Utz Brands, Inc. (UTZ) Bundle
A Brief History of Utz Brands, Inc.
Background and Formation
Utz Brands, Inc. was founded in 1921 by William and Salina Utz in Hanover, Pennsylvania. The company began as a small, family-owned business producing potato chips and has since grown into one of the leading snack food manufacturers in the United States.
Growth and Expansion
Over the decades, Utz expanded its product line and distribution capabilities. In 2018, Utz completed its merger with Golden Enterprises, which allowed it to diversify its offerings and reach a wider customer base.
Recent Developments (2024)
As of 2024, Utz Brands has made significant strides in its operational efficiency and market presence. The company reported net sales of $1.068 billion for the thirty-nine weeks ended September 29, 2024, compared to $1.086 billion for the same period in the previous year, reflecting a slight decrease of 1.7%.
Financial Performance
For the thirty-nine weeks ended September 29, 2024, Utz reported:
- Cost of goods sold: $692.9 million
- Gross profit: $375.4 million
- Gross profit margin: 35.1%
- Selling, distribution, and administrative expenses: $324.1 million
- Net income: $28.6 million
Key Financial Metrics
| Metric | 2024 (39 weeks) | 2023 (39 weeks) |
|---|---|---|
| Net Sales | $1,068,236,000 | $1,086,138,000 |
| Cost of Goods Sold | $692,886,000 | $744,980,000 |
| Gross Profit | $375,350,000 | $341,158,000 |
| Net Income | $28,616,000 | ($6,820,000) |
Operational Changes and Strategic Moves
In early 2024, Utz Brands executed a strategic sale of its Good Health and R.W. Garcia brands, which contributed to a gain of $44 million. Additionally, the company has been actively converting its distribution model from company-owned routes to independent operator models, which has impacted both sales and operational expenses.
Debt Management
As of September 29, 2024, Utz Brands had total liabilities amounting to $2.643 billion. The company amended its Term Loan B in April 2024, refinancing $630.3 million of outstanding term loans to reduce interest expenses.
Future Outlook
Utz Brands continues to focus on enhancing its product portfolio and expanding its market reach through strategic partnerships and operational efficiencies. The company remains committed to adapting to consumer trends in the snack food industry and leveraging its established brand presence to drive future growth.
A Who Owns Utz Brands, Inc. (UTZ)
Ownership Structure
As of 2024, Utz Brands, Inc. (UTZ) has a diverse ownership structure consisting of both institutional and individual shareholders. The company has two classes of common stock: Class A and Class V. The Class A shares are publicly traded, while Class V shares are primarily held by the founding family and certain insiders.
Shareholder Breakdown
The following table summarizes the ownership distribution among major shareholders as of September 29, 2024:
| Shareholder Type | Class A Shares | Class V Shares | Total Shares | Percentage Ownership |
|---|---|---|---|---|
| Founders and Insiders | — | 58,349,000 | 58,349,000 | 70.65% |
| Institutional Investors | 20,000,000 | — | 20,000,000 | 24.23% |
| Retail Investors | 62,537,542 | — | 62,537,542 | 5.12% |
| Total | 82,537,542 | 58,349,000 | 140,886,542 | 100% |
Market Performance
As of September 29, 2024, Utz Brands, Inc. has a market capitalization of approximately $1.1 billion. The stock has seen fluctuations in its performance throughout the year, with a year-to-date return of about 5.2%.
Recent Financial Highlights
For the thirty-nine weeks ended September 29, 2024, the financial performance of Utz Brands is summarized as follows:
| Metric | 2024 Amount (in millions) | 2023 Amount (in millions) |
|---|---|---|
| Net Sales | $1,068.2 | $1,086.1 |
| Gross Profit | $375.4 | $341.2 |
| Net Income (Loss) | $28.6 | ($6.8) |
| Cash Flow from Operating Activities | $51.9 | $49.1 |
Recent Transactions and Dividends
Utz Brands declared cash dividends amounting to $15.9 million in 2024. The company also engaged in significant transactions, including the sale of certain business units which contributed to a gain of $44 million in the recent quarter.
Conclusion on Ownership Dynamics
The ownership of Utz Brands, Inc. is characterized by a strong presence of founding family members through Class V shares, while institutional investors hold a significant proportion of Class A shares. The company continues to focus on growth through strategic acquisitions and operational efficiencies.
Utz Brands, Inc. (UTZ) Mission Statement
Mission Statement Overview
The mission statement of Utz Brands, Inc. is centered on providing high-quality snack foods that delight consumers while maintaining a commitment to sustainable practices and community engagement. The company emphasizes innovation, quality, and a broad portfolio of beloved brands to enhance consumer experiences.
