Utz Brands Surpasses Q3 Expectations, Confirms 2024 Outlook

HANOVER, Pa. - Utz Brands, Inc. (NYSE:UTZ) announced third-quarter earnings that exceeded analyst expectations. The snack food manufacturer recorded strong organic sales growth and margin expansion. The company also reaffirmed its full-year guidance for 2024.

Utz shares increased by 0.56% following the earnings announcement.

Utz reported adjusted earnings of $0.21 per share for the third quarter, surpassing the consensus estimate of $0.20. Revenue came in at $365.5 million, slightly above analysts' expectations of $364.02 million.

Organic net sales grew by 1.9% year-over-year. This increase was driven by a 2.4% volume/mix growth, while a 0.5% decline in pricing partially offset the gains. The company's Strong Brands segment saw robust growth during the quarter.

The adjusted gross profit margin rose by 270 basis points to 39.0%. This increase was attributed to efficiency initiatives and a favorable sales mix. Adjusted EBITDA increased by 3.6% to $54.0 million.

CEO Howard Friedman stated, "Our momentum in the third quarter continued with solid organic net sales growth, our seventh consecutive quarter of EBITDA margin expansion, and an approximately 24% increase in adjusted earnings per share."

Looking ahead, Utz reaffirmed its full-year outlook for 2024, which includes organic net sales growth of 2-2.5% and adjusted EBITDA growth of 5-8%. The company maintains its expectation for adjusted earnings per share growth of 28-32% for the year.