Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 160

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 160
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 bottles, glass for bottles, and fuel. Primo Water manages some of its exposure to this risk through the use of supplier pricing agreements, which enable Primo Water to fix the purchase prices for certain commodities. Primo Water estimates that a 10% increase in the market prices of these commodities over the current market prices would cumulatively increase its operating costs during the next 12 months by approximately $12.7 million. This change would be material to its cash flows and results of operations. Inflation and Supply Chain Disruption Risk In 2022, Primo Water experienced highly inflationary cost increases in its underlying expenses, including transportation and labor costs. Primo Water was impacted by global supply chain disruption, which increased ocean freight voyage lead times for the shipment of its water dispensers to Primo Water’s branch locations and increased freight costs. While transportation and labor costs for the year ended December 31, 2022 on aggregate increased by $148.7 million, offset by favorable impact of foreign exchange rates of $17.2 million, Primo Water was able to mitigate the impacts of inflation and supply chain disruptions. Primo Water’s mitigation strategies, such as price increases and cost control efforts, have provided it with the necessary flexibility to respond to the risks. While Primo Water has taken steps to minimize the impact of these increased costs, global supply chain disruption may deteriorate and inflationary pressures may increase, which could adversely affect Primo Water’s business, financial condition, results of operations, and cash flows. Credit Risk As of the date of this prospectus, Primo Water’s cash and cash equivalents were maintained at major financial institutions in the United States, and its current deposits are likely in excess of insured limits. Primo Water believes these institutions have sufficient assets and liquidity to conduct their operations in the ordinary course of business with little or no credit risk to Primo Water. Primo Water has not experienced any losses in such accounts. 110

Recent Accounting Pronouncements

Refer to Note 1 in the consolidated financial statements of Primo Water presented elsewhere in this prospectus for a summary of recently
adopted and recently issued accounting standards and their related effects or anticipated effects on Primo Water’s consolidated results of operations and financial condition.

111

BUSINESS

Our Company

We are a leading North
American branded beverage company with a focus on healthy hydration, delivering responsibly and domestically sourced diversified offerings across products, formats, channels, price points, and consumer occasions, distributed in every state and
Canada.

We have an