UTZ Brands (UTZ) Q1 2025 Prepared Remarks earnings summary

Executive summary

• Organic net sales grew 2.9% in Q1 2025, led by 4.9% growth in branded salty snacks and strong performance from Power Four brands, despite overall category softness.

• Productivity cost savings supported margin expansion and reinvestment in brands and capabilities.

• Gained dollar and volume share in salty snacks, with significant growth in expansion geographies and continued execution of productivity and marketing initiatives.

• Adjusted EBITDA increased 3.9% to $45.1 million, and adjusted EPS rose 14.3% to $0.16 per share, reflecting profitable growth.

• Reaffirmed full-year 2025 outlook and highlighted ongoing execution of portfolio strategy and management transitions.

Financial highlights

• Net sales were $352.1 million, up 1.6% year-over-year; organic net sales up 2.9%.

• Adjusted EBITDA grew 3.9% to $45.1 million; adjusted EBITDA margin expanded to 12.8%.

• Adjusted EPS increased 14.3% to $0.16; adjusted net income up 7.2% to $22.3 million.

• Adjusted gross profit margin expanded by 100bps to 38.2%, while gross profit margin declined to 33.6% due to higher promotional and capacity costs.

• Cash used in operations was $20.2 million; capital expenditures totaled $38.8 million, mainly for manufacturing and network optimization.

Outlook and guidance

• Full-year 2025 organic net sales growth expected in low single digits, led by branded salty snacks and expansion geographies.

• Adjusted EBITDA growth projected at 6%-10%, with continued gross margin expansion from productivity programs.

• Adjusted EPS growth expected at 10%-15%; capital expenditures forecasted at $90-$100 million.

• Net leverage ratio targeted to approach 3x by year-end 2025.

• Effective tax rate expected at 17–19%; interest expense around $43 million.