UTZ 8-K
Utz Brands, Inc. (UTZ)
8-K
2025-05-01
For: 2025-05-01
View Original
Added on
April 12, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 1, 2025
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (717 ) 637-6644
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| Class A Common Stock, par value $0.0001 per share | UTZ | New York Stock Exchange | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 1, 2025, Utz Brands, Inc. (the “Company”) announced via press release the Company’s financial results for the fiscal quarter ended March 30, 2025. A copy of the Company’s press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is hereby incorporated by reference into this Item 2.02. The information and exhibit contained in this Item 2.02 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
The Company will hold a conference call and webcast on May 1, 2025 (see information in the press release under “News” of the Company’s website https://investors.utzsnacks.com). A copy of the slide materials to be discussed during the conference call and webcast is being furnished pursuant to Regulation FD as Exhibit 99.2 to this Current Report on Form 8-K and is hereby incorporated by reference into this Item 7.01. A copy of the slide materials has also been posted to the Company’s website at https://investors.utzsnacks.com. The information and exhibit contained in this Item 7.01 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall it be incorporated by reference into any filing under the Securities Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Utz Brands, Inc.
Dated: May 1, 2025
By: /s/ Ajay Kataria
Name: Ajay Kataria
Title: Executive Vice President,
Chief Financial Officer and Chief Accounting Officer
Utz Brands Reports First Quarter 2025 Results and Reaffirms Full-Year 2025 Outlook
Hanover, PA – May 1, 2025 – Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded Salty Snacks and a small-cap value Staples equity, today reported financial results for the Company’s first fiscal quarter ended March 30, 2025.
1Q’25 Summary(1)
•Net Sales increased 1.6% to $352.1 million
•Total Organic Net Sales increased 2.9%; Branded Salty Snacks increased 4.9%
•Gross Profit Margin decline of 90bps
•Adjusted Gross Profit Margin expansion of 100bps
•Net Income increased 137.5% to $5.7 million
•Adjusted Net Income increased 7.2% to $22.3 million
•Adjusted EBITDA increased 3.9% to $45.1 million
•Diluted Earnings Per Share of $0.09
•Adjusted Earnings Per Share increased 14.3% to $0.16
(1) All comparisons for the first quarter of 2025 are to the first quarter of 2024 (ended March 31, 2024).
“I’m pleased with our strong start to the year, as we delivered nearly 3% Organic Net Sales growth(1), and gained dollar and pound share of the Salty Snacks category in the first quarter(2). Our use of bonus packs and focused trade promotions have been effective in addressing consumer value needs. We’ve now shown our ability to grow despite category softness, due to our unique geographic expansion opportunity. In addition, we delivered our ninth consecutive quarter of year-over-year Adjusted EBITDA Margin expansion, and we drove Adjusted Earnings Per Share growth of over 14%,” said Howard Friedman, Chief Executive Officer of Utz.
Mr. Friedman continued, “Looking ahead to the remainder of 2025, we expect that our strong productivity cost savings will continue to give us the flexibility to build our brands and expand our margins. Based on what we know today, given that nearly all our input costs are sourced domestically and our manufacturing facilities are all in the United States, we expect that recent tariff volatility will have a modest impact on our business in 2025. As such, we remain confident in reaffirming our full-year guidance for both the top and bottom line.”
First Quarter 2025 Results
First quarter Net Sales were $352.1 million compared to $346.5 million in the prior year period(3). Organic Net Sales increased 2.9% year-over-year, driven by a favorable volume/mix contribution of 6.3%, partially offset by lower net price realization of (3.4)%, of which (2.8) percentage points were attributable to the impact of bonus packs. Branded Salty Snacks Organic Net Sales(4) (representing 87% of total Net Sales) increased 4.9% led by our Power Four Brands, offset by an 8.8% decline in Non-Branded & Non-Salty Snacks Organic Net Sales(4), primarily due to Partner Brands and Dips & Salsas.
For the 13-week period ended March 30, 2025, the Company’s Branded Salty Snacks Retail Sales were flat to the prior year period compared to a 1.7% decline for the Salty Snack category overall. The Company’s Power Four Brands of Utz®, On The Border®, Zapp’s® and Boulder Canyon® Retail Sales increased by 1.7%. The Company’s Retail Volumes increased by 5.7% compared to a 1.6% decline for the Salty Snack category, and the Company drove volume share gains in both its Core and Expansion geographies.(2)
Gross Profit Margin of 33.6% declined 90bps compared to 34.5% in the prior year period. Adjusted Gross Profit Margin of 38.2% expanded 100bps compared to 37.2% in the prior year period. The increase was driven by productivity savings, which more than offset increased investments to support capacity expansion and growth.
Selling, Distribution, and Administrative Expenses (“SD&A Expenses”) were $113.2 million, or 32.1% of Net Sales, compared to $109.4 million, or 31.6% of Net Sales, in the prior year period. Adjusted SD&A Expenses were $89.4 million, or 25.4% of Net Sales, compared to $85.4 million, or 24.6% of Net Sales, in the prior year period. The increase as a percentage of Net Sales was primarily due to higher people, selling, and delivery costs to support our growth.
The Company reported Net Income of $5.7 million compared to Net Income of $2.4 million in the prior year period. The change in Net Income was primarily due to an increase in the gain on the remeasurement of the warrant liability of $22.8 million. Adjusted Net Income in the quarter increased 7.2% to $22.3 million compared to $20.8 million in the prior year period. Adjusted Earnings Per Share increased 14.3% to $0.16 compared to $0.14 in the prior year period. The Adjusted Earnings Per Share growth in the first quarter was the result of operating earnings growth, and lower interest expense as a result of the refinancing of the Company’s long-term debt in January.
Adjusted EBITDA increased 3.9% to $45.1 million, or 12.8% as a percentage of Net Sales, compared to $43.4 million, or 12.5% as a percentage of Net Sales, in the prior year period. The increase in Adjusted EBITDA was driven by Adjusted Gross Profit Margin expansion.
(1) Versus prior year period.
(2) As measured by Circana MULO+ w/convenience.
(3) The divestiture of the R.W. Garcia® and Good Health® brands impacted Net Sales by (1.3)%.
(4) See “Other Defined Terms” for definitions.
Balance Sheet and Cash Flow Highlights
•As of March 30, 2025
◦Total liquidity of $172.2 million, consisting of cash on hand of $62.7 million and $109.5 million available under the Company’s revolving credit facility.
◦Net debt of $800.9 million resulting in a Net Leverage Ratio of 4.0x based on trailing twelve months Normalized Adjusted EBITDA of $201.9 million.
•For the thirteen weeks ended March 30, 2025
◦Cash flow used in operations was $20.2 million, which reflects the seasonal use of working capital.
◦Capital expenditures were $38.8 million, and dividends and distributions paid were $8.9 million.
Fiscal Year 2025 Outlook
Consistent with the 2025 fiscal year outlook provided with the fourth quarter and full year 2024 results announced on February 20, 2025, and as reaffirmed in the April 17, 2025 press release, the Company continues to expect:
•Organic Net Sales growth of low-single digits led by continued Branded Salty Snacks growth, particularly the Power Four Brands, and less decline in Non-Branded & Non-Salty Snacks;
•Adjusted EBITDA growth of 6% to 10% and Adjusted EBITDA Margin expansion of approximately 100bps, led by Adjusted Gross Profit Margin expansion fueled by strong productivity cost savings and improved product mix; and
•Adjusted Earnings Per Share growth of 10% to 15% led by increased operating earnings and lower interest expense.
The Company also continues to expect:
•An effective tax rate (normalized GAAP basis tax expense, which excludes one-time items) in the range of 17% to 19%;
•Interest Expense of approximately $43 million;
•Capital Expenditures in the range of $90 to $100 million, with the majority focused on building increased supply chain network capabilities and delivering accelerated productivity savings; and
•Net Leverage Ratio approaching 3x at year-end fiscal 2025.
Quantitative reconciliations are not available for the forward-looking non-GAAP financial measures used herein without unreasonable efforts due to the high variability, complexity, and low visibility with respect to certain items which are excluded from Organic Net Sales, Adjusted EBITDA, Net Leverage Ratio, normalized GAAP basis tax expense, excluding one-time items, and Adjusted Earnings Per Share, respectively. We expect the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future financial results.
Conference Call and Webcast Presentation
The Company has also posted a pre-recorded management discussion of its first quarter results to its website at https://investors.utzsnacks.com. In addition, the Company will host a live question and answer session with analysts at 9:30 a.m. Eastern Time today. Please visit the “Events & Presentations” section of Utz’s Investor Relations website at https://investors.utzsnacks.com to access the live listen-only webcast. Participants can also dial in over the phone by calling 1-888-596-4144. The Event Plus passcode is 3860587. The Company has also posted presentation slides and additional supplemental financial information, which are available now on Utz’s Investor Relations website.
About Utz Brands, Inc.
Utz Brands, Inc. (NYSE: UTZ) manufactures a diverse portfolio of savory snacks through popular brands, including Utz®, On The Border® Chips & Dips, Zapp’s®, and Boulder Canyon®, among others.
After over a century with a strong family heritage, Utz continues to have a passion for exciting and delighting consumers with delicious snack foods made from top-quality ingredients. Utz's products are distributed nationally through grocery, mass merchandisers, club, convenience, drug, and other channels. Based in Hanover, Pennsylvania, Utz has multiple manufacturing facilities located across the U.S. to serve our growing customer base. For more information, please visit the Company’s website or call 1‐800‐FOR‐SNAX.
