Primo Brands (PRMB) investor relations material

Executive summary

• First quarter net sales reached $1,626.1 million, up 1.7% year-over-year, driven by premium brand and retail channel growth, though partially offset by divested coffee business sales decline.

• Adjusted EBITDA declined 10.4% to $306.0 million, with margin contracting to 18.8%, impacted by higher costs and integration expenses.

• Net income from continuing operations was $27.3 million, down 21.3% from the prior year, mainly due to higher cost of sales and lower gross margin.

• The company completed major integration activities, exited international operations, and now operates solely in North America.

• Retail and premium brands performed strongly, while direct delivery declined but improved sequentially.

Financial highlights

• Comparable net sales increased 1.7% year-over-year to $1,626.1 million, with 1.3% from price/mix and 0.4% from volume.

• Gross profit was $464.9 million, down from $521.0 million, with gross margin dropping to 28.6% from 32.3%.

• Adjusted free cash flow was $128.6 million, up from $54.7 million in the prior year.

• Net cash provided by operating activities was $103.8 million; adjusted for integration items, it would have been $191.6 million.

• Interest and financing expense was $78.3 million, down 4.6% year-over-year.

Outlook and guidance

• Full-year organic net sales growth outlook raised to 1–3% from flat to 1%.

• Adjusted EBITDA guidance range widened to $1,465–$1,515 million; midpoint margin at 22%.

• Adjusted free cash flow guidance reaffirmed at $790–$810 million.

• CapEx expected at approximately 4% of net sales plus $100 million in integration CapEx.

• Management expects continued cost synergies and ongoing restructuring through 2026, with total charges estimated at $75–100 million.