Key Points:
- Food manufacturer Utz remains confident in its 2025 financial guidance, aiming for low single-digit net sales growth.
- CEO Howard Friedman stated that Utz expects only a “modest impact” from tariffs due to its domestic sourcing and U.S.-based factories.
- Utz plans to save $150 million by 2026 through a supply chain overhaul, surpassing previous estimates, to mitigate tariff volatility.
Insight:
Utz’s optimism contrasts with other food manufacturers like Kellogg, who have cut their forecasts due to tariff policies.
Kellogg announced a reduction in its financial outlook, citing tariffs and declining sales as contributing factors.
Hershey is seeking tariff exemptions for cocoa, expecting costs to rise significantly in the second half of the year.
Utz is expanding its manufacturing and distribution capacity to leverage its flexibility and domestic supply chain.
The company’s net sales saw a slight increase in the quarter, with adjusted net income also rising year over year.
CEO Friedman is confident that Utz’s productivity cost savings will continue to support brand growth and margin expansion in 2025.