Vending
Utz Brands reports record Q1 2022 sales
May 12, 2022
Utz Brands Inc. reported record first quarter sales for Q1 2022 driven by pricing action, while the quarter's loss also increased due to a buyout of third party DSD rights, according to an earnings release. Highlights include:
- Sales rose 26.6% from $269.2 million in Q1 2021 to $340.8 million for the quarter ending April 3, 2022.
- Net loss rose from $34.4 million to $31.9 million in the comparative quarters, primarily driven by the $23 million buyout of multiple third-party DSD rights in the quarter.
- Adjusted net income declined from $19 million to $15.4 million in the comparative quarters.
- Earnings per Class A common stock improved from a 30-cent loss to a 22-cent loss on both a basic and diluted basis in the comparative quarters.
- Adjusted EPS fell from 13 cents to 11 cents.
Shares traded today at $13.68 against a 52-week range of $12.06-$25.42.
The $340.8 million in quarterly revenue beat analyst expectations by $29.72 million and the non-GAAP EPS of 11 cents beat expectations by 2 cents, according to Seeking Alpha.
"We are pleased to deliver record first quarter net sales with organic net sales growth of nearly 21%," CEO Dylan Lissette said in the press release. "In addition, as inflation continues to increase, we are taking incremental price actions to help offset higher costs, and we are encouraged by our continued sales volume increases as price elasticity is better than we anticipated.
"As a result of our strong top-line trends, we are raising our net sales growth expectations for fiscal 2022. Furthermore, we remain on track to achieve our profit outlook as our pricing actions, along with our productivity programs, give us confidence that we will be able to offset the continuing high inflation as we exit 2022 and move into 2023."
