Utz Brands (NYSE: UTZ) reported Q4 EPS of $0.11, $0.05 worse than the analyst estimate of $0.16. Revenue for the quarter came in at $300.9 million versus the consensus estimate of $296.81 million.

Fiscal Year 2022 Outlook:

For fiscal 2022, the Company expects continued strong, top-line momentum with total net sales growth of approximately 7-10%, and Organic Net Sales growth of approximately 4-6%, which is above its long-term growth algorithm of 3-4%. However, with cost inflation expected to continue and the Company investing to support its significant new customer growth, the Company expects fiscal 2022 Adjusted EBITDA to grow modestly versus fiscal 2021 Adjusted EBITDA of $156.2 million. The Company expects stronger Adjusted EBITDA performance in the second half of fiscal 2022, and in fiscal 2023, as the benefits of the Company’s pricing actions and productivity programs continue to build.

Additionally, in fiscal year 2022, the Company expects capital expenditures in the range of $50 million to $60 million. The expected increase in capital expenditures, compared to fiscal 2021, is driven primarily by higher return productivity projects, in particular the expansion of Utz’s largest warehouse across its network located in Hanover, PA, which is expected to drive improved inventory management and reduce costs.

Finally, the company expects an effective tax rate of approximately 20% (normalized GAAP basis tax expense, which excludes one-time items) and net leverage at year-end fiscal 2022 to be consistent with year-end fiscal 2021.

With respect to projected fiscal year 2022 Adjusted EBITDA, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity, and low visibility with respect to certain items, which are excluded from Adjusted EBITDA. We expect the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future financial results.

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