Utz Brands (UTZ) reported earnings on Thur 12 Aug 21 (b/o)

• First day of trading August 31, 2020, following a reverse merger with Collier Creek Holdings, a SPAC co-founded by Kraft Foods alum Roger Deromedi. 

 

Utz Brands misses by $0.01, beats on revs; guides FY21 EPS below consensus

• Reports Q2 (Jun) earnings of $0.13 per share, excluding non-recurring items, $0.01 worse than the S&P Capital IQ Consensus of $0.14; revenues fell 4.0% year/year to $299.2 mln vs the $289.59 mln S&P Capital IQ Consensus.
• Co issues downside guidance for FY21, sees EPS of $0.55-0.60, excluding non-recurring items, (from prior $0.70-0.75) vs. $0.67 S&P Capital IQ Consensus.
  • Continue to expect fiscal 2021 net sales consistent with fiscal 2020 Pro Forma Net Sales with modest organic sales growth year over year. The Company's projected pro forma two-year CAGR for fiscal 2020 and 2021 of approximately 6% is above the Company's long-term organic growth outlook of 3 -- 4%.
• Dylan Lissette, Chief Executive Officer of Utz said, "In the second quarter, our two-year pro forma net sales growth trends continued to improve as our Power Brands' sales grew significantly faster than the Salty Snack Category in our Emerging and Expansion geographies, and our channels most impacted by COVID-related softness are rebounding. While consumer demand for our products remains strong, our second quarter margins were significantly impacted by higher than planned inflation across key input costs which include commodities, transportation and labor."
• Mr. Lissette continued, "We anticipate these costs will continue to be more elevated for the remainder of the year than we previously expected. Our pricing actions and productivity initiatives are well underway, but the benefits are expected to be weighted towards the back half of 2021, lagging the near-term cost pressures. These benefits, however, are expected to have strong carry-over benefits to fiscal 2022. As we manage through these higher costs, we remain focused on the long-term health of our brands, and we continue to prioritize investments to capitalize on our growth opportunities."