Utz Brands Reports 2.9% Net Sales Increase to $366.7 Million for Quarter Ended June 29, 2025

Utz Brands, Inc. reported a net sales increase of 2.9% for the thirteen weeks ended June 29, 2025, reaching $366.7 million compared to $356.2 million in the same period last year. The growth was primarily driven by a favorable volume/mix effect of 3.9%, although this was partially offset by a 1.0% decline in net price realization. For the twenty-six weeks ended June 29, 2025, net sales also rose by 2.3% to $718.8 million from $702.7 million in the prior year. Gross profit for the quarter was $126.8 million, yielding a gross margin of 34.6%, slightly down from 35.0% a year earlier, attributed to increased investments in capacity expansion.

The company experienced a significant rise in selling, distribution, and administrative expenses, which totaled $119.5 million for the latest quarter, up 14.2% from $104.6 million in the prior year. This increase was largely due to higher personnel and delivery costs associated with growth initiatives. In contrast, Utz reported a net income of $10.1 million for the quarter, a decrease from $25.4 million in the same quarter of 2024. The decline in profitability was influenced by a lack of gains from asset sales, as the previous year included a $44 million gain from the sale of the Good Health and R.W. Garcia brands.

Utz's operational metrics indicate a strategic focus on expanding its market presence. The company operates eight manufacturing facilities across the U.S. and has a distribution network that includes approximately 2,400 direct-store delivery routes. The company has also been actively converting its distribution model from company-owned routes to independent operators, which has resulted in a decrease in selling expenses but also a reduction in net sales and gross profit. As of June 29, 2025, Utz's total assets increased to $2.84 billion from $2.73 billion at the end of 2024, with total liabilities rising to $1.46 billion.

Looking ahead, Utz Brands is focused on its long-term growth strategy, which includes enhancing its product portfolio and expanding into new geographic markets. The company aims to leverage its strong brand recognition in the salty snack category, which is valued at $41 billion in the U.S. Despite facing competitive pressures and rising operational costs, Utz anticipates continued growth driven by consumer demand for convenient snack options. The company is also evaluating the potential impacts of recent legislative changes, including the One Big Beautiful Bill Act, on its financial outlook.