UTZ Brands (UTZ) investor relations material

Executive summary

• Net sales for Q1 2026 were $361.3 million, up 2.6% year-over-year, driven by higher net price realization and 5.2% growth in branded salty snacks, despite a slight volume/mix decline.

• Adjusted EBITDA increased 6.2% to $47.9 million, with margin improvement to 13.3%, while adjusted gross profit margin expanded by 210bps to 30.8%.

• Net loss was $2.4 million, compared to net income of $5.7 million in the prior year, mainly due to the absence of a prior-year warrant liability gain.

• Power Four Brands and expansion geographies drove dollar share gains, with Boulder Canyon and innovation launches showing strong early traction.

• Household penetration and loyalty rates increased, adding 1.9 million buyers year-over-year, supported by effective advertising and innovation.

Financial highlights

• Q1 2026 net sales: $361.3 million (+2.6% YoY); adjusted gross profit: $111.4 million (+10.1% YoY); adjusted EBITDA: $47.9 million (+6.2% YoY); adjusted EPS: $0.15 (-6.3% YoY).

• Branded salty snacks net sales grew 5.2%, while non-branded & non-salty snacks declined 14.3%.

• Marketing spend increased by 35% in Q1, with adjusted SG&A expense up 13.2% year-over-year.

• Free cash flow guidance for the year remains at $60 million–$80 million, with sequential improvement and adjusted free cash flow improving by $32.3 million year-over-year.

• Net leverage ratio improved to 3.6x, down 0.4x from prior year.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: organic net sales growth of 2–3%, adjusted EBITDA growth of 5–8%, adjusted EPS decline of 3–6%, and adjusted free cash flow of $60–80 million.

• Net leverage ratio targeted at 3.0x–3.2x by year-end; capital expenditures expected at $60–$65 million.

• 53rd week in Q4 2026 expected to add ~$20 million to net sales and $3 million to adjusted EBITDA.

• Productivity program at approximately 4% is on track to offset incremental inflation, mainly from packaging resins.

• Multiple levers, including AI-driven promo effectiveness and sales mix improvements, are in place to address inflation.