Utz Brands(US:UTZ)2025-10-30 10:43Financial Performance - Net Sales increased by 3.4% to $377.8 million compared to $365.5 million in the prior year period[5] - Organic Net Sales growth was 3.4%, with Branded Salty Snacks Organic Net Sales growth at 5.8%[5] - Adjusted Net Income increased by 13.2% to $33.5 million, while Net Income decreased to $(20.2) million[8] - Adjusted EBITDA increased by 11.7% to $60.3 million, representing 16.0% of Net Sales[9] - Gross Profit Margin declined by 220bps to 33.6%, but Adjusted Gross Profit Margin expanded by 210bps to 41.1%[6] - Net sales for the thirteen weeks ended September 28, 2025, were $377.8 million, an increase from $365.5 million for the same period in 2024, representing a growth of approximately 6.3%[43] - Gross profit for the thirteen weeks ended September 28, 2025, was $126.9 million, down from $131.0 million in the prior year, indicating a decrease of about 3.1%[43] - The company reported a net loss of $20.2 million for the thirteen weeks ended September 28, 2025, compared to a net income of $0.8 million in the same period of 2024[43] - The company reported a net loss of $4.4 million for the thirty-nine weeks ended September 28, 2025, compared to a net income of $28.6 million for the same period in 2024[46] - The comprehensive loss for the thirteen weeks ended September 28, 2025, was $22.7 million, compared to a comprehensive loss of $14.7 million in the prior year[43] Expenses and Costs - Selling, Distribution, and Administrative Expenses increased to $123.1 million, or 32.6% of Net Sales[7] - Total selling, distribution, and administrative expenses increased to $123.1 million from $110.0 million, reflecting a rise of approximately 11.9%[43] - The company experienced a significant increase in depreciation and amortization expenses, rising to $60.4 million from $53.4 million year-over-year[49] - Adjusted Selling, Distribution, and Administrative Expense for the 13 weeks ended September 28, 2025, was $93.8 million, or 24.8% of Net Sales, compared to $88.7 million and 24.3% in 2024[54] - Business transformation initiatives resulted in costs of $20.1 million for the thirteen weeks ended September 28, 2025, compared to $8.1 million for the same period in 2024[61] - The company incurred $34.6 million in business transformation costs for the thirty-nine weeks ended September 28, 2025, compared to $18.4 million in the prior year[61] Liquidity and Debt - Total liquidity as of September 28, 2025, was $197.7 million, with net debt of $807.9 million and a Net Leverage Ratio of 3.9x[13] - Total current assets increased to $333.4 million as of September 28, 2025, up from $317.3 million as of December 29, 2024[48] - Total liabilities rose to $1,414.5 million as of September 28, 2025, compared to $1,340.7 million as of December 29, 2024[48] - Cash and cash equivalents at the end of the period were $57.7 million, a slight increase from $56.1 million at the beginning of the period[49] - Total net debt as of September 28, 2025, was $807.9 million, with a net leverage ratio of 3.9x based on trailing twelve months Normalized Adjusted EBITDA[63] - Gross debt amounted to $865.6 million, which includes term loans, real estate loans, and equipment loans[63] Future Outlook - The company raised its 2025 Organic Net Sales growth outlook to approximately 3% from a prior expectation of 2.5%[16] - The company expects Adjusted EBITDA growth of 7% to 10% and Adjusted Earnings Per Share growth of 7% to 10% for fiscal year 2025[20] Shareholder Information - The weighted-average shares of Class A Common stock outstanding increased to 86,958,867 from 82,445,064 year-over-year[43] - The weighted-average shares of Class A Common stock outstanding increased to 86,266,184 from 81,763,848[46] - Adjusted Earnings Per Share for the 13 weeks ended September 28, 2025, was $0.23, reflecting a 9.5% increase from $0.21 in 2024[55] Adjustments and Impairments - The adjustment related to purchase commitments and other adjustments was an expense of $2.7 million for the thirteen weeks ended September 28, 2025, compared to $1.5 million for the same period in 2024[61] - Acquisitions and divestitures incurred expenses of $10.0 million for the thirteen weeks ended September 28, 2025, up from $2.8 million in the prior year[61] - The company recorded an impairment charge of $0.6 million during the 39 weeks ended September 28, 2025[60] Performance Metrics - Adjusted EBITDA is a key performance indicator used to evaluate operating performance, and it is calculated by excluding certain non-cash adjustments and other cash adjustment items[37] - Normalized Adjusted EBITDA for FY 2025 was $207.2 million, slightly up from $200.2 million in FY 2024[62] - EBITDA for the 13 weeks ended September 28, 2025, was $23.8 million, a decrease of 22.0% from $30.5 million in 2024[58] - Adjusted EBITDA for the 13 weeks ended September 28, 2025, was $60.3 million, an increase of 11.7% from $54.0 million in 2024[58]