Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 97

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 97
---
, partially offset by labor-related and storage costs that increased $23.7 million and $3.2 million, respectively. Gross Profit and Gross Margin During the nine months ended September 30, 2024, gross profit was $1,191.5 million, an increase of $153.7 million, or 14.8%, as compared to the prior year period, and gross margin as a percentage of net sales was 31.7% for the nine months ended September 30, 2024, compared to 28.7% for the nine months ended September 30, 2023, primarily driven by higher net sales and favorable freight, packaging, and water sourcing costs. 63

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the nine months ended September 30, 2024 were $714.7 million, an increase of
$5.4 million, or 0.8%, as compared to the nine months ended September 30, 2023, primarily driven by a labor-related cost, including variable compensation, and related party management fees, increasing $11.5 million and
$7.4 million, respectively. These high costs were partially offset by a $13.9 million reduction in information technology costs.

Acquisition, Integration and Restructuring Expenses

During the nine months ended September 30, 2024, acquisition, integration and restructuring expenses were $29.0 million, an increase
of $14.0 million, or 93.3%, as compared to the nine months ended September 30, 2023, primarily due to advisory and legal costs of $26.7 million related to the merger with Primo Water, partially offset by $7.7 million lower
severance charges during 2024 when compared to 2023.

Other Operating Expenses (Income), Net

Other operating expenses (income), net, includes primarily foreign exchange, unrealized mark-to-market adjustments for commodity forwards, and other infrequent income or expenses.

For
the nine months ended September 30, 2024, other operating expense, net was $6.5 million, compared to income of $3.9 million for the nine months ended September 30, 2023. The change was primarily due to an unrealized loss of
$5.8 million on commodity forwards in the current period, compared to an unrealized gain of $5.6 million in the prior year period.

Interest and Financing Expense,