Vending

Utz Brands boosts sales, trims losses for Q4 2020

Logo provided.

March 18, 2021

Net sales for Utz Brands Inc., a U.S. manufacturer of branded salty snacks, increased 22.1% from to $201.8 million for the 13-week fourth quarter of 2019 to $246.3 million for the 14-week 2020 fourth quarter, according to an earnings release. The company's fourth quarter 2020 results benefited from the impact of the 53rd week in fiscal 2020 and estimates the "extra week" contributed approximately $16 million in net sales.

The company reported a net loss of $13.6 million for the 13-week period ended Dec. 27, 2020 compared to a $24 million net loss for the 13-week period ending Dec. 29, 2019.

Pro forma net sales increased 6.8% on a comparable 13-week basis to $268.6 million versus $251.5 million for the fourth quarter of 2019. Pro forma net sales assumes the company owned Kennedy Endeavors, Kitchen Cooked, H.K. Anderson and Truco Enterprises on the first day of fiscal 2019.

For the 13-week period ended Dec. 27, 2020, Power Brands retail sales growth of 11.1% was led by Utz On The Border, Zapp's, Tortiyahs!, Golden Flake Pork Skins and Boulder Canyon brands.

The $246.28 million in quarterly revenue beat analyst expectations by $3.2 million, while the GAAP EPS of negative 13 cents missed expectations by 18 cents, according to Seeking Alpha.

Shares traded at $24.94 today against a 52-week range of $9.84 to $26.62.

"We are encouraged with our start to 2021 with solid year-to-date retail sales growth through the end of February," Dylan Lissette, CEO, said in the press release. "While we will begin to tap strong results from the impact of COVID-19 in the prior year, our brands are well-positioned for long-term growth. Based on the significant increase in new buyers and higher repeat rates of purchase over the past 12 months, we believe that the COVID-19 impact on at-home eating occasions will have a lasting, beneficial impact to long-term demand trends. Our projected pro forma two-year CAGR for fiscal 2020 and 2021 of approximately 6% is well above our stated long-term organic growth outlook of 3 to 4%, and we will continue to invest incremental marketing dollars to build our brands and accelerate revenue growth."