Company: UTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001739566-25-000153
Chunk: 101

Company: Utz Brands, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 2
Chunk 101
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2.9% increase in net sales was primarily driven by a 3.9% benefit from favorable volume/mix, which was offset by a 1.0% reduction from lower net price realization.  Bonus packs had no impact on net sales in the second quarter, as volume/mix gains were offset by the impact on net price.  IO discounts decreased to $47.0 million for the thirteen weeks ended June 29, 2025, down slightly from $47.7 million for the corresponding thirteen weeks ended June 30, 2024.

Sales are evaluated based on classification as Branded Salty Snacks or Non-Branded & Non-Salty Snacks, consisting of partner brands, private label, co-manufacturing for which Utz is the manufacturer, Utz branded non-salty snacks such as On The Border® Dips and Salsas and sales not attributable to specific brands. For the thirteen weeks ended June 29, 2025, Branded Salty Snacks and Non-Branded & Non-Salty Snacks totaled 88% and 12% of our net sales, respectively. For the thirteen weeks ended June 29, 2025 versus the comparable prior year period, Branded Salty Snacks net sales increased by 5.4% led by Boulder Canyon and Non-Branded & Non-Salty Snacks net sales decreased by 11.8% due to partner brands and dips and salsas.

Cost of goods sold and Gross profit

Gross profit was $126.8 million and $124.7 million for the thirteen weeks ended June 29, 2025 and June 30, 2024, respectively. Our gross profit margin was 34.6% for the thirteen weeks ended June 29, 2025 versus 35.0% for the thirteen weeks ended June 30, 2024. The increase in gross profit was due to productivity savings; however, gross profit margin slightly decreased due to increased investments to support capacity expansion and growth. 

Additionally, IO discounts decreased to $47.0 million for the thirteen weeks ended June 29, 2025, down slightly from $47.7 million for the thirteen weeks ended June 30, 2024. 

Selling, distribution, and administrative expense

Selling, distribution, and administrative expenses were $119.5 million and $104.6 million for the thirteen weeks ended June 29, 202