Investors and others should note that Utz announces material financial information to its investors using its Investor Relations website, U.S. Securities and Exchange Commission (the “Commission”) filings, press releases, public conference calls, and webcasts. Utz uses these channels, as well as social media, to communicate with our stockholders and the public about the Company, the Company’s products, and other Company information. It is possible that the information that Utz posts on social media could be deemed to be material information. Therefore, Utz encourages investors, the media, and others interested in the Company to review the information posted on the social media channels listed on Utz’s Investor Relations website.
Investor Contact
Kevin Powers
Utz Brands, Inc.
Media Contact
Kevin Brick
Utz Brands, Inc.
Forward-Looking Statements
This press release includes certain statements made herein that are not historical facts but are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are accompanied by or include, without limitation, statements such as “will”, “expect”, “intends”, “goal”, “on track” or other similar words, phrases or expressions. These forward-looking statements include future plans for the Company, including outlook for fiscal 2025, plans related to the transformation of the Company’s supply chain, the Company’s product mix, the Company’s ability to reduce debt, and the anticipated interest expense savings from the repricing of the $630 million Term Loan; the estimated or anticipated future results and benefits of the Company’s future plans and operations; the Company’s cost savings plans and the Company’s logistics optimization efforts; the estimated or anticipated future results and benefits of the Company’s plans and operations; the effects of inflation or supply chain disruptions on the Company or its business; the benefits of the Company’s productivity initiatives; the effects of the Company’s marketing and innovation initiatives; the Company’s future capital structure; future opportunities for the Company’s growth; statements regarding the Company’s projected balance sheet and liabilities, including net leverage; and other statements that are not historical facts.
These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties and the Company’s business and actual results may differ materially. Some factors that could cause actual results to differ include, without limitation: our operation in an industry with high levels of competition and consolidation; our reliance on key customers and ability to obtain favorable contractual terms and protections with customers; changes in demand for our products driven by changes in consumer preferences and tastes or our ability to innovate or market our products effectively; changes in consumers’ loyalty to our brands due to factors beyond our control; impacts on our reputation caused by concerns relating to the quality and safety of our products, ingredients, packaging, or processing techniques; the potential that our products might need to be recalled if they become adulterated or are mislabeled; the loss of retail shelf space and disruption to sales of food products due to changes in retail distribution arrangements; our reliance on third parties to effectively operate both our direct-to-warehouse delivery system and our direct-store-delivery network system; the evolution of e-commerce retailers and sales channels; disruption to our manufacturing operations, supply chain, or distribution channels; the effects of inflation, including rising labor costs; shortages of raw materials, energy, water, and other supplies; changes in the legal and regulatory environments in which we operate; potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries, or investigations into our business; potential adverse effects or unintended consequences related to the implementation of our growth strategy; our ability to successfully identify and execute acquisitions or dispositions and to manage integration or carve out issues following such transactions; the geographic concentration of our markets; our ability to attract and retain highly skilled personnel (including risks associated with our recently announced executive leadership transition); impairment in the carrying value of goodwill or other intangible assets; our ability to protect our intellectual property rights; disruptions, failures, or security breaches of our information technology infrastructure; climate change or legal, regulatory or market measures to address climate change; our exposure to liabilities, claims or new laws or regulations with respect to environmental matters; the increasing focus and opposing views, legislation and expectations with respect to ESG initiatives; restrictions on our operations imposed by covenants in our debt instruments; our exposure to changes in interest rates; adverse impacts from disruptions in the worldwide financial markets, including on our ability to obtain new credit; our exposure to any new or increased income or product taxes; pandemics, epidemics or other disease outbreaks; our exposure to changes to trade policies and tariff and import/export regulations by the United States and other jurisdictions; potential volatility in our Class A Common Stock caused by resales thereof; our dependence on distributions made by our subsidiaries; our payment obligations pursuant to a tax receivable agreement, which in certain cases may exceed the tax benefits we realize or be accelerated; provisions of Delaware law and our governing documents and other agreements that could limit the ability of stockholders to take certain actions or delay or discourage takeover attempts that stockholders may consider favorable; our exclusive forum provisions in our governing documents; the influence of certain significant stockholders and members of Utz Brands Holdings, LLC, whose interests may differ from those of our other stockholders; and the effects of our private placement warrants on the market price of our Class A Common Stock and our net income; and other risks and uncertainties set forth in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K filed with the Commission for the fiscal year ended December 29, 2024 and in other reports we file with the U.S. Securities and Exchange Commission from time to time.
Forward-looking statements provide the Company’s expectations, plans or forecasts of future events and views as of the date of this communication. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication. The Company cautions investors not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as otherwise required by law.
Non-GAAP Financial Measures:
Utz uses non-GAAP financial information and believes it is useful to investors as it provides additional information to facilitate comparisons of historical operating results and identify trends in our underlying operating results, and it provides additional insight and transparency on how we evaluate the business. We use non-GAAP financial measures to budget, make operating and strategic decisions, and evaluate our performance. These non-GAAP financial measures do not represent financial performance in accordance with generally accepted accounted principles in the United States (“GAAP”) and may exclude items that are significant to understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations, earnings per share or other measures of profitability, liquidity, or performance under GAAP. You should be aware that the presentation of these measures may not be comparable to similarly titled measures used by other companies.
Management believes that non-GAAP financial measures should be considered as supplements to the GAAP measures reported, should not be considered replacements for, or superior to, the GAAP measures, and may not be comparable to similarly named measures used by other companies. The Company’s calculation of the non-GAAP financial measures may differ from methods used by other companies. We believe that these non-GAAP financial measures provide useful information to investors regarding certain financial and business trends relating to the financial condition and results of operations of the Company to date when considered with both the GAAP results and the reconciliations to the most comparable GAAP measures, and that the presentation of non-GAAP financial measures is useful to investors in the evaluation of our operating performance compared to other companies in the Salty Snack industry, as similar measures are commonly used by the companies in this industry. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of management judgment about which items of expense and income are excluded or included in determining these non-GAAP financial measures. The non-GAAP financial measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures. As new events or circumstances arise, these definitions could change. When the definitions change, we will provide the updated definitions and present the related non-GAAP historical results on a comparable basis.
Utz uses the following non-GAAP financial measures in its financial communications, and in the future could use others:
•Organic Net Sales
•Adjusted Gross Profit
•Adjusted Gross Profit as % of Net Sales (Adjusted Gross Profit Margin)
•Adjusted Selling, Distribution, and Administrative Expense
•Adjusted Selling, Distribution, and Administrative Expense as % of Net Sales (Adjusted Selling, Distribution, and Administrative Expense Margin)
•Adjusted Net Income
•Adjusted Earnings Per Share
•Adjusted Earnings Before Taxes
•EBITDA
•Adjusted EBITDA
•Adjusted EBITDA as % of Net Sales (Adjusted EBITDA Margin)
•Normalized Adjusted EBITDA
•Effective Normalized Tax Rate
•Net Leverage Ratio
Organic Net Sales is defined as Net Sales excluding the impacts of acquisitions, divestitures and independent operator (“IO”) route conversions that took place after 1Q’2024.
Adjusted Gross Profit represents Gross Profit excluding Depreciation and Amortization expense, a non-cash item. In addition, Adjusted Gross Profit excludes the impact of costs that fall within the categories of non-cash adjustments and/or other cash adjustment items such as those related to stock-based compensation, hedging and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives, and financing-related costs. Adjusted Gross Profit is one of the key performance indicators that our management uses to evaluate operating performance. We also report Adjusted Gross Profit as a percentage of Net Sales as an additional measure for investors to evaluate our Adjusted Gross Profit Margin.
Adjusted Selling, Distribution, and Administrative Expense is defined as all Selling, Distribution, and Administrative expense excluding Depreciation and Amortization expense, a non-cash item. In addition, Adjusted Selling, Distribution, and Administrative Expense excludes the impact of costs that fall within the categories of non-cash adjustments and/or other cash adjustment items such as those related to stock-based compensation, hedging and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives, and financing-related costs. We also report Adjusted Selling, Distribution, and Administrative Expense as a percentage of Net Sales as an additional measure for investors to evaluate our Adjusted Selling, Distribution, and Administrative Margin.
Adjusted Net Income is defined as Net Income excluding Depreciation and Amortization expense, a non-cash item, related to fair value adjustments on property, plant, and equipment, and definite-lived intangibles relating to business combinations recorded in prior periods. In addition, Adjusted Net Income excludes deferred financing fees, interest income, and expense relating to IO loans and certain non-cash adjustments and/or other cash adjustment items such as those related to stock-based compensation, hedging, and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives, remeasurement of warrant liabilities and financing-related costs. Lastly, Adjusted Net Income normalizes the income tax provision to account for the above-mentioned adjustments.
Adjusted Earnings Before Taxes is defined as Adjusted Net Income before normalized GAAP basis tax expense.
Adjusted Earnings Per Share is defined as Adjusted Net Income divided by the weighted average shares outstanding for each period on a fully diluted basis, assuming the private placement warrants are net settled and the shares of Class V Common Stock of the Company are converted to Class A Common Stock.
EBITDA is defined as Net Income Before Interest, Income Taxes, and Depreciation and Amortization.
Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash adjustments and/or other cash adjustment items, such as stock-based compensation, hedging and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives, and financing-related costs. Adjusted EBITDA is one of the key performance indicators we use in evaluating our operating performance and in making financial, operating, and planning decisions. We believe Adjusted EBITDA is useful to the users of this release because the financial information contained in the release can be used in the evaluation of Utz’s operating performance compared to other companies in the Salty Snack industry, as similar measures are commonly used by companies in this industry. In this release, we also provide Adjusted EBITDA as a percentage of Net Sales as an additional measure for readers to evaluate our Adjusted EBITDA Margin.
Normalized Adjusted EBITDA is defined as Adjusted EBITDA after giving effect to pre-acquisition Adjusted EBITDA for certain acquisitions and dispositions from time to time.
Effective Normalized Tax Rate is defined as normalized GAAP basis tax expense, which excludes one-time items, divided by Adjusted Earnings before Taxes.
Net Leverage Ratio is defined as trailing twelve month Normalized Adjusted EBITDA divided by Net Debt. Net Debt is defined as Gross Debt less Cash and Cash Equivalents.
Other Defined Terms:
Branded Salty Snacks is defined as Power Four Brands and Other Brands. Power Four Brands consist of the Utz® brand, On The Border®, Zapp’s®, and Boulder Canyon®. Other Brands include Golden Flake®, TORTIYAHS!®, Hawaiian®, Bachman®, Tim’s Cascade®, Dirty Potato Chips®, TGI Fridays® and Vitner's®.
Non-Branded & Non-Salty Snacks is defined as partner brands, private label, co-manufacturing for which we are the manufacturer, Utz branded non-salty snacks such as On The Border® Dips and Salsa, and sales not attributable to specific brands.
Utz Brands, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the thirteen weeks ended March 30, 2025 and March 31, 2024
(In thousands, except share information)
(Unaudited)
| (in thousands) | Thirteen weeks ended March 30, 2025 | Thirteen weeks ended March 31, 2024 | |||||||||
| Net sales | $ | 352,084 | $ | 346,523 | |||||||
| Cost of goods sold | 233,854 | 226,950 | |||||||||
| Gross profit | 118,230 | 119,573 | |||||||||
| Selling, distribution, and administrative expenses | |||||||||||
| Selling and distribution | 77,265 | 73,666 | |||||||||
| Administrative | 35,949 | 35,782 | |||||||||
| Total selling, distribution, and administrative expenses | 113,214 | 109,448 | |||||||||
| Gain (loss) on sale of assets, net | 660 | (470) | |||||||||
| Income from operations | 5,676 | 9,655 | |||||||||
| Other (expense) income, net | |||||||||||
| Gain on sale of business | — | 44,015 | |||||||||
| Interest expense | (11,470) | (13,831) | |||||||||
| Loss on debt extinguishment | (531) | — | |||||||||
| Other income | 362 | 910 | |||||||||
| Gain (loss) on remeasurement of warrant liability | 11,016 | (11,808) | |||||||||
| Other (expense) income, net | (623) | 19,286 | |||||||||
| Income before taxes | 5,053 | 28,941 | |||||||||
| Income tax (benefit) expense | (625) | 26,544 | |||||||||
| Net income | 5,678 | 2,397 | |||||||||
| Net loss (income) attributable to noncontrolling interest | 1,824 | (6,387) | |||||||||
| Net income (loss) attributable to controlling interest | $ | 7,502 | $ | (3,990) | |||||||
Income (loss) per Class A Common stock: (in dollars) | |||||||||||
| Basic | $ | 0.09 | $ | (0.05) | |||||||
| Diluted | $ | 0.09 | $ | (0.05) | |||||||
| Weighted-average shares of Class A Common stock outstanding | |||||||||||
| Basic | 85,721,393 | 81,389,465 | |||||||||
| Diluted | 87,535,340 | 81,389,465 | |||||||||
| Net income | $ | 5,678 | $ | 2,397 | |||||||
| Other comprehensive (loss) income: | |||||||||||
| Change in fair value of interest rate swap | (6,452) | 4,659 | |||||||||
| Comprehensive (loss) income | (774) | 7,056 | |||||||||
| Net comprehensive loss (income) attributable to noncontrolling interest | 4,364 | (8,352) | |||||||||
| Net comprehensive income (loss) attributable to controlling interest | $ | 3,590 | $ | (1,296) | |||||||
Utz Brands, Inc.
CONSOLIDATED BALANCE SHEETS
March 30, 2025 and December 29, 2024
(In thousands, except per share information)
| As of March 30, 2025 | As of December 29, 2024 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $ | 62,748 | $ | 56,138 | |||||||
| Accounts receivable, less allowance of $3,267 and $3,267, respectively | 134,998 | 119,867 | |||||||||
| Inventories | 107,576 | 101,362 | |||||||||
| Prepaid expenses and other assets | 34,694 | 35,269 | |||||||||
| Current portion of notes receivable | 4,339 | 4,622 | |||||||||
| Total current assets | 344,355 | 317,258 | |||||||||
| Non-current Assets | |||||||||||
| Property, plant and equipment, net | 374,956 | 345,210 | |||||||||
| Goodwill | 870,695 | 870,695 | |||||||||
| Intangible assets, net | 989,834 | 996,510 | |||||||||
| Non-current portion of notes receivable | 9,114 | 9,192 | |||||||||
| Other assets | 190,113 | 189,547 | |||||||||
| Total non-current assets | 2,434,712 | 2,411,154 | |||||||||
| Total assets | $ | 2,779,067 | $ | 2,728,412 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current Liabilities | |||||||||||
| Current portion of term debt | $ | 17,712 | $ | 16,097 | |||||||
| Current portion of other notes payable | 6,788 | 6,917 | |||||||||
| Accounts payable | 157,473 | 150,927 | |||||||||
| Accrued expenses and other | 57,480 | 78,281 | |||||||||
| Current portion of warrant liability | 22,032 | 33,048 | |||||||||
| Total current liabilities | 261,485 | 285,270 | |||||||||
| Non-current portion of term debt and revolving credit facility | 830,480 | 752,484 | |||||||||
| Non-current portion of other notes payable | 14,805 | 14,985 | |||||||||
| Non-current accrued expenses and other | 170,870 | 164,185 | |||||||||
| Deferred tax liability | 123,805 | 123,744 | |||||||||
| Total non-current liabilities | 1,139,960 | 1,055,398 | |||||||||
| Total liabilities | 1,401,445 | 1,340,668 | |||||||||
| Commitments and Contingencies | |||||||||||
| Equity | |||||||||||
| Shares of Class A Common Stock, $0.0001 par value; 1,000,000,000 shares authorized; 86,061,753 and 83,537,542 shares issued and outstanding as of March 30, 2025 and December 29, 2024, respectively | 8 | 8 | |||||||||
| Shares of Class V Common Stock, $0.0001 par value; 61,249,000 shares authorized; 55,349,000 and 57,349,000 shares issued and outstanding as of March 30, 2025 and December 29, 2024, respectively | 6 | 6 | |||||||||
| Additional paid-in capital | 1,014,569 | 988,510 | |||||||||
| Accumulated deficit | (303,663) | (304,663) | |||||||||
| Accumulated other comprehensive income | 14,678 | 18,590 | |||||||||
| Total stockholders' equity | 725,598 | 702,451 | |||||||||
| Noncontrolling interest | 652,024 | 685,293 | |||||||||
| Total equity | 1,377,622 | 1,387,744 | |||||||||
| Total liabilities and equity | $ | 2,779,067 | $ | 2,728,412 | |||||||
Utz Brands, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the thirteen weeks ended March 30, 2025 and March 31, 2024
(In thousands)
(Unaudited)
| Thirteen weeks ended March 30, 2025 | Thirteen weeks ended March 31, 2024 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 5,678 | $ | 2,397 | |||||||
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
| Depreciation and amortization | 18,745 | 18,302 | |||||||||
| Gain on sale of business | — | (44,015) | |||||||||
| (Gain) loss on remeasurement of warrant liability | (11,016) | 11,808 | |||||||||
| (Gain) loss on sale of assets | (660) | 470 | |||||||||
| Loss on debt extinguishment | 531 | — | |||||||||
| Share-based compensation | 4,328 | 3,913 | |||||||||
| Deferred taxes | 61 | 6,159 | |||||||||
| Deferred financing costs | 349 | 1,760 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable, net | (15,131) | (8,578) | |||||||||
| Inventories | (6,214) | (6,190) | |||||||||
| Prepaid expenses and other assets | (7,112) | (6,503) | |||||||||
| Accounts payable and accrued expenses and other | (9,777) | 11,412 | |||||||||
| Net cash used in operating activities | (20,218) | (9,065) | |||||||||
| Cash flows from investing activities | |||||||||||
| Purchases of property and equipment | (38,795) | (13,630) | |||||||||
| Proceeds from sale of property and equipment | 756 | 6,006 | |||||||||
| Proceeds from sale of business | — | 167,500 | |||||||||
| Proceeds from sale of routes | 4,989 | 7,199 | |||||||||
| Proceeds from the sale of IO notes | 472 | 855 | |||||||||
| Notes receivable | (8,156) | (9,919) | |||||||||
| Net cash (used in) provided by investing activities | (40,734) | 158,011 | |||||||||
| Cash flows from financing activities | |||||||||||
| Borrowings on line of credit | 85,000 | 37,000 | |||||||||
| Repayments on line of credit | (35,160) | (37,119) | |||||||||
| Borrowings on term debt and notes payable | 38,470 | 9,798 | |||||||||
| Repayments on term debt and notes payable | (7,951) | (154,239) | |||||||||
| Payment of debt issuance cost | (1,730) | — | |||||||||
| Payments of tax withholding requirements for employee stock awards | (2,168) | (1,397) | |||||||||
| Dividends paid | (5,401) | (4,625) | |||||||||
| Distribution to noncontrolling interest | (3,498) | (3,383) | |||||||||
| Net cash provided by (used in) financing activities | 67,562 | (153,965) | |||||||||
| Net increase (decrease) in cash and cash equivalents | 6,610 | (5,019) | |||||||||
| Cash and cash equivalents at beginning of period | 56,138 | 52,023 | |||||||||
| Cash and cash equivalents at end of period | $ | 62,748 | $ | 47,004 | |||||||
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
(Amounts may not sum due to rounding)
Net Sales and Organic Net Sales
| 13-Weeks Ended | ||||||||||||||||||||
| (dollars in millions) | March 30, 2025 | March 31, 2024 | Change | |||||||||||||||||
| Net Sales as Reported | $ | 352.1 | $ | 346.5 | 1.6 | % | ||||||||||||||
| Impact of Dispositions | — | (4.3) | ||||||||||||||||||
Organic Net Sales (1) | $ | 352.1 | $ | 342.2 | 2.9 | % | ||||||||||||||
(1) Organic Net Sales excludes the Impact of Dispositions that took place after Q1 2024.
