Primo Brands Reports Second Quarter 2025 Results
Primo Brands (NYSE:PRMB) reported Q2 2025 results with net sales increasing 31.6% to $1.7 billion and Adjusted EBITDA rising 42.1% to $366.7 million. The company faced challenges including tornado damage to its Hawkins facility and integration-related service issues, leading to revised 2025 guidance.
The company reaffirmed its cost synergy targets of $200 million in 2025 and $300 million in 2026. The Board approved a new $250 million share repurchase program and declared a quarterly dividend of $0.10 per share. Management expects service issues to normalize by September end and reiterated their long-term organic growth target of 3-5%.
Primo Brands (NYSE:PRMB) ha comunicato i risultati del secondo trimestre 2025 con un aumento delle vendite nette del 31,6% a 1,7 miliardi di dollari e un EBITDA rettificato in crescita del 42,1% a 366,7 milioni di dollari. L'azienda ha affrontato diverse difficoltà, tra cui danni causati da un tornado alla struttura di Hawkins e problemi di servizio legati all'integrazione, che hanno portato a una revisione delle previsioni per il 2025.
L'azienda ha confermato gli obiettivi di sinergia sui costi di 200 milioni di dollari nel 2025 e 300 milioni nel 2026. Il Consiglio di Amministrazione ha approvato un nuovo programma di riacquisto azionario da 250 milioni di dollari e ha dichiarato un dividendo trimestrale di 0,10 dollari per azione. La direzione prevede che i problemi di servizio si normalizzeranno entro la fine di settembre e ha ribadito l'obiettivo di crescita organica a lungo termine del 3-5%.
Primo Brands (NYSE:PRMB) informó resultados del segundo trimestre de 2025 con un aumento de las ventas netas del 31,6% hasta 1.700 millones de dólares y un EBITDA ajustado que creció un 42,1% hasta 366,7 millones de dólares. La compañía enfrentó desafíos, incluyendo daños por tornado en su planta de Hawkins y problemas de servicio relacionados con la integración, lo que llevó a una revisión de las previsiones para 2025.
La empresa reafirmó sus objetivos de sinergias de costos de 200 millones de dólares en 2025 y 300 millones en 2026. El Consejo aprobó un nuevo programa de recompra de acciones por 250 millones de dólares y declaró un dividendo trimestral de 0,10 dólares por acción. La dirección espera que los problemas de servicio se normalicen para finales de septiembre y reiteró su objetivo de crecimiento orgánico a largo plazo de entre el 3 y el 5%.
Primo Brands (NYSE:PRMB)는 2025년 2분기 실적을 발표하며 순매출이 31.6% 증가한 17억 달러, 조정 EBITDA는 42.1% 상승한 3억 6,670만 달러를 기록했습니다. 회사는 Hawkins 시설의 토네이도 피해와 통합 관련 서비스 문제 등 어려움을 겪어 2025년 가이던스를 수정했습니다.
회사는 2025년 2억 달러, 2026년 3억 달러의 비용 시너지 목표를 재확인했습니다. 이사회는 2억 5천만 달러 규모의 새로운 자사주 매입 프로그램을 승인하고, 주당 분기 배당금 0.10달러를 선언했습니다. 경영진은 서비스 문제가 9월 말까지 정상화될 것으로 예상하며, 장기 유기적 성장 목표인 3-5%를 재확인했습니다.
Primo Brands (NYSE:PRMB) a annoncé ses résultats du deuxième trimestre 2025 avec une augmentation des ventes nettes de 31,6 % à 1,7 milliard de dollars et une hausse de l'EBITDA ajusté de 42,1 % à 366,7 millions de dollars. L'entreprise a rencontré des difficultés, notamment des dégâts causés par une tornade à son site de Hawkins et des problèmes de service liés à l'intégration, ce qui a conduit à une révision des prévisions pour 2025.
L'entreprise a confirmé ses objectifs de synergies de coûts de 200 millions de dollars en 2025 et 300 millions en 2026. Le conseil d'administration a approuvé un nouveau programme de rachat d'actions de 250 millions de dollars et déclaré un dividende trimestriel de 0,10 dollar par action. La direction s'attend à ce que les problèmes de service se normalisent d'ici la fin septembre et a réitéré son objectif de croissance organique à long terme de 3 à 5 %.
