UTZ Brands (UTZ) Q2 2025 Prepared Remarks earnings summary

Executive summary

• Net sales grew 2.9% year-over-year to $366.7 million in Q2 2025, led by 5.4% growth in branded salty snacks and strong performance from Boulder Canyon, while non-branded and non-salty snacks declined 11.8%.

• Volume and dollar share increased for the eighth consecutive quarter, with Power Four brands and Boulder Canyon driving growth.

• Expansion geographies now represent 45% of retail sales, up from 41% two years ago, with notable growth in Illinois and Michigan.

• Strategic marketing investments and targeted promotions supported momentum, with marketing spend up 44% year-over-year.

• Net income attributable to controlling interest was $10.5 million for Q2 2025, down from $19.8 million in Q2 2024.

Financial highlights

• Adjusted EBITDA for Q2 2025 was $48.7 million (13.3% of net sales), down 2% year-over-year; Adjusted EPS declined 10.5%.

• Adjusted Gross Profit margin expanded by 220 basis points, driven by productivity programs, but Q2 2025 gross margin slightly decreased to 34.6% due to higher investments.

• Adjusted SD&A expense increased 15.1% versus prior year, mainly from planned investments in marketing and expansion.

• Cash used in operations was $3.9 million in the first half; CapEx was $65.7 million, with accelerated spend for facility transition.

• Net debt at quarter end was $826.3 million; net leverage ratio was 4.1x trailing twelve months normalized Adjusted EBITDA.

Outlook and guidance

• 2025 organic net sales growth expected at 2.5% or better, up from prior low single-digit guidance.

• Adjusted EBITDA guidance tightened to 7%-10% growth (from 6%-10%), with Q4 expected to be stronger than Q3.

• Adjusted EPS guidance lowered to 7%-10% growth (from 10%-15%) due to higher interest and depreciation.

• CapEx expected at $100 million, the high end of previous range, focused on manufacturing capacity and productivity.

• Net leverage ratio expected to approach 3.0x by fiscal year-end 2025.