On August 8, 2024, Primo Water Corp (PRMW, Financial) released its 8-K filing detailing its financial performance for the second quarter ended June 29, 2024. The company, a leading provider of sustainable drinking water solutions in North America, reported mixed results with revenue surpassing analyst expectations but earnings per share (EPS) falling short.
Company Overview
Primo Water Corp (PRMW, Financial) is a pure-play water provider offering a variety of products and services, including water delivery, exchange, refill/filtration, and water dispensers. The company primarily operates in North America, focusing on a recurring revenue model through its water direct and exchange services, which account for two-thirds of its total sales.
Q2 2024 Financial Highlights
Primo Water Corp (PRMW, Financial) reported net revenue of $485.0 million for Q2 2024, a 7.6% increase from $450.6 million in Q2 2023. This figure exceeded the analyst estimate of $477.99 million. However, the company's net income from continuing operations was $13.3 million, or $0.08 per diluted share, slightly down from $13.6 million, or $0.09 per diluted share, in the same period last year. The adjusted net income from continuing operations was $41.8 million, or $0.26 per diluted share, compared to $31.2 million, or $0.20 per diluted share, in Q2 2023.
Revenue Breakdown
| For the Three Months Ended | June 29, 2024 | July 1, 2023 | $ Change | % Change |
|---|---|---|---|---|
| Water Direct/Water Exchange | $368.2M | $342.9M | $25.3M | 7.4% |
| Water Refill/Water Filtration | $61.8M | $55.4M | $6.4M | 11.6% |
| Other Water | $22.2M | $11.9M | $10.3M | 86.6% |
| Water Dispensers | $13.2M | $16.7M | ($3.5M) | (21.0%) |
| Other | $19.6M | $23.7M | ($4.1M) | (17.3%) |
| Total Revenue | $485.0M | $450.6M | $34.4M | 7.6% |
Financial Achievements and Challenges
Primo Water Corp (PRMW, Financial) achieved a significant milestone with a 14.9% increase in Adjusted EBITDA, reaching $112.9 million compared to $98.3 million in Q2 2023. The Adjusted EBITDA margin also improved by 150 basis points to 23.3%. These achievements underscore the company's successful execution of growth and productivity initiatives, which are crucial in the highly competitive non-alcoholic beverages industry.
We continue to execute well against our clear and focused strategy. As a result, we are delivering accelerated topline growth which is balanced and broad based," said Robbert Rietbroek, Chief Executive Officer.
Income Statement and Balance Sheet Highlights
From the income statement, Primo Water Corp (PRMW, Financial) reported a gross profit of $318.0 million, up from $290.8 million in Q2 2023. Selling, general, and administrative expenses increased to $264.4 million from $246.6 million. The company also incurred acquisition and integration expenses of $13.1 million, significantly higher than the $1.9 million reported in the previous year.
On the balance sheet, the company reported total assets of $3,519.7 million, with cash and cash equivalents of $603.3 million. Total liabilities stood at $2,065.3 million, with long-term debt amounting to $1,250.3 million.
Outlook and Future Prospects
Primo Water Corp (PRMW, Financial) has raised its full-year outlook, projecting revenue between $1,870 million and $1,890 million and Adjusted EBITDA between $420 million and $440 million. The company is also preparing for a proposed merger with BlueTriton Brands, which is expected to enhance its market position and service capabilities.
For more detailed insights and the complete earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Primo Water Corp for further details.
