Utz reports US$5M net income for Q1 2025

USA – Utz Brands Inc. experienced a strong first quarter to kick off fiscal 2025, driven by robust sales of branded salty snacks and improved earnings, with a net income of US$5.7M, or 9 cents per share on common stock for the quarter ending March 30, up from US$2.4M, or 5 cents per share, in the same period last year.

For the first quarter, the company’s organic net sales grew by 2.9%, primarily fueled by a 4.9% increase in branded salty snacks, according to CEO Howard Friedman.

He noted that Utz gained both dollar and volume share in the salty snacks category for the 13 weeks ended March 31, 2025, thanks to the continued momentum of its “Power Four Brands.”

On an adjusted basis, net earnings reached US$22.3M, or 16 cents per share, compared to US$20.8M, or 14 cents per share, in the previous year. Analysts had projected an adjusted EPS of 16 cents.

Net sales for the first quarter totaled US$352.1M, reflecting a 1.6% increase from US$346.5M the year prior.

However, the divestiture of the R.W. Garcia and Good Health brands negatively impacted results by 1.3%. Organic net sales grew by 2.9% year over year, driven by a 6.3% volume gain, while there was a 3.4% decrease in price/mix—with 2.8% of that decrease attributed to the impact of bonus packs.

Utz’s branded salty snacks division, which constitutes 87% of total net sales, saw organic sales rise by 4.9%, spurred by its Power Four Brands: Utz, On The Border, Zapp’s, and Boulder Canyon.

This growth was on the back of an 8.3% increase in volume, despite a 3.4% decline in price/mix. Conversely, organic sales for non-branded and non-salty snacks (13% of net sales) fell by 8.8%, as volume decreased by 6.1% and price/mix declined by 2.7%.

By product category, Utz reported retail sales share growth in potato chips (up 2.7%), pretzels (up 2.2%), and pork rinds (up 8%) during the first quarter.

However, there were declines in tortilla chips (down 2.8%) and cheese snacks (down 3%), according to data from Circana and Utz.

Friedman emphasized that the Boulder Canyon brand continues to excel, gaining share in both natural and traditional channels, with impressive growth rates of 42% and 158%, respectively.

Boulder Canyon’s product lineup, primarily consisting of potato chips, also includes cheese corn snacks and meat snacks.

The brand has held the title of the top-selling salty snack SKU in the natural channel for the latest 13 and 52 weeks and is currently the number one potato chip brand in the U.S. natural channel for the year to date.

Utz reaffirmed its fiscal 2025 guidance, anticipating a 10% to 15% growth in adjusted EPS and low single-digit organic net sales growth. The company projects capital expenditures of US$90M to US$100M for the year.

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