Utz Brands reports strong First Quarter 2026 results as branded salty snacks sales climb 5.2%

Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded Salty Snacks and a small-cap growth and value Staples equity, today reported financial results for the Company’s first fiscal quarter ended March 29, 2026.

First Quarter 2026 Summary

• Net Sales increased 2.6% to USD 361.3 million 
• Total Organic Net Sales increased 2.6%; Branded Salty Snacks Organic Net Sales increased 5.2%
• Gross Profit Margin expansion of 200bps 
• Adjusted Gross Profit Margin expansion of 210bps 
• Net Income decreased to USD (2.4) million 
• Adjusted Net Income decreased 4.5% to USD 21.3 million
• EBITDA decreased 12.9% to USD 30.3 million 
• Adjusted EBITDA increased 6.2% to USD 47.9 million 
• Diluted Earnings Per Share decreased to USD (0.02)
• Adjusted Earnings Per Share decreased 6.3% to USD 0.15 
• Cash Flow Used in Operations was USD 12.2 million 
• Adjusted Free Cash Flow increased to USD (25.9) million 
• Net Leverage Ratio improved and decreased 0.4x to 3.6xR

Howard Friedman, Chief Executive Officer of Utz:

"I’m pleased with our solid start to the year, as we delivered 2.6% Net Sales growth and 5.2% Branded Salty Snacks growth, gained dollar share in the Salty Snacks category, and continued to expand Adjusted EBITDA margins."

"The category has demonstrated signs of continued improvement with solid growth in the first quarter. Looking ahead to the remainder of 2026, we expect it to remain a dynamic operating environment and we are committed to our playbook of driving Branded Salty Snacks growth, generating productivity, and reinvesting in marketing and geographic expansion. We believe the flexibility of our model will allow us to succeed in an evolving consumer and category backdrop."

BK Kelley, EVP and Chief Financial Officer of Utz:

"Adjusted Free Cash Flow improved sharply in the first quarter with our focus on working capital management and normalizing capital expenditures."

"Leverage at 3.6x was down considerably from a year ago, and we expect leverage to improve further as we progress through 2026. We are reaffirming all aspects of our 2026 guidance."

Utz Brands reports Q1 2026 sales growth, margin expansion and improved adjusted EBITDA performance compared with the prior-year period.

First Quarter 2026 Results

First quarter Net Sales increased 2.6% to USD 361.3 million compared to USD 352.1 million in the prior year period. Organic Net Sales increased 2.6% year-over-year, driven by a favorable net price realization of 3.7% partially offset by lower volume/mix contribution of (1.1)%. The Bonus Packs promotion in the prior year first quarter had a net neutral 2.7 point impact on both volume/mix and price. Excluding the Bonus Packs promotion, volume/mix increased 1.6% and net price realization increased 1.0%. Branded Salty Snacks Organic Net Sales(representing 89% of total Net Sales) increased 5.2% led by our Power Four Brands, offset by a 14.3% decline in Non-Branded & Non-Salty Snacks Organic Net Sales, primarily due to Non-Branded, which was impacted by accelerated elimination of low margin items.

For the 13-week period ended March 29, 2026, the Company’s Branded Salty Snacks Retail Sales increased 4.6% versus the prior year period, outperforming the 2.4% increase for the Salty Snack category overall. On a 2-year stack basis, total Company Branded Salty Snacks Retail Sales also increased 4.6%, outperforming a 0.7% increase for the Salty Snack category. The Company’s Retail Volumes decreased by 3.0%, impacted by the lap of Bonus Packs, compared to a 1.5% increase for the Salty Snack category. On a 2-year stack basis, the Company’s Retail Volumes increased 2.7%, outperforming a 0.1% decrease for the Salty Snack category. The Company drove Retail Sales gains in both its Core and Expansion Geographies. The Company’s Power Four Brands of Utz®, On The Border®, Zapp’s® and Boulder Canyon® Retail Sales increased by 6.7%. 

