Utz Brands Reaffirms 2025 Outlook Following Strong Q1 Results
Utz Brands Inc. reported a solid start to fiscal 2025, with first-quarter results reflecting steady growth in its core branded salty snacks segment, despite broader category softness and pricing pressures.
For the quarter ended March 30, 2025, the company posted net sales of $352.1 million, a 1.6% increase from the prior year. Organic net sales rose 2.9%, driven by a 6.3% volume increase, partially offset by a 3.4% decline in price/mix, primarily due to the impact of bonus packs.
Branded salty snacks, which account for 87% of total net sales, saw organic growth of 4.9%, led by the company’s “Power Four Brands”: Utz, On The Border, Zapp’s, and Boulder Canyon. These brands experienced an 8.3% increase in volume, offset by a 3.4% decline in price/mix.
The company’s gross profit margin declined 90 basis points to 33.6%, while the adjusted gross profit margin expanded by 100 basis points to 38.2%, reflecting productivity savings that offset increased investments to support capacity expansion and growth.
Net income for the quarter was $5.7 million, up from $2.4 million a year earlier. Adjusted net income increased 7.2% to $22.3 million, with adjusted earnings per share rising 14.3% to $0.16. Adjusted EBITDA increased 3.9% to $45.1 million, with an adjusted EBITDA margin of 12.8%.
Utz reaffirmed its full-year 2025 guidance, expecting low-single-digit organic net sales growth and adjusted EPS growth of 10% to 15%. The company also projects capital expenditures of $90 million to $100 million for the year.
CEO Howard Friedman commented, “I’m pleased with our strong start to the year, as we delivered nearly 3% Organic Net Sales growth, and gained dollar and pound share of the Salty Snacks category in the first quarter. Our use of bonus packs and focused trade promotions have been effective in addressing consumer value needs. We’ve now shown our ability to grow despite category softness, due to our unique geographic expansion opportunity.”
