Utz Brands, Inc. Q4 FY2024 earnings call

1. Category growth assumption for fiscal '25 is around 0% to 1%, slightly better than flattish. Strategy remains to hold core relative market share and grow in expansion markets. 2. Productivity program: Delivered about $60 million in productivity in 2024, with line of sight to $150 million over 2024 - 2026. Driven by capital investments in network, automation, supply chain, and procurement/logistics. 3. Supply chain optimization: Investments in RDC, automation, capacity expansion, and better understanding of demand to improve efficiency. 4. Distribution expansion: Continued growth in expansion geographies, with Power 4 brands performing well, and plans to invest in consumer awareness through advertising. 5. Price pack architecture: Focus on bonus bags, expanding distribution, hitting critical price thresholds, and step-up in selling at high end of price ladder.

1. Category growth outlook for fiscal '25 is 0% to 1%. 2. Productivity target of $150 million over 2024 - 2026. 3. Expect January and Q1 to continue improving as they lap promotional-driven laps from 2024.

Q: What is the category growth assumption for fiscal '25 and strategy?

A: Howard says category growth around 0%-1%, strategy to hold core share and grow in expansion markets.

Q: Confidence in flexibility despite price headwind?

A: Howard mentions delivering value beyond price, bonus bags, price pack architecture, and normalization of promotional behavior.

Q: Breakout of branded salty vs non-branded non-salty?

A: Kevin Powers says they will provide historical components of net sales breakdown.

Q: Lapping dips and spreads weakness?

A: Howard says lapping starts in May and improves in back half of year.

Q: Tortilla chips weakness?

A: Howard says issue was lapping and assortment choices, with tortilla chips like Boulder Canyon having strong reception.

Q: Productivity details?

A: Ajay says productivity from capital investments, automation, supply chain, and procurement/logistics, with $60M in '24 and $150M over 3 years.

Q: Non-branded side outlook?

A: Howard says no double-digit decline expected moving forward.

Q: Price pack architecture and distribution expansion?

A: Howard talks about bonus bags, distribution expansion in geographies, and consumer awareness investments.

Q: Channel dynamics?

A: Howard discusses traditional grocery, club, C-store performance, and consumer behavior around value seeking and promotional mix.

Q: Promotions and innovation in 2025?

A: Howard says no change in display activity, continued focus on Core 4 and Boulder Canyon growth.

Q: Household penetration and repeat rates?

A: Howard attributes to product quality, portfolio diversity, and expansion geographies.

Q: Boulder Canyon performance?

A: Howard says distribution gain and velocity-led growth, with strong performance in natural channel.