Net Sales Growth Drivers
| 13-Weeks Ended March 30, 2025 | ||||||||||||||||||||
| (% change in prior year net sales) | Branded Salty Snacks (1) | Non-Branded & Non-Salty Snacks (2) | Total | |||||||||||||||||
| Net Sales as Reported | $ | 305.9 | $ | 46.2 | $ | 352.1 | ||||||||||||||
| Net Sales as Reported Growth Versus Prior Year | 4.9 | % | (16.0) | % | 1.6 | % | ||||||||||||||
| Volume/mix | 8.3 | % | (6.1) | % | 6.3 | % | ||||||||||||||
| Pricing(3) | (3.4) | (2.7) | (3.4) | |||||||||||||||||
| Organic Net Sales Growth Versus Prior Year | 4.9 | % | (8.8) | % | 2.9 | % | ||||||||||||||
| Divestiture | — | (7.2) | (1.3) | |||||||||||||||||
| Net Sales as Reported Growth Versus Prior Year | 4.9 | % | (16.0) | % | 1.6 | % | ||||||||||||||
(1) Branded Salty Snacks sales excluding IO unreported sales.
(2) Non-Branded & Non-Salty Snacks including IO unreported sales.
(3) Included in Pricing for Branded Salty Snacks and Total Company is an impact of (3.1)% and (2.8)%, respectively, related to bonus packs.
Gross Profit and Adjusted Gross Profit
| 13-Weeks Ended | ||||||||||||||
| (dollars in millions) | March 30, 2025 | March 31, 2024 | ||||||||||||
| Gross Profit | $ | 118.2 | $ | 119.6 | ||||||||||
| Gross Profit as a % of Net Sales | 33.6 | % | 34.5 | % | ||||||||||
| Depreciation and Amortization | 7.6 | 7.2 | ||||||||||||
Non-Cash and Other Cash Adjustments (1) | 8.7 | 2.0 | ||||||||||||
| Adjusted Gross Profit | $ | 134.5 | $ | 128.8 | ||||||||||
| Adjusted Gross Profit as a % of Net Sales | 38.2 | % | 37.2 | % | ||||||||||
(1) Non-cash and other cash adjustments includes non-cash costs related to incentive programs, asset impairments and write-offs, purchase commitments, other non-cash items, acquisition, divestiture, and integration, business transformation initiatives, and financing-related costs.
Adjusted Selling, Distribution, and Administrative Expense
| 13-Weeks Ended | ||||||||||||||
| (dollars in millions) | March 30, 2025 | March 31, 2024 | ||||||||||||
| Selling, Distribution, and Administrative Expense | $ | 113.2 | $ | 109.4 | ||||||||||
| Less: | ||||||||||||||
| Depreciation and Amortization in SD&A Expense | 11.1 | 11.1 | ||||||||||||
| Non-Cash and Other Cash Adjustments (1) | 12.7 | 12.9 | ||||||||||||
| Adjusted Selling, Distribution, and Administrative Expense | $ | 89.4 | $ | 85.4 | ||||||||||
| Adjusted SD&A Expense as a % of Net Sales | 25.4 | % | 24.6 | % | ||||||||||
(1) Non-cash and other cash adjustments includes non-cash costs related to incentive programs, asset impairments and write-offs, purchase commitments, other non-cash items, acquisition, divestiture, and integration, business transformation initiatives, and financing-related costs.
Adjusted Net Income
| 13-Weeks Ended | ||||||||||||||||||||
| (dollars in millions, except per share data) | March 30, 2025 | March 31, 2024 | % Change | |||||||||||||||||
| Net Income (Loss) | $ | 5.7 | $ | 2.4 | 137.5 | % | ||||||||||||||
| Income Tax Expense (Benefit) | (0.6) | 26.5 | ||||||||||||||||||
| Income (loss) Before Taxes | 5.1 | 28.9 | ||||||||||||||||||
| Deferred Financing Fees | 0.3 | 1.8 | ||||||||||||||||||
| Acquisition Step-Up Depreciation and Amortization | 10.8 | 11.5 | ||||||||||||||||||
| Certain Non-Cash Adjustments | 6.4 | 4.0 | ||||||||||||||||||
| Acquisitions, Divestitures and Investments | 7.4 | (38.4) | ||||||||||||||||||
| Business and Transformation Initiatives | 7.4 | 5.8 | ||||||||||||||||||
| Financing-Related Costs | 0.8 | — | ||||||||||||||||||
| Gain (loss) on Remeasurement of Warrant Liability | (11.0) | 11.8 | ||||||||||||||||||
Other Non-Cash and/or Cash Adjustments (1) | 22.1 | (3.5) | ||||||||||||||||||
| Adjusted Earnings before Taxes | 27.2 | 25.4 | ||||||||||||||||||
| Taxes on Earnings as Reported | 0.6 | (26.5) | ||||||||||||||||||
Income Tax Adjustments(2) | (5.5) | 21.9 | ||||||||||||||||||
| Adjusted Taxes on Earnings | (4.9) | (4.6) | ||||||||||||||||||
| Adjusted Net Income | $ | 22.3 | $ | 20.8 | 7.2 | % | ||||||||||||||
| Average Weighted Basic Shares Outstanding on an As-Converted Basis | 141.4 | 140.7 | ||||||||||||||||||
| Fully Diluted Shares on an As-Converted Basis | 143.2 | 144.0 | ||||||||||||||||||
| Adjusted Earnings Per Share | $ | 0.16 | $ | 0.14 | 14.3 | % | ||||||||||||||
(1) Non-cash and other cash adjustments includes non-cash costs related to incentive programs, asset impairments and write-offs, purchase commitments, other non-cash items, acquisitions, divestitures, and investments, business transformation initiatives, and financing-related costs.
(2) Income Tax Adjustment calculated as (Loss) Income before taxes plus (i) Acquisition, Step-Up Depreciation and Amortization and (ii) Other non-cash and/or cash adjustments, multiplied by a normalized GAAP effective tax rate, minus the actual tax provision recorded in the Consolidated Statement of Operations and Comprehensive Loss. The normalized GAAP effective tax rate excludes one-time items such as the impact of tax rate changes on deferred taxes and changes in valuation allowances.
