of our Power Four Brands 2019 – 2024 Retail Sales CAGR 9% 13% 14% 28% ACV% Growth 18pts 22pts 23pts 10pts (National Distribution) 26 Source: Circana US MULO+ w/Convenience 2019 to 2024; Pro forma for acquisi
Slide 27: Appendix
Appendix 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’24 earnings press release dated February 20, 2025 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 4Q’24 earnings press release dated February 20, 2025 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 4Q’24 earnings press release dated February 20, 2025 30
Slide 31: 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’24 earnings press release dated February 20, 2025 31
Slide 32: 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’24 earnings press release dated February 20, 2025 32
Slide 33: 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 33