"Company†), a leading U.S. manufacturer of branded salty snacks, issued the following statement regarding the removal of certified Food, Drug and Cosmetic ("FD&C†) colors from its product portfolio: "Since 1921, Utz Brands, Inc. has been committed to making snacks with quality, transparency, and simple, trusted ingredients. As consumer tastes and government regulatory initiatives evolve, we adapt while staying true to. HANOVER, Pa.--(BUSINESS WIRE)--Utz Brands, Inc. (NYSE: UTZ) ("Utz†or the ...

Utz Brands, Inc. (NYSE:UTZ) announced a multi-phase project aimed at making upgrades at its facilities across the Utz Hanover, Pennsylvania campus. The food manufacturer will begin construction in 2026 to upgrade and modernize Utz's (NYSE:UTZ) Hanover headquarters to transform ...

Sep 18, 2025 11:30 AM Eastern Daylight Time Utz Brands Announces Investments in Hanover Campus Share HANOVER, Pa.--(BUSINESS WIRE)--Utz Brands, Inc. (NYSE: UTZ) ("Utz†or the "Company†), a leading U.S. manufacturer of branded salty snacks, is pleased to announce a multi-phase project aimed at upgrading facilities across the Utz Hanover, Pennsylvania campus. The following investments will begin in the coming months: "Utz is proud to have called Hanover headquarters for over 100 years, and we're pleased to s ...

Core Insights - QuadMed has partnered with Utz Brands to manage the Utz Health & Wellness Center, enhancing personalized health care services for over 4,300 eligible members [1][2][3] - The transition to QuadMed aims to improve health outcomes and deliver measurable value to employers by integrating primary care and occupational health [3][4] - QuadMed's model focuses on whole-person care, which is customized for each patient, reflecting a commitment to employee well-being and productivity [4][5] Company Overview - QuadMed is a health care experience company that provides direct access to whole-person care for employees and families, with over 30 years of experience in improving health and reducing costs [5] - Quad, the parent company of QuadMed, is a marketing experience company that offers a comprehensive range of marketing and print services, serving approximately 2,100 clients across various industries [6][7] - Utz Brands, Inc. manufactures a diverse portfolio of savory snacks and has a strong family heritage, distributing products nationally through multiple channels [9]

Group 1 - Utz Brands, Inc. is the third-largest company in the US for salty snacks, with a history spanning over 104 years [1] - The company is focused on expanding its market presence and product offerings in the salty snack segment [1]

Core Insights - The company is experiencing growth in its category, driven by investments in A&C (Advertising & Promotion) and distribution, which are supported by supply chain productivity and capital expenditures [1] Group 1: Supply Chain Transformation - The supply chain transformation and capital expenditure cycle that began last year is expected to continue through 2025 [1] - The company is focused on enhancing its manufacturing network and is assessing its progress in comparison to other packaged food companies regarding supply chain efficiencies [1]

Financial Data and Key Metrics Changes - The company spent $100 million on capital expenditures (CapEx) last year and expects to spend a similar amount this year, indicating a significant investment cycle [5][6] - The company is guiding for EBITDA to grow at a mid-teens level year-over-year in the second half, which would represent nearly 200 basis points of year-over-year EBITDA margin expansion [45][46] - Net leverage ticked up to 4.1 times this quarter, but the company maintains its expectation for net leverage to approach three times by fiscal year-end [52] Business Line Data and Key Metrics Changes - Boulder Canyon has been a significant contributor to top-line sales, surpassing the initial target of $100 million and expected to reach closer to $200 million by year-end [18][23] - The productivity program is expected to normalize around 3% to 4% in the future, with current savings at 6% of cost of goods sold (COGS) [8][12] Market Data and Key Metrics Changes - Distribution gains in core markets have been around 10%, while expansion geographies have seen gains of approximately 18% [20] - The company has experienced both value and volume market share gains in core markets for the first time in several quarters [31][32] Company Strategy and Development Direction - The company is focused on supply chain transformation and capital investments to drive productivity and efficiency [4][5] - There is a commitment to maintain a strong brand presence and invest in marketing and innovation, with a target of reaching 3% to 4% of sales in advertising and consumer spending over time [48][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the salty snack category, noting that household penetration continues to grow, indicating consumer demand [38] - The competitive environment has been rational, with no unusual activity from competitors, which is seen as a positive for the company [36] Other Important Information - The company has been active in the M&A market but has slowed down due to a focus on debt paydown, with a high hurdle for any potential acquisitions [58][60] - The company is seeing improvements in the convenience store channel, which had previously been slower than desired [65] Q&A Session Summary Question: What drove the organic sales growth outlook increase? - The company raised its outlook for organic sales growth due to strong distribution gains and the performance of Boulder Canyon, expecting a good year despite a dynamic competitive environment [42][43] Question: What are the key drivers for EBITDA margin expansion in the second half? - Key drivers include productivity gains from CapEx investments and a discrete item related to the Grand Rapids facility closure, contributing to a strong EBITDA close for the year [45][46] Question: How is the company addressing the slower performance in the convenience channel? - The company acknowledges past assortment management choices that affected performance but is now seeing distribution gains and expects to be around flattish before the end of the year [65]

