HANOVER, PA. — Utz Brands, Inc. spent fiscal 2023 resetting the business by optimizing its supply chain, cutting stock-keeping units (SKUs) and divesting some assets. In fiscal 2024, management is planning to invest in marketing and expand distribution in established and new markets.

“In 2023 we evolved through capacity, distribution and capability investments that position Utz to capture its full potential,” said Howard Friedman, chief executive officer, during a Feb. 29 conference call to discuss fiscal 2023 results. “As we begin 2024, we have hit the ground running, and closed our recently announced brand and manufacturing plant dispositions which fast-tracks our deleveraging timeline, accelerates our supply chain transformation, and increases focus in our brand portfolio.”

For the year ended Dec. 31, 2023, Utz Brands incurred a loss of $40 million, an increase from fiscal 2022 when the company recorded a loss of $14 million.

Annual sales in fiscal 2023 rose 2% to $1.44 billion from $1.41 billion in fiscal 2022.

Several non-cash impairment charges impacted full-year results, specifically a $13.7 million charge related to the sale of a plant in Bluffton, Ind., and $12.6 million related to plant closing in Birmingham, Ala.

In fiscal 2024, Utz Brands is guiding organic net sales growth of 3% or better.

“Our growth is expected to be led by volume with outsized strength in our expansion geographies and pricing about flat for the year,” said Ajay Kataria, chief financial officer. He added that the cadence in volume growth during the year will ramp up and be slightly more weighted toward the second half.

Adjusted EBITDA during fiscal 2024 is expected to grow 5% to 8% over fiscal 2023’s adjusted EBITDA of $187 million.

Supporting the growth will be a 40% increase in marketing expenses, said Kataria.

“… We're excited about the opportunity to increase the agency and actually take these brands on to a higher level of what I would consider (a) more pull marketing emphasis,” Friedman said.

He added that distribution also will play a significant role in fiscal 2024 growth, both in Utz’s core markets as well as new regions.

“Within our core, we are focused on making sure that we’re bringing brands like Zapp’s and Boulder Canyon into our core markets where we (a) have heavy share presence,” he said. “That will progress as we go through the course of the year.

“I think we have an opportunity to continue to solidify Florida as a fast-growing contributor to our overall growth rate as we continue to move that business from what has been an expansion market into our core over the next couple of years.”