Primo Water — Primo Brands — Q3 2024 Earnings Presentation
24 slides from Primo Water's earnings presentation, Nov 8, 2024
Slide 1: 3rd Quarter 2024 Results
3rd QUARTER 2024 RESULTS November 7, 2024
Slide 2: Cautionary Statements
Cautionary Statements Safe Harbor Statement This presentation contains forward-looking statements and forward-looking information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and applicable Canadian securities laws conveying mana
Slide 3: Today's Presenters and Agenda
Primo Water Q3 2024 Financial Presentation Today’s Presenters Tom Harrington Tom Harrington Robbert Rietbroek David Hass CHIEF EXECUTIVE CHIEF EXECUTIVE CHIEFOFFICER EXECUTIVE CHIEF FINANCIAL OFFICER OFFICER OFFICER • Disaster Relief Efforts • Merger Update • Must Win Priorities AGENDA • Q3 2024 Rep
Slide 4: Disaster Relief Efforts
Primo Water Disaster Relief Efforts • Partnered with local charities and transportation companies to donate hundreds of thousands of bottles of water across the Southeast • Pre-stocked water exchange locations and urgently replenished water supply in affected areas • Offered branch pick up in affect
Slide 5: Introducing the New Primo Brands (NYSE: PRMB)
Introducing the New Primo Brands (NYSE: PRMB) NYSE: PRMB 5
Slide 6: Q3 2024 Financial Summary
Primo Water Q3 2024 Financial Summary Financial Performance for Continuing Operations (in millions) Continuing Operations Q3 2024 Q3 2023 Change Revenue $511.4 $470.0 8.8% Adj. EBITDA1 $124.7 $111.9 11.4% Adj. EBITDA Margin %1 24.4% 23.8% 60 bps Q3 2024 Highlights • 8.8% revenue growth composed of 5
Slide 7: "Must Win" Priorities
Primo Water "Must Win" Priorities Superior Customer Service • Organic customer base growth • Increase high impact customers • Enhance customer touch points Be the Partner of Choice • Deepening relationship with top-tier retailers • Increase presence, penetration, and volume • Create connectivity Ope
Slide 8: Superior Customer Service
Superior Customer Service Mountain Valley Enhanced Consumer Touchpoints • Mountain Valley retail and on premise revenue increased 102% • High demand for 9-pack 16oz aluminum bottles • Expanding distribution in 2025 • Upgraded Mywater+ app • Expanded call center coverage and added chat functionality
Slide 9: Preferred Water Solutions Partner
Preferred Water Solutions Partner Multi-Channel Offering • Multiple offerings to meet consumer needs and budgets • Increase in customers and locations across channels will drive future volume growth • Consistent growth in Water Refill and Water (-) Price per Gallon (+) Price per Gallon Filtration wi
Slide 10: Operational Excellence
Operational Excellence Operational Updates • Continued implementation of 6- and 7-day delivery schedules • Continued installation of high-efficiency production lines • Resilient business model with a winning combination of associates, assets and resources that are capable of delivering results U.S.
