Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 93

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 93
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7.3 | )% |

Net Sales Net sales for the three months ended September 30, 2024 were $1,305.1 million, an increase of $52.5 million, or 4.2%, as compared to the three months ended September 30, 2023, primarily driven by effective pricing and mix improvements and total volume growth of 1.7% across both segments. 60

Cost of Sales

Cost of sales consists primarily of manufacturing, shipping and logistics, storage and handling costs, personnel costs, and allocated
facilities and overhead costs associated with the products sold. Manufacturing costs consist primarily of water sourcing costs, packaging costs, and labor and utilities to convert raw materials into finished products.

During the three months ended September 30, 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,