2023-05-11 06:45:59 ET
Utz Brands ( NYSE: UTZ ) posted mixed results with its Q1 earnings report .
Revenue increased 3.1% year-over-year to $351.4M, but missed the consensus expectation by a little over $1M.
Organic sales increased 4.0% year-over-year during the quarter. The growth was driven by favorable price of 9.7%, partially offset by volume/mix declines of 5.7%. The volume decline was primarily due to lapping strong volume growth of 11.3% in the prior year period and the company’s ongoing SKU rationalization program focused on reductions in private label and certain partner brands. Utz Brands ( UTZ ) estimates the program impacted volume negatively in the quarter by approximately 4%.
Adjusted gross profit increased 4.6% to $121.0M or 34.4% of sales. The increase in profit as a percentage of sales was primarily driven by higher net price realization, improved product mix, and ongoing benefits from the company’s productivity initiatives. Those benefits were partially offset by higher commodity and labor inflation
Adjusted EBITDA increased 10.7% to $40.4M or 11.5% of sales.
"We remain well-positioned to deliver strong performance for the full year, as our Salty Snack category remains resilient, and we continue to execute against our key portfolio optimization, geographic expansion, and productivity strategies," noted CEO Howard Friedman.
On the balance sheet, Utz Brands ( UTZ ) ended teh quarter with cash on hand of $57.9M and $140.8M was available under the company’s revolving credit facility, providing liquidity of approximately $199M. Net debt of $891.8M at the end of the quarter resulted in a net leverage ratio of 5.1X.
Shares of Utz Brands were flat in premarket action.
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Utz Brands sees higher pricing more than offset volume declines in Q1