Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 112

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 112
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decessor Period, which change was primarily driven by the impact of price increases in Retail and ReadyRefresh segments throughout 2022, and, to a lesser extent, by volume growth in the ReadyRefresh segment. Cost of Sales During the year ended December 31, 2022, cost of sales was $3,446.9 million compared to $2,440.1 million for the 2021 Successor Period and $615.3 million for the 2021 Predecessor Period, which change was primarily driven by higher costs per unit from freight, fuel, and packaging materials and, to a lesser extent, from the lease expense related to the sale and leaseback transaction that was completed in the fourth quarter of 2021. Partially offsetting these increases was a lower depreciation and amortization due to fully depreciated assets resulting from purchase accounting. Gross Profit and Gross Margin During the year ended December 31, 2022, gross profit was $994.2 million compared to $636.8 million for the 2021 Successor Period and $219.3 million for the 2021 Predecessor Period, and gross margin as a percentage of net sales was 22.4% for the year ended December 31, 2022 compared to 20.7% and 26.3% for the 2021 Successor Period and 2021 Predecessor Period, respectively, which changes were primarily driven by a phase-inof price increases implemented during 2022 to offset cost inflation. 70

Selling, General and Administrative Expenses

Selling, general and administrative expenses during the year ended December 31, 2022 were $887.0 million compared to
$601.3 million for the 2021 Successor Period and $219.9 million for the 2021 Predecessor Period, which change was primarily driven by increased spending on marketing, partially offset by reduced people costs due to restructuring, a
decrease in impact from purchase accounting due to fully depreciated assets and various operational initiatives.

Acquisition, Integration and Restructuring Expenses

During the year ended December 31, 2022, acquisition, integration and restructuring expenses were
$83.8 million compared to $114.3 million for the 2021 Successor Period and $149.0 million for the 2021 Predecessor Period, which change was primarily due to various one-time costs in 2021
related to the Nestlé Acquisition, including Nestlé executive retiree