Utz Brands, Inc. Q2 FY2025 earnings call

• Top line growth driven by distribution gains in expansion geographies, volume and value share gains in core, improved C-store performance, and westward expansion investments.
• SG&A investment in the second half is expected to be modestly higher, with higher marketing spend in Q3 due to summer selling season.
• Boulder Canyon is a premium brand with growth potential, contributing to margin benefit as it's introduced into more profitable channels.
• Supply chain optimization with plant closures, automation, and CapEx investments leading to productivity savings, with these savings supporting margin profile going forward.

No detailed breakdown of product segment financial performance with absolute terms and revenue contribution % provided in the transcript.

• EBITDA guide: low end nudged up from 6-10 to 7-10, midpoint for full year 8.5% growth.
• EPS guide revised from 10-15% to 7-10%, with half the impact from interest and half from accelerated depreciation.
• Confidence in meeting '26 financial goals despite EPS adjustment, as the company is executing on promised productivity, margin expansion, and growth initiatives.

• Forward-looking statements are subject to actual results differing materially.
• Risks associated with competition, supply chain disruptions, and market conditions affecting future performance.

Q: Andrew Lazar asks about EBITDA growth outlook despite muted first half EBITDA performance.

A: Howard Friedman states gross margin steps up through the year, CapEx accelerates productivity savings, plant closure impacts the back half, and portfolio mix benefits contribute to back half growth.

Q: Peter Galbo inquires about EPS guidance revision.

A: Bill Kelly explains EPS guide revised from 10-15% to 7-10%, with half the impact from interest and half from accelerated depreciation due to higher CapEx spend.

Q: Michael Lavery asks about distribution gains and infrastructure.

A: Howard Friedman says distribution gains are broad-based across expansion and core markets, with a hybrid model supporting infrastructure to service customers.

Q: Robert Moskow asks about SG&A investment in the back half and Boulder Canyon's margin.

A: Howard Friedman states SG&A in the second half will be modestly higher for sales infrastructure and marketing, and Boulder Canyon is a premium brand with margin benefit.

Q: Brian Holland asks about category outlook and food service mix.

A: Howard Friedman says category may normalize in Q3, food service is a small part of the business but has growth potential.

Q: Jim Salera asks about Boulder Canyon's growth and household penetration.

A: Howard Friedman says Boulder Canyon is growing across geographies with strong distribution and velocity, household penetration is high with good trial and repeat rates.

Q: Scott Marks asks about supply chain and marketing spend.

A: Howard Friedman and Bill Kelly discuss supply chain optimization and productivity savings supporting margins, marketing spend is higher with a mix of retail media, social/digital, and consumer engagement efforts.

Q: Rupesh Parikh asks about quarter-to-date trends and momentum.

A: Howard Friedman attributes momentum to expanded distribution, consumer pressure, and support in-store.

Q: Peter Grom asks about long-term category growth and protein chips.

A: Howard Friedman is bullish on long-term category growth, sees innovation as key, and protein is an area of interest for future product development.