Utz Brands, Inc. First Quarter 2025 Earnings Presentation May 1, 2025 Disclaimer Forward-LookingStatements 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 o ...

Financial Performance - Net sales for the thirteen weeks ended March 30, 2025, were $352.1 million, representing an increase of $5.6 million or 1.6% compared to $346.5 million for the same period in 2024[90]. - Gross profit decreased to $118.2 million for the thirteen weeks ended March 30, 2025, down from $119.6 million in the prior year, resulting in a gross profit margin of 33.6% compared to 34.5%[92]. - Selling, distribution, and administrative expenses increased by $3.8 million or 3.5% to $113.2 million for the thirteen weeks ended March 30, 2025, primarily due to higher personnel and delivery costs[93]. - Net income attributable to controlling interest was $7.5 million for the thirteen weeks ended March 30, 2025, compared to a net loss of $3.99 million in the same period of 2024[90]. - Adjusted EBITDA for the thirteen weeks ended March 30, 2025, was $45.1 million, compared to $43.4 million for the same period in 2024, with an Adjusted EBITDA margin of 12.8%[101]. Debt and Financing - As of March 30, 2025, the company had $739.3 million in variable rate indebtedness, an increase from $690.1 million as of December 29, 2024[81]. - The weighted average interest rate for the thirteen weeks ended March 30, 2025, was 4.9%, down from 6.6% during the same period in 2024[81]. - The company recorded a loss on debt extinguishment of $0.5 million related to the refinancing of its Term Loan B during the thirteen weeks ended March 30, 2025[107]. - As of March 30, 2025, $50.0 million was outstanding under the asset-based lending (ABL) facility, with $109.5 million available for borrowing[108]. - Net cash provided by financing activities was $67.6 million for the thirteen weeks ended March 30, 2025, primarily from net borrowings of $80.4 million, compared to net cash used of $154.0 million in the same period of 2024[115]. Operational Highlights - The company operates eight primary manufacturing facilities across the United States, distributing products through approximately 2,400 direct-store delivery routes[74]. - For the thirteen weeks ended March 30, 2025, retail volumes and retail sales in Expansion Geographies increased by 8.9% and 4.9%, respectively, compared to the prior year period[76]. - Boulder Canyon brand experienced a growth of 158.8% in same store velocities for the thirteen weeks ended March 30, 2025, compared to the prior year[84]. - The Core Geographies retail volumes and retail sales were up 2.9% and down 3.7%, respectively, for the thirteen weeks ended March 30, 2025, compared to the prior year[76]. Asset Management - The company sold certain assets and brands for $167.5 million on February 5, 2024, including the Good Health and R.W. Garcia brands[82]. - The company incurred $7.4 million in costs related to acquisitions, divestitures, and investments for the thirteen weeks ended March 30, 2025, compared to a gain of $44.0 million in the prior year[106]. - Cash used in investing activities for the thirteen weeks ended March 30, 2025 was $40.7 million, driven by purchases of property and equipment, contrasting with cash provided by investing activities of $158.0 million in the prior year, mainly from the sale of a business[114]. Tax and Other Income - Other (expense) income, net was $(0.6) million for the thirteen weeks ended March 30, 2025, a decrease of $19.9 million compared to $19.3 million in the prior year, primarily due to the absence of a $44.0 million gain on the sale of business[95]. - Income tax benefit for the thirteen weeks ended March 30, 2025, was $(0.6) million, a significant decrease from $26.5 million in the prior year, largely due to the Good Health and R.W. Garcia Sale[96]. Compliance and Risk Management - The company was in compliance with all financial and other covenants under the credit agreements as of March 30, 2025[116]. - The company partially guarantees loans made to IOs, which are collateralized by the routes purchased, allowing for recovery of outstanding loan value upon default[110]. - Long-term cash requirements include funding long-term debt repayments and related interest payments, as well as obligations related to deferred taxes and operating lease liabilities[112]. - There have been no material changes in market risk exposures since the last annual report filed on February 20, 2025[119]. - The company has not made any changes to critical accounting policies and estimates since the last annual report[118].

Financial Results - Utz Brands, Inc. announced preliminary first fiscal quarter 2025 results, reaffirming financial guidance for fiscal year 2025[4]. - The company reported GAAP Net Sales for fiscal year 2024, with a detailed summary by fiscal quarter available in the presentation[5]. - The company’s financial results are subject to completion of financial closing procedures and review by independent auditors[4]. Executive Changes - Ajay Kataria will transition from his role as CFO effective May 1, 2025, and will assist in a special advisor role until May 31, 2025[7]. - William J. Kelley Jr. has been appointed as the new CFO, with an annual base salary of $575,000 and a signing bonus of $50,000[11]. - Mark Schreiber, Executive Vice President, Sales and Chief Customer Officer, will retire effective May 31, 2025, and will assist in a special advisor role until June 30, 2025[12]. - Jeremy Stuart will assume the position of Executive Vice President, Sales and Chief Customer Officer effective May 31, 2025[13]. Compensation and Incentives - The new CFO will be eligible for annual incentive awards under the company's equity incentive plan, with a target grant value of 135% of his base salary[11]. - The company’s performance stock units and restricted stock units will continue to vest for departing executives based on performance metrics[12]. Additional Information - The press release and additional financial information are attached as exhibits to the current report[14].

