Utz Brands ( NYSE: UTZ ) is on watch after topping the estimates of analysts with its Q3 earnings report and lifting full-year guidance.
Totals sales rose 16.0% to $363M during the quarter. Organic sales were up 12.6% during the quarter and acquisitions contributed 4.7 percentage points of growth.
Organic sales growth was driven by favorable price/mix of +14.7%, partially offset by a volume -2.1%. Price elasticity was noted to be negligible, and volume growth was primarily impacted by SKU rationalization focused on reductions in private label and certain partner brands, and lapping strong promotional features in the mass channel in the prior year.
Adjusted gross profit increased to 36.5% of sales from 35.8% a year ago. The increase in gross profit was primarily driven by higher net price realization, improved mix, and ongoing benefits from the company’s productivity programs. Those benefits were partially offset by higher commodity, transportation, and labor inflation, which were said to be collectively the result of industry-wide supply chain challenges.
Adjusted EBITDA was reported at $47.7M vs. $44.8M a year ago.
"We have been on an impressive growth journey marked by rapid expansion in our scale, geographic reach, and portfolio of brands and products," said CEO Dyan Lissette.
Looking ahead, Utz Brands ( UTZ ) sees full-year sales growth of +17 to +19% vs. +13% to +15% prior view.
Shares of UTZ rose 1.05% in premarket trading following the earnings topper.
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Utz Brands leans on higher pricing to cruise past Q3 estimates