Utz Brands reported its sales increased by 26.6% year-over-year, with the release of its financial results for the first quarter. Organic net sales saw a 20.7% increase year over year.
“We are pleased to deliver record first-quarter net sales with Organic Net Sales growth of nearly 21%,” said Dylan Lissette, Chief Executive Officer of Utz. “Consumer demand for our strong portfolio of brands is at an all-time high, and we are incredibly excited about the continued opportunity to improve our market position in key growth channels and geographies. In addition, as inflation continues to increase, we are taking incremental price actions to help offset higher costs, and we are encouraged by our continued sales volume increases as price elasticity is better than we anticipated,” Lissette continued. The results give the company confidence to raise its net sales growth expectations for 2022 as it remains on track to achieve the profit outlook. The pricing strategy is said to help Utz offset the continuing high inflation as anticipated for the end of 2022 and the beginning of 2023.
The company’s Power Brands’ retail sales increased by 20.1% compared to last year, led by Utz®, ON THE BORDER®, Zapp’s®, TORTIYAHS!®, Hawaiian®, TGI Fridays®, and Boulder Canyon®. Retail sales increased by double digits across all three geographies: core, expansion, and emerging.
For fiscal 2022, Utz is raising its total net sales growth outlook from 7-10% to 10-13%, reflecting strong consumer demand for the snacking brands, and higher pricing related to increased input costs.
Current geopolitical developments prompt incremental pricing actions this year, to help offset cost increases. The company is expecting to offset higher inflation in fiscal 2022, maintaining its Adjusted EBITDA outlook unchanged.
Additionally, in the fiscal year 2022, the Company now expects capital expenditures of approximately USD 50 million, excluding the impact of the USD 38.4 million Kings Mountain acquisition.
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