Primo Brands (NYSE:PRMB) meldete die Ergebnisse für das zweite Quartal 2025 mit einem Anstieg der Nettoumsätze um 31,6 % auf 1,7 Milliarden US-Dollar und einem Anstieg des bereinigten EBITDA um 42,1 % auf 366,7 Millionen US-Dollar. Das Unternehmen hatte mit Herausforderungen zu kämpfen, darunter Tornadoschäden an der Anlage in Hawkins und integrationsbedingte Serviceprobleme, was zu einer Anpassung der Prognose für 2025 führte.
Das Unternehmen bestätigte seine Kostensynergie-Ziele von 200 Millionen US-Dollar im Jahr 2025 und 300 Millionen US-Dollar im Jahr 2026. Der Vorstand genehmigte ein neues Aktienrückkaufprogramm über 250 Millionen US-Dollar und erklärte eine vierteljährliche Dividende von 0,10 US-Dollar je Aktie. Das Management erwartet, dass sich die Serviceprobleme bis Ende September normalisieren, und bekräftigte das langfristige organische Wachstumsziel von 3-5 %.
- Net sales increased 31.6% to $1.7 billion year-over-year
- Adjusted EBITDA grew 42.1% to $366.7 million with margin expansion of 160 bps to 21.2%
- Adjusted Free Cash Flow increased to $169.7 million from $73.2 million year-over-year
- New $250 million share repurchase program announced
- Cost synergy targets maintained at $200M for 2025 and $300M for 2026
- Quarterly dividend of $0.10 per share declared
- Net income declined to $30.5 million from $54.5 million year-over-year
- Earnings per share dropped to $0.08 from $0.25 year-over-year
- Gross margin decreased to 31.3% from 32.7% year-over-year
- SG&A expenses increased 47.7% to $378.6 million
- Downward revision of full year 2025 guidance for Net Sales, Adjusted EBITDA, and Free Cash Flow
- Integration and tornado-related disruptions affecting operational performance
Insights
Primo Brands faces integration challenges impacting financial guidance despite synergy progress and new $250M buyback program.
Primo Brands' Q2 results reveal a mixed performance in their post-merger integration journey. While the company achieved 31.6% revenue growth to
The company's gross margin contracted to
The most significant warning signal is the revised financial guidance for 2025. Management is lowering expectations for Net Sales growth, Adjusted EBITDA, and Adjusted Free Cash Flow, pointing to integration challenges that required unexpected reinvestment. However, they've maintained their cost synergy targets of
In a show of confidence despite near-term challenges, the Board authorized a new
The long-term growth algorithm of
- Revises full year 2025 Net Sales, Adjusted EBITDA, and Adjusted Free Cash Flow guidance
- Reaffirms cost synergy capture targets of
$200 million $300 million - Announces new share repurchase program of
$250 million - Declares quarterly dividend of
10 cents per share - Reiterates post-2025 long-term growth algorithm of
3% to5% organic Net Sales growth
"Since merging eight months ago, we have taken multiple actions to build our new operational footprint, capture synergies and create a leading healthy hydration beverage company. Our team has accomplished significant milestones – streamlining routes, closing facilities and optimizing headcount with a majority of these integration activities implemented in the quarter," said Robbert Rietbroek, Chief Executive Officer. "Our Q2 results were impacted by previously reported tornado damage to our
"Due to these integration disruptions during the later part of Q2, and our reinvestment to correct the issues, we are revising full year 2025 Net Sales growth, Adjusted EBITDA, and Adjusted Free Cash Flow guidance. We expect to deliver our targeted cost synergy opportunity of
"Despite these Q2 challenges, we continue to see strong consumer demand for healthy hydration, and are encouraged by our retail share growth in July. We believe we are taking the right steps to resolve the service issues, which we expect to be back to normal by the end of September. Our business model is resilient and is well positioned to deliver growth, improve margins, and generate strong cash flow going forward, which will enable us to opportunistically return value to shareholders with the new
(Unless stated otherwise, all second quarter 2025 comparisons are relative to the second quarter of 2024; all information is in
SECOND QUARTER 2025 RESULTS CONFERENCE CALL
Primo Brands will host a conference call, to be simultaneously webcast, on Thursday, August 7, 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: August 7, 2025
Time: 10:00 a.m. Eastern Time
International: (437) 900-0527
Conference ID: 91812
Webcast Link: https://app.webinar.net/4DVw0w9aWjk
A slide presentation and live audio webcast will be available through Primo Brands' website at ir.primobrands.com. The Company's revised full year 2025 Net Sales, Adjusted EBITDA, and Adjusted Free Cash Flow guidance are available in the slide presentation and are expected to be discussed on the webcast.
