Snacks maker Utz Brands' Q2 sales beat estimates

Utz Brands

31/07/2025 11:41

Overview

Utz Brands 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/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$366.70 mln
$362.10 mln (10 Analysts)
Q2 Adjusted EPS
Miss
$0.17
$0.18 (10 Analysts)
Q2 Adjusted Net Income
$23.60 mln
Q2 Adjusted EBITDA
$48.70 mln
Q2 Adjusted Gross Margin
39.8%
Q2 Gross Profit
$126.80 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 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: ID:nBw75gFYWa

(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.)