Utz Brands Inc · NYSE:UTZ

Utz Brands — Q1 2022 Earnings Presentation

27 slides from Utz Brands's earnings presentation, May 12, 2022

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

    ℠ Utz Brands, Inc. First Quarter 2022 Earnings Presentation May 12, 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: Key Messages

    Key Messages  Record first quarter net sales as Organic Net sales increase 20.7% year-over-year  Share gains in the Salty Snacks category for the 13-week period ended April 3, 2022(1), through a balanced combination of price and volume gains  Now expect FY’22 mid-to-high-teens % gross input cost

  5. Slide 5: Summary of First Quarter 2022 Results

    Summary of First Quarter 2022 Results  Organic Net Sales growth accelerated to 20.7% in 1Q’22 from 8.9% in 4Q’21 – Excludes the impact of acquisitions and excludes the impact of Independent Operator (“IO”) route conversions – Price/Mix +9.4% and Volume +11.3%  Gross margin primarily impacted by in

  6. Slide 6: Retail Sales Growth Rates Accelerating

    Retail Sales Growth Rates Accelerating  After lapping tremendous growth brought on by the COVID-19 pandemic, year-over-year sales momentum in early-2022 continues to build as net price realization improves and volumes continue to increase Retail Sales Year-Over-Year Growth Rolling 12-Week Trend 21.

  7. Slide 7: Successfully Lapping the Impact of the COVID-19 Pandemic

    Successfully Lapping the Impact of the COVID-19 Pandemic  Utz added five million more buyers in the last 24 months with 70% making repeat purchases(1) and we are building from a much higher sales baseline for continued future growth Retail Sales Rolling 12-Week Trend: 2019 to 2022 YTD(2) Key Growth

  8. Slide 8: Power Brands Growth Significantly Outpacing Salty Snacks Category

    Power Brands Growth Significantly Outpacing Salty Snacks Category  First quarter retail sales for our two largest brands, Utz Quality Foods® and ON THE BORDER®, increased 22% and 35%, respectively Power Brands Retail Sales Change(1) Foundation Brands Retail Sales Change(1)(2) (13-Weeks Ended 4/3/22

  9. Slide 9: Strong Growth Across Major Sub-Categories

    Strong Growth Across Major Sub-Categories  Drove share gains in top three subcategories representing approximately 73% of sales; Pork Rinds and Cheese Snacks performance primarily impacted by supply chain challenges Sub-Category Retail Sales Year-over-Year Growth (13-Weeks Ended 4/3/22) Total Sub-C

  10. Slide 10: Robust Growth for ON THE BORDER In All Geographies

    Robust Growth for ON THE BORDER® In All Geographies  ON THE BORDER® growing nearly 3x the Tortilla sub-category as the brand continues to benefit from the entire Utz route to market support, strong DSD execution in the Core, and this demand is supported by capacity improvements from our recent acqu

  11. Slide 11: Gaining Share Across All Geographies

    Gaining Share Across All Geographies  Utz Brands Inc. and Utz Power Brands significantly outpaced the Salty Snack category in all geographies Geographic Channel Retail Sales Year-over-Year Growth (13-Weeks Ended 4/3/22) Total Salty Snacks Power Brands Total US Core Expansion Emerging 20.1% 20.0% 20

  12. Slide 12: Fiscal 2022 Key Takeaways

    Fiscal 2022 Key Takeaways  Well-positioned for strong Organic Net Sales growth – Utz retail sales and pricing momentum are off to a strong start with a 19.3% year- over-year sales increase for the 12-week period through April 17, 2022(1)  Delivering significant customer wins beyond our Core geogra

  13. Slide 13: Financial Performance

    Financial Performance Ajay Kataria, Chief Financial Officer 13

  14. Slide 14: First Quarter Financial Results Summary

    First Quarter Financial Results Summary 1Q’22 1Q’21 13-weeks Ended 13-weeks Ended YoY In $millions, except per share amounts April 3, 2022 April 4, 2021 Change Net Sales 340.8 269.2 +26.6% Organic Net Sales 324.8 269.2 +20.7% Adj. Gross Profit 115.7 104.5 +10.7% % of net sales 33.9% 38.8% (490 bps)

