Primo Brands Reports First Quarter 2025 Results

Canada NewsWire

TAMPA, Fla. and STAMFORD, Conn., May 8, 2025

   -- Delivers strong organic Net Sales growth, primarily driven by volume 
 
   -- Expands Adjusted EBITDA margin 
 
   -- Integration on schedule with cost synergies opportunity of $300 million, 
      with $200 million expected to be captured in 2025; balance expected to be 
      captured in 2026 
 
   -- Reaffirms full year 2025 Net Sales, Adjusted EBITDA and Adjusted Free 
      Cash Flow guidance 

TAMPA, Fla. and STAMFORD, Conn., May 8, 2025 /CNW/ - Primo Brands Corporation $(PRMB)$ ("Primo Brands" or the "Company") today announced its results for the first quarter ended March 31, 2025.

"During our first full quarter as Primo Brands, we achieved strong organic net sales, volume and market share growth, leading to increased earnings and expanded margins. We are on track to realize our $200 million cost synergies opportunity by 2025, supporting our full-year outlook for Net Sales, Adjusted EBITDA, and Adjusted Free Cash Flow," said Robbert Rietbroek, Chief Executive Officer.

"In this macro environment, our resilient business model positions us for continued success. Our focus on domestic manufacturing scale and efficiency, cost control, and synergy capture, combined with exceptional customer service, should enable us to continue to grow volume and deliver margin expansion, resulting in continued shareholder value creation," added Mr. Rietbroek.

(Unless stated otherwise, all first quarter 2025 comparisons are relative to the first quarter of 2024; all information is in U.S. dollars. Pursuant to applicable requirements, these GAAP results are a comparison of the 2025 results for Primo Brands against the 2024 results for former Blue Triton Brands only. Non-GAAP reconciliations are presented in the exhibits to this press release)

FIRST QUARTER 2025 RESULTS CONFERENCE CALL

Primo Brands will host a conference call, to be simultaneously webcast, on Thursday, May 8, 2025, at 10:00 a.m. Eastern Time. A question-and-answer session will follow management's presentation. To participate, please call the following numbers:

Details for the Earnings Conference Call:

Date: May 8, 2025

Time: 10:00 a.m. Eastern Time

North America: (888) 510-2154

International: (437) 900-0527

Conference ID: 62685

Webcast Link: https://app.webinar.net/RAjMJAqJVEN

A slide presentation and live audio webcast will be available through Primo Brands' website at ir.primobrands.com.

Replay Information:

The earnings conference call will be recorded and archived for playback on the investor relations section of Primo Brands' website for a period of two weeks following the event.

FIRST QUARTER PERFORMANCE

 
                                        For the Three Months Ended 
(USD $M except %, per share amounts or  March 31,   March 31,   Y/Y Change 
 unless 
 as otherwise noted)                     2025        2024 
Net sales                               $ 1,613.7   $ 1,135.8       42.1 % 
Net income from continuing operations      $ 34.7      $ 33.5        $ 1.2 
Net income per diluted share from 
 continuing operations                     $ 0.09      $ 0.15     $ (0.06) 
Adjusted net income                       $ 111.9      $ 49.1       $ 62.8 
Adjusted net income per diluted share      $ 0.29      $ 0.22       $ 0.07 
Adjusted EBITDA                           $ 341.5     $ 217.7       56.9 % 
Adjusted EBITDA margin %                   21.2 %      19.2 %      200 bps 
 
   -- Net sales increased 42.1% to $1.6 billion compared to $1.1 billion 
      primarily driven by net sales attributable to Primo Water due to the 
      merger transaction. 
 
   -- Gross margin was 32.3% primarily driven by gross profit attributable to 
      Primo Water due to the merger transaction, as well as lower maintenance 
      costs. 
 
   -- SG&A expenses increased 49.9% to $327.8 million compared to $218.7 
      million. The increase was as a result of the merger transaction. 
 
   -- Net income from continuing operations and net income per diluted share 
      were $34.7 million and $0.09 per diluted share, respectively, compared to 
      net income from continuing operations and net income per diluted share of 
      $33.5 million and $0.15, respectively. 
 
   -- Adjusted EBITDA increased 56.9% to $341.5 million compared to $217.7 
      million and Adjusted EBITDA margin increased 200 bps to 21.2%, compared 
      to 19.2%. 
 
