Primo Brands Q4 Sales Up 11.2% and Adjusted EBITDA Rises 31.1%
Primo Brands posted Q4 net sales of $1.554 billion, up 11.2%, driven by the Primo Water merger, and narrowed net loss to $25.3 million from $153.9 million. Full-year net sales rose 29.3% to $6.664 billion while adjusted EBITDA increased 45.5% to $1.447 billion, boosting free cash flow to $214.8 million.
1. Fourth Quarter Results
Primo Brands reported Q4 net sales of $1.554 billion, an 11.2% increase driven by the full-year inclusion of Primo Water. Net loss from continuing operations narrowed to $25.3 million, or $0.07 per share, from $153.9 million, while adjusted EBITDA rose 31.1% to $334.1 million with a 21.5% margin.
2. Fiscal Year Performance
For the fiscal year, net sales grew 29.3% to $6.664 billion led by the Primo Water merger. GAAP net income reached $80.4 million versus a $12.6 million loss, and adjusted EBITDA jumped 45.5% to $1.447 billion, lifting the margin to 21.7%.
3. Cash Flow and Margin Drivers
Operating cash flow from continuing operations was $203.1 million, less $160.6 million in capital expenditures and intangible investments, resulting in $42.5 million of free cash flow and $214.8 million of Adjusted Free Cash Flow. Gross margin fell to 27.7% in Q4 and 30.3% for the year due to integration costs and lower margin from Primo Water, while SG&A expenses rose modestly on merger-related costs.
4. CEO Commentary and Outlook
CEO Eric Foss highlighted early signs of improved business trajectory from integration initiatives and emphasized the need to enhance customer experience and leverage brand strength. He outlined plans to strategically reinvest, drive sustained growth, expand margins, generate free cash flow and create long-term shareholder value.