Overview

• Beverage company's Q4 revenue grew 11.2%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company reported net loss from continuing operations narrowed significantly

Outlook

• Company plans strategic reinvestment to leverage strong category momentum

• Primo Brands aims to drive sustained growth and margin expansion

• Company focuses on improving customer experience and leveraging brand power

Result Drivers

• MERGER IMPACT - Net sales growth driven by inclusion of Primo Water sales post-merger, partially offset by sale of Ontario facility

• SG&A EXPENSES - SG&A expenses rose due to merger-related costs, offset by prior year nonrecurring fees

• GROSS MARGIN DECLINE - Gross margin affected by lower margins from Primo Water and integration costs

Company press release: ID:nCNWHjkhfa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Beat	$1.55 bln	$1.51 bln (10 Analysts)
Q4 Adjusted EPS	Beat	$0.26	$0.21 (11 Analysts)
Q4 Adjusted Net Income	Beat	$94.10 mln	$70.53 mln (7 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-alcoholic beverages peer group is "buy"

• Wall Street's median 12-month price target for Primo Brands Corp is $22.50, about 14.6% above its February 25 closing price of $19.63

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

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