Replay Information:
The earnings conference call will be recorded and archived for playback on the investor relations section of Primo Brands' website following the event.
SECOND QUARTER PERFORMANCE
For the Three Months Ended | |||||
(USD $M except %, per share amounts or unless as otherwise noted) | June 30, 2025 | June 30, 2024 | Y/Y Change | ||
Net sales | $ 1,730.1 | $ 1,314.4 | 31.6 % | ||
Net income from continuing operations | $ 30.5 | $ 54.5 | $ (24.0) | ||
Net income per diluted share from continuing operations | $ 0.08 | $ 0.25 | $ (0.17) | ||
Adjusted net income | $ 137.1 | $ 76.7 | $ 60.4 | ||
Adjusted net income per diluted share | $ 0.36 | $ 0.35 | $ 0.01 | ||
Adjusted EBITDA | $ 366.7 | $ 258.0 | 42.1 % | ||
Adjusted EBITDA margin % | 21.2 % | 19.6 % | 160 bps | ||
- Net sales increased
31.6% to$1.7 billion $1.3 billion Ontario, Canada in the first quarter of 2025. - Gross margin was
31.3% compared to32.7% , primarily driven by gross profit attributable to Primo Water as a result of the merger transaction. - SG&A expenses increased
47.7% to$378.6 million $256.3 million - Net income from continuing operations and net income per diluted share were
$30.5 million $0.08 $54.5 million $0.25 - Adjusted EBITDA increased
42.1% to$366.7 million $258.0 million 21.2% , compared to19.6% . - Net cash provided by operating activities from continuing operations of
$155.0 million $71.6 million $83.4 million $169.7 million $102.5 million $73.2 million
QUARTERLY DIVIDEND
Primo Brands announced that its Board of Directors declared a dividend of
SHARE REPURCHASE PROGRAM
Primo Brands today announced that its Board of Directors has authorized a share repurchase program of up to
Primo Brands may purchase shares from time to time at the discretion of management through open market purchases, block trades, accelerated or other structured share repurchase programs, privately negotiated transactions, Rule 10b5-1 plans or other means. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The manner, timing, pricing and amount of any transactions will be subject to the discretion of management and may be based upon market conditions, regulatory requirements and alternative opportunities that Primo Brands may have for the use or investment of its capital. The program does not obligate Primo Brands to acquire any particular amount of Class A common stock, and may be modified, suspended or terminated at any time at the discretion of its Board of Directors.
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
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 and six months ended June 30, 2024, and Primo Brands' results for the three and six months ended June 30, 2025.
Non-GAAP Measures
To supplement its reporting of financial measures determined in accordance with generally accepted accounting principles in
The non-GAAP financial measures described above are in addition to, and not meant to be considered superior to, or a substitute for, Primo Brands' financial statements prepared in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. Also, other companies might calculate these measures differently. Investors are encouraged to review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP measures included in this press release and the accompanying tables. In addition, the non-GAAP financial measures included in this earnings announcement reflect management's judgment of particular items, and may be different from, and therefore may not be comparable to, similarly titled measures reported by other companies.
We have not reconciled our long-term organic net sales growth guidance to GAAP net sales, because we do not provide guidance for such GAAP measures due to the uncertainty and potential variability of net sales from acquisitions, which is a reconciling item between organic net sales growth and net sales growth. Because this item cannot be provided without unreasonable efforts, we are unable to provide a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure. However, such items could have a significant impact on our future GAAP net income or loss and GAAP net income or loss margin.