Depreciation & Amortization
| 13-Weeks Ended | ||||||||||||||
| (dollars in millions) | March 30, 2025 | March 31, 2024 | ||||||||||||
| Core D&A - Non-Acquisition-related included in Gross Profit | $ | 5.5 | $ | 4.6 | ||||||||||
| Step-Up D&A - Transaction-related included in Gross Profit | 2.1 | 2.6 | ||||||||||||
| Depreciation & Amortization - included in Gross Profit | 7.6 | 7.2 | ||||||||||||
| Core D&A - Non-Acquisition-related included in SD&A Expense | $ | 2.4 | 2.2 | |||||||||||
| Step-Up D&A - Transaction-related included in SD&A Expense | 8.7 | 8.9 | ||||||||||||
| Depreciation & Amortization - included in SD&A Expense | 11.1 | 11.1 | ||||||||||||
| Depreciation & Amortization - Total | $ | 18.7 | $ | 18.3 | ||||||||||
| Core Depreciation and Amortization | $ | 7.9 | $ | 6.8 | ||||||||||
| Step-Up Depreciation and Amortization | $ | 10.8 | 11.5 | |||||||||||
| Total Depreciation and Amortization | $ | 18.7 | $ | 18.3 | ||||||||||
EBITDA and Adjusted EBITDA
| 13-Weeks Ended | ||||||||||||||||||||
| (dollars in millions) | March 30, 2025 | March 31, 2024 | % Change | |||||||||||||||||
| Net Income (Loss) | $ | 5.7 | $ | 2.4 | 137.5 | % | ||||||||||||||
| Plus non-GAAP adjustments: | ||||||||||||||||||||
| Income Tax Expense (Benefit) | (0.6) | 26.5 | ||||||||||||||||||
| Depreciation and Amortization | 18.7 | 18.3 | ||||||||||||||||||
| Interest Expense, Net | 11.5 | 13.8 | ||||||||||||||||||
Interest Income from IO loans(1) | (0.5) | (0.8) | ||||||||||||||||||
| EBITDA | 34.8 | 60.2 | (42.2) | % | ||||||||||||||||
Certain Non-Cash Adjustments(2) | 5.7 | 4.0 | ||||||||||||||||||
Acquisitions, Divestitures and Investments(3) | 7.4 | (38.4) | ||||||||||||||||||
Business Transformation Initiatives(4) | 7.4 | 5.8 | ||||||||||||||||||
Financing-Related Costs(5) | 0.8 | — | ||||||||||||||||||
(Gain) loss on Remeasurement of Warrant Liability(6) | (11.0) | 11.8 | ||||||||||||||||||
| Adjusted EBITDA | $ | 45.1 | $ | 43.4 | 3.9 | % | ||||||||||||||
| Net income (loss) as a % of Net Sales | 1.6 | % | 0.7 | % | 90 | bps | ||||||||||||||
| Adjusted EBITDA as a % of Net Sales | 12.8 | % | 12.5 | % | 30 | bps | ||||||||||||||
(1)Interest Income from IO loans refers to Interest Income that we earn from IO notes receivable that have resulted from our initiatives to transition from route sales professional (“RSP”) distribution to IO distribution ("Business Transformation Initiatives"). There is a notes payable recorded that mirrors most of the IO notes receivable, and the interest expense associated with the notes payable is part of the Interest Expense, Net adjustment.
(2)Certain Non-Cash Adjustments are comprised primarily of the following:
Incentive programs – The Company incurred 3.5 million and $3.9 million of share-based compensation expense, which was awarded to associates and directors, and compensation expense associated with the Omnibus Equity Incentive Plan (the "OEIP") for the thirteen weeks ended March 30, 2025 and March 31, 2024, respectively.
Purchase commitments and other adjustments – We have purchase commitments for specific quantities at fixed prices for certain of our products’ key ingredients. To facilitate comparisons of our underlying operating results, this adjustment was made to remove the volatility of purchase commitments related unrealized gains and losses. The adjustment related to purchase commitments and other adjustments, including cloud computing amortization, was expense of $2.2 million and $0.1 million for the thirteen weeks ended March 30, 2025 and March 31, 2024, respectively.
(3)Adjustment for Acquisitions, Divestitures and Investments Costs and (Gains) – This is comprised of consulting, transaction services, and legal fees incurred for acquisitions and certain potential acquisitions, in addition to expenses associated with integrating recent acquisitions. Such expenses were $7.4 million and $5.6 million for the thirteen weeks ended March 30, 2025 and March 31, 2024, respectively. Also included for the thirteen weeks ended March 31, 2024 was a gain of $44.0 million related to the Good Health and R.W. Garcia Sale.
(4)Business Transformation Initiatives Adjustment – This adjustment is related to consultancy, professional and legal fees incurred for specific initiatives and structural changes to the business that do not reflect the cost of normal business operations. In addition, gains and losses realized from the sale of distribution rights to IOs and the subsequent disposal of trucks, severance costs associated with the elimination of RSP positions, and enterprise resource planning system transition costs, fall into this category. The Company incurred such costs of $7.4 million and $5.8 million for the thirteen weeks ended March 30, 2025 and March 31, 2024, respectively.
(5)Financing-Related Costs – These costs include adjustments for various items related to raising debt and equity capital or debt extinguishment costs.
(6)Gains and Losses related to the changes in the remeasurement of warrant liabilities are not expected to be settled in cash, and when exercised would result in a cash inflow to the Company with the warrants converting to Class A Common Stock with the liability being extinguished and the fair value of the Warrants at the time of exercise being recorded as an increase to equity.
Normalized Adjusted EBITDA
| FY 2024 | FY 2025 | |||||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Q1 | Q2 | Q3 | Q4 | FY 2024 | Q1 | TTM | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 43.4 | $ | 49.7 | $ | 54.0 | $ | 53.1 | $ | 200.2 | $ | 45.1 | $ | 201.9 | ||||||||||||||||||||||||||||||
| Pre-Acquisition Adjusted EBITDA | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Normalized Adjusted EBITDA | $ | 43.4 | $ | 49.7 | $ | 54.0 | $ | 53.1 | $ | 200.2 | $ | 45.1 | $ | 201.9 | ||||||||||||||||||||||||||||||
Net Debt and Leverage Ratio
| (dollars in millions) | As of March 30, 2025 | |||||||
| Term Loan | $ | 630.3 | ||||||
| Real Estate Loan | 59.0 | |||||||
| ABL Facility | 50.0 | |||||||
Equipment Loans and Finance Leases(1) | 124.3 | |||||||
Gross Debt(2) | 863.6 | |||||||
| Cash and Cash Equivalents | 62.7 | |||||||
| Total Net Debt | $ | 800.9 | ||||||
| Last 52-Weeks Normalized Adjusted EBITDA | $ | 201.9 | ||||||
Net Leverage Ratio(3) | 4.0x | |||||||
(1) Equipment loans and finance leases include leases accounted for as finance leases under US GAAP and loans for equipment.
(2) Includes Term Loan B, ABL Facility, Equipment Loans, and Finance Leases. Excludes amounts related to guarantees on IO loans which are collateralized by routes. The Company has the ability to recover substantially all of the outstanding IO loan value in the event of a default scenario, which historically has been uncommon.
(3) Based on trailing twelve month Normalized Adjusted EBITDA of $201.9 million.
Utz Brands, Inc. First Quarter 2025 Earnings Presentation May 1, 2025
Disclaimer 2 Forward-Looking Statements Certain statements made herein are not historical facts but are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are accompanied by or include, without limitation, statements such as “will”, “expect”, “intends”, “goal”, "on track" or other similar words, phrases or expressions. These forward-looking statements include future plans for Utz Brands, Inc. (“the Company”), including outlook for fiscal 2025, plans related to the transformation of the Company’s supply chain, the Company’s product mix, the ability to reduce debt and the anticipated interest expense savings from the repricing of the $630 million Term Loan , the Company’s cost savings plans and the Company’s logistics optimization efforts; the estimated or anticipated future results and benefits of the Company’s plans and operations; the Company’s future capital structure; future opportunities for the Company; the effects of inflation or supply chain disruptions on the Company or its business; statements regarding the Company’s project balance sheet and liabilities, including net leverage; and other statements that are not historical facts. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties and the Company’s business and actual results may differ materially. Some factors that could cause actual results to differ include, without limitation: our operation in an industry with high levels of competition and consolidation; our reliance on key customers and ability to obtain favorable contractual terms and protections with customers; changes in demand for our products driven by changes in consumer preferences and tastes or our ability to innovate or market our products effectively; changes in consumers’ loyalty to our brands due to factors beyond our control; impacts on our reputation caused by concerns relating to the quality and safety of our products, ingredients, packaging, or processing techniques; the potential that our products might need to be recalled if they become adulterated or are mislabeled; the loss of retail shelf space and disruption to sales of food products due to changes in retail distribution arrangements; our reliance on third parties to effectively operate both our direct-to-warehouse delivery system and our direct- store-delivery network system; the evolution of e-commerce retailers and sales channels; disruption to our manufacturing operations, supply chain, or distribution channels; the effects of inflation, including rising labor costs; shortages of raw materials, energy, water, and other supplies; changes in the legal and regulatory environments in which we operate; potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries, or investigations into our business; potential adverse effects or unintended consequences related to the implementation of our growth strategy; our ability to successfully identify and execute acquisitions or dispositions and to manage integration or carve out issues following such transactions; the geographic concentration of our markets; our ability to attract and retain highly skilled personnel (including risks associated with our recently announced executive leadership transition); impairment in the carrying value of goodwill or other intangible assets; our ability to protect our intellectual property rights; disruptions, failures, or security breaches of our information technology infrastructure; climate change or legal, regulatory or market measures to address climate change; our exposure to liabilities, claims or new laws or regulations with respect to environmental matters; the increasing focus and opposing views, legislation and expectations with respect to ESG initiatives; restrictions on our operations imposed by covenants in our debt instruments; our exposure to changes in interest rates; adverse impacts from disruptions in the worldwide financial markets, including on our ability to obtain new credit; our exposure to any new or increased income or product taxes; pandemics, epidemics or other disease outbreaks; our exposure to changes to trade policies and tariff and import/export regulations by the United States and other jurisdictions; potential volatility in our Class A Common Stock caused by resales thereof; our dependence on distributions made by our subsidiaries; our payment obligations pursuant to a tax receivable agreement, which in certain cases may exceed the tax benefits we realize or be accelerated; provisions of Delaware law and our governing documents and other agreements that could limit the ability of stockholders to take certain actions or delay or discourage takeover attempts that stockholders may consider favorable; our exclusive forum provisions in our governing documents; the influence of certain significant stockholders and members of Utz Brands Holdings, LLC, whose interests may differ from those of our other stockholders; and the effects of our private placement warrants on the market price of our Class A Common Stock and our net income; and other risks and uncertainties set forth in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K filed with the Commission for the fiscal year ended December 29, 2024 and in other reports we file with the U.S. Securities and Exchange Commission from time to time. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication. The Company cautions investors not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as otherwise required by law. Industry Information Unless otherwise indicated, information contained in this presentation or made orally during this presentation concerning the Company’s industry, competitive position and the markets in which it operates is based on information from independent research organizations, other third-party sources and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from the Company’s internal research, and are based on assumptions made by the Company upon reviewing such data, and the Company’s experience in, and knowledge of, such industry and markets, which the Company believes to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which the Company operates, and the Company’s future performance are necessarily subject to uncertainty and risk due to a variety of factors, which could cause results to differ materially from those expressed in the estimates made by the independent parties and by the Company.
