Primo Brands Reports Full-Year and Fourth Quarter 2024 Results

PR Newswire

TAMPA, FL and STAMFORD, CT, Feb/ 20, 2025

Reports Strong Organic Combined Net Sales Growth

Estimated Cost Synergy Opportunity Increased to $300M

   -- Reports strong Organic Combined Net Sales growth driven primarily by 
      volume 
 
   -- Integration ahead of schedule; increases estimated cost synergy 
      opportunity to $300 million, with $200 million expected to be captured in 
      2025; balance expected to be captured in 2026 
 
   -- Issues full year 2025 Net Sales, Adjusted EBITDA and Adjusted Free Cash 
      Flow guidance 
 
   -- Increases quarterly dividend to $0.10 per common share 

TAMPA, FL and STAMFORD, CT, Feb/ 20, 2025 /PRNewswire/ - Primo Brands Corporation $(PRMB)$ ("Primo Brands" or the "Company"), today announced its results for the full year and fourth quarter ended December 31, 2024.

"We had a strong finish to the year as a combined company, Primo Brands Corporation. We exceeded net sales and volume expectations across our core water channels. Organic Combined Net Sales growth was primarily driven by volume which led to earnings growth and margin expansion. Our focus on our 'must-wins' of brand leadership, net organic growth, delivering superior customer service, providing operational excellence and being the first choice for stakeholders drives growth and creates value. Our strength of brands, market share gains, and increased customer service continues to drive strong momentum," said Robbert Rietbroek, Chief Executive Officer.

"I am pleased with the progress of our integration. We have accelerated the size and speed of cost synergy capture. It is now forecasted to be $100 million higher and one year sooner, with $300 million in total expected by year end 2026. First-year 2025 synergies are estimated to be $200 million, with the balance occurring in 2026. The synergy capture is reflected in our 2025 outlook," said Mr. Rietbroek.

 
(Unless stated otherwise, all fourth quarter 2024 comparisons are relative to 
the fourth quarter of 2023; all information is in U.S. dollars. Non-GAAP 
reconciliations presented on the exhibits to this press release) 
 

Q4 AND FULL YEAR FINANCIAL SUMMARY

 
                             For the Three Months Ended                        For the Fiscal Year Ended 
                  ------------------------------------------------  ------------------------------------------------ 
                     December 31,         December 31,                 December 31,         December 31, 
($ in millions)           2024                 2023         Change          2024                 2023         Change 
                  -------------------  -------------------  ------  -------------------  -------------------  ------ 
Net Sales               $     1,397.2   $          1,086.0  28.7 %   $          5,152.5   $          4,698.7   9.7 % 
Net (Loss) 
 Income from 
 Continuing 
 Operations       $           (153.9)        $        12.1      NM      $        (12.6)        $        92.8      NM 
Net (Loss) 
 Income from 
 Continuing 
 Operations 
 Attributable to 
 Common 
 Stockholders(3)  $           (153.9)        $         3.6      NM      $        (12.6)        $        63.9      NM 
Adj. EBITDA(1)          $       254.8  $             205.3  24.1 %  $             994.6  $             783.6  26.9 % 
 
Combined Net 
 Sales(2)               $     1,609.0   $          1,524.8   5.5 %   $          6,810.1   $          6,462.9   5.4 % 
Combined Adj. 
 EBITDA(1)              $       301.4  $             290.6   3.7 %   $          1,352.5   $          1,131.4  19.5 % 
 
 
(1) See Non-GAAP Financial Measures for additional information regarding 
non-GAAP financial metrics. 
(2) Includes combined results of BlueTriton and Primo Water prior to the 
business combination, inclusive of accounting policy and fiscal year 
conformity adjustments. See Basis of Presentation below. 
(3) See exhibit 6 
 

Q4 2024 Combined Net Sales were $1.609 billion, an increase of 5.5% from the year-ago period, primarily driven by volume gains of 4.4%. Organic contribution was 5.1%.

Q4 2024 Combined Adjusted EBITDA was $301.4 million, an increase of 3.7% from the year-ago period, with Combined Adjusted EBITDA margin of 18.7%.

Full year 2024 Combined Net Sales were $6.810 billion, up 5.4% from the year-ago period, primarily driven by volume gains of 3.4%. Organic contribution was 5.0%.

Full year 2024 Combined Adjusted EBITDA was $1.353 billion, an increase of 19.5% from the year-ago period, with Combined Adjusted EBITDA margin of 19.9%.

OUTLOOK

Primo Brands is targeting the following results for full-year 2025, inclusive of the estimated $200 million cost synergies opportunity anticipated for 2025:

 
Comparable Results(1)      2025 Range 
----------------------  ----------------- 
($ in millions)           Low      High 
   Net Sales Growth       3 %       5 % 
     Adj. EBITDA         $1,600    $1,628 
        CAPEX            4% of Net Sales 
 Adj. Free Cash Flow      $790     $810 
----------------------  --------  ------- 
 
 
(1) Comparison period includes 2024 Combined Financials, less results of 
exited Eastern Canadian operations. For Net Sales reconciliation please see 
exhibit 9 
 

FOURTH QUARTER AND FULL YEAR 2024 RESULTS CONFERENCE CALL

Primo Brands will host a conference call, to be simultaneously webcast, on Thursday, February 20, 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: February 20, 2025

Time: 10:00 a.m. Eastern Time

North America: (888) 510-2154

International: (437) 900-0527

Conference ID: 36944

Webcast Link: https://app.webinar.net/vKwE1br1j4n

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.