Safe Harbor Statements
This press release contains forward-looking statements and forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 conveying management's expectations as to the future based on plans, estimates and projections at the time Primo Brands makes the statements. Forward-looking statements involve inherent risks and uncertainties and Primo Brands cautions you that several important factors could cause actual results to differ materially from those contained in any such forward-looking statement. You can identify forward-looking statements by words such as "may," "will," "would," "should," "could," "expect," "aim," "anticipate," "believe," "estimate," "intend," "plan," "predict," "project," "seek," "potential," "opportunities," and other similar expressions and the negatives of such expressions. However, not all forward-looking statements contain these words. The forward-looking statements contained in this press release include, but are not limited to, statements regarding future financial and operating trends and results (including Primo Brands' 2025 outlook), anticipated synergies and other benefits from the business combination of BlueTriton and Primo Water, the number of shares that may be repurchased under the share repurchase program, the impact of macroeconomic trends on Primo Brands' business, progress on resolving certain service issues and execution of the Company's strategy and Primo Brands' competitive position. The forward-looking statements are based on assumptions regarding management's current plans and estimates. Management believes these assumptions to be reasonable, but there is no assurance that they will prove to be accurate.
Factors that could cause actual results to differ materially from those described in this press release include, among others: our ability to manage our expanded operations following the business combination; we have no operating or financial history as a combined company; we face significant competition in the segment in which we operate; our success depends, in part, on our intellectual property; we may not be able to consummate acquisitions, or acquisitions may be difficult to integrate, and we may not realize the expected benefits; our business is dependent on our ability to maintain access to our water sources; our ability to respond successfully to consumer trends related to our products; the loss or reduction in sales to any significant customer; our packaging supplies and other costs are subject to price increases; the affiliates of One Rock Capital Partners, LLC own a significant amount of the voting power of the Company, and their interests may conflict with or differ from the interests of other stockholders; legislative and executive action risks; risks related to sustainability matters; costs to comply with developing laws and regulations, including those surrounding the production and use of plastics, as well as related litigation relating to plastics pollution; our products may not meet health and safety standards or could become contaminated, and we could be liable for injury, illness, or death caused by consumption of our products; and risks associated with our substantial indebtedness.
The foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors contained in Primo Brands' Annual Report on Form 10-K and its quarterly reports on Form 10-Q, as well as other filings with the securities commissions. Primo Brands does not undertake to update or revise any of these statements considering new information or future events, except as expressly required by applicable law.
Website: ir.primobrands.com
PRIMO BRANDS CORPORATION | EXHIBIT 1 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in millions of | |||||||
