Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 123

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 123
---
 sold its interest in the Aimia and Farrers businesses, and on
July 3, 2024, Primo Water sold the Portugal business. The European Business and the Other International Businesses are collectively the “International Businesses.” These deals are a part of several transactions occurring in 2024 as
part of a plan approved by the board of Primo Water to sell all of its international businesses, representing a strategic shift in Primo Water’s operations. Accordingly, the International Businesses are presented herein as discontinued
operations for all periods presented. See Note 2 to Primo Water’s interim unaudited Consolidated Financial Statements for additional information on discontinued operations. Unless otherwise noted, discussion within this Management’s
Discussion and Analysis of Financial Condition and Results of Operations of Primo Water relates to continuing operations.

At the
beginning of 2023, Primo Water’s business operated through two reporting segments: (i) North America, which included its DS Services of America, Inc. (“DSS”), Aquaterra Corporation (“Aquaterra”), and

80

Mountain Valley Spring Company (“Mountain Valley”) businesses, and (ii) Europe, which included the European business of Eden Springs Netherlands B.V. (“Eden Europe”), and
Primo Water’s Decantae and Fonthill businesses. The Other category included the Israel business of Eden (“Eden Israel”), and Primo Water’s Aimia and Farrers businesses, as well as its corporate oversight function and other
miscellaneous expenses.

As a result of the board approved plan to sell all of Primo Water’s International Businesses, during the
fourth quarter of 2023, Primo Water reviewed and realigned its reporting segments to exclude the businesses within discontinued operations which reflects how the business will be managed and results will be evaluated by the Chief Executive Officer,
who is the company’s chief operating decision maker. Following such review, Primo Water’s one reporting segment is North America, which includes its DSS, Aquaterra, and Mountain Valley businesses. The Other category includes Primo
Water’s corporate oversight function and other miscellaneous expenses. Segment reporting results have been recast to reflect these changes for all periods presented.

Impact of General Economic and Geopolitical Conditions

Primo Water’s operations and supplier relationships expose it to risks associated with disruptions to global supply chains, labor
shortages, inflation and the ongoing Russia/Ukraine and Israel/Hamas wars, all of which are likely to continue to create challenging conditions for Primo Water’s business, through increased costs