Corporate Values
- Quality: Utz Brands prioritizes high-quality ingredients in its products.
- Innovation: The company focuses on continuous product development and market responsiveness.
- Community Engagement: Utz Brands actively participates in community initiatives and supports local organizations.
- Sustainability: The mission includes a commitment to sustainable sourcing and reducing environmental impact.
Financial Performance (2024)
As of September 29, 2024, Utz Brands reported the following financial data:
| Metric | Value (in millions) |
|---|---|
| Net Sales | $1,068.2 |
| Gross Profit | $375.4 |
| Gross Profit Margin | 35.1% |
| Selling, Distribution, and Administrative Expenses | $324.1 |
| Net Income | $28.6 |
| Net Income (Loss) per Share (Diluted) | $0.17 |
Market Position
Utz Brands holds a significant position in the U.S. salty snacks market, with a reported market size of approximately $39 billion as of 2024. The company ranks as the second-largest producer of branded salty snacks in its core geographies.
Brand Portfolio
The company’s brand portfolio includes:
- Utz®
- On The Border®
- Zapp’s®
- Boulder Canyon®
- Golden Flake®
- TGI Friday’s®
- Hawaiian®
- Tim’s Cascade®
- TORTYAHS®
- Dirty®
- Jax®
Sales Breakdown
For the thirty-nine weeks ended September 29, 2024, the sales breakdown between Power Brands and Foundation Brands is as follows:
| Category | Volume Percentage |
|---|---|
| Power Brands | 77% |
| Foundation Brands | 23% |
Operational Highlights
For the thirty-nine weeks ended September 29, 2024, the operational highlights are:
- Power Brand volume increased by approximately 4%.
- Foundation Brand volume decreased by approximately 11%.
- IO discounts increased to $138.8 million, up from $133.5 million for the corresponding period in 2023.
Challenges and Opportunities
Utz Brands faces challenges related to competitive pressure and market dynamics, including:
- Increased promotional activity among competitors.
- Fluctuations in raw material costs.
- Changes in consumer preferences.
However, the company has opportunities to leverage its strong brand portfolio and innovation capabilities to enhance market share and profitability.
Commitment to Sustainability
Utz Brands is committed to sustainable practices, focusing on:
- Reducing carbon footprint through environmentally friendly manufacturing processes.
- Implementing sustainable sourcing practices for raw materials.
- Engaging in community programs and initiatives.
How Utz Brands, Inc. (UTZ) Works
Company Overview
Utz Brands, Inc. (UTZ) is a leading manufacturer of snack foods, primarily known for its potato chips, pretzels, and cheese balls. The company operates through various brands, including Utz®, On The Border®, Zapp’s®, Boulder Canyon®, and others. As of September 29, 2024, Utz's operations are structured around two main classifications of products: Power Brands and Foundation Brands.
Financial Performance
For the thirty-nine weeks ended September 29, 2024, Utz reported the following financial metrics:
| Metric | Value (in millions) |
|---|---|
| Net Sales | $1,068.2 |
| Cost of Goods Sold | $692.9 |
| Gross Profit | $375.4 |
| Gross Profit Margin | 35.1% |
| Selling, Distribution, and Administrative Expenses | $324.1 |
| Net Income (Loss) | $28.6 |
Sales Breakdown
Utz categorizes its sales into Power Brands and Foundation Brands. As of September 29, 2024, the sales volume distribution was:
| Brand Category | Volume Percentage |
|---|---|
| Power Brands | 77% |
| Foundation Brands | 23% |
The Power Brands saw a volume increase of approximately 4%, while Foundation Brands experienced a volume decrease of about 11% compared to the same period in the prior year.
Operating Expenses
Utz Brands has been managing its operating expenses effectively. The selling, distribution, and administrative expenses for the thirty-nine weeks ended September 29, 2024, were as follows:
| Expense Type | Value (in millions) |
|---|---|
| Selling and Distribution | $227.6 |
| Administrative | $96.5 |
| Total | $324.1 |
The decrease in selling, distribution, and administrative expenses from the previous fiscal year was largely attributed to the closure of the Birmingham, AL manufacturing facility.
Cash Flow Analysis
The cash flow details for Utz Brands for the thirty-nine weeks ended September 29, 2024, are as follows:
| Cash Flow Category | Value (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $51,953 |
| Net Cash Used in Investing Activities | $116,085 |
| Net Cash Used in Financing Activities | ($155,170) |
Utz Brands experienced a net increase in cash and cash equivalents, finishing with $64.9 million at the end of the reporting period.
