Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 267

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 267
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 not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As
part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also
included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter
communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to
the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a
whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.

F-10

Estimation of Accrued Sales Incentives

| Description of the Matter |     | As described in Note 2 to the consolidated financial statements, the nature of the Company’s contracts with customers give rise to                                                                                                                     
 variable consideration including volume-based rebates, growth incentives, point of sale promotions, and other promotional discounts (sales incentives). The estimated sales incentives are included in the transaction price as a reduction within net 
 sales and are recorded as either a reduction in accounts receivable or in accruals and other current liabilities in the consolidated balance sheet.                                                                                                    
 Auditing management’s calculations of the accrued sales incentives was subjective and required significant judgment as a result of the nature of the                                                                                                   
 required estimates and assumptions. In particular, the estimates were sensitive to assumptions regarding the expected levels of performance and redemption rates developed based upon analysis of the historical performance of the customer’s         
 participation with similar types of promotions adjusted for current trends.                                                                                                                                                                            |
| How We Addressed the      
 Matter in Our Audit       |     |