By Dean Seal

Utz Brands swung to a profit in the fourth quarter following some divestitures last year that ate into its reported sales, though organic sales held steady.

The maker of chips and pretzels posted earnings of $2.3 million, or 3 cents a share, compared with a loss of $27.7 million, or 34 cents a share, in the same quarter a year ago.

Stripping out one-time items, adjusted earnings were 22 cents a share. Analysts polled by FactSet had been expecting 19 cents a share.

Sales fell 3% to $341 million, below analyst projections for $350 million, according to FactSet.

The shortfall was largely driven by the sale last year of its R.W. Gracia and Good Health brands to Popchips owner Our Home for $182.5 million.

On an organic basis, sales were flat year-over-year as slightly higher volumes and mix were offset by slightly lower prices.

Utz is guiding for organic sales to rise in the low-single-digit percentage range in 2025, led by strength in its salty snacks and a smaller decline among its non-branded and non-salty snacks. Analysts had been forecasting a 6.8% jump in total sales for the new year.

The Hanover, Penn., company is also projecting a 10% to 15% increase in adjusted earnings for 2025, which would be about 85 cents to 89 cents a share. Analysts are forecasting 83 cents a share.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 20, 2025 06:40 ET (11:40 GMT)

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