Core Insights - Utz Brands reported Q2 2025 GAAP revenue of $366.7 million, exceeding analyst expectations by $4.57 million, while Non-GAAP earnings per share were $0.17, missing estimates by $0.01 [1][2] - The company experienced a 2.9% year-over-year increase in GAAP revenue, driven by a 5.4% organic growth in branded salty snacks, which represent 88% of total sales [5][6] - Despite revenue growth, escalating costs constrained margins, leading to a significant 60.2% decline in net income compared to the previous year [2][7] Financial Performance - Non-GAAP EPS for Q2 2025 was $0.17, down 10.5% from $0.19 in Q2 2024 [2] - Adjusted EBITDA decreased by 2.0% to $48.7 million, while adjusted gross profit margin improved to 39.8%, up 2.2 percentage points year-over-year [2][7] - Selling, distribution, and administrative costs rose to $119.5 million, representing 32.6% of sales, up from 29.4% in Q2 2024 [7] Business Strategy - The company focuses on geographic expansion and investment in its "Power Four" product families, aiming to enhance operational efficiency and distribution [4][5] - Utz's retail sales increased by 3.3% in a category that saw a 1.5% decline, indicating strong consumer demand for its branded products [6] - The company is consolidating its supply network, closing a facility in Grand Rapids, Michigan, to drive productivity savings [8] Future Outlook - Management raised the organic net sales growth forecast for FY2025 to at least 2.5%, while adjusting the adjusted EBITDA growth guidance to a range of 7% to 10% [11] - The outlook for adjusted earnings per share was lowered to 7% to 10% growth due to increased capital expenditures and rising interest expenses [11] - The company aims to reduce its net leverage ratio to around 3 times by the end of FY2025, down from 4.1 times currently [12]

Financial Data and Key Metrics Changes - EBITDA was roughly flat in the first half of the year, with a projected growth of 8.5% for the full year, implying high teens growth in the second half [6][19] - EPS guidance was revised from 10-15% growth to 7-10% growth, with a midpoint impact of about 3 cents due to increased interest expense and accelerated depreciation [19][20] Business Line Data and Key Metrics Changes - Significant growth was observed in potato chips, while tortilla chips and pretzels were below trend, with specific brands performing variably [23][26] - Boulder Canyon brand is expected to continue strong growth, with distribution gains across both core and expansion markets [71][72] Market Data and Key Metrics Changes - Distribution gains were noted across all 30 expansion geographies, with strong retailer support from national chains [33][34] - The convenience store channel is showing improvement, with expectations to reach flattish performance by year-end [65] Company Strategy and Development Direction - The company is focused on westward expansion and infrastructure investments to support distribution gains [11][35] - Marketing strategies include increased spending in retail media and social media to support geographic expansion and brand introduction [91][92] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving productivity savings and margin expansion, with a positive outlook for the second half of the year [9][56] - The company believes the category will continue to grow, driven by household penetration and repeat purchases [107][109] Other Important Information - The company is nearing the end of its manufacturing optimization efforts, with significant productivity improvements already realized [85][87] - CapEx spending is expected to peak in 2025, with a focus on automation and efficiency improvements [21][88] Q&A Session Summary Question: What gives confidence in the EBITDA growth outlook despite flat performance in the first half? - Management cited investments in infrastructure and productivity savings as key drivers for expected growth in the second half [7][9] Question: Can you clarify the changes in EPS guidance? - EPS growth was revised down due to increased interest expenses and accelerated depreciation from higher CapEx spending [19][20] Question: What is driving the strong top-line results? - The company attributed growth to distribution gains, improved volume and value share in core markets, and investments in westward expansion [10][11] Question: How is the company addressing the performance of tortilla chips and pretzels? - Management noted that tortilla chips faced promotional overlaps, while pretzel performance varied by brand, with some brands performing well [26][27] Question: What is the outlook for the convenience store channel? - The company expects the convenience store channel to improve and reach flattish performance by year-end, supported by better product assortment [65] Question: How is the company managing supply chain and manufacturing efficiency? - The company has made significant strides in optimizing manufacturing and is now focusing on automation and efficiency improvements [85][87] Question: What is the long-term outlook for category growth? - Management remains bullish on long-term category growth, citing strong household penetration and repeat purchases as positive indicators [107][109] Question: How is the company addressing consumer interest in protein products? - The company is exploring opportunities in the protein segment while ensuring that products meet consumer taste preferences [111][112]

Financial Performance - Net Sales grew by 2.9% to $366.7 million in 2Q'25[15, 67] - Branded Salty Snacks Net Sales increased by 5.4%[15, 22, 68] - Adjusted EBITDA decreased by 2.0% to $48.7 million[15, 20, 66, 67] - Adjusted EPS decreased by 10.5% to $0.17[15, 20, 66, 67] - Adjusted Gross Profit increased by 9.0% to $146.1 million, with a margin of 39.8% of Net Sales, a 220 bps expansion[15, 67, 68, 99] Market Share and Volume Growth - The company achieved its 8th consecutive quarter of volume share growth in the Salty Snacks Category[15] - The company holds a 5.7% volume share and a 4.3% dollar share in the Salty Snacking category[29] - Retail volume for Power Four Brands increased by 6.3%, leading to a 5.7% increase in retail sales dollars[31] Strategic Initiatives - The company is optimizing its manufacturing network by closing the Grand Rapids plant, reducing the footprint to 7 primary plants[16] - The company anticipates approximately 6% productivity savings in 2025 as part of its supply chain transformation[18] - The company is updating its FY25 outlook, expecting Organic Net Sales to grow by 2.5% or better and Adjusted EBITDA to increase by 7% to 10%[15, 93]