Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 146

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 146
---
 $10.0 million in 2021, and gross profit as a percentage of revenue was
75.0% in 2022 compared to 74.1% in 2021. The decrease in gross profit is due primarily to the exit from Primo Water’s business in Russia in the third quarter of 2022.

100

Selling, General and Administrative Expenses

SG&A expenses increased to $883.8 million in 2022 compared to $769.8 million in 2021. SG&A expenses as a percentage of net
revenue was 52.2% in 2022 compared to 48.8% in 2021.

North America SG&A expenses increased to $830.8 million in 2022 compared to
$720.6 million in 2021, due primarily to higher selling and operating costs that supported volume and revenue growth. These costs included inflationary labor and transportation cost increases, which increased by $41.9 million and
$23.1 million, respectively, from 2021.

Other SG&A expenses increased to $53.0 million in 2022 compared to
$49.2 million in 2021, due primarily to inflationary labor cost increases, which increased by $4.9 million from 2021.

Acquisition and Integration Expenses

Acquisition and integration expenses increased to $12.1 million in 2022 compared to $9.1 million in
2021. Acquisition and integration expenses as a percentage of net revenue was 0.7% in 2022 compared to 0.6% in 2021.

North America
acquisition and integration expenses increased to $10.8 million in 2022 compared to $5.2 million in 2021, due primarily to costs associated with the exit from the single-use retail bottled water
business in North America and ongoing integration costs incurred in connection with the acquisition of Legacy Primo.

Other acquisition
and integration expenses decreased to $1.3 million in 2022 compared to $3.9 million in 2021, due primarily to lower acquisition and integration costs relating to the Legacy Primo business.

Impairment Charges

Impairment charges
increased to $11.2 million in 2022 compared to nil in 2021. Impairment charges as a percentage of revenue was 0.7% in 2022 compared to nil in 2021.

The increase was due to the non-cash asset impairment charge in