Company: PRMB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-049952
Chunk: 203

Company: Primo Brands Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 203
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 2025, Other operating income, net was $5.4 million, compared to expense of $9.0 million during the three months ended September 30, 2024. This change is primarily due to an unrealized loss on commodity forwards of $9.0 million in the prior year quarter.

Other Income, Net

Other income, net during the three months ended September 30, 2025 was $3.6 million, compared to nil during the three months ended September 30, 2024. This change is primarily related to insurance proceeds of $10.0 million received in the current quarter period to repair infrastructure on a warehouse in Texas damaged by a tornado. 

Interest and Financing Expense, Net

Interest and financing expense, net, primarily relates to interest expense on our debt and finance leases, revolver commitment fees and costs associated with our debt, partially offset by interest income earned on cash and cash equivalents, including restricted cash.

During the three months ended September 30, 2025, interest and financing expense, net, was $83.1 million, a decrease of $2.6 million, or 3.0%, as compared to the three months ended September 30, 2024, primarily relating to a lower effective interest rate on the Term Loans (as defined herein) and no outstanding revolving debt during the three months ended September 30, 2025, substantially offset by an increase of $17.9 million of interest and financing expense related to the addition of the 3.875% Senior Notes and the 4.375% Senior Notes as part of the Refinancing Transactions (as defined below).

Provision for Income Tax

During the three months ended September 30, 2025, income tax expense was $26.4 million compared to $18.5 million during the three months ended September 30, 2024. The effective tax rate was 39.5% in the three months ended September 30, 2025, compared to 25.8% in the three months ended September 30, 2024.

The effective tax rate for the three months ended September 30, 2025 increased from the effective tax rate from the three months ended September 30, 2024 due primarily to permanent differences for which we have not received a tax benefit. The effective tax rate for the three months ended September 30, 2025 differs from the U.S. statutory rate primarily due to permanent differences for which we have not recognized a