UTZ Brands (UTZ) investor relations material

Executive summary

• Net sales grew 2.6% year-over-year to $361.3 million, led by 5.2% growth in branded salty snacks and strong retail sales outpacing the category at 4.6%.

• Adjusted EBITDA increased 6.2% to $47.9 million, while adjusted gross profit margin expanded by 210bps to 30.8% due to productivity savings.

• Power Four Brands and expansion geographies drove dollar share gains, with Boulder Canyon and Tallow innovations showing strong early traction.

• Household penetration and loyalty rates increased, adding 1.9 million buyers year-over-year, supported by effective advertising.

• The company reaffirmed its full-year 2026 guidance and expects further leverage improvement.

Financial highlights

• Q1'26 Net Sales: $361.3M (+2.6% YoY); Adjusted Gross Profit: $111.4M (+10.1% YoY); Adjusted EBITDA: $47.9M (+6.2% YoY); Adjusted EPS: $0.15 (-6.3% YoY).

• Adjusted Gross Profit Margin: 30.8% (+210bps YoY); Adjusted EBITDA Margin: 13.3% (+50bps YoY).

• Adjusted SG&A expense rose 13.2% YoY, driven by increased marketing and investments in growth.

• Cash flow from operations was -$12.2M, capital expenditures $13.8M, and adjusted free cash flow -$25.9M, but improved by $32.3M YoY.

• Ample liquidity of $196.1M at quarter-end, with net leverage ratio improved to 3.6x.

Outlook and guidance

• 2026 guidance reaffirmed: Organic Net Sales growth of 2–3%, Adjusted EBITDA growth of 5–8%, Adjusted EPS decline of 3–6%, and Adjusted Free Cash Flow of $60M–$80M.

• Net leverage ratio targeted at 3.0x–3.2x by year-end; capital expenditures expected at $60M–$65M.

• Assumes continued Branded Salty Snacks growth, California expansion, and productivity gains offsetting inflation.

• Productivity program at approximately 4% is on track to offset incremental inflation, mainly from packaging resins.

• 53rd week in Q4 2026 expected to add ~$20 million to net sales and $3 million to adjusted EBITDA.