UTZ Brands (UTZ) investor relations material

Supply chain transformation and capital expenditure

• Manufacturing network consolidation is ahead of schedule, with plant count reduced and significant CapEx investments accelerating productivity gains.

• CapEx peaked last year at $100M and will step down significantly in 2025 and beyond, moving toward a maintenance phase by 2026.

• Productivity improvements have reached 6% of COGS for two consecutive years, with normalization expected at 3–4% as the program matures.

• Facility closures, such as Grand Rapids, are contributing to ongoing productivity and margin improvements.

• Supply chain investments are enabling geographic expansion and supporting brand growth.

Sales growth, brand performance, and market expansion

• Boulder Canyon brand exceeded $100M in sales and is expected to reach $200M this year, driven by non-seed oil trends and product innovation.

• Distribution gains in both core and expansion geographies are fueling above-category sales growth, with expansion markets seeing 18% TDP growth.

• Core markets delivered both value and volume share gains for the first time in several quarters, aided by portfolio optimization and improved convenience channel performance.

• White space and channel expansion, especially in food, club, and convenience, remain key growth levers.

• Retailer relationships have strengthened, leading to increased shelf space and participation in larger programs.

Category trends and competitive environment

• The salty snack category remains sluggish, but household penetration is growing and the competitive environment is rational.

• Promotional activity has normalized, and the category is expected to stabilize in the second half of the year.

• Price and volume dynamics are being closely monitored, with cautious optimism for modest growth in 2026.