Utz Brands (NYSE: UTZ) reported Q3 EPS of $0.17, $0.02 better than the analyst estimate of $0.15. Revenue for the quarter came in at $371.9 million versus the consensus estimate of $370.83 million.

Fiscal Year 2023 Outlook

The Company is today updating its previously-issued full-year fiscal 2023 financial outlook.

The Company now expects total net sales growth of 2% to 3% (previously 3% to 5%) and Organic Net Sales growth of 3% to 4% (previously 4% to 6%), with the Company’s continued shift to IOs expected to impact total net sales growth by approximately (-1.0%). The revised range reflects the impact of our aggressive supply chain optimization actions and normalizing Salty Snack category growth with some channel shifting by consumers. Net sales growth is expected to be driven by net price realization, increased marketing and innovation, and continued distribution gains of the Company’s Power Brands, partially offset by the estimated impact of approximately (-3%) from the Company’s SKU rationalization program. Based on these assumptions, the Company now expects volume / mix to be modestly lower than fiscal 2022.
The Company continues to expect Adjusted EBITDA growth of 8% to 11% driven by stronger operating performance led by the Company’s productivity programs, with continued investments in brand marketing, people, capabilities, and selling infrastructure.

The Company also expects:

An effective tax rate (normalized GAAP basis tax expense, which excludes one-time items) in the range of 17% to 18% (previously 20% to 22%);
Interest expense of approximately $55 million;
Capital expenditures in the range of $50 to $55 million; and
Net Leverage Ratio below 4.5x at year-end fiscal 2023.

For earnings history and earnings-related data on Utz Brands (UTZ) click here.