Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 151

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 151
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 was nil in
2023 compared to 0.7% in 2022.

The decrease is due to the non-cash asset impairment charge in
Other resulting from the exit of Primo Water’s business in Russia in 2022.

Gain on Sale of Property

Gain on sale of property decreased to $21.0 million in 2023 from $38.8 million in 2022.

The decrease was due to smaller aggregate value of sale transactions for Primo Water’s North America owned real properties than in 2022.

Operating Income (Loss)

Operating
income was $163.4 million in 2023 compared to $143.5 million in 2022.

100

North America operating income increased to $222.2 million in 2023 compared to
$203.7 million in 2022, due to the items discussed above.

Other operating loss decreased to $58.8 million in 2023 compared to
$60.2 million in 2022, due to the items discussed above.

Other Expense (Income), Net

Other expense, net was $1.2 million in 2023 compared to Other income, net of $2.5 million in 2022, due primarily to higher unrealized
foreign exchange losses in 2023 compared to 2022.

Income Taxes

Income tax expense was $27.0 million in 2023 compared to $19.5 million in 2022. The effective tax rate was 29.7% in 2023 compared to
24.9% in 2022.

The effective tax rate for 2023 varied from the effective tax rate from 2022 due primarily to increased income in a tax-paying jurisdiction and increased losses in a tax jurisdiction with existing valuation allowances. The effective tax rate for 2023 differs from the Canadian statutory rate primarily due to: (a) significant
permanent differences for which Primo Water has not recognized a tax benefit; (b) income in tax jurisdictions with lower statutory tax rates than Canada; and (c) losses in tax jurisdictions with existing valuations allowances.

Fiscal Year Ended December 31, 2022 Compared to Fiscal Year Ended January 1, 2022

Revenue, Net

Net revenue increased to
$1,693.2 million in 2022 from $1,576.4 million in 2021, an increase of $116.8 million, or 7.4%. Excluding the impact of foreign exchange, net revenue increased