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"), to form Primo Brands Corporation on November 8, 2024, the Company's GAAP consolidated financial information presented herein includes BlueTriton's results for the three months and year ended December 31, 2024, and Primo Water's results for the period from November 9, 2024 through December 31, 2024 following the closing of the business combination.

Information in this release that is presented on a "Combined" basis includes results for both BlueTriton and Primo Water on a combined basis inclusive of periods prior to the business combination. Historical information presented on a combined basis does not reflect any pro forma adjustments or other adjustments for costs related to integration activities, cost savings or synergies that have been or may be achieved if the business combination occurred on January 1, 2023, other than to reflect the difference in Primo Water's fiscal year-end, and the impact of the accounting conformity related to bottle deposits.

INVESTOR DAY

We look forward to sharing our progress at our inaugural investor day next week on February 27, 2025. The event will be webcast live beginning at 1:00 PM EST on our website at ir.primobrands.com. The agenda includes a view of our long term growth algorithm, progress on synergy capture and our go-to-market strategies.

FOURTH QUARTER PERFORMANCE

 
                                 For the Three Months Ended 
                   ------------------------------------------------------- 
(USD $M except % 
or unless as         December 31,       December 31, 
otherwise noted)         2024               2023                Y/Y Change 
                   ----------------  ------------------  ----------------- 
Net sales             $     1,397.2     $       1,086.0             28.7 % 
Net (loss) income 
 from continuing 
 operations         $       (153.9)   $            12.1   $        (166.0) 
Net (loss) income 
 from continuing 
 operations 
 attributable to 
 common 
 stockholders(1)    $       (153.9)  $              3.6   $        (157.5) 
Net (loss) income 
 per diluted 
 share from 
 continuing 
 operations        $         (0.49)   $            0.02  $          (0.51) 
Adjusted net 
 income             $          39.6   $            23.6   $           16.0 
Adjusted net 
 income per 
 diluted share      $          0.13   $            0.11   $           0.02 
Adjusted EBITDA      $        254.8    $          205.3             24.1 % 
Adjusted EBITDA 
 margin %                    18.2 %              18.9 %  -70 bps 
 
 
(1) See exhibit 6 
 
   -- Net sales increased 28.7% to $1.397 billion compared to $1.086 billion. 
      Combined Net Sales increased 5.5% to $1.609 billion compared to $1.525 
      billion. Contribution to Combined Net Sales from organic growth was 5.1% 
      for the quarter. 
 
   -- Gross margin was 30.8% primarily driven by increased volumes better 
      leveraging our fixed costs, as well as beneficial freight and water 
      sourcing efficiencies. 
 
   -- SG&A expenses increased 56.3% to $335.9 million compared to $214.9 
      million. The increase was driven by higher selling costs, increased 
      marketing spend to help drive organic sales and the impact of the 
      transaction. 
 
   -- Net loss from continuing operations attributable to common stockholders 
      and net loss per diluted share were $153.9 million and $0.49 per diluted 
      share, respectively, compared to net income from continuing operations 
      attributable to common stockholders and net income per diluted share of 
      $3.6 million and $0.02, respectively. 
 
   -- Adjusted EBITDA increased 24.1% to $254.8 million compared to $205.3 

      million and Adjusted EBITDA margin decreased 70 bps to 18.2%, compared to 
      18.9%. Combined Adjusted EBITDA increased 3.7% to $301.4 million compared 
      to $290.6 million and Combined Adjusted EBITDA margin decreased 40 bps to 
      18.7%, compared to 19.1%. 
 
   -- Net cash provided by operating activities from continuing operations of 
      $93.7 million, less $57.6 million of capital expenditures and additions 
      to intangible assets, resulted in $36.1 million of free cash flow, or 
      $171.8 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 $122.1 million and Adjusted Free 
      Cash Flow of $87.1 million in the prior year. 

FISCAL YEAR PERFORMANCE

 
                                   For the Fiscal Year Ended 
(USD $M except % or 
unless as otherwise    December 31,      December 31, 
noted)                     2024              2023        Y/Y Change 
                     ----------------  ----------------  ----------------- 
Net sales               $     5,152.5    $      4,698.7              9.7 % 
Net (loss) income 
 from continuing 
 operations          $         (12.6)  $           92.8   $        (105.4) 
Net (loss) income 
 from continuing 
 operations 
 attributable to 
 common 
 stockholders(1)     $         (12.6)  $           63.9  $          (76.5) 
Net (loss) income 
 per diluted share 
 from continuing 
 operations          $         (0.05)  $           0.29  $          (0.34) 
Adjusted net income    $        245.0   $         123.6    $         121.4 
Adjusted net income 
 per diluted share    $          1.01  $           0.57   $           0.44 
Adjusted EBITDA        $        994.6   $         783.6             26.9 % 
Adjusted EBITDA 
 margin %                      19.3 %            16.7 %  260 bps 
 

(1) See exhibit 6

   -- Net sales increased 9.7% to $5.153 billion compared to $4.699 billion. 
      Combined Net Sales increased 5.4% to $6.810 billion compared to $6.463 
      billion. Contribution to Combined Net Sales from organic growth was 5.0%. 
 
