Overview

* Utz Brands ( UTZ ) fiscal Q2 net sales grow 2.9%, beating analyst expectations

* Adjusted EPS for fiscal Q2 misses estimates, declining 10.5% to $0.17

* Company to close Grand Rapids facility, part of supply chain transformation

Outlook

* Company raises 2025 Organic Net Sales growth outlook to 2.5% or better

* Utz expects 2025 Adjusted EBITDA growth of 7% to 10%

* Company lowers 2025 Adjusted EPS growth guidance to 7% to 10%

Result Drivers

* ORGANIC SALES GROWTH - Utz reports a 2.9% increase in total organic net sales for Q2, driven by a 5.4% rise in Branded Salty Snacks sales

* GROSS PROFIT MARGIN - Adjusted Gross Profit Margin expanded by 220bps, attributed to productivity savings offsetting increased investments for capacity expansion and growth, per CEO Howard Friedman

* GEOGRAPHIC EXPANSION - Growth strategy supported by geographic expansion, with value and volume share gains in core and expansion geographies, according to Friedman

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $366.70 $362.10

mln mln (10

Analysts

)

Q2 Miss $0.17 $0.18

Adjusted (10

EPS Analysts

)

Q2 $23.60

Adjusted mln

Net

Income

Q2 $48.70

Adjusted mln

EBITDA

Q2 39.8%

Adjusted

Gross

Margin

Q2 Gross $126.80

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food processing peer group is "hold."

* Wall Street's median 12-month price target for UTZ Brands Inc ( UTZ ) is $17.00, about 18.1% above its July 30 closing price of $13.93

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)