- Utz Brands Inc (NYSE:UTZ) reported first-quarter FY22 sales growth of 26.6% year-on-year to $340.8 million, beating the consensus of $311.1 million.
- Organic net sales improved 20.7% to $324.8 million.
- Adjusted gross profit grew 10.7% Y/Y to $115.7 million, while the adjusted gross profit margin contracted 487 basis points to 33.9%.
- The operating loss for the quarter was $(22.5) million versus an operating income of $9.3 million last year.
- Utz Brands held $14.9 million in cash and equivalents as of April 3, 2022.
- Adjusted EBITDA of $36.5 million decreased by 3.7%, and the adjusted EBITDA margin declined by 337 basis points to 10.7%.
- Adjusted EPS of $0.11 beat the analyst consensus of $0.09.
- "As a result of our strong top-line trends, we are raising our net sales growth expectations for fiscal 2022. Furthermore, we remain on track to achieve our profit outlook as our pricing actions, along with our productivity programs, give us confidence that we will be able to offset the continuing high inflation as we exit 2022 and move into 2023," said CEO Dylan Lissette.
- Outlook: Utz Brands raised its FY22 organic net sales growth outlook to 8% - 10% from 4% - 6%, and total net sales growth outlook to 10% - 13% from 7% - 10%.
- It raised gross input cost inflation from the low-double digits to mid-to-high-teens as key input costs have increased.
- Price Action: UTZ shares closed lower by 3.05% at $12.40 on Wednesday.