Unaudited | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net sales | $ 1,730.1 | $ 1,314.4 | $ 3,343.8 | $ 2,450.2 | |||
Cost of sales | 1,189.2 | 884.6 | 2,281.9 | 1,674.9 | |||
Gross profit | 540.9 | 429.8 | 1,061.9 | 775.3 | |||
Selling, general and administrative expenses | 378.6 | 256.3 | 706.4 | 475.0 | |||
Acquisition, integration and restructuring expenses | 49.7 | 13.2 | 89.5 | 19.0 | |||
Other operating (income) expense, net | (0.2) | 1.3 | — | (2.5) | |||
Operating income | 112.8 | 159.0 | 266.0 | 283.8 | |||
Other income, net | (15.9) | — | (15.8) | — | |||
Loss on modification and extinguishment of debt | — | — | 18.6 | — | |||
Interest and financing expense, net | 81.9 | 86.2 | 164.0 | 166.1 | |||
Income from continuing operations before income taxes | 46.8 | 72.8 | 99.2 | 117.7 | |||
Provision for income taxes | 16.3 | 18.3 | 34.0 | 29.7 | |||
Net income from continuing operations | $ 30.5 | $ 54.5 | $ 65.2 | $ 88.0 | |||
Net loss from discontinued operations, net of tax | (2.9) | — | (8.9) | — | |||
Net income | $ 27.6 | $ 54.5 | $ 56.3 | $ 88.0 | |||
Net income (loss) per common share | |||||||
Basic: | |||||||
Continuing operations | $ 0.08 | $ 0.25 | $ 0.17 | $ 0.40 | |||
Discontinued operations | $ (0.01) | $ — | $ (0.02) | $ — | |||
Net income per common share | $ 0.07 | $ 0.25 | $ 0.15 | $ 0.40 | |||
Diluted: | |||||||
Continuing operations | $ 0.08 | $ 0.25 | $ 0.17 | $ 0.40 | |||
Discontinued operations | $ (0.01) | $ — | $ (0.02) | $ — | |||
Net income per common share | $ 0.07 | $ 0.25 | $ 0.15 | $ 0.40 | |||
Weighted-average shares of common stock outstanding (in thousands) | |||||||
Basic | 374,796 | 218,618 | 377,011 | 218,618 | |||
Diluted | 376,815 | 218,618 | 379,029 | 218,618 | |||
PRIMO BRANDS CORPORATION | EXHIBIT 2 | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(in millions of | |||
Unaudited | |||
June 30, 2025 | December 31, 2024 | ||
ASSETS | |||
Current Assets: | |||
Cash, cash equivalents and restricted cash | $ 412.0 | $ 614.4 | |
Trade receivables, net of allowance for expected credit losses of | 587.0 | 444.0 | |
Inventories | 248.3 | 208.4 | |
Prepaid expenses and other current assets | 179.3 | 150.4 | |
Current assets held for sale | 76.1 | 111.8 | |
Total current assets | 1,502.7 | 1,529.0 | |
Property, plant and equipment, net | 2,045.4 | 2,083.9 | |
Operating lease right-of-use-assets, net | 611.4 | 628.7 | |
Goodwill | 3,581.4 | 3,572.2 | |
Intangible assets, net | 3,124.2 | 3,191.7 | |
Other non-current assets | 74.6 | 70.1 | |
Non-current assets held for sale | 109.5 | 118.9 | |
Total assets | $ 11,049.2 | $ 11,194.5 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current Liabilities: | |||
Current portion of long-term debt | $ 70.4 | $ 64.5 | |
Trade payables | 533.6 | 471.6 | |
Accruals and other current liabilities | 632.0 | 697.7 | |
Current portion of operating lease obligations | 93.1 | 95.5 | |
Current liabilities held for sale | 90.9 | 82.2 | |
Total current liabilities | 1,420.0 | 1,411.5 | |
Long-term debt, less current portion | 5,022.2 | 4,963.6 | |
Operating lease obligations, less current portion | 540.0 | 555.6 | |
Deferred income taxes | 737.8 | 738.7 | |
Other non-current liabilities | 54.9 | 49.8 | |
Non-current liabilities held for sale | 28.1 | 31.1 | |
Total liabilities | $ 7,803.0 | $ 7,750.3 | |
Stockholders' Equity: | |||
Common stock, 379,792,996 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | $ 3.8 | $ 3.8 | |
Additional paid-in capital | 4,994.1 | 4,971.3 | |
Accumulated deficit | (1,749.7) | (1,513.7) | |
Accumulated other comprehensive loss | (2.0) | (17.2) | |
Total stockholders' equity | 3,246.2 | 3,444.2 | |
