Utz Brands Posts Mixed Q4 Results; Supply Chain Constraints Bites Into Margin

Utz Brands Inc UTZ reported fourth-quarter FY21 sales growth of 22.2% year-on-year, to $300.9 million, beating the consensus of $296.81 million.
Excluding the "extra week" last year, net sales in Q4 on a comparable 13-week basis increased 30.6%.
The company said the Q4 earnings were impacted by higher than anticipated industry-wide supply chain costs.
Adjusted gross profit grew 14.1% Y/Y to $103.3 million, while the adjusted gross profit margin contracted 241 basis points to 34.3%.
The company incurred an operating loss of $(5.9) million versus an operating income of $0.22 million last year.
Utz Brands held $41.8 million in cash and equivalents as of January 2, 2022.
Adjusted EBITDA of $37.7 million increased 10.9%, and the adjusted EBITDA margin declined by 128 basis points to 12.5%.
Adjusted EPS of $0.11 missed the consensus of $0.15.
Outlook: Utz Brands expects FY22 net sales growth of about 7% - 10%. Meanwhile, the company expects cost inflation to continue.
Price Action: UTZ shares closed higher by 1.92% at $14.89 on Wednesday.

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