US snacks business Utz Brands has increased its forecasts for annual net sales and adjusted earnings after releasing its third-quarter results.
The Golden Flake, Zapp’s and Boulder Canyon brands owner saw both sales and adjusted earnings increase markedly, on a year-on-year basis, in the three months to 27 September.
In the 53-week fiscal year ending 3 January, Utz now expects to see sales growth of 10-11% versus 2019 pro-forma net sales of US$865.5m and adjusted EBITDA in the range of $129m to $132m.
It is the first guidance the Hanover, Pennsylvania, business has issued as a new public company.
Utz recorded third-quarter net sales of $248m, an increase of 24.2% over the prior year period and adjusted EBITDA of $38.2m, growth of 39.8% year-on-year.
However, the company made a net loss of $7.3m, compared to net income of $10.3m last year. Utz said this was driven by transaction-related expenses from the merger with investment vehicle Collier Creek Holdings which completed in August.
CEO Dylan Lissette said: “We are pleased to report strong financial results for our first quarter as a public company. Our strong portfolio of brands, competitively-advantaged manufacturing and distribution network, and strong execution helped us improve our market positions in key channels, geographies, product sub-categories, and in total.”