   -- Net cash provided by operating activities from continuing operations of 
      $38.8 million, less $69.5 million of capital expenditures and additions 
      to intangible assets, resulted in $(30.7) million of free cash flow, or 
      $54.7 million of Adjusted Free Cash Flow (adjusting for the items set 
      forth on Exhibit 5), compared to net cash provided by operating 
      activities from continuing operations of $6.0 million and Adjusted Free 
      Cash Flow of $(23.6) million in the prior year. 

QUARTERLY DIVIDEND

On May 1, 2025 Primo Brands announced that its Board of Directors declared a dividend of $0.10 per share on the outstanding common stock of the Company, payable on June 17, 2025, in cash, to the holders of record of such common stock of the Company at the close of business on June 6, 2025.

ABOUT PRIMO BRANDS CORPORATION

Primo Brands is a leading North American branded beverage company focused on healthy hydration, delivering responsibly sourced diversified offerings across products, formats, channels, price points, and consumer occasions, distributed in every U.S. state and Canada. Primo Brands has a comprehensive portfolio of highly recognizable and conveniently packaged branded water and beverages that reach consumers whenever, wherever, and however they hydrate through distribution across retail outlets, away from home such as hotels and hospitals, and food service accounts, as well as direct delivery to homes and businesses. These brands include established "billion-dollar brands" Poland Spring$(R)$ and Pure Life(R), premium brands like Saratoga(R) and Mountain Valley(R), regional leaders such as Arrowhead(R), Deer Park(R), Ice Mountain(R), Ozarka(R), and Zephyrhills(R), purified brands including Primo Water(R) and Sparkletts(R), and flavored and enhanced brands like Splash Refresher$(TM)$ and AC+ION(R). Primo Brands also has an industry-leading line-up of innovative water dispensers, which create consumer connectivity through recurring water purchases. Primo Brands operates a vertically integrated coast-to-coast network that distributes its brands to more than 200,000 retail outlets, as well as directly reaching consumers through its Direct Delivery, Exchange and Refill offerings. Through Direct Delivery, Primo Brands delivers responsibly sourced hydration solutions direct to home and business customers. Through its Exchange business, consumers can visit approximately 26,500 retail locations and purchase a pre-filled, multi-use bottle of water that can be exchanged after use for a discount on the next purchase. Through its Refill business, consumers have the option to refill empty multi-use bottles at approximately 23,500 self-service refill stations. Primo Brands also offers water filtration units for home and business customers across North America. Primo Brands is a leader in reusable beverage packaging, helping to reduce waste through its multi-serve bottles and innovative brand packaging portfolio, which includes recycled plastic, aluminum, and glass. Primo Brands has a portfolio of over 90 springs and actively manages water resources to help assure a steady supply of quality, safe drinking water today and in the future. Primo Brands also helps conserve over 28,000 acres of land across the U.S. and Canada. Primo Brands is proud to partner with the International Bottled Water Association ("IBWA") in North America, which supports strict adherence to safety, quality, sanitation, and regulatory standards for the benefit of consumer protection. Primo Brands is committed to supporting the communities it serves, investing in local and national programs and delivering hydration solutions following natural disasters and other local community challenges. Primo Brands employs more than 13,000 associates with dual headquarters in Tampa, Florida, and Stamford, Connecticut. For more information, please visit www.primobrands.com.

Basis of Presentation

As a result of the timing of the consummation of the business combination of Primo Water Corporation ("Primo Water") and Triton Water Parent, Inc. ("BlueTriton Brands"), to form Primo Brands Corporation on November 8, 2024, the Company's GAAP consolidated financial information presented herein includes BlueTriton Brands' results for the three months ended March 31, 2024, and Primo Brands' results for the three months ended March 31, 2025.

Non-GAAP Measures

To supplement its reporting of financial measures determined in accordance with generally accepted accounting principles in the United States ("GAAP"), Primo Brands utilizes certain non-GAAP financial measures. Primo Brands utilizes organic net sales growth (which excludes the impact of acquisitions). Primo Brands also utilizes Adjusted net income (loss), Adjusted net income (loss) per diluted share, Adjusted EBITDA and Adjusted EBITDA margin to separate the impact of certain items as listed in the below reconciliations from the underlying business. Because Primo Brands uses these adjusted financial results in the management of its business, management believes this supplemental information is useful to investors for their independent evaluation and understanding of Primo Brands' underlying business performance and the performance of its management. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Net Sales. Additionally, Primo Brands supplements its reporting of net cash provided by (used in) operating activities from continuing operations determined in accordance with GAAP by excluding additions to property, plant and

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