Thu, Nov 7, 7:11 PM (242 days ago)
Primo Water Corporation (NYSE: PRMW) reported a strong quarterly performance for Q3 2024, with net revenue rising to $511.4 million, an 8.8% increase from Q3 2023. The growth was driven by pricing initiatives ($17.8 million) and higher volume from increased demand. Gross profit improved to $330.8 million, reflecting a gross margin of 64.7%. Operating income slightly declined to $59.0 million due to increased SG&A expenses, which rose to $262.3 million, primarily from higher labor and insurance costs. Net income from continuing operations was $38.2 million, or $0.24 per diluted share, compared to $33.7 million in the prior year. The company's cash flow from operations increased to $255.7 million, supporting its liquidity position with cash and equivalents of $667.3 million. Significant strategic moves include the pending merger with BlueTriton Brands, expected to close by November 2024, and the ongoing divestiture of international operations, which may introduce uncertainties. Overall, while revenue and profitability metrics show positive trends, management faces challenges from rising costs and the complexities of the merger process.