UTZ Brands (UTZ) Barclays 17th Annual Global Consumer Staples Conference summary

Growth outlook and strategic drivers

• Targeting 4%-5% organic sales CAGR over the next three years, with a 16% EBITDA margin by 2026, up from 13% last year.

• Growth driven by expanding distribution, focus on Power Four brands, increased advertising, and innovation in flavor and product offerings.

• Category expected to grow 0-1% in volume and about 2% in price over the next few years.

• Advertising and consumer spending planned to rise 40% annually, with actuals pacing ahead at 60% this year.

• Innovation efforts focus on consumer trends, flavor, and positive product attributes.

Margin expansion and productivity

• Aiming for 100 basis points of EBITDA margin expansion per year, driven by $135 million in productivity over three years.

• Productivity gains come from continuous improvement and network optimization, including plant consolidation.

• 200 basis points of productivity reinvested into growth, netting 100 basis points annually.

• Plant network reduced from 17 to 8 facilities, with utilization rising to mid-80% and further investments planned.

• Productivity as a percent of COGS now exceeds 5%, supporting both reinvestment and margin targets.

Category dynamics and market environment

• Salty snack category remains healthy but is experiencing a more promotional environment, with some unsustainably low competitor pricing.

• Category volume has improved slightly, but full response to price investments is still developing.

• Household penetration remains strong, and value-seeking behavior is increasing among consumers.

• No structural change seen in the category; long-term outlook remains positive, driven by innovation and marketing.