Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 147

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 147
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 Other resulting from the exit from
Primo Water’s business in Russia in 2022.

Operating Income (Loss)

Operating income was $143.5 million in 2022 compared to $103.0 million in 2021.

North America operating income increased to $203.7 million in 2022 compared to $146.0 million in 2021, due to the items discussed
above.

Other operating loss increased to $60.2 million in 2022 compared to $43.0 million in 2021, due to the items discussed
above.

Other Expense (Income), Net

Other income, net was $2.5 million in 2022 compared to Other expense, net of $22.1 million in 2021, due primarily to unrealized
foreign exchange losses in 2022 and costs to redeem the Primo 2025 Notes incurred in 2021.

Income Taxes

Income tax expense was $19.5 million in 2022 compared to $7.7 million in 2021. The effective tax rate was 24.9% in 2022 compared to
61.1% in 2021.

101

The effective tax rate for 2022 varied from the effective tax rate from 2021 due primarily to increased income in the U.S. related to real property sales in the fourth quarter of 2022 and the debt refinancing costs incurred in the second quarter of 2021. The effective tax rate for 2022 differs from the Canadian statutory rate primarily due to: (a) significant permanent differences for which Primo Water has not recognized a tax benefit; (b) income in tax jurisdictions with lower statutory tax rates than Canada; and (c) losses in tax jurisdictions with existing valuations allowances. Liquidity and Capital Resources The following table summarizes Primo Water’s cash flows for the three and nine months ended September 28, 2024 and September 30, 2023 and fiscal years 2023, 2022, and 2021 as reported in the unaudited and audited consolidated financial statements of Primo Water included elsewhere in this prospectus:

|                                                                                  |     | For the Three Months Ended | September 28, 
          2024 |   |     |                | September 30, 
          2023 |   |     | For the Nine Months Ended | September 28, 
          2024 |   |     |   | September 30, 
          2023 |