Core Viewpoint - The article compares Utz Brands (UTZ) and Mondelez (MDLZ) to determine which company presents a better investment opportunity for value investors, highlighting UTZ as the superior option based on various valuation metrics [1]. Valuation Metrics - Utz Brands has a forward P/E ratio of 16.56, while Mondelez has a forward P/E of 23.10, indicating that UTZ is currently valued more favorably [5]. - The PEG ratio for UTZ is 1.75, compared to Mondelez's PEG ratio of 4.42, suggesting that UTZ offers better value relative to its expected earnings growth [5]. - The P/B ratio for UTZ is 1.43, while Mondelez has a P/B of 3.28, further supporting the notion that UTZ is undervalued compared to MDLZ [6]. Earnings Outlook - Utz Brands is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, indicating a positive trend in earnings estimates [7].

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and ...

Core Viewpoint - Investors in the Food - Miscellaneous sector should consider Utz Brands (UTZ) and Danone (DANOY) as potential value opportunities, with a closer examination needed to determine which stock offers better value [1] Valuation Metrics - Both Utz Brands and Danone currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - Utz Brands has a forward P/E ratio of 16.54, while Danone has a forward P/E of 19.53, suggesting that UTZ may be undervalued compared to DANOY [5] - The PEG ratio for Utz Brands is 1.75, compared to Danone's PEG ratio of 4.94, indicating that UTZ has a more favorable growth valuation [5] - Utz Brands has a P/B ratio of 1.43, while Danone's P/B ratio is 2.69, further supporting the argument that UTZ is the superior value option [6] - Based on these valuation figures, Utz Brands has a Value grade of B, while Danone has a Value grade of C, reinforcing the assessment of UTZ as the better value investment [6]

Group 1: Stock Performance and Price Targets - Utz Brands (UTZ) shares have increased by 0.8% over the past four weeks, closing at $13.47, with a mean price target of $18.11 indicating a potential upside of 34.5% [1] - The average of nine short-term price targets ranges from a low of $16 to a high of $20, with a standard deviation of $1.45, suggesting a potential increase of 18.8% to 48.5% from the current price [2] Group 2: Analyst Insights and Earnings Estimates - Analysts show a consensus that UTZ will report better earnings than previously estimated, which is a positive indicator for potential stock upside [4] - The Zacks Consensus Estimate for the current year has risen by 3.9% over the past month, with five estimates increasing and no negative revisions [10] - UTZ holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Group 3: Caution on Price Targets - Solely relying on consensus price targets for investment decisions may not be wise, as analysts' ability to set accurate targets has been questioned [3][5] - Analysts often set overly optimistic price targets due to business incentives, which can lead to inflated estimates [6] - While a tight clustering of price targets indicates agreement among analysts, it does not guarantee that the stock will reach the average target [7]

Core Viewpoint - The article highlights Utz Brands as a promising growth stock, supported by its favorable growth metrics and Zacks Rank, indicating strong potential for investors seeking growth opportunities [2][10]. Earnings Growth - Utz Brands has a historical EPS growth rate of 5.4%, but projected EPS growth for the current year is expected to be 10.6%, significantly outperforming the industry average of 4.8% [5]. Cash Flow Growth - The year-over-year cash flow growth for Utz Brands stands at 13.6%, surpassing the industry average of 4.6%. Additionally, the company's annualized cash flow growth rate over the past 3-5 years is 61.3%, compared to the industry average of 4.8% [6][7]. Earnings Estimate Revisions - The current-year earnings estimates for Utz Brands have been revised upward, with the Zacks Consensus Estimate increasing by 3.9% over the past month, indicating positive momentum [9]. Overall Assessment - Utz Brands has achieved a Zacks Rank of 2 (Buy) and a Growth Score of B, reflecting its strong growth characteristics and potential as a solid choice for growth investors [10][11].

Core Viewpoint - Investors in the Food - Miscellaneous sector should consider Utz Brands (UTZ) and Kerry Group PLC (KRYAY) for potential value opportunities, with UTZ currently presenting a better value option based on various financial metrics [1]. Valuation Metrics - UTZ has a forward P/E ratio of 15.97, while KRYAY has a forward P/E of 19.48, indicating that UTZ may be undervalued compared to KRYAY [5]. - The PEG ratio for UTZ is 1.69, which is comparable to KRYAY's PEG ratio of 1.71, suggesting similar expected earnings growth rates [5]. - UTZ's P/B ratio stands at 1.38, significantly lower than KRYAY's P/B of 2.46, further supporting the notion that UTZ is a more attractive value investment [6]. Analyst Outlook - UTZ holds a Zacks Rank of 2 (Buy), reflecting a more favorable earnings estimate revision activity compared to KRYAY, which has a Zacks Rank of 3 (Hold) [3]. - The solid earnings outlook for UTZ, combined with its superior valuation metrics, positions it as the preferred choice for value investors [6].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Utz Brands identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Utz Brands has a historical EPS growth rate of 5.4%, but projected EPS growth for the current year is expected to be 8.8%, surpassing the industry average of 6% [4]. Group 2: Cash Flow Growth - The year-over-year cash flow growth for Utz Brands stands at 13.6%, significantly higher than the industry average of 5.5% [5]. - Over the past 3-5 years, the annualized cash flow growth rate for Utz Brands has been 61.3%, compared to the industry average of 4.3% [6]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Utz Brands have been revised upward, with the Zacks Consensus Estimate increasing by 2.8% over the past month [8]. - The positive trend in earnings estimate revisions supports the stock's potential for near-term price movements [7]. Group 4: Overall Positioning - Utz Brands holds a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [9][10].