Primo Brands (PRMB) Q4 2024 earnings summary

Executive summary

• Completed merger of Primo Water and BlueTriton, creating a leading North American beverage platform, with integration progressing ahead of plan.

• 2024 marked by strong organic growth, market share gains, and robust consumer demand for healthy hydration products.

• Divestiture of international and Eastern Canadian operations sharpened focus on North America and improved free cash flow.

• Premium water segment (Saratoga, Mountain Valley) grew 47% year-over-year, fastest in the portfolio.

• Quarterly dividend increased by 11% to $0.10 per share.

Financial highlights

• Combined 2024 net sales reached $6.81 billion, up 5.4% year-over-year, with 3.4% from volume and 2% from price/mix.

• Combined adjusted EBITDA grew 19.5% to $1.353 billion, with margin expanding 240 bps to 19.9%.

• Q4 combined net sales rose 5.5% to $1.609 billion; adjusted EBITDA up 3.7% to $301.4 million.

• Adjusted free cash flow for 2024 was $645 million, with a conversion ratio of 47.7%.

• Adjusted net income for 2024 was $245 million, with adjusted EPS of $1.01.

Outlook and guidance

• 2025 organic net sales growth expected between 3% and 5%, reaching $7 billion at midpoint.

• 2025 adjusted EBITDA guidance of $1.6–$1.63 billion, with $200 million in expected cost synergies.

• Adjusted free cash flow forecasted at $790–$810 million for 2025.

• Cost synergy capture target raised to $300 million by end of 2026.

• 2025 capex expected at 4% of net sales.