Utz Brands(UTZ) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter net sales were $341.0 million, a decrease of 3.2% compared to $352.1 million in the prior year, impacted by the divestiture of R.W. Garcia® and Good Health® brands [8]. - Organic net sales were flat, with branded salty snacks increasing by 2.9%, while non-branded and non-salty snacks declined by 18.2% [8]. - Adjusted EBITDA increased by 7.5% to $53.1 million, representing 15.6% of net sales, driven by gross margin expansion [12]. - Adjusted net income rose by 41.5% to $32.4 million, with adjusted earnings per share increasing by 37.5% to $0.22 [11]. - For the fiscal year ended December 29, 2024, net sales were $1,409,281,000, a decrease of 2.0% from $1,438,237,000 in 2023 [42]. - The fiscal year 2024 gross profit increased to $494,777,000, up 8.4% from $456,486,000 in 2023 [42]. - Net income attributable to controlling interest for the fiscal year ended December 29, 2024, was $15,974,000, compared to a net loss of $24,937,000 in 2023 [42]. - Net income improved to $30,737 thousand for the fiscal year ended December 29, 2024, compared to a net loss of $40,032 thousand for the fiscal year ended December 31, 2023 [46]. - Reported net sales for the 52 weeks ended December 29, 2024, were $1,409.3 million, a decrease of 2.0% from $1,438.2 million in 2023 [47]. - Organic net sales for the 52 weeks ended December 29, 2024, increased by 1.3% to $1,411.3 million compared to $1,393.7 million in 2023 [47]. - Gross profit for the 52 weeks ended December 29, 2024, was $494.8 million, up from $456.5 million in 2023, reflecting a gross profit margin increase from 31.7% to 35.1% [50]. Liquidity and Debt - Total liquidity as of December 29, 2024, was $214.8 million, with net debt of $727.3 million and a net leverage ratio of 3.6x [14]. - Total current liabilities rose to $285,270 thousand as of December 29, 2024, compared to $230,686 thousand as of December 31, 2023, an increase of 23.6% [45]. - Cash and cash equivalents at the end of the period increased to $56,138 thousand from $52,023 thousand, marking an increase of 7.5% [46]. - Total Net Debt as of December 29, 2024, is $727.3 million, with a Gross Debt of $783.4 million [59]. - The Net Leverage Ratio stands at 3.6x based on a Normalized Adjusted EBITDA of $200.2 million [59][60]. - Cash and Cash Equivalents as of December 29, 2024, are $56.1 million, providing liquidity against total debt [59]. Expenses and Costs - Selling, distribution, and administrative expenses for the thirteen weeks ended December 29, 2024, totaled $111,711,000, an increase from $107,076,000 in 2023 [40]. - Adjusted Selling, Distribution, and Administrative Expense for the 13 weeks ended December 29, 2024, was $81.6 million, compared to $81.3 million for the same period in 2023, representing an increase of 0.4% [51]. - Total Depreciation and Amortization for the 52 weeks ended December 29, 2024, was $70.9 million, down from $79.5 million in the same period of 2023 [53]. - Acquisition, Divestiture, and Integration Costs for the fiscal year ended December 29, 2024, amounted to $20.9 million, compared to $9.7 million for the previous fiscal year [61]. - Business Transformation Initiatives incurred costs of $28.1 million for the fiscal year ended December 29, 2024, down from $31.0 million in the prior year [61]. Gains and Losses - The company reported a gain on the sale of business amounting to $44,015,000 for the fiscal year ended December 29, 2024 [42]. - A gain of $44.0 million was recorded related to the Good Health and R.W. Garcia Sale for the fiscal year ended December 29, 2024 [61]. - The company recorded a non-cash loss on sale of $13.7 million related to fixed assets for the sale of the Bluffton, Indiana plant for the fiscal year ended December 31, 2023 [56]. Future Outlook - For fiscal year 2025, the company expects low-single digit organic net sales growth and adjusted EBITDA growth of 6% to 10% [19]. - The effective tax rate for fiscal year 2025 is expected to be in the range of 17% to 19% [19]. - Capital expenditures for the fiscal year 2025 are projected to be between $90 million and $100 million, focusing on increasing manufacturing capacity [19].