Primo Water Posts Strong Financial Results

By Tamara Parker • Thursday, February 22 10:54 • Permanent Link

Primo Water Corporation has reported strong financial results for the full year and fourth quarter of 2023. The company, a leading provider of sustainable drinking water solutions in North America, has shown significant year-over-year growth in revenue, net income, adjusted EBITDA, margins, and adjusted free cash flow.

In addition to its financial performance, Primo Water has completed the previously announced transaction to sell a significant portion of its international businesses for $575 million. The company has also successfully executed a leadership transition and welcomed Robbert Rietbroek as the new CEO.

Robbert Rietbroek, the CEO of Primo Water, expressed his satisfaction with the company's performance, stating, "I am pleased with our performance, as our associates provided excellent service to our customers and strong financial results for our shareholders."

Looking ahead, Rietbroek provided guidance for the first quarter and full year of 2024, stating, "Given the strength of our businesses, we expect our first quarter 2024 outlook from continuing operations for revenue to be between $435 million and $445 million and adjusted EBITDA to be between $85 million and $91 million. Full year 2024 outlook from continuing operations for revenue is forecasted to be between $1.84 billion and $1.88 billion and adjusted EBITDA to be between $402 million and $422 million."

Rietbroek also highlighted the company's plans for utilizing the proceeds from the sale of international businesses, stating, "We intend to use the gross proceeds of $575 million from the sale to pursue growth, both organically and through tuck-in M&A, reduce leverage, and return capital to shareholders via share repurchases and dividends."

The new CEO expressed his optimism about leading the company, stating, "As the new CEO of Primo Water, I am excited to lead this premier, North American-focused, pure-play water company. We have a strong platform for growth with a unique value proposition with our bulk offerings in the large and growing water market, which gives me confidence in our future."

Despite the company's results, Primo Water's shares have moved a modest -0.4%, and are currently trading at a price of $15.13.

The company's full 8-K submission is available here.

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