Hanover, Pa.-Based Utz Brands Inc. (NYSE: UTZ), a leading U.S. manufacturer of branded savory snacks, released unaudited financial results for the company’s fiscal second quarter, ended July 4, 2021 .
For the 13-week period, ended July 4, Utz’s retail sales as measured by IRI MULO-C increased 6.5% on a two-year CAGR basis. The company’s retail sales of Power Brands grew 8.1% on a two-year CAGR basis from the 7.1% growth in the salty snacks category for the same period to nearly 87% of sales compared to around 84% during the same period in 2019.
Power Brands’ sales growth over the two-year period was led by Utz, On The Border, Zapp’s, TORTIYAHS !, Golden Flake Pork Skins, Hawaiian, TGI Fridays and Herdez. The two-year two-year CAGR retail sales decline of 2.2% in core brands reflects the company’s continued strategy to focus resources on its strong brands.
Net sales for the quarter increased 23.1% to $ 297.9 million from $ 242 in the second quarter of 2020. Gross margin was $ 95.6 million, or 32.1% as a percentage of net sales. Adjusted gross margin increased 16.6% to $ 105.4 million, or 35.4% as a percentage of net sales, from adjusted gross margin of $ 90.4 million, or 37.4 % as a percentage of net sales, during the period of the previous year.
“In the second quarter, our two-year pro forma net sales growth trends continued to improve as sales of our strong brands grew much faster than the savory snacks category in our emerging geographies and regions. expansion, and our channels most affected by COVID-related softness. bounce back, ”said Utz Managing Director Dylan Lissette.
“While consumer demand for our products remains strong, our second quarter margins were significantly affected by higher than expected inflation on key input costs including raw materials, transportation and labor. “, he added.