Thu, May 1, 10:52 AM (15 days ago)
**Utz Brands, Inc. (UTZ) Q1 2025 Financial Performance Summary** **Financial Health and Performance Metrics:** - **Revenue:** $352.1 million, up 1.6% from $346.5 million in Q1 2024. - **Gross Profit:** $118.2 million, down from $119.6 million in Q1 2024. - **Gross Profit Margin:** 33.6%, down from 34.5% in Q1 2024. - **Operating Income:** $5.7 million, down from $9.7 million in Q1 2024. - **Net Income:** $5.7 million, up from $2.4 million in Q1 2024. - **Earnings per Share (EPS):** $0.09, up from $(0.05) in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $(20.2) million, down from $(9.1) million in Q1 2024. - **Investing Cash Flow:** $(40.7) million, down from $158.0 million in Q1 2024. - **Financing Cash Flow:** $67.6 million, up from $(154.0) million in Q1 2024. **Key Trends and Uncertainties:** - **Growth Strategy:** Focus on marketing and innovation to drive top-line growth and share gains in the salty snack category. - **Supply and Commodity Trends:** Monitoring supply and commodity costs, addressing inflation and rising labor costs. - **Operating Costs:** Managing expenses through cost-saving initiatives, sourcing, and hedging programs. - **Financing Costs:** Variable rate indebtedness increased to $739.3 million, using interest rate swaps to manage exposure. - **Acquisitions and Dispositions:** Sold certain assets and brands to affiliates of Our Home™, recognizing a gain on the sale. **Future Operations Impact:** - **Expansion Plans:** Penetrating expansion geographies and untapped channels. - **Product Innovation:** Investing in new product innovation to capture market share. - **Debt Management:** Refinancing term loans to reduce interest rates and extend maturity dates. - **Liquidity:** Maintaining sufficient liquidity through operating cash flow, revolving credit facility, and term loans. **Conclusion:** Utz Brands, Inc. (UTZ) showed mixed results in Q1 2025, with revenue growth but a decline in gross profit margin. The company is focusing on strategic initiatives to drive growth and manage costs, while also addressing supply chain and commodity trends. The refinancing of term loans and focus on liquidity management are key aspects of their financial strategy.