Food manufacturer Utz is standing firm in its 2025 financial guidance, aiming for net sales growth in the low single-digits, according to its recent Q1 earnings report. CEO Howard Friedman highlighted the company’s resilience to tariffs, stating that Utz expects only a “modest impact” on its business due to its domestic sourcing and U.S.-based factories.
In addition to weathering the tariff volatility, Utz is on track to save $150 million by 2026 through a supply chain overhaul, surpassing its previous $135 million savings estimate. This strategic cost-saving initiative is expected to further strengthen the company’s position in the market.
Utz’s confidence in maintaining its financial outlook contrasts with other food manufacturers like Kellogg and Hershey, who are adjusting their forecasts due to tariff pressures. Kellogg recently announced a cut in its annual financial outlook, citing the impact of tariffs on raw material sourcing outside of North America. Hershey, on the other hand, is facing tariff-related costs for cocoa imports and is seeking exemptions to mitigate the financial impact.
Utz’s ability to adapt and thrive in the current trade environment is attributed to its flexible supply chain and expanded manufacturing and distribution capacity. The company has recently opened new facilities in Pennsylvania, North Carolina, and Michigan to support its growth strategy.
For the first quarter of 2025, Utz reported a slight increase in net sales to $352 million and a 7.2% year-over-year increase in adjusted net income to $22.3 million. CEO Friedman expressed optimism for the remainder of the year, emphasizing the company’s strong productivity cost savings that will support brand expansion and margin growth.
Overall, Utz’s proactive approach to managing tariffs and optimizing its supply chain positions it well for continued success in the competitive food manufacturing industry.
