Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 103

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 103
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 |     |     81.0 | %  |
| Provision for income taxes                          |     |                                 |    48.2 |   |     |   |    24.0 |   |     |   |       24.2 |   |     |     |    100.8 | %  |
| Net income                                          |     | $                               |   141.3 |   |     | $ |    80.7 |   |     | $ |       60.6 |   |     |     |     75.1 | %  |

Net Sales Net sales for the nine months ended September 30, 2024 were $3,755.3 million, an increase of $142.6 million, or 3.9%, as compared to the nine months ended September 30, 2023, primarily driven by 3.0% volume growth across both segments, and effective pricing and mix improvements in the ReadyRefresh segment. Cost of Sales Cost of sales consists primarily of manufacturing, shipping and logistics, storage and handling costs, personnel costs, and allocated facilities and overhead costs associated with the products sold. Manufacturing costs consist primarily of water sourcing costs, packaging costs, and labor and utilities to convert raw materials into finished products. During the nine months ended September 30, 2024, cost of sales was $2,563.8 million, a decrease of $11.1 million, or 0.4%, as compared to the nine months ended September 30, 2023, primarily driven by a year over year improvement in freight costs of $21.8 million, water sourcing and packaging costs of $18.1 million when compared to the prior year period, 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. 64

Selling, General and Administrative Expenses

Selling, general and