HANOVER, PA. — Utz Brands Inc. got a lift from robust sales of branded salty snacks and improved earnings as it began fiscal 2025 with a solid first quarter.

The Hanover-based snack company hit Wall Street’s earnings-per-share target for the quarter and, amid a challenging consumer environment, saw total volume climb more than 6%.

“We delivered a strong start to the year, with first-quarter organic net sales growth of 2.9%, led by branded salty snacks growth of 4.9%,” chief executive officer Howard Friedman said in a May 1 webcast on the quarterly results. “We gained dollar and volume share in the salty snacks category for the 13-week period ended March 31, 2025, as measured by Circana MULO (multi-outlet) plus convenience (retail), driven by the continued momentum of our Power Four Brands.

“Our strong consumption results reflect significant continued growth of Boulder Canyon, strong distribution gains in our expansion geographies, execution of our bonus packs on our Utz and On The Border brands, and addressing consumer value-seeking behavior through targeted promotional investments.”

For the quarter ended March 30, net income came in at $5.7 million, equal to 9¢ per share on the common stock, up from $2.4 million, or 5¢ per share, a year earlier. On an adjusted basis, net earnings were $22.3 million, or 16¢ per share, compared with $20.8 million, or 14¢ per share, in the prior-year period. Analysts, on average, had forecast adjusted EPS of 16¢.

“Our supply chain initiatives remain on track to support our growth and deliver on our productivity commitments,” said Ajay Kataria, who gave his last quarterly report for Utz as William Kelley Jr. takes over as chief financial officer effective May 1.

“In the first quarter, our new rice distribution center is now fully operational, consolidating inventory from six separate buildings into a single, state-of-the-art, 650,000-square-foot facility in Hanover, Pa.,” Kataria said. “We have expanded our manufacturing network by investing in a new kettle line and a new pretzel line, adding much-needed capacity to support our expansion and deliver excellent quality. The result of these efforts is the delivery of strong productivity savings across the business that we can reinvest in growth of our people and capabilities and expanding distribution, while also expanding margin.”

Net sales in the first quarter totaled $352.1 million, up 1.6% from $346.5 million a year ago, with the divestiture of the R.W. Garcia and Good Health brands negatively impacting results by 1.3%, Utz said. Organic net sales grew 2.9% year over year on a 6.3% volume gain and a 3.4% decrease in price/mix, with 2.8% of the latter reflecting the impact of bonus packs, the company said.

Utz’s branded salty snacks business (87% of total net sales) saw organic sales rise 4.9% — driven by Power Four Brands Utz, On The Border, Zapp’s and Boulder Canyon — on 8.3% volume growth, offset by a 3.4% decline in price/mix. Meanwhile, organic sales for non-branded and non-salty snacks (13% of net sales) fell 8.8% as volume dropped 6.1% and price/mix decreased 2.7%.

The Boulder Canyon better-for-you snack brand has gained share in both the natural and traditional retail channels, Utz said.

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By product category, Utz said it gained retail sales share in potato chips (up 2.7%), pretzels (up 2.2%) and pork rinds (up 8%) during the first quarter but experienced declines in tortilla chips (down 2.8%) and cheese snacks (down 3%), based on Circana and Utz data.

“Our Boulder Canyon brand continues to outperform and gain share, both in the natural and traditional channels, with growth of 42% and 158%, respectively,” Friedman said. “Consumers are connecting with the brand and are appreciating its better-for-you attributes and bold flavor profile.”

Boulder Canyon had the top-selling salty snack SKU in the natural channel over the latest 13 and 52 weeks and has been the No. 1 potato chip brand in the total US natural channel for the year to date, he noted. Though primarily potato chips, the brand’s product lineup also includes cheese corn snacks and meat snacks.

“We’re continuing to grow beyond the natural channel, driven by both expanded distribution, innovation and increased velocities,” Friedman added.

Utz also has upped its marketing investment, including a new social media campaign for the core Utz brand and more social channel play for Zapp’s, which includes potato chips and pretzels.

“Our spend is up over 30% year over year, reflecting our commitment to building stronger connections with our consumers as we build our business overnight and brands over time,” Friedman said.

Utz reaffirmed its previous fiscal 2025 guidance of 10% to 15% growth in adjusted EPS and organic net sales growth in the low single digits. The company also projects capital expenditures of $90 million to $100 million for the year.