Utz Brands Reports 1.6% Increase in Net Sales and Significant Net Income Growth

Utz Brands, Inc. reported a modest increase in financial performance for the thirteen weeks ended March 30, 2025, with net sales reaching $352.1 million, up 1.6% from $346.5 million in the same period last year. The company's gross profit was $118.2 million, resulting in a gross profit margin of 33.6%, a slight decline from 34.5% in the prior year. The increase in sales was attributed to a favorable volume/mix of 6.3%, although this was offset by a 3.4% decline in net price realization and a 1.3% impact from the sale of the Good Health and R.W. Garcia brands.

Compared to the previous fiscal period, Utz experienced a significant change in its operational dynamics. The company reported a net income of $5.7 million, a notable increase from $2.4 million in the prior year, primarily due to a gain on the remeasurement of warrant liabilities. However, the overall income before taxes decreased to $5.1 million from $28.9 million, largely due to the absence of a prior year gain on the sale of business amounting to $44 million. Selling, distribution, and administrative expenses rose by 3.5% to $113.2 million, driven by increased costs associated with personnel and delivery.

Strategically, Utz has been active in its growth initiatives, including the divestiture of certain assets to affiliates of Our Home, which generated $167.5 million in cash. This sale included the Good Health and R.W. Garcia brands and associated manufacturing facilities. The company is also focusing on product innovation, particularly in its Boulder Canyon brand, which has seen significant growth in the better-for-you snack segment. The company operates eight manufacturing facilities across the U.S. and continues to expand its distribution network, which includes approximately 2,400 direct-store delivery routes.

Operationally, Utz reported an increase in its Class A Common Stock shares outstanding, rising to 86,061,753 as of March 30, 2025, from 83,537,542 at the end of the previous fiscal year. The company’s total assets increased to $2.78 billion, up from $2.73 billion, while total liabilities also rose to $1.40 billion from $1.34 billion. The company’s cash and cash equivalents improved to $62.7 million, compared to $56.1 million at the end of the previous fiscal year, reflecting a positive cash flow from financing activities.

Looking ahead, Utz Brands anticipates continued growth driven by its strategic focus on marketing and innovation within the salty snack category. The company aims to penetrate expansion geographies and enhance its product offerings while managing operational costs through productivity initiatives. However, it remains cautious about the competitive landscape and potential impacts from inflation and supply chain disruptions. The company’s management is committed to maintaining a flexible capital structure to support its growth objectives while navigating the challenges of the current market environment.