Utz Brands Reports 3.4% Sales Increase but $20.2 Million Net Loss in Third Quarter

Utz Brands, Inc. reported its financial results for the thirteen and thirty-nine weeks ended September 28, 2025, revealing a net sales increase of 3.4% to $377.8 million for the third quarter, compared to $365.5 million in the same period last year. For the thirty-nine weeks, net sales rose by 2.7% to $1,096.6 million from $1,068.2 million. However, the company experienced a net loss of $20.2 million for the third quarter, a significant decline from a net income of $0.8 million in the prior year. The thirty-nine-week period also saw a net loss of $4.4 million, down from a profit of $28.6 million in the same timeframe last year.

The company's gross profit for the third quarter was $126.9 million, down from $131.0 million a year earlier, resulting in a gross profit margin of 33.6%, compared to 35.8% in the prior year. This decline was attributed to increased investments aimed at capacity expansion and growth. Selling, distribution, and administrative expenses rose by 11.9% to $123.1 million, driven by higher personnel and delivery costs associated with growth initiatives. The company also reported a loss on the sale of assets of $0.5 million, a slight improvement from a loss of $1.5 million in the previous year.

Strategically, Utz Brands has been consolidating its manufacturing footprint, announcing the closure of its Grand Rapids, Michigan facility as part of a broader supply chain transformation. This decision is expected to generate cost savings and enhance operational efficiency. Additionally, the company has been actively expanding its geographic reach, with a focus on California, where it recently acquired Insignia International’s DSD distribution assets. This acquisition is part of Utz's strategy to penetrate the largest U.S. market for salty snacks, which has a retail sales value of $4.1 billion.

In terms of operational metrics, Utz Brands reported that its products are now found in approximately 50% of U.S. households. The company operates eight primary manufacturing facilities across the country and has a direct-store delivery network comprising about 2,400 routes. Despite the challenges faced in the current fiscal year, the company has seen growth in its branded salty snacks segment, particularly with the Boulder Canyon brand, which has gained market share through innovative product offerings.

Looking ahead, Utz Brands remains focused on its long-term growth strategy, which includes investments in marketing and innovation to drive sales and market share. The company anticipates that the salty snack category will continue to benefit from favorable consumer trends, despite recent pricing pressures. However, the company also acknowledges the competitive landscape and the potential impact of rising commodity costs on profitability. The management is committed to enhancing operational efficiencies and maintaining a prudent capital structure to support ongoing growth initiatives.