Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 100

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 100
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, 2024, cost of sales was $888.9 million, an increase of $14.4 million, or 1.6%, as
compared to the three months ended September 30, 2023, primarily driven by higher labor-related manufacturing and packaging costs, which were $17.2 million higher than the prior year, partially offset by favorable storage and handling
costs decreases of $6.9 million, when compared to the prior year period.

Gross Profit and Gross Margin

During the three months ended September 30, 2024, gross profit was $416.2 million, an increase of $38.1 million, or 10.1%, as
compared to the prior year period, and gross margin as a percentage of net sales was 31.9% for the three months ended September 30, 2024, compared to 30.2% for the three months ended September 30, 2023, primarily driven by higher net sales
and improved costs including lower storage and handling costs.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the three months ended September 30, 2024 were $239.7 million, an increase of
$8.9 million, or 3.9%, as compared to $230.8 million for the three months ended September 30, 2023, primarily driven by higher marketing, sales, and promotional expenses which increased $17.4 million, partially offset by $7.6
million less spending on information technology.

Acquisition, Integration and Restructuring Expenses

During the three months ended September 30, 2024, acquisition and restructuring expenses were $10.0 million, an increase of
$6.0 million, or 150.0%, as compared to the three months ended September 30, 2023, primarily due to advisory and legal costs related to the merger with Primo Water of $7.8 million, which was consummated on November 8, 2024,
partially offset by $2.1 million lower of severance charges during 2024 when compared to 2023.

Other Operating Expenses (Income), Net

Other operating expenses (income), net, includes primarily foreign exchange, unrealized mark-to-market adjustments for commodity forwards, and other infrequent income or expenses.

For
the three months ended September 30, 2024, other operating expenses, net were $9.0 million,