Utz Brands Inc. Sets Long-Term Financial Goals

Introduction

Utz Brands Inc. recently unveiled its long-term financial goals and reiterated its 2023 guidance in a statement provided in advance of an investor day. The popular salty snacks manufacturer remains optimistic about its future prospects, aiming for steady sales growth and increased market expansion. CEO Howard Friedman expressed confidence in the company’s ability to leverage its Power Brands and enhance its product offerings through marketing and innovation strategies.

Sales Outlook

Despite the challenges posed by the evolving market landscape, Utz Brands Inc. predicts a 2% to 3% increase in sales for fiscal year 2023. Looking further ahead, the company has set an ambitious target of achieving 4% to 5% organic sales growth from fiscal year 2023 through fiscal year 2026. These goals reflect Utz’s commitment to maintaining a strong market presence and continuously expanding its consumer base.

Emphasizing Power Brands

CEO Howard Friedman emphasized the importance of Utz’s Power Brands, including Utz, Zapp’s, Boulder Canyon, and On The Border. These brands have consistently delivered exceptional results and generated substantial consumer loyalty. Utz Brands Inc. plans to leverage their strength by implementing increased marketing efforts, exploring cross-category innovation, and expanding into new market segments across the United States.

Expanding Geographical Reach

In order to achieve sustainable growth, Utz Brands Inc. is focusing on expanding into new geographies and untapped distribution channels. While diversifying its presence, the company is dedicated to safeguarding its existing market share in core geographies. By strategically targeting new regions and channels, Utz aims to reach a wider audience and solidify its position as a leading player in the snacks industry.

Supply Chain Optimization

Recognizing the importance of an efficient supply chain, Utz Brands Inc. is committed to overhauling its existing processes. The company plans to implement comprehensive initiatives to enhance its supply chain, with the primary goal of achieving $135 million in cost savings by 2026. By streamlining operations and improving logistical efficiencies, Utz Brands Inc. aims to maximize profitability while ensuring reliable product availability.

Financial Stability and Growth

In line with its disciplined capital allocation approach, Utz Brands Inc. intends to reduce leverage and strengthen its financial position. This will enable the company to pursue potential acquisitions opportunistically while maintaining stability and sustainable growth. Moreover, Utz is confident in its ability to deliver double-digit annual adjusted per-share earnings over the next three years, solidifying its commitment to creating long-term value for its shareholders.

Conclusion

Despite the current market challenges, Utz Brands Inc. remains focused on achieving its long-term financial goals. With a continued emphasis on marketing, innovation, and expansion, the company is determined to capitalize on its Power Brands and drive organic sales growth. By optimizing its supply chain and maintaining financial stability, Utz Brands Inc. is well-positioned to navigate the evolving market landscape and deliver strong performance in the years to come.