Total liabilities and stockholders' equity | $ 11,049.2 | $ 11,194.5 |
PRIMO BRANDS CORPORATION | EXHIBIT 3 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in millions of | |||||||
Unaudited | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Cash flows from operating activities of continuing operations: | |||||||
Net income | $ 27.6 | $ 54.5 | $ 56.3 | $ 88.0 | |||
Less: Net loss from discontinued operations, net of income taxes | (2.9) | — | (8.9) | — | |||
Net income from continuing operations | $ 30.5 | $ 54.5 | $ 65.2 | $ 88.0 | |||
Adjustments to reconcile net income from continuing operations to cash flows from operating activities of continuing operations: | |||||||
Depreciation and amortization | 145.3 | 74.3 | 273.9 | 149.5 | |||
Amortization of debt discount and issuance costs | 7.6 | 4.5 | 13.7 | 8.0 | |||
Stock-based compensation costs | 12.9 | 0.3 | 24.9 | 0.6 | |||
Restructuring charges | 2.4 | — | 2.9 | — | |||
Inventory obsolescence expense | 6.0 | 6.2 | 7.2 | 8.7 | |||
Charge for expected credit losses | 10.3 | 1.1 | 17.4 | 3.2 | |||
Deferred income taxes | 1.8 | (12.9) | (0.8) | (30.2) | |||
Other non-cash items | (16.4) | 4.2 | (14.9) | 1.4 | |||
Changes in operating assets and liabilities, net of effects of businesses acquired: | |||||||
Trade receivables | (91.9) | (85.0) | (159.0) | (146.3) | |||
Inventories | (3.4) | 9.1 | (49.1) | (28.3) | |||
Prepaid expenses and other current and non-current assets | (34.9) | 6.4 | (0.3) | 13.7 | |||
Trade payables and accruals and other current and non-current liabilities | 84.8 | 39.8 | 12.7 | 40.2 | |||
Net cash provided by operating activities of continuing operations | 155.0 | 102.5 | 193.8 | 108.5 | |||
Cash flows from investing activities of continuing operations: | |||||||
Purchases of property, plant and equipment | (53.9) | (41.1) | (115.9) | (64.6) | |||
Purchases of intangible assets | (17.7) | (6.2) | (25.2) | (27.4) | |||
Acquisitions, net of cash received | (5.7) | — | (5.7) | — | |||
Proceeds from sale of other assets | 11.3 | — | 56.9 | — | |||
Other investing activities | 15.4 | (0.3) | 16.1 | 2.7 | |||
Net cash used in investing activities of continuing operations | (50.6) | (47.6) | (73.8) | (89.3) | |||
Cash flows from financing activities of continuing operations: | |||||||
Proceeds from 2024 Incremental Term Loan, net of discount | — | — | — | 392.0 | |||
Proceeds from borrowings from ABL Credit Facility | — | — | — | 25.0 | |||
Repayment of borrowings from ABL Credit Facility | — | (60.0) | — | (60.0) | |||
Repayment of Term Loans | (7.8) | (8.0) | (15.5) | (16.0) | |||
Proceeds from borrowings of other debt | — | 1.0 | — | 3.1 | |||
Principal repayment of other debt | (1.4) | (1.3) | (2.7) | (1.7) | |||
Principal payment of finance leases | (8.6) | (1.5) | (15.8) | (2.3) | |||
Financing fees | (0.2) | — | (7.7) | (5.1) | |||
Issuance of common stock | 3.6 | — | 4.8 | — | |||
Common stock repurchased and cancelled | (101.8) | — | (221.0) | — | |||
Dividends paid to common stockholders | (37.4) | — | (76.0) | — | |||
Dividends paid to Sponsor Stockholder | — | — | — | (382.7) | |||
Other financing activities | (0.4) | — | (0.9) | — | |||
Net cash used in financing activities of continuing operations | (154.0) | (69.8) | (334.8) | (47.7) | |||
Cash flows from discontinued operations: | |||||||
Net cash (used in) provided by operating activities from discontinued operations | (0.6) | — | 2.3 | — | |||
Net cash provided by (used in) investing activities from discontinued operations | 6.7 | — | (1.3) | — | |||
Net cash provided by financing activities from discontinued operations | 1.0 | — | 3.4 | — | |||
Net cash provided by discontinuing operations | 7.1 | — | 4.4 | — | |||
