Primo Brands Corporation Reports 42.1% Revenue Growth to $1.613 Billion in Latest Quarter

Primo Brands Corporation reported significant financial growth in its latest quarterly results, driven largely by the recent acquisition of Primo Water Corporation. For the three months ending March 31, 2025, the company recorded net sales of $1.613 billion, a 42.1% increase from $1.136 billion in the same period last year. This surge in revenue was primarily attributed to $470.3 million in sales from Primo Water, which was integrated into the company's financials following the completion of the merger on November 8, 2024.

The company's gross profit also saw a substantial rise, reaching $521 million, up 50.8% from $345.5 million year-over-year. The gross margin improved to 32.3%, compared to 30.4% in the prior year, reflecting operational efficiencies and cost management strategies. However, total costs of sales increased to $1.093 billion, up 38.3% from $790.3 million, largely due to the costs associated with the newly acquired Primo Water operations.

In terms of operational metrics, Primo Brands reported a net income of $28.7 million for the quarter, a slight decrease from $33.5 million in the previous year. The decline in net income was influenced by increased selling, general, and administrative expenses, which rose to $327.8 million, up 49.9% from $218.7 million, primarily due to costs related to the integration of Primo Water. Additionally, acquisition, integration, and restructuring expenses totaled $39.8 million, significantly higher than the $5.8 million recorded in the same quarter last year.

The company also reported a notable increase in its employee headcount, now exceeding 13,000 associates, as it expands its operations across North America. The merger has positioned Primo Brands as a leading player in the healthy hydration market, with a diverse portfolio of brands including Poland Spring and Pure Life. The company is focused on leveraging its extensive distribution network, which reaches over 200,000 retail outlets, to enhance market share and drive future growth.

Looking ahead, Primo Brands anticipates continued growth opportunities, particularly in the e-commerce sector and through product innovation. The company is committed to optimizing its operations and enhancing customer engagement while navigating challenges such as rising commodity prices and supply chain disruptions. The management remains optimistic about the company's ability to generate sufficient cash flow to support its operational needs and strategic initiatives in the coming quarters.