Utz Brands Inc ( (UTZ) ) has released its Q3 earnings. Here is a breakdown of the information Utz Brands Inc presented to its investors.
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Utz Brands, Inc. is a prominent U.S. manufacturer of branded salty snacks, known for its diverse range of products and strong family heritage, operating within the food staples sector. The company recently announced its financial results for the third quarter of 2024, highlighting continued momentum in organic net sales and reaffirming its optimistic outlook for the full year.
The third-quarter performance of Utz Brands showed a net sales figure of $365.5 million, with an organic net sales growth of 1.9%. Despite facing competitive challenges, particularly in the potato chip segment, the company managed to expand its gross profit margin by 370 basis points. The adjusted EBITDA increased by 3.6% to $54.0 million, marking the seventh consecutive quarter of adjusted EBITDA margin expansion. Notably, the adjusted earnings per share rose by 23.5% to $0.21, driven by improved operating earnings and reduced interest expenses.
Utz Brands continues to execute its distribution growth strategies effectively, alongside identifying productivity cost savings to enhance its margins. Despite a competitive promotional environment impacting retail trends, the company achieved a slight increase in retail volumes, surpassing the general category trend. Additionally, strategic decisions like the divestiture of certain brands have impacted net sales but are offset by accelerated cost savings and distribution gains.
Looking ahead, Utz Brands remains committed to achieving its full-year financial targets, with expectations of organic net sales growth between 2% and 2.5%. The company continues to invest in marketing and product innovation, aiming for adjusted EBITDA growth of 5%-8% and adjusted earnings per share growth of 28%-32%. Management remains focused on adapting to market conditions and expanding its presence in the competitive salty snacks sector.