Effect of exchange rates on cash, cash equivalents and restricted cash | 1.6 | (0.1) | 2.1 | (0.4) | |||
Net decrease in cash, cash equivalents and restricted cash | (40.9) | (15.0) | (208.3) | (28.9) | |||
Cash and cash equivalents and restricted cash, beginning of period | 453.3 | 33.1 | 620.7 | 47.0 | |||
Cash and cash equivalents and restricted cash, end of period | $ 412.4 | $ 18.1 | $ 412.4 | $ 18.1 | |||
Cash and cash equivalents and restricted cash of discontinued operations, end of period | 0.4 | — | 0.4 | — | |||
Cash and cash equivalents and restricted cash of continuing operations, end of period | $ 412.0 | $ 18.1 | $ 412.0 | $ 18.1 | |||
PRIMO BRANDS CORPORATION | EXHIBIT 4 | |||||
SUPPLEMENTARY INFORMATION - NON-GAAP - EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION | ||||||
(EBITDA) | ||||||
(in millions of | ||||||
Unaudited | ||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | |||
Net income from continuing operations | $ 30.5 | $ 54.5 | $ 65.2 | $ 88.0 | ||
Interest and financing expense, net | 81.9 | 86.2 | 164.0 | 166.1 | ||
Provision for income taxes | 16.3 | 18.3 | 34.0 | 29.7 | ||
Depreciation and amortization | 145.3 | 74.3 | 273.9 | 149.5 | ||
EBITDA | $ 274.0 | $ 233.3 | $ 537.1 | $ 433.3 | ||
Acquisition, integration and restructuring expenses (a) 1 | 72.8 | 13.2 | 112.6 | 19.0 | ||
Stock-based compensation costs (b) | 12.9 | 0.3 | 24.9 | 0.6 | ||
Unrealized (gain) loss on foreign exchange and commodity forwards, net (c) | (0.2) | 1.1 | — | (2.7) | ||
Loss on disposal of property plant and equipment, net (d) | 1.9 | 0.1 | 3.4 | 1.7 | ||
Loss on modification and extinguishment of debt (e) | — | — | 18.6 | — | ||
Management fees (f) | — | 4.8 | — | 14.1 | ||
Purchase accounting adjustments (g) | — | — | 1.2 | — | ||
Other adjustments, net (h) | 5.3 | 5.2 | 10.4 | 9.7 | ||
Adjusted EBITDA | $ 366.7 | $ 258.0 | $ 708.2 | $ 475.7 | ||
Net sales | $ 1,730.1 | $ 1,314.4 | $ 3,343.8 | $ 2,450.2 | ||
Adjusted EBITDA margin % | 21.2 % | 19.6 % | 21.2 % | 19.4 % | ||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
Location in Consolidated Statements of Operations | 2025 | 2024 | 2025 | 2024 | ||||
(Unaudited) | ||||||||
(a) Acquisition, integration and restructuring expenses 1 | Acquisition, integration and restructuring expenses | $ 49.7 | $ 13.2 | $ 89.5 | $ 19.0 | |||
Cost of Sales | 23.1 | — | 23.1 | — | ||||
(b) Stock-based compensation costs | Selling, general and administrative expenses | 12.9 | 0.3 | 24.9 | 0.6 | |||
(c) Unrealized (gain) loss on foreign exchange and commodity forwards, net | Other operating (income) expense, net | (0.2) | 1.1 | — | (2.7) | |||
(d) Loss on disposal of property plant and equipment, net | Cost of sales | 2.3 | 0.1 | 3.8 | 1.7 | |||
Selling, general and administrative expenses | (0.4) | — | (0.4) | — | ||||
(e) Loss on modification and extinguishment of debt | Loss on modification and extinguishment of debt | — | — | 18.6 | — | |||
(f) Management fees | Selling, general and administrative expenses | — | 4.8 | — | 14.1 | |||
(g) Purchase accounting adjustments | Cost of sales | — | — | 1.2 | — | |||
(h) Other adjustments, net | Other income, net | (15.8) | — | (15.8) | — | |||
Cost of Sales | 12.5 | — | 12.5 | — | ||||
Selling, general and administrative expenses | 8.6 | 5.2 | 13.7 | 9.7 | ||||
1 | Amounts include labor related costs. |
PRIMO BRANDS CORPORATION | EXHIBIT 5 | |||
SUPPLEMENTARY INFORMATION - NON-GAAP - FREE CASH FLOW AND ADJUSTED FREE CASH FLOW | ||||
(in millions of | ||||
Unaudited | ||||
Three Months Ended June 30, | ||||
2025 | 2024 | |||
Net cash provided by operating activities of continuing operations | $ 155.0 | $ 102.5 | ||
