Utz Brands Reports 2.1% Increase in Net Sales, Posts $7.7 Million Net Loss for Fiscal Year 2025

Utz Brands, Inc. reported a modest increase in net sales for the fiscal year ended December 28, 2025, reaching $1.439 billion, up 2.1% from $1.409 billion in the previous year. The growth was primarily driven by a favorable volume/mix effect of 3.7%, although this was partially offset by a 1.3% decline in net price realization and a 0.3% reduction due to the divestiture of the Good Health and R.W. Garcia brands. The company's gross profit decreased to $358.3 million, resulting in a gross margin of 24.9%, down from 26.2% in the prior year, attributed to increased supply chain costs and investments in capacity expansion.

In terms of operational changes, Utz Brands has been actively consolidating its manufacturing footprint, closing its Grand Rapids, Michigan facility as part of a broader supply chain transformation strategy. This move is expected to generate cost savings and enhance operational efficiency. Additionally, the company expanded its distribution capabilities by acquiring Insignia International’s direct-store delivery assets, which will facilitate its growth in California, a key market for salty snacks.

The company’s selling, general, and administrative expenses rose by 12.2% to $348 million, reflecting increased investments in marketing and selling capabilities to support geographic expansion. Despite these rising costs, Utz Brands reported a net loss of $7.7 million for the year, compared to a net income of $30.7 million in the previous fiscal year. This shift was influenced by a significant gain on the sale of business recorded in the prior year, as well as increased interest expenses and a valuation allowance against deferred tax assets.

Utz Brands continues to focus on innovation and product development, particularly in the better-for-you snack segment, which has seen substantial growth. The Boulder Canyon brand, for instance, reported a 36.9% increase in retail sales within the natural channel. The company is also committed to sustainability, with plans to remove artificial colors from its products by 2027, which may impact its market positioning and consumer perception.

Looking ahead, Utz Brands aims to leverage its strong brand portfolio and expand its market share in both core and expansion geographies. The company anticipates that ongoing investments in marketing, innovation, and operational efficiencies will support its long-term growth strategy, despite the challenges posed by competitive pressures and rising operational costs.