Disclaimer (cont.) 3 Trademarks This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this presentation may be listed without the TM, SM, © or ® symbols, but we will assert, to the fullest extent under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights. Projected Financial Information This presentation contains financial forecasts, which were prepared in good faith by the Company on a basis believed to be reasonable. Such financial forecasts have not been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). The Company’s independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections for the purposes of their inclusion in this presentation, and accordingly, they have not expressed an opinion nor provided any other form of assurance with respect thereto for the purpose of this presentation. These projections are for illustrative purposes only and should not be relied upon as being necessarily indicative of future results. Certain of the above-mentioned projected information has been provided for purposes of providing comparisons with historical data. The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. Projections are inherently uncertain due to a number of factors outside of the Company’s control, as discussed under Forward-Looking Statements above. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of the Company or that actual results will not differ materially from those presented in the prospective financial information. Inclusion of the prospective financial information in this presentation should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved. Non-GAAP Financial Measures This presentation includes certain financial measures not presented in accordance with GAAP including, but not limited to, Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted SD&A, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, and Net Leverage Ratio, and certain ratios and other metrics derived therefrom. These non- GAAP financial measures do not represent financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations, earnings per share or other measures of profitability, liquidity or performance under GAAP. You should be aware that the presentation of these measures may not be comparable to similarly-titled measures used by other companies. Reconciliations of these historical non-GAAP measures to the most directly comparable GAAP measures are set forth in the appendix to this presentation. We believe (i) these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the financial condition and results of operations of the Company to date; and (ii) the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. The non-GAAP financial measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. In addition, quantitative reconciliations are not available for the forward-looking GAAP financial measures used in this presentation without unreasonable efforts due to the high variability, complexity, and low visibility with respect to certain items which are excluded from Net Organic Sales, Adjusted EBITDA, Adjusted Earnings Per Share, and Net Leverage Ratio, respectively. We expect the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future financial results.
Business Overview Howard Friedman Chief Executive Officer 4
Delivered a Strong Start to 2025 5 o 1Q’25 Organic Net Sales growth of 2.9% led by Branded Salty Snacks growth of 4.9%(1) o Dollar and volume share gains in the Salty Snacks Category(2) o Consumer value need addressed with bonus packs and focused trade promotions o Productivity cost savings fueling Adj. Gross Profit Margin and Adj. EBITDA Margin expansion o Reinvestment into our brands and capabilities o Ability to grow despite category softness due to unique geographic expansion opportunity o Fiscal 2025 guidance reaffirmed Note: See appendix for reconciliation of Utz Non-GAAP financial measures to most directly comparable GAAP measures. (1) Branded Salty Snack sales as defined in 1Q’25 earnings press release dated May 1, 2025; excludes Independent Operator (“IO”) unreported sales. (2) Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks ended 3/30/2025 compared to the 13-weeks ended 3/31/24 period in the prior year on a pro forma basis.
Top-line and Bottom-line Growth in 1Q’25 6 Adjusted EBITDA (in millions) $43 $45 1Q’24 1Q’25 Note: See appendix for reconciliation of Utz Non-GAAP financial measures to most directly comparable GAAP measures. Adjusted EPS $0.14 $0.16 1Q’24 1Q’25 +4% +14% Organic Net Sales (in millions) $342 1Q’24 1Q’25 $352 +3%
7Note: See appendix for reconciliation of Utz Non-GAAP financial measures to most directly comparable GAAP measures. Note: Branded Salty Snack sales as defined in 1Q’25 earnings press release dated May 1, 2025; excludes Independent Operator unreported sales. (1) Organic Net Sales Growth. Topline Growth Driven by Strong Volume Gains and Value Focus Branded Salty Snacks (87% of Total Net Sales) Non-Branded & Non-Salty Snacks(1) (13% of Total Net Sales) Total Company(1) 6.3% -3.4% 2.9% 8.3% -3.4% 4.9% -6.1% -2.7% -8.8% (1Q’25 % YoY Change) Volume/Mix Price Total Net Sales Growth Driverso Total Organic Net Sales growth of +2.9% led by strong volume growth of +6.3% o Branded Salty Snacks Net Sales growth of +4.9% led by Boulder Canyon® o Net price decline in Branded Salty Snacks of (3.4%) primarily due to bonus packs and focused trade promotions o Non-Branded & Non-Salty Net Sales performance due to continued declines in Partner Brands and Dips & Salsa
Successfully Shifting Our Net Sales Mix Towards Branded Salty Snacks 8 Branded Salty Snacks Non-Branded, Non-Salty Snacks 82% 18% 1Q’23(1) 87% 13% 1Q’25 Net Sales Mix Evolution Branded Salty Snacks Non-Branded, Non-Salty Snacks Note: See appendix for reconciliation of Utz Non-GAAP financial measures to most directly comparable GAAP measures. Note: Branded Salty Snack sales as defined in 1Q’25 earnings press release dated May 1, 2025; excludes Independent Operator unreported sales. (1) Adjusted for divestitures of R.W. Garcia and Good Health.
1Q’24 2Q’24 3Q’24 4Q’24 1Q’25 4.7% 3.3% 3.8% 2.9% 4.9% Consistently Growing Branded Salty Snacks and Expanding Adj. EBITDA Margins 9 Branded Salty Snacks Quarterly Net Sales Growth (YoY Change) Note: See appendix for reconciliation of Utz Non-GAAP financial measures to most directly comparable GAAP measures. Note: Branded Salty Snack sales as defined in 1Q’25 earnings press release dated May 1, 2025; excludes Independent Operator unreported sales. Adjusted EBITDA Margin Expansion (YoY Change, as a % of Net Sales) +100bps +150bps +80bps +160bps +30bps 1Q’24 2Q’24 3Q’24 4Q’24 1Q’25
-3.1% 8.3% -3.4% 4.9% Bonus Pack Program Drove Volume and Value for our Consumer in 1Q’25 Branded Salty Snacks Total Company(1) Net Sales Growth Drivers Impact of Bonus Packs o Bonus Pack Program launched in December 2024, offering the consumer 20% more volume for the same retail price, on six Utz® and On The Border® SKUs o Strong impact on volumes, but average price per lb. down given more volume offered for the same price Note: See appendix for reconciliation of Utz Non-GAAP financial measures to most directly comparable GAAP measures. Note: Branded Salty Snack sales as defined in 1Q’25 earnings press release dated May 1, 2025; excludes Independent Operator unreported sales. (1) Organic Net Sales Growth. -2.8% 6.3% -3.4% 2.9% (1Q’25 % YoY Change) 10
Our Power Four Brands Continued to Gain Share in 1Q’25 11 1Q’25 MULO+ w/Convenience YoY Growth -1.6% 5.7% 7.5% Retail Volume (lbs.) Total Salty Category Total Company Power Four Brands -1.7% 0.0% 1.7% Retail Sales $ -3.0% -3.5%-0.1% -5.4% -5.4% Retail Price/lb. Source: Retail sales and volume are Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks ended 3/30/25; % YoY growth compared to the 13-weeks ended 3/31/2024 period in the prior year on a pro forma basis. (1) Measured using MULO+ w/Convenience and Company 1Q’25 internal Net Sales data. o Dollar and volume share gains for total Company and Power Four Brands, led by Boulder Canyon® o Growth led by Expansion geographies driven by distribution gains and higher velocities o Retail price per pound declined primarily due to bonus packs, channel mix, and disciplined promotional spend Impact of bonus packs(1)
1Q’25 Core Geographies YoY Retail Growth Retail Volume (lbs.) See Appendix for Utz Core and Expansion geography state groupings. Source: Retail sales and volume are Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks ended 3/30/2025; % YoY growth compared to the 13-weeks ended 3/31/2024 period in the prior year on a pro forma basis. Continued Volume Share Gains in our Core Geography 12 Total Salty Category Total Company Power Four Brands -1.9% -3.7% -2.4% -1.4% 2.9% 4.6% Retail Sales $ o Continued volume share gains for total Company and Power Four Brands supported by active portfolio assortment management o Disciplined investments to maintain price gaps primarily in potato chips and investment in bonus packs o Convenience store channel trends recovering, but not yet growing o Lapping significant merchandising activity in Mass channel in the prior year
