By Katherine Hamilton

Primo Brands shares fell after it said it now expects full-year sales to decline, as it is taking longer than expected to build up sales volumes.

The stock slid 20% to $18.04 on Thursday, which would be its largest percent decrease since March 2020. The stock hit its lowest point since 2024 and is down 40% this year.

The beverage company now anticipates sales will decline by a low-single-digit percentage in the full year, while it was previously expecting revenue to be flat or up 1%.

During the first half of the year, a tornado in Hawkins, Texas, damaged one of Primo's key production facilities. The company is also phasing out its office coffee services and dispense businesses, which are experiencing sales declines.

Sales volumes are still low in its direct delivery business, Chief Financial Officer David Hass said on a call with analysts. Primo is trying to build its customer portfolio with Costco Wholesale, Sam's Club and BJ's Wholesale Club to ramp up volumes.

"We still remain confident in the recovery of the business, but the recovery path is not at the right magnitude to deliver the midpoint of our previous guidance," Hass said.

Adjusted earnings per share were 41 cents, below the 37 cents a share analysts polled by FactSet were expecting.

Profit from continuing operations declined to $40.5 million, or 11 cents a share, from $53.3 million, or 24 cents a share, the year before.

Sales in the third quarter rose 35% to $1.77 billion, roughly in line with Wall Street estimates. Revenue increased primarily because of Primo's merger with BlueTriton, which resulted in higher volumes.

Chief Executive Robbert Rietbroek also stepped down and has resigned from the board. Chair member Eric Foss will succeed him.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

November 06, 2025 15:18 ET (20:18 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.