Utz Brands still sees 2024 adjusted EPS growth 28%-32% from 87c in 2023

Consensus for 2024 EPS is 74c. Lowers 2024 organic revenue growth view to 2%-2.5% from approximately 3%. 2023 revenue was $1.44B and consensus for 2024 revenue is $1.43B. The revised outlook is primarily due to the expectation for a more competitive promotional environment in the second half of 2024. “We experienced a strong start in the first half of the year, thanks to our continued focus on our growth strategies and value creation initiatives,” said CEO Howard Friedman. “Further, we are executing well on our distribution growth opportunities, which we expect will continue into 2025 and beyond. However, our consumption trends in Q3 to date moderated more than we expected due to a more competitive promotional environment primarily in response to consumer value-seeking behavior. We will continue to make appropriate adjustments to our promotional activities to meet consumer value expectations but will remain disciplined and focused on building sustainable long-term demand. As a result, today we are revising our 2024 Organic Net Sales growth outlook. Our accelerated productivity cost savings give us the flexibility to expand our margins and increase investments in our brands to support our geographic expansion. We remain confident that we are well-positioned to deliver the 2026 targets that we introduced at our Investor Day in December 2023, and that we will successfully navigate this dynamic environment.” For the full year fiscal 2024, Utz is reaffirming its outlook for Adjusted EBITDA and Adjusted Earnings per Share growth and Net Leverage Ratio, and revising its Organic Net Sales growth outlook(1): Adjusted EBITDA is expected to grow 5% – 8%, which is consistent with the Company’s prior expectation. Adjusted Earnings per Share are expected to grow 28% – 32%, which is consistent with the Company’s prior expectation. Net Leverage Ratio is expected to be approximately 3.6x at year-end fiscal 2024, which is consistent with the Company’s prior expectation. Capital expenditures in the range of $80 – $90 million.