Growth Accelerating in Expansion Geographies with 1Q’25 Retail Volume up +8.9% 13 o Seventh consecutive quarter of share gains o Gained dollar and volume share for total Company and Power Four Brands o Growth driven by distribution gains and higher same store velocities o Strong dollar growth across Utz® and Zapp’s® Pretzels, Boulder Canyon® Potato Chips, and Golden Flake® Pork Rinds See Appendix for Utz Core and Expansion geography state groupings. Source: Retail sales and volume are Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks ended 3/30/2025; % YoY growth compared to the 13-weeks ended 3/31/2024 period in the prior year on a pro forma basis. 1Q’25 Expansion Geographies YoY Retail Growth Retail Volume (lbs.) Total Salty Category Total Company Power Four Brands -1.6% 4.9% 7.5% -1.7% 8.9% 10.9% Retail Sales $
Expansion Playbook Driving Significant Growth and Sustained Success 14 Utz Core and Expansion Geographies Source: Retail sales are Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 52-weeks ended 3/30/25. (1) Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks ended 3/30/25. FL NM DE MD TX OK KS NE SD NDMT WY COUT ID AZ NV WA CA OR KY ME NY PA VT NH MA RI CT WV INIL NC TN SC ALMS AR LA MO IA MN WI NJ GA DC VA OH MI HI AK o Executing a proven playbook o Offering customers Direct to Warehouse delivery and/or Direct Store Delivery through our hybrid distribution model o Investing in customers and shoppers o Leveraging relationships and success in other markets o Continuing to grow share in key expansion markets (e.g., Florida) o Significant white space remains given relative market share of 3.0% in Expansion and 6.5% in Core Geographies 56% of Net Sales +0.2% 2-year Retail Sales CAGR 6.5% Avg. market share(1) Core 44% of Net Sales +7.2% 2-year Retail Sales CAGR 3.0% Avg. market share(1) Expansion 20 States 30 States
Retailer BRetailer A 45.0% 45.8% 46.2% 46.1% 46.3% 2021 2022 2023 2024 1Q'25 Utz Brands Salty Snacks Dollar Share of Category at Retailer B Retailer B Dollar Share of Food CRMA Salty Snacks Case Study: Adding Utz Brands to a Retailers’ Assortment Grows the Customer’s Salty Snack Share and Utz’s Company Share in Expansion Geographies 15 Utz Brands Salty Snacks Dollar Share of Category at Retailer A Retailer A Dollar Share of Food CRMA Salty Snacks Note: CRMA stands for “Competitive Retailer Marketing Area”. Source: Retail sales are Circana Data, Undisclosed Retailers “A” & “B”, custom Utz Brands hierarchy. Calendar Years 2021-2024, with 2025 showing L13W ending 3/30/2025; customer RMA data. 2.2% 3.7% 5.0% 5.6% 6.2% 2021 2022 2023 2024 1Q'25 3.7% 7.7% 9.7% 11.1% 11.1% 2021 2022 2023 2024 1Q'25 37.8% 36.4% 38.8% 38.4% 39.1% 2021 2022 2023 2024 1Q'25
% of UBI Retail Sales 41% 20% 12% 9% 4% o Boulder Canyon® growth in Club, Food and Natural outperforming the category o Utz® bonus packs drove pound and perimeter activity o Club rotation o Lapping program in Grocery o Growth driven by Food and Mass o Decline driven by timing o Increased velocities across all channels led by Food Source: Retail sales are Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks ended 3/30/2025; % YoY growth compared to the 13-weeks ended 3/31/24 period in the prior year on a pro forma basis. Utz Retail Sales breakdown is Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks ended 3/30/2025. 1Q’25 Sub-Category Retail Sales YoY Growth Potato Chips Tortilla Chips Pretzels Cheese Snacks Pork Rinds -2.5% 2.7% -1.8% -2.8% 2.3% 2.2% -4.6% -3.0% 0.0% 8.0% 16 Share Gains in Potato Chips, Cheese Snacks, and Pork Total Sub-Category
Boulder Canyon® Outperforming the Category in Natural and Traditional Channels 17 Total Salty Category 2.7% 41.7% Total Salty Category -1.7% 158.3% 1Q’25 Retail Sales Growth SPINS(2) (Natural Channel) Circana MULO+ w/ Convenience(5) (Traditional Channels) Retail sales are Circana Total US MULO+ w/convenience and SPINS Total US – Natural Expanded Channel. Circana is Custom Utz Brands hierarchy, 13-weeks ended 3/30/25; % YoY growth compared to the 13-weeks ended 3/31/24 period in the prior year on a pro forma basis. SPINS is TPL 12-weeks ended 3/23/2025; % YoY growth compared to the 12-weeks ended 3/24/24 period in the prior year on a pro forma basis. (1) 5.25oz Avocado Oil Classic Sea Salt Kettle Potato Chips. (2) Total Natural Channel Spins YTD ended 3/23/25. (3) Circana Total US MULO+ w/ convenience L13W ended 3/30/25. (4) Referencing units / store / week and dollar / store / week. (5) Circana Total US MULO+ w/ convenience, custom Utz Brands hierarchy, L13W ended 3/30/25. o Brand’s better-for-you characteristics and bold taste profile are resonating with consumers o Boulder Canyon has the #1 selling Salty Snack SKU(1) in the Natural Channel over the latest 13 and 52 weeks(2) o #1 Potato Chip Brand in Total US Natural Channel(2) o Growing Retail Distribution outside Natural with +52% more TPDs in MULO+ w/ convenience(3) o Growing Velocity with +62% increase in units and 94% increase in dollars in MULO+ w/ convenience(3),(4)
Continued Investment in New Product Innovation (1) Circana Total US Multi Outlet+ Conv 52 weeks ending 3/30/25. o New Lime & Sea Salt and Roasted Garlic & Mexican Herb flavors taps into On The Border’s® strength in Dipping, as #2 brand in Dipping Tortilla Chips(1) Flavored Dipping Café Chips o Blends a familiar sweet-tart lemonade flavor with Utz’® signature salty crunch o For every bag sold, a contribution is made to Alex’s Lemonade Stand, helping children fighting cancer Limited Edition Lemonade Potato Chips o Leverages Company expertise in tortilla chips and consumer desire for better-for-you snacks (including Non-GMO, made with avocado oil and gluten-free) Tortilla Chips 18
Increased our 1Q’25 Marketing Investments +30% vs. prior year 19 Launched new Social Media Campaign Utz_Pronunciation-campaign_post3.mp4 Screenshot 2025-04-18 at 1.51.48 PM.png #TeamUhtz #TeamOotz #TeamYoutz Investing in Experiences & Social Media Zapp’s Superbowl and Mardi Gras program Brand’s cult-like appeal and “People Chips” viral fandom
Utz Household Penetration Growth is Outpacing the Category and at an All-time High; Holding Repeat Rate Even While Adding New Consumers 20 Utz Household Penetration Utz Buyers (millions) Total Utz Buyer Repeat Rate Source: Circana Scan Panel Total U.S. All Outlets 52-weeks data through 3/23/2025 compared to the 52-weeks ended 3/24/24 in the prior year period. 35 40 45 50 2024 2025 47.9% 49.1% 60 62 64 66 68 70 2024 2025 69.4% 69.4% 62.0 63.9 45 50 55 60 65 2024 2025 Total Company Salty Snack Category +120bps +20bps +1.9M +1.0M - +10bps +190bps - +2.8M +0.7M +20bps - Latest 52-weeks
Financial Review Ajay Kataria Chief Financial Officer 21
1Q’25 Financial Results Summary o Organic Net Sales +2.9% o +6.3% volume/mix and (3.4%) price o Branded Salty Snacks Net Sales +4.9% o Adj. Gross Profit Margin expansion of +100 bps o Benefits from productivity programs o Adj. SD&A Expense increase of +4.7% o Increased marketing, selling, and distribution costs to support growth o Adj. EBITDA increased +3.9% to $45.1M o Adj. EBITDA Margin expansion of +30bps o Adj. EPS growth of +14.3% to $0.16 o Primarily driven by operating earnings growth o Lower interest expense due to the refinancing of long- term debt 1Q’25 1Q’24 YoY Change In $ millions, except per share amounts 13-weeks ended March 30, 2025 13-weeks Ended March 31, 2024 Net Sales 352.1 346.5 +1.6% Organic Net Sales 352.1 342.2 +2.9% Adj. Gross Profit 134.5 128.8 +4.4% % Adj. Gross Profit Margin 38.2% 37.2% +100 bps Adj. SD&A Expense 89.4 85.4 +4.7% Adj. SD&A Expense % of Net Sales 25.4% 24.6% +80 bps Adj. EBITDA 45.1 43.4 3.9% % Adj. EBITDA Margin 12.8% 12.5% +30 bps Adj. Net Income 22.3 20.8 +7.2% Adj. EPS $0.16 $0.14 +14.3% 22 Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures. Note: Branded Salty Snack sales as defined in 1Q’25 earnings press release dated May 1, 2025; excludes Independent Operator unreported sales. Note: Amounts may not sum due to rounding.
1Q’25 Net Sales Bridge 23 o Volume/mix growth of +6.3% o Branded Salty Snacks volume/mix growth of +8.3% led by Power Four Brands o Non-Branded & Non-Salty Snacks volume/mix change of (6.1%) primarily due to Partner Brands and Dips & Salsas o Pricing impact of (3.4%) primarily due to investment in bonus packs (2.8pp impact) and focused trade promotions o Divestiture impact of (1.3%) from the disposition of R.W. Garcia® and Good Health® brands (closed January 2024) 1Q’25 Net Sales YoY Growth Decomposition Volume/Mix Price Impact of Bonus Packs Price Impact of Other Focused Trade 1Q’25 Organic Net Sales Growth -1.3% Brand Divestitures 1Q’25 Total Net Sales Growth 6.3% -2.8% -0.6% 2.9% 1.6% Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures. Note: Branded Salty Snack sales as defined in 1Q’25 earnings press release dated May 1, 2025; excludes Independent Operator unreported sales.
