Primo Water Exceeds Expectations in Q3 2024, Closing in on BlueTriton Merger
Primo Water Corporation, a leading provider of sustainable drinking water solutions in North America, reported robust results for the third quarter ended September 28, 2024. The company surpassed revenue and volume expectations across its core water channels, showcasing strong performance.
Key Q3 Highlights:
*
Revenue surged by 8.8% to $511 million
, compared to $470 million in the same period last year. This growth was driven by both volume (5.0%) and pricing (3.8%), with organic growth contributing 7.4% to the quarter’s performance.*
Gross profit climbed 9.1% to $331 million
, while gross margin expanded by 20 basis points to 64.7%, fueled by pricing, increased volume, and operational efficiencies.*
Adjusted EBITDA, a key measure of profitability, jumped 11.4% to $125 million
, driven by pricing initiatives, customer demand, and effective expense management. The Adjusted EBITDA margin also increased by 60 basis points to 24.4%.*
Net income rose to $38 million
, compared to $34 million in the prior year. Adjusted net income reached $56 million, up from $39 million in the previous year’s third quarter.BlueTriton Transaction Nearing Completion
On the heels of its strong financial performance, Primo Water also announced a significant milestone in its planned business combination with BlueTriton. The Ontario Superior Court of Justice granted a final order approving the transaction, which is expected to close on or about November 8, 2024, subject to customary closing conditions.
The combined company, to be known as Primo Brands Corporation, will begin trading on the New York Stock Exchange under the ticker symbol “PRMB” as early as November 11, 2024.
CEO Robbert Rietbroek’s Perspective
“We’re incredibly pleased with another fantastic quarter, exceeding expectations across our water channels. Our commitment to delivering exceptional customer service, being the preferred water solutions partner, and maintaining operational excellence continues to drive growth and create value for our stakeholders,” said Rietbroek. “The BlueTriton transaction is a significant step forward, marking an exciting new chapter as we combine the strengths of both companies. Our teams are intensely focused on ensuring a seamless integration and unlocking the full potential of Primo Brands.”
Primo Water’s Business Model
Primo Water operates in the large-format water category, focusing on sustainable hydration solutions for both residential and commercial customers. The company’s business model is often referred to as “razor-razorblade,” where the initial sale of water dispensers drives recurring purchases of water solutions. This approach has enabled Primo Water to build a strong recurring revenue stream.
Commitment to Water Stewardship
Primo Water is dedicated to responsible water stewardship, adhering to the International Bottled Water Association (IBWA) standards in North America. The company prioritizes safety, quality, sanitation, and regulatory compliance to protect consumer well-being.
Looking Ahead
The company is poised for continued growth as it integrates the BlueTriton business and further expands its reach within the North American water market. The merger is expected to create a leading player in the sustainable water solutions industry, offering a wider range of products and services to consumers and businesses alike.
Primo Water’s strong Q3 results and the imminent closing of the BlueTriton transaction signal a positive outlook for the company. Investors will be closely watching how the integration of BlueTriton unfolds and the impact it has on Primo Brands’ future growth trajectory.