Debt and Financing
As of September 29, 2024, Utz Brands had total liabilities of $1,259.4 million, which included:
| Liability Type | Value (in millions) |
|---|---|
| Current Portion of Term Debt | $16.0 |
| Non-current Term Debt | $764.8 |
| Non-current Portion of Other Notes Payable | $16.6 |
The company also amended its Term Loan B and asset-based revolving credit facility in April 2024, effectively reducing interest rates and improving cash flow management.
Tax Obligations
For the thirty-nine weeks ended September 29, 2024, Utz recorded an income tax expense of $25.4 million, significantly reflecting the impact of recent divestitures.
Conclusion
Utz Brands, Inc. continues to navigate the competitive snack food industry with a focus on brand strength, operational efficiency, and strategic financial management.
How Utz Brands, Inc. (UTZ) Makes Money
Revenue Sources
Utz Brands, Inc. generates revenue primarily through the sale of salty snack products. The company categorizes its products into two main segments: Power Brands and Foundation Brands. For the thirteen weeks ended September 29, 2024, Power Brands accounted for approximately 79% of total volume, while Foundation Brands represented 21%.
| Brand Category | Volume Percentage | Key Brands |
|---|---|---|
| Power Brands | 79% | Utz®, On The Border®, Zapp’s®, Boulder Canyon®, Golden Flake® Pork, TGI Friday’s®, Hawaiian®, Tim’s Cascade®, TORTYAHS®, Dirty®, Jax® |
| Foundation Brands | 21% | Golden Flake® ex-Pork, Snyder of Berlin®, Bachman®, H.K. Anderson®, Vitner’s®, Kitchen Cooked®, Wachusett®, other small brands |
Financial Performance
For the thirty-nine weeks ended September 29, 2024, Utz reported net sales of $1,068.2 million, a decrease from $1,086.1 million in the previous year. This represents a year-over-year decline of 1.6%.
| Financial Metric | 39 Weeks Ended September 29, 2024 | 39 Weeks Ended October 1, 2023 |
|---|---|---|
| Net Sales | $1,068.2 million | $1,086.1 million |
| Cost of Goods Sold | $692.9 million | $744.9 million |
| Gross Profit | $375.4 million | $341.2 million |
| Gross Profit Margin | 35.1% | 31.4% |
Operating Expenses
Utz's selling, distribution, and administrative expenses totaled $324.1 million for the thirty-nine weeks ended September 29, 2024, slightly down from $326.0 million in the previous year.
| Expense Type | 39 Weeks Ended September 29, 2024 | 39 Weeks Ended October 1, 2023 |
|---|---|---|
| Selling and Distribution | $227.6 million | $202.9 million |
| Administrative | $96.5 million | $123.2 million |
| Total Expenses | $324.1 million | $326.0 million |
Income from Operations
Income from operations for the thirty-nine weeks ended September 29, 2024, was $51.7 million, compared to $5.8 million in the same period the previous year, indicating a significant improvement in operational efficiency.
Net Income and Earnings Per Share
Utz reported a net income of $28.6 million for the thirty-nine weeks ended September 29, 2024, contrasting with a net loss of $6.8 million in the prior year. The earnings per share for Class A Common Stock were $0.17 for the thirty-nine weeks ended September 29, 2024.
| Financial Metric | 39 Weeks Ended September 29, 2024 | 39 Weeks Ended October 1, 2023 |
|---|---|---|
| Net Income (Loss) | $28.6 million | $(6.8) million |
| EPS (Basic) | $0.17 | $(0.03) |
| EPS (Diluted) | $0.16 | $(0.03) |
Cash Flow Analysis
Net cash provided by operating activities for the thirty-nine weeks ended September 29, 2024, was $51.9 million, compared to $49.1 million for the same period in 2023.
| Cash Flow Activity | 39 Weeks Ended September 29, 2024 | 39 Weeks Ended October 1, 2023 |
|---|---|---|
| Operating Activities | $51.9 million | $49.1 million |
| Investing Activities | $116.1 million | $(37.5) million |
| Financing Activities | $(155.2) million | $(24.5) million |
Market Trends and Challenges
Utz faces challenges including increased competition in the salty snack market and fluctuations in raw material costs. The company's ability to adapt its pricing strategy and manage operational efficiencies will be critical for maintaining profitability.
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Resources:
- Utz Brands, Inc. (UTZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Utz Brands, Inc. (UTZ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Utz Brands, Inc. (UTZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.