Gross Profit Margin of 25.4% increased 200bps compared to 23.4% in the prior year period. Adjusted Gross Profit Margin of 30.8% expanded 210bps compared to 28.7% in the prior year period. The increase in both Gross Margin and Adjusted Gross Profit Margin was driven by productivity savings, which more than offset supply chain cost inflation. 

Selling, General, and Administrative Expenses (“SG&A Expenses”) were USD 85.4 million, or 23.6% of Net Sales, compared to USD 77.4 million, or 22.0% of Net Sales, in the prior year period. Adjusted SG&A Expenses were USD 63.5 million, or 17.6% of Net Sales, compared to USD 56.1 million, or 15.9% of Net Sales, in the prior year period. The increase in both SG&A Expenses and Adjusted SG&A Expenses as a percentage of Net Sales were primarily due to increased marketing, and adding capabilities to support the Company’s geographic expansion and growth initiatives. 

The Company reported a Net Loss of USD 2.4 million compared to Net Income of USD 5.7 million in the prior year period. Net Income in the prior year period benefited from an USD 11 million gain from the remeasurement of the warrant liability. Adjusted Net Income in the quarter decreased 4.5% to USD 21.3 million compared to ISD 22.3 million in the prior year period. Adjusted Earnings Per Share decreased 6.3% to USD 0.15 compared to USD 0.16 in the prior year period. The Adjusted Earnings Per Share decrease was primarily the result of lower Adjusted Net Income, driven by an increase in depreciation and amortization. 

The Company reported EBITDA of USD 30.3 million compared to EBITDA of USD 34.8 million in the prior year period. Adjusted EBITDA increased 6.2% to USD 47.9 million, or 13.3% as a percentage of Net Sales, compared to USD 45.1 million, or 12.8% as a percentage of Net Sales, in the prior year period. The increase in Adjusted EBITDA was driven by Adjusted Gross Profit Margin expansion, which more than offset the increase in Adjusted SG&A expenses.

Balance Sheet and Cash Flow Highlights

• As of March 29, 2026
  • Total liquidity of USD 196.1 million, consisting of cash on hand of USD 73.7 million and USD 122.4 million available under the Company’s revolving credit facility. 
  • Net debt of USD 780.3 million resulting in a Net Leverage Ratio of 3.6x based on trailing twelve months Adjusted EBITDA of USD 219.3 million.
• For the thirteen weeks ended March 29, 2026
  • Cash flow used in operations was USD 12.2 million. 
  • Capital expenditures were USD 13.8 million, and dividends and distributions paid were USD 9.7 million. 
  • Adjusted Free Cash Flow of USD (25.9) million.

Share Repurchase Program 

The Company did not repurchase shares during the first quarter of 2026 and has $50 million remaining under its stock repurchase program adopted in February 2026.

Fiscal Year 2026 Outlook

Utz reaffirmed all aspects of its fiscal 2026 guidance and noted that the company will benefit from a 53rd week in the fourth quarter of 2026.

The company continues to expect:

• Organic net sales growth of 2% to 3%, excluding the 53rd week 
• Productivity savings of approximately 4% of adjusted cost of goods sold 
• Adjusted EBITDA growth of 5% to 8% 
• Adjusted EBITDA margin expansion
•  Adjusted earnings per share decline of 3% to 6% 
• Adjusted free cash flow between USD 60 million and USD 80 million 
• Net leverage ratio between 3.0x and 3.2x by fiscal year-end 2026

Utz expects the 53rd week to contribute approximately:

• USD 20 million in reported net sales 
• USD 3 million in adjusted EBITDA 
• USD 0.02 in adjusted earnings per share

The company also reaffirmed expectations for:

• Effective tax rate of 17% to 19% 
• Interest expense between USD 47 million and USD 49 million 
• Depreciation and amortization between USD 93 million and USD 97 million 
• Capital expenditures between USD 60 million and USD 65 million

Most capital investments will focus on productivity improvements and targeted growth initiatives. 

Utz has posted supplemental financial information, presentation slides, and a pre-recorded management discussion on its investor relations website ahead of its analyst webcast and question-and-answer session.