HANOVER, Pa. - Utz Brands, Inc. (NYSE: UTZ), a prominent U.S. manufacturer of branded salty snacks, announced its financial results for the fourth quarter ending December 31, 2023.
The company reported an adjusted earnings per share (EPS) of $0.16, aligning with analyst expectations. However, revenue slightly missed the mark at $352.1 million against the analyst consensus of $354.7 million.
In the fourth quarter, Utz Brands experienced a marginal year-over-year (YoY) decline in net sales by 0.7%. Organic net sales also saw a slight decrease of 0.3% YoY. Despite these drops, the company's adjusted EBITDA presented a positive turn, increasing by 12% YoY to $49.4 million.
The net loss for the quarter was significant, at -$33.2 million compared to a net income of $13.8 million in the same period last year. This loss was primarily attributed to income tax expenses and losses from the remeasurement of private placement warrant liability, along with increased interest expenses due to higher rates on the company's floating rate debt.
Utz Brands CEO Howard Friedman commented on the company's performance, stating, "In 2023 we evolved through capacity, distribution, and capability investments that position Utz to capture its full potential." He expressed pride in the company's progress and highlighted the strategic dispositions completed on February 5, 2024, which are expected to fast-track deleveraging and focus the brand portfolio.
Looking ahead to fiscal 2024, Utz Brands anticipates organic net sales growth of approximately 3% or better, driven by volume growth. Adjusted EBITDA is expected to grow between 5% to 8%, and adjusted EPS is projected to increase by 16% to 21%. These forecasts consider the impact of the recent brand dispositions and the utilization of net proceeds to reduce long-term debt.
Utz Brands, Inc. manufactures a diverse range of savory snacks under popular brands such as Utz®, On The Border®, Zapp's®, and Boulder Canyon®, among others. With multiple manufacturing facilities across the U.S., the company continues to distribute its products nationally through various channels.
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