Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 143

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 143
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 to the exit from Primo Water’s business in Russia of $7.4 million.

Gross Profit

Gross profit increased to $1,137.0 million in 2023 from $1,019.2 million in 2022. Gross profit as a percentage of revenue was 64.2%
in 2023 compared to 60.2% in 2022.

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North America gross profit increased to $1,136.4 million in 2023 from
$1,013.5 million in 2022, and gross profit as a percentage of revenue was 64.2% in 2023 compared to 60.1% in 2022. The 410 basis point increase was due primarily to increased demand and pricing initiatives.

Other gross profit decreased to $0.6 million in 2023 from $5.7 million in 2022, and gross profit as a percentage of revenue was
100.0% in 2023 compared to 75.0% in 2022. The decrease in gross profit was due primarily to the exit from Primo Water’s business in Russia in the third quarter of 2022.

Selling, General and Administrative Expenses

SG&A expenses increased to $976.0 million in 2023 compared to $883.8 million in 2022. SG&A expenses as a percentage of net
revenue was 55.1% in 2023 compared to 52.2% in 2022.

North America SG&A expenses increased to $919.7 million in 2023 compared to
$830.8 million in 2022, due primarily to higher selling and operating costs that supported volume and revenue growth related primarily to labor and transportation cost increases, which increased by $37.1 million and $7.0 million,
respectively, from 2022 and increases in insurance costs of $12.3 million from 2022.

Other SG&A expenses increased to
$56.3 million in 2023 compared to $53.0 million in 2022 primarily related to higher professional fees of $7.5 million, partially offset by the exit from Primo Water’s business in Russia in the third quarter of 2022 of
$5.0 million.

Acquisition and Integration Expenses

Acquisition and integration expenses decreased to $9.5 million in 2023 compared to $12.1 million in 2022. Acquisition and integration
expenses as a percentage of net