1Q’25 Adjusted EBITDA Margin Change Decomposition 1Q’25 Adjusted EBITDA Margin Bridge 24 o Continued Productivity savings across manufacturing and procurement o Pricing impact primarily due to bonus packs and focused trade promotions o Increased Marketing spend to support continued Branded Salty Snacks volume growth o Higher Selling and Admin Expense primarily to support distribution growth in Expansion geographies Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures. Note: Branded Salty Snack sales as defined in 1Q’25 earnings press release dated May 1, 2025; excludes Independent Operator unreported sales. Note: Amounts may not sum due to rounding. (1) Represents savings realized during 1Q’25 as a % of prior year Net Sales. (2) Delivery included. 1Q’24 0.4% Volume / Mix (2.9%) Price 3.7% Productivity Savings (0.3%) Marketing Expense 1Q’25 12.5% 12.8% Supply Chain Costs (0.4%) Selling & Admin Expense (0.2%) (1) (2)
Rice Distribution Center o Hanover, Pennsylvania o Consolidates six warehouses into one state-of-the art facility of 650k sq. ft. o Fully operational since Jan’25 New Kettle Line o Kings Mountain, North Carolina o +35% more capacity to Kettle network to support growth in Boulder Canyon® and Utz® o Operating since Feb’25 New Pretzel Line o Hanover, Pennsylvania o +15% increased pretzel capacity with higher efficiency o Operating since Mar’25 Continued Investments in Supply Chain Across Manufacturing & Distribution to Support Growth and Drive Productivity 25
On Track to Deliver $150M+ Productivity Savings in 2024-2026, $15M higher than Initial Investor Day target 26 Productivity Delivered (1) Represents cost savings realized during each 52-week or 53-week fiscal year as a percentage of prior fiscal year Adjusted COGS. (2) Pro Forma for acquisitions. (3) 2020 represents the 53-week period ended 1/3/21, consisting of the Predecessor period from 12/30/19 through 8/28/20 and the Successor period from 8/29/20 through 1/3/21; 2021 represents the 52-week period ended 1/2/22 for the Successor; and 2022 represents the 52-week period ended 1/1/23 for the Successor. 2020 2021 2022 2023 2024 2025E 1% 2% 3% 4% 6% ~6% (1)(2)(3)
Cash Flow and Balance Sheet Highlights As of January 1, 2023 Cash Flow Highlights 13-Weeks Ended March 30, 2025 Net Cash Used in Operations $20.2M Capital Expenditures $38.8M Dividends and Distributions Paid(1) $8.9M Balance Sheet Highlights As of March 30, 2025 Cash and Cash Equivalents $62.7M Gross Debt(2) $863.6M Net Debt(3) $800.9M Net Leverage Ratio(4) 4.0x 27 Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures. (1) Includes $3.5M of distributions to Non-Controlling Interest and $0.3M of dividend equivalents on employee equity awards. (2) Includes Term Loan B, ABL Facility, Equipment Loans, and Finance Leases. Excludes amounts related to guarantees on IO loans which are collateralized by routes. The Company has the ability to recover substantially all of the outstanding IO loan value in the event of a default scenario, which historically has been uncommon. (3) Reflects Gross Debt less Cash. (4) Net Leverage Ratio is a Non-GAAP financial measure and is Net Debt divided by last 52-weeks Normalized Adjusted EBITDA. (5) Includes cash on hand of $62.7 million and $109.5 million available under the Company’s revolving credit facility. o Cash flow reflects pacing of net working capital (“NWC”) & capital investments o Capital investments to support manufacturing plant automation and Kings Mountain build-out o Ample liquidity of ~$172M on March 30, 2025(5) o Net Leverage Ratio higher than FYE’24 due to increased capital investments and seasonal NWC o Repriced our $630M Term Loan B (“TLB”) to lower the spread from S+275 to S+250; 25bps reduction expected to reduce annual interest by ~$1.6M
Note: Quantitative reconciliations are not available for the forward-looking non-GAAP financial measures used herein without unreasonable efforts due to the high variability, complexity, and low visibility with respect to certain items which are excluded from Organic Net Sales, Adjusted EBITDA, Net Leverage Ratio, normalized GAAP basis tax expense, excluding one-time items, and Adjusted Earnings Per Share, respectively. We expect the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future financial results. (1) Normalized GAAP basis tax expense, which excludes one-time items. FY’25 Expected Growth vs. FY’24 Actual Results Key Assumptions Organic Net Sales Low-single digits Continued Branded Salty Snacks growth, particularly the Power Four Brands, and less decline in Non-Branded & Non-Salty Snacks Adjusted EBITDA +6% to +10% Strong Adj. Gross Profit Margin expansion fueled by productivity savings and improved product mix Adjusted EPS +10% to 15% Higher operating earnings growth and lower interest expense Additional Outlook Assumptions: Effective Normalized Tax Rate(1) 17% to 19% Consistent with 2024 Net Interest Expense ~$43 million Long-term debt blended rate of ~5% Capital Expenditures $90 to $100 million Majority focused on building increased manufacturing network capacity and delivering accelerated productivity savings Net Leverage Ratio Approaching 3x at YE’25 Adj. EBITDA growth and modest scheduled debt repayment Reaffirming Full Year 2025 Outlook 28
Howard Friedman Chief Executive Officer 29 Closing
Executing Against our Initial December 2023 Investor Day Commitments in a Challenging Environment 30 o Gaining volume share in both our Core and Expansion markets(1) o Expanding both Adj. Gross Margin and Adj. EBITDA Margin behind strong productivity programs and mix shift to Branded Salty Snacks o Expecting modest impact from tariffs (based on the information we know today) o Driving $150M+ in productivity savings over 3 years across investments in supply chain optimization (+$15M vs. our initial Investor Day target) o Investing in our capabilities and supporting our brands o Growing Adjusted Earnings Per Share growth by double-digits for five consecutive quarters o De-levering our balance sheet with plan to approach 3x by year-end (one year ahead of our initial Investor Day target) Note: See appendix for reconciliation of Utz Non-GAAP financial measures to most directly comparable GAAP measures. Note: Branded Salty Snack sales as defined in 1Q’25 earnings press release dated May 1, 2025; excludes Independent Operator unreported sales. (1) Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks ended 3/30/2025 compared to the 13-weeks ended 3/31/24 period in the prior year on a pro forma basis.
Appendix 31
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 32See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 33See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 34See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 35See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 36See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025 (1) Interest Income from IO loans refers to Interest Income that we earn from IO notes receivable that have resulted from our initiatives to transition from RSP distribution to IO distribution ("Business Transformation Initiatives"). There is a notes payable recorded that mirrors most of the IO notes receivable, and the interest expense associated with the notes payable is part of the Interest Expense, Net adjustment. (2) Certain Non-Cash Adjustments are comprised primarily of the following: Incentive programs – The Company incurred 3.5 million and $3.9 million of share-based compensation expense, which was awarded to associates and directors, and compensation expense associated with the Omnibus Equity Incentive Plan (the "OEIP") for the thirteen weeks ended March 30, 2025 and March 31, 2024, respectively. Purchase commitments and other adjustments – We have purchase commitments for specific quantities at fixed prices for certain of our products’ key ingredients. To facilitate comparisons of our underlying operating results, this adjustment was made to remove the volatility of purchase commitments related unrealized gains and losses. The adjustment related to purchase commitments and other adjustments, including cloud computing amortization, was expense of $2.2 million and $0.1 million for the thirteen weeks ended March 30, 2025 and March 31, 2024, respectively. (3) Adjustment for Acquisitions, Divestitures and Investments Costs and (Gains) – This is comprised of consulting, transaction services, and legal fees incurred for acquisitions and certain potential acquisitions, in addition to expenses associated with integrating recent acquisitions. Such expenses were $7.4 million and $5.6 million for the thirteen weeks ended March 30, 2025 and March 31, 2024, respectively. Also included for the thirteen weeks ended March 31, 2024 was a gain of $44.0 million related to the Good Health and R.W. Garcia Sale. (4) Business Transformation Initiatives Adjustment – This adjustment is related to consultancy, professional and legal fees incurred for specific initiatives and structural changes to the business that do not reflect the cost of normal business operations. In addition, gains and losses realized from the sale of distribution rights to IOs and the subsequent disposal of trucks, severance costs associated with the elimination of RSP positions, and enterprise resource planning system transition costs, fall into this category. The Company incurred such costs of $7.4 million and $5.8 million for the thirteen weeks ended March 30, 2025 and March 31, 2024, respectively. (5) Financing-Related Costs – These costs include adjustments for various items related to raising debt and equity capital or debt extinguishment costs. (6) Gains and Losses related to the changes in the remeasurement of warrant liabilities are not expected to be settled in cash, and when exercised would result in a cash inflow to the Company with the Warrants converting to Class A Common Stock with the liability being extinguished and the fair value of the Warrants at the time of exercise being recorded as an increase to equity.
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 37See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 38See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Appendix Additional Reconciliations as Previously Disclosed 39
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 40See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 41See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 42See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 43See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 44See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 45See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 46See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 47See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 48See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 49See footnotes in Utz’s 1Q’25 earnings press release dated May 1, 2025