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Utz Brands boosts Q4, FY 2022 sales, earnings results mixed

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March 2, 2023

Utz Brands Inc. lifted its Q4 and FY 2022 sales while earnings were mixed, according to an earnings release.

Highlights include:

Net sales increased 17.9%, from $300.9 million in Q4 2021 to $354.7 million in the quarter ending Jan. 1, 2023, driven by organic net sales growth of 15.9% and acquisitions of 3%, partially offset by the company's continued shift to independent operators and the resulting increase in sales discounts that impacted net sales growth by 1%.
Net income rose from a $16.18 million loss to $13.82 million in the comparative quarters.
EPS on both a basic and diluted basis rose from a 10-cent loss to 19 cents in the comparative quarters.
Adjusted net income rose from $16 million to $21 million for the comparative quarters.
Adjusted EPS rose from 11 cents to 15 cents in the comparative years.
Full-year sales rose from $1.18 billion in 2021 to $1.4 billion in 2022.
Net income fell from $7.9 million to a $14 million loss in the comparative years.
Adjusted net income dipped from $80.3 million to $77.7 million in the comparative years.
Full-year earnings per share fell from 26 cents to zero on a basic basis and from 25 cents to zero on a diluted basis.
Adjusted EPS fell from 57 cents to 55 cents in the comparative years.

Shares traded at $17.92 today against a 52-week range of $12.06 to $19.88.

The $354.7 million in quarterly revenue beat analyst expectations by $17.99 million while the non-GAAP EPS of 15 cents beat expectations by 3 cents, according to Seeking Alpha.

"I'm proud of our team's execution amidst a challenging environment to deliver strong full-year results that exceeded the outlook we set at the beginning of 2022," CEO Howard Friedman said in the press release. "Looking ahead to 2023, we are well-positioned for another year of sales and adjusted EBITDA growth, while we continue to make investments in our people, brands, selling infrastructure and supply chain capabilities."

The company expects net sales growth of 3% to 5% and organic net sales growth of 4% to 6%.