By Dhirendra Tripathi
Investing.com – Utz Brands stock (NYSE:UTZ) tumbled 3% Thursday as the salty snacks maker cut its annual guidance for earnings before interest, taxes, depreciation and amortization while warning of higher commodity, transportation, and labor costs.
The maker of Kettle crab chips now sees its adjusted Ebitda between $160 million and $170 million for the year compared to the $180 million to $190 million range it gave in May.
The company said these costs that began to rise in January through March grew in the second quarter as well to hurt the company’s profitability more than anticipated.
A company note said it is trying to offset the inflation in raw material prices through pricing, productivity, and cost savings but they may not be enough.
Utz’s second-quarter net revenue rose 23% to $299.2 million and beat expectation though adjusted earnings per share of 13 cents disappointed.