   -- Gross margin was 31.5% primarily driven by increased volumes better 
      leveraging our fixed costs, as well as beneficial freight and water 
      sourcing efficiencies. 
 
   -- SG&A expenses increased 13.7% to $1.051 billion compared to $924 million. 
      The increase was driven by higher selling costs, increased marketing 
      spend to help drive organic sales and the impact of the transaction. 
 
   -- Net loss from continuing operations attributable to common stockholders 
      and net loss per diluted share were $12.6 million and $0.05, respectively, 
      compared to net income from continuing operations attributable to common 
      stockholders and net income per diluted share of $63.9 million and $0.29, 
      respectively. 
 
   -- Adjusted EBITDA increased 26.9% to $994.6 million compared to $783.6 
      million and Adjusted EBITDA margin increased 260 bps to 19.3%, compared 
      to 16.7%. Combined Adjusted EBITDA increased 19.5% to $1.353 billion 
      compared to $1.131 billion and Combined Adjusted EBITDA margin increased 
      240 bps to 19.9%, compared to 17.5%. 
 
   -- Net cash provided by operating activities from continuing operations of 
      $463.8 million, less $190.9 million of capital expenditures and additions 
      to intangible assets, resulted in $272.9 million of Free Cash Flow, or 
      $456.2 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 $320.9 million and Adjusted Free 
      Cash Flow of $137.9 million in the prior year. 

QUARTERLY DIVIDEND

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 March 24, 2025, in cash, to the holders of record of such common stock of the Company at the close of business on March 7, 2025.

ABOUT PRIMO BRANDS CORPORATION

Primo Brands is a leading North American branded beverage company with a focus on healthy hydration, delivering responsibly and domestically sourced diversified offerings across products, formats, channels, price points, and consumer occasions, distributed in every state and Canada. Primo Brands has an extensive portfolio of highly recognizable, responsibly sourced, and conveniently packaged branded beverages distributed across more than 200,000 retail outlets, including 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(R) and AC+ION(R). These brands are sold directly across retail channels, including mass food, convenience, natural, drug, wholesale, distributors, and home improvement, as well as food service accounts in North America. Primo Brands also has extensive direct-to-consumer offerings with its industry-leading line-up of innovative water dispensers, which create consumer connectivity through recurring water purchases across its Water Direct, Water Exchange and Water Refill businesses. Through its Water Direct business, Primo Brands delivers hydration solutions direct to home and business consumers. Through its Water 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 Water Refill business, consumers have the option to refill empty multiuse bottles at approximately 23,500 self-service refill stations. Primo Brands also offers water filtration units for home and business consumers across North America. Primo Brands is a leader in reusable and circular packaging, helping to reduce waste through its reusable, multi serve bottles and innovative brand packaging portfolio, made from 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 US and Canada. The Company 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 believes in fostering a respectful culture that values its associates and key stakeholders, and is deeply invested in quality hydration, its communities, and the sustainability of its packaging and water sources for generations to come. Primo Brands will continue Primo Water's and BlueTriton's strong support for American communities during natural disasters, in dealing with local and regional hydration quality issues, and in connection with many other local community challenges. Primo Brands employs more than 13,000 associates with dual headquarters in Tampa, Florida, and Stamford, Connecticut, and has more than 70 production facilities and more than 240 depots for efficient delivery to customers and consumers across North America.

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 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 equipment and additions to intangible assets to present Free Cash Flow, and by excluding the additional items identified on the exhibits hereto to present Adjusted Free Cash Flow, which management believes provides useful information to investors in assessing our performance, comparing Primo Brands' performance to the performance of the Company's peer group and assessing the Company's ability to service debt and finance strategic opportunities, which include investing in Primo Brands' business, making strategic acquisitions, paying dividends, and strengthening the balance sheet.

To aid investors and analysts with year-over-year comparability for the combined business of BlueTriton and Primo Water, the Company has also presented certain of these non-GAAP financial measures on a "Combined " basis. Combined non-GAAP financial measures includes results for both BlueTriton and Primo Water on a combined basis inclusive of periods prior to the business combination. Information presented on a combined basis does not reflect any pro forma adjustments or other adjustments for costs related to integration activities, cost savings or synergies that have been or may be achieved if the business combination occurred on January 1, 2023, other than to reflect the difference in Primo Water's fiscal year-end, and the impact of the accounting conformity related to bottle deposits.

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