Less: Additions of property, plant and equipment | (53.9) | (41.1) | ||
Less: Additions of intangible assets | (17.7) | (6.2) | ||
Free cash flow | $ 83.4 | $ 55.2 | ||
Acquisition and integration cash costs | 62.0 | 13.2 | ||
Integration capital expenditures | 23.3 | — | ||
Management fees | — | 4.8 | ||
Debt restructuring costs | 0.8 | — | ||
Tariffs refunds related to property, plant and equipment | 0.2 | — | ||
Adjusted Free Cash Flow | $ 169.7 | $ 73.2 | ||
Six Months Ended June 30, | ||||
2025 | 2024 | |||
Net cash provided by operating activities of continuing operations | $ 193.8 | $ 108.5 | ||
Less: Additions to property, plant and equipment | (115.9) | (64.6) | ||
Less: Additions to intangible assets | (25.2) | (27.4) | ||
Free cash flow | $ 52.7 | $ 16.5 | ||
Acquisition, integration and restructuring cash costs | 127.2 | 19.0 | ||
Integration capital expenditures | 26.1 | — | ||
Management fees | — | 14.1 | ||
Debt restructuring costs | 18.2 | — | ||
Tariffs refunds related to property, plant and equipment | 0.2 | — | ||
Adjusted free cash flow | $ 224.4 | $ 49.6 | ||
PRIMO BRANDS CORPORATION | EXHIBIT 6 | ||||||
SUPPLEMENTARY INFORMATION-NON-GAAP-ADJUSTED NET INCOME AND ADJUSTED EPS | |||||||
(in millions of | |||||||
Unaudited | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net income from continuing operations | $ 30.5 | $ 54.5 | $ 65.2 | $ 88.0 | |||
Adjustments: | |||||||
Amortization expense of customer lists | 46.5 | 4.8 | 68.6 | 9.5 | |||
Acquisition, integration and restructuring expenses | 72.8 | 13.2 | 112.6 | 19.0 | |||
Stock-based compensation costs | 12.9 | 0.3 | 24.9 | 0.6 | |||
Unrealized (gain) loss on foreign exchange and commodity forwards, net | (0.2) | 1.1 | — | (2.7) | |||
Gain on sale leaseback | — | — | — | — | |||
Loss on modification and extinguishment of debt | — | — | 18.6 | — | |||
Management fees | — | 4.8 | — | 14.1 | |||
Purchase accounting adjustments | — | — | 1.2 | — | |||
Other adjustments, net | 5.3 | 5.2 | 10.4 | 9.7 | |||
Tax impact of adjustments1 | (30.7) | (7.2) | (52.5) | (12.4) | |||
Adjusted net income | $ 137.1 | $ 76.7 | $ 249.0 | $ 125.8 | |||
Earnings Per Share (as reported) | |||||||
Net income from continuing operations | $ 30.5 | $ 54.5 | $ 65.2 | $ 88.0 | |||
Basic EPS | $ 0.08 | $ 0.25 | $ 0.17 | $ 0.40 | |||
Diluted EPS | $ 0.08 | $ 0.25 | $ 0.17 | $ 0.40 | |||
Weighted average shares of common stock outstanding (in thousands) | |||||||
Basic | 374,796 | 218,618 | 377,011 | 218,618 | |||
Diluted | 376,815 | 218,618 | 379,029 | 218,618 | |||
Adjusted Earnings Per Share (Non-GAAP) | |||||||
Adjusted net income from continuing operations (Non-GAAP) | $ 137.1 | $ 76.7 | $ 249.0 | $ 125.8 | |||
Adjusted diluted EPS (Non-GAAP) | $ 0.36 | $ 0.35 | $ 0.66 | $ 0.58 | |||
Weighted average shares of common stock outstanding (in thousands) | |||||||
Basic | 374,796 | 218,618 | 377,011 | 218,618 | |||
Diluted weighted average common shares outstanding (in thousands) (Non-GAAP)2 | 376,815 | 218,618 | 379,029 | 218,618 | |||
1 The tax effect for adjusted net income is based upon an analysis of the statutory tax treatment and the applicable tax rate for the jurisdiction in which the pre-tax adjusting items incurred and for which realization of the resulting tax benefit (if any) is expected. A reduced or losses or other factors resulting in a valuation allowance related to deferred tax assets. | |||||||
2 For the periods presented, the non-GAAP diluted weighted average shares of common stock outstanding equaled the reported diluted weighted average shares of common stock outstanding. | |||||||
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SOURCE Primo Brands Corporation
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