  15. Slide 15: Cash Flow and Balance Sheet Highlights

    Cash Flow and Balance Sheet Highlights Cash Flow (13-weeks ended April 3, 2022) Credit Structure  Cash used in operations of $36M  Term Loan B priced at L+300bps with no floor – Impacted by $23M buyout of multiple third-party DSD rights – Includes $500M nominal interest rate swap through 9/30/26 t

  16. Slide 16: 1Q'22 Net Sales Bridge

    1Q’22 Net Sales Bridge  Growth driven by Organic Net Sales growth of +20.7% and acquisitions of +7.2%  Price/mix improvement ramping up and building momentum  Strong volume growth post COVID-19 overlap despite continued supply disruptions  Impact from conversion of company-owned DSD routes to in

  17. Slide 17: 1Q'22 Adjusted EBITDA Margin Bridge

    1Q’22 Adjusted EBITDA Margin Bridge  Favorable price/mix as benefits from pricing actions continue to build  Momentum increasing on productivity initiatives  Higher gross input cost inflation which includes commodities, transportation, and labor 1Q’22 Adjusted EBITDA Margin Decomposition 1.3% 0.2

  18. Slide 18: Price Actions and Productivity to Help Offset Rising Inflation

    Price Actions and Productivity to Help Offset Rising Inflation  Building on pricing actions taken in fiscal 2021, the Company is taking additional pricing actions in fiscal 2022 with building momentum to help offset rising inflation – Pricing actions taken in February ’22 and May ’22 – 3Q’22 pricin

  19. Slide 19: Fiscal 2022 Outlook

    Fiscal 2022 Outlook  Raising net sales outlook to reflect strong demand and higher net price realization  Reaffirming modest Adjusted EBITDA growth as benefits from our pricing and productivity actions offset input cost inflation, while we continue to make investments to support key customer growt

  20. Slide 20: Confident in Our Long-term Margin Opportunity

    Confident in Our Long-term Margin Opportunity  Pricing actions to provide higher long-term baseline that will compound the benefits of volume and distribution growth  Productivity programs on track to achieve 3 to 4% of COGS goal by 2023, with improving future benefits  Improving manufacturing an

  21. Slide 21: Appendix

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

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures Net Sales and Organic Net Sales 13-Weeks Ended (dollars in millions) April 3, 2022 April 4, 2021 Change Net Sales as Reported $ 340.8 $ 269.2 26.6 % Impact of Acquisitions (19.5) Impact of IO Conversions 3.5 Organic Net Sal

  23. Slide 23: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures Adjusted Selling, Distribution, and Administrative Expense 13-Weeks Ended (dollars in millions) April 3, 2022 April 4, 2021 Selling, Distribution, and Administrative Expense - Incl Depreciation and Amortization $ 126.7 $ 86

  24. Slide 24: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures Adjusted Net Income 13-Weeks Ended (dollars in millions, except per share data) April 3, 2022 April 4, 2021 Net Loss $ (31.9) $ (23.3) Income Tax Expense 2.8 1.0 Loss Before Taxes (29.1) (22.3) Deferred Financing Fees 0.3 2

  25. Slide 25: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures EBITDA and Adjusted EBITDA 13-Weeks Ended (dollars in millions) April 3, 2022 April 4, 2021 Net Loss $ (31.9) $ (23.3) Plus non-GAAP adjustments: Income Tax Expense 2.8 1.0 Depreciation and Amortization 22.1 19.4 Interest E

  26. Slide 26: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

    Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures Normalized Adjusted EBITDA FY 2021 FY 2022 (dollars in millions) Q1 Q2 Q3 Q4 FY 2021 Q1 TTM Adjusted EBITDA $ 37.9 $ 35.7 $ 44.8 $ 37.7 $ 156.1 $ 36.5 $ 154.7 Pre-Acquisition Adjusted EBITDA(1) 3.6 3.0 2.0 1.6 10.2 0.2 6.8

  27. Slide 27: Utz Geographic Classification Changes

    Utz Geographic Classification Changes  Utz undertakes an annual process to assess state classifications based on the latest 52-weeks market share results. – In fiscal 2022, this resulted in various states moving into Company’s Core and Expansion geographies. Previous Geographic Classifications New

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