Utz Brands, Inc.

The call did not include a full prepared-remarks financial readout, but management said Q1 was largely in line with expectations and that the full-year outlook was unchanged. BK Kelley said the company confirmed guidance for $60 million to $80 million of free cash flow this year, and noted Q1 is typically a cash-burn quarter as inventory is built for seasonality. Management also said they grew distribution 7% on TDPs, increased marketing spend 35% in the quarter, and said the category was running around up 2% based on retail dollars discussed on the call. For the full year, they reiterated guidance elements and said they remain covered for most of the year on fuel, ags, and freight, with incremental inflation mainly from resin and packaging.

Howard Friedman framed the quarter as consistent with expectations and emphasized that early Q2 softness was largely anticipated because of Easter timing, prior-year programming, and merchandising shifts. He pointed to positive underlying demand in the food channel, strong momentum in Boulder Canyon, and early success in California as evidence the strategy is working. His tone was confident but measured, stressing that the company is competing effectively without needing to change commercial plans.

BK Kelley focused on cost protection and cash generation. He said the company is covered for most of the year on fuel, ags, and freight, and that the roughly 4% productivity program is progressing well; remaining inflation pressure is expected to come mostly from resin-related packaging costs. He also reiterated the $60 million to $80 million free cash flow target, said Q1 is typically a seasonal cash-burn quarter, and pointed to improving leverage year over year as evidence that processes and capabilities are getting better.

Analysts pressed on the soft start to Q2, competitive pricing actions, marketing spend, household penetration, and free cash flow. Management said April was expected to be weaker because of Easter, prior-year promotions, and timing shifts, and they do not yet see a reason to change commercial plans because the competitive activity looks targeted rather than broad-based. On California, Howard Friedman said it is too early to measure repeat rates, but the initial response is encouraging and the company is confident because loyalty and repeat trends are holding well nationally.