Utz Brands cuts FY23 revenue growth view to 2%-3% from 3%-5%, consensus $1.46B

The Company now expects total net sales growth of 2% to 3% (previously 3% to 5%) and Organic Net Sales growth of 3% to 4% (previously 4% to 6%), with the Company’s continued shift to IOs expected to impact total net sales growth by approximately (-1.0%). The revised range reflects the impact of our aggressive supply chain optimization actions and normalizing Salty Snack category growth with some channel shifting by consumers. Net sales growth is expected to be driven by net price realization, increased marketing and innovation, and continued distribution gains of the Company’s Power Brands, partially offset by the estimated impact of approximately (-3%) from the Company’s SKU rationalization program. Based on these assumptions, the Company now expects volume / mix to be modestly lower than fiscal 2022. The Company continues to expect Adjusted EBITDA growth of 8% to 11% driven by stronger operating performance led by the Company’s productivity programs, with continued investments in brand marketing, people, capabilities, and selling infrastructure.