Slide 11: Q3 2024 Reported Results – Continuing Operations
Primo Water Q3 2024 Reported Results – Continuing Operations For the Three Months Ended (in millions of U.S. dollars) September 28, 2024 September 30, 2023 $ Change % Change % Volume 1 % Price 1 Revenue, net Water Direct/Water Exchange $384.8 $356.2 $28.6 8.0% 3.6% 4.4% Water Refill/Water Filtration
Slide 12: Dispenser Sell-Through - Continuing Operations
Primo Water Dispenser Sell-Through - Continuing Operations It All Starts with Dispenser Sell-Through Annual Sell-Through 1 Trailing Twelve Month Sell-Through 1 1,100K 1,059K Tariff In Place 1,100K 995K 982K 1,060K 1,059K 1,054K 1,000K 1,050K 1,022K 887K 902K 1,007K 1,017K 1,008K 900K 995K 998K 998K
Slide 13: Capital Allocation
Primo Water Capital Allocation • Stable & recurring cash flow generation platform Organic Growth • Opportunities to fund growth via organic initiatives, acquisitions as well as capital projects to drive efficiencies Accretive M&A • Improve financial profile and returned excess capital to shareowners
Slide 14: Primo Brands (NYSE: PRMB)
Primo Brands (NYSE: PRMB) BRANDS , Y oS H oe @ mo 2 waiter Bae ‘tition 7: ORIGIN SEED artow feild Be Toit Sterna PuRELO sosennnnacnnnnnnnnd LIFE NEEDS WATER. MAKE IT PRIMO WATER” i FORMAT / OFFERINGS | etal dispensers __| BIT il a), Refill / Exchange ) a Sa tal: \ USAGE OCCASIONS H 7 ' H ' | H ' 12A
Slide 15: Q&A
Q&A 15
Slide 16: Appendix
APPENDIX 16 16
Slide 17: 2023 EBITDA and Free Cash Flow by Quarter - Continuing Operations
Primo Water 2023 EBITDA and Free Cash Flow by Quarter - Continuing Operations Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Fiscal Year Ended December 30, 2023 First Quarter 1 Second Quarter 1 Third Quarter 1 Fourth Quarter 1 Total 1 Revenue, net $ 412.5 $ 450.6 $ 470.0 $
Slide 18: Q3 EBITDA and Adjusted EBITDA - Combined
Primo Water Q3 EBITDA and Adjusted EBITDA - Combined Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Three Months Ended September 28, 2024 September 30, 2023 Continuing Discontinued Combined Continuing Discontinued Combined Operations 1 Operations 2 Operations 1 Operations
Slide 19: Q3 YTD EBITDA and Adjusted EBITDA - Combined
Primo Water Q3 YTD EBITDA and Adjusted EBITDA - Combined Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Nine Months Ended September 28, 2024 September 30, 2023 Continuing Discontinued Combined Continuing Discontinued Combined Operations 1 Operations 2 Operations 1 Operatio
Slide 20: Price/Volume Growth - Continuing Operations
Primo Water Price/Volume Growth - Continuing Operations (in millions of U.S. dollars) Fiscal Year 2023 Year-to-Date 2024 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 YTD Water Direct/Water Exchange1 Price 9.7% 5.5% 4.7% 5.2% 6.1% 6.0% 5.2% 4.4% 5.2% Volume 2.6% 1.3% 1.9% 2.7% 2.1% 2.6% 2.2% 3.6% 2.8% Total Water
Slide 21: Normalized Revenue Growth - Continuing Operations
Primo Water Normalized Revenue Growth - Continuing Operations Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) Fiscal Year 2023 Year-to-Date 2024 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 YTD Prior Year Revenue (as reported) $ 399.9 $ 440.3 $ 447.9 $ 405.1 $ 1,693.2 $ 412.5 $ 450.6 $ 470.0 $ 1
Slide 22: Q3 Free Cash Flow and Adjusted Free Cash Flow - Combined
Primo Water Q3 Free Cash Flow and Adjusted Free Cash Flow - Combined Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Three Months Ended September 28, 2024 September 30, 2023 Continuing Discontinued Combined Continuing Discontinued Combined Operations 1 Operations 2 Operatio
Slide 23: Q3 YTD Free Cash Flow and Adjusted Free Cash Flow - Combined
Primo Water Q3 YTD Free Cash Flow and Adjusted Free Cash Flow - Combined Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Nine Months Ended September 28, 2024 September 30, 2023 Continuing Discontinued Combined Continuing Discontinued Combined Operations 1 Operations 2 Opera
Slide 24: Interest Coverage Ratio and Net Leverage Ratio - Continuing Operations
Primo Water Interest Coverage Ratio and Net Leverage Ratio - Continuing Operations Continuing Operations - Non-GAAP Reconciliation - Unaudited (-) (+) (in millions of U.S. dollars, except FY 2023 Q3 2023 Q3 2024 financial ratios) YTD YTD Q3 2024 LTM Adjusted EBITDA $ 380.7 $ (285.8) $ 331.5 $ 426.4