Latest news with #NetSales
Yahoo
19 hours ago
- Business
- Yahoo
G-III Apparel Group Ltd (GIII) Q1 2026 Earnings Call Highlights: Navigating Challenges with ...
Net Sales: $584 million for Q1 fiscal 2026, compared to $610 million in the same period last year. Wholesale Segment Sales: $563 million, down from $598 million in the previous year. Retail Segment Sales: $36 million, up from $31 million in the previous year. Gross Margin: 42.2% for Q1 fiscal 2026, compared to 42.5% in the previous year's first quarter. Retail Operations Gross Margin: 53.5%, up from 47% in the prior year's period. Non-GAAP SG&A Expenses: $231 million, down from $237 million in the previous year's first quarter. Non-GAAP Net Income: $8.4 million or $0.19 per diluted share, compared to $5.8 million or $0.12 per diluted share last year. Inventory: $456 million, a 5% decrease from the previous year's $480 million. Net Cash Position: Approximately $239 million, compared to $82 million in the prior year. Liquidity: Approximately $740 million. Full Fiscal Year 2026 Net Sales Guidance: Approximately $3.14 billion. Second Quarter Fiscal 2026 Net Sales Guidance: Approximately $570 million, compared to $645 million in the prior year. Second Quarter Fiscal 2026 Non-GAAP Net Income Guidance: Between $1 million and $6 million or between $0.02 and $0.12 per diluted share. Warning! GuruFocus has detected 7 Warning Signs with AVD. Release Date: June 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. G-III Apparel Group Ltd (NASDAQ:GIII) delivered solid first-quarter results with earnings exceeding the high end of their guidance. The company's key owned brands, DKNY, Karl Lagerfeld, and Donna Karan, experienced double-digit growth, offsetting the loss from exited Calvin Klein licenses. G-III Apparel Group Ltd (NASDAQ:GIII) has a well-diversified supply chain across over 40 countries, reducing reliance on China to less than 20% of production. The company is actively working to mitigate the impact of tariffs through sourcing diversification, vendor negotiations, and selective retail price increases. G-III Apparel Group Ltd (NASDAQ:GIII) ended the quarter with a strong financial position, having approximately $740 million in cash and availability. The global macroeconomic environment remains uncertain, with potential unmitigated tariff impacts estimated at $135 million for fiscal 2026. Net sales for the first quarter were $584 million, a decrease from $610 million in the same period last year. The company has withdrawn its net income, non-GAAP net income, and adjusted EBITDA guidance for fiscal 2026 due to tariff uncertainties. The relaunch of the Sonia Rykiel brand was postponed due to production challenges and macroeconomic uncertainties. G-III Apparel Group Ltd (NASDAQ:GIII) anticipates a decrease in net sales for the second quarter of fiscal 2026 compared to the prior year, partly due to supply chain disruptions and timing shifts. Q: You mentioned taking price increases as part of your strategy. Are these increases focused on newer brands with limited distribution, and which product categories offer the most opportunity for price adjustments? A: Morris Goldfarb, CEO: We're working closely with retailers to adjust pricing in targeted areas, focusing on consumer acceptance. Our brands like Donna Karan and Karl Lagerfeld have strong pricing power due to their unique positioning and quality. We're not applying arbitrary increases but are strategically adjusting prices where consumers see value. Q: With the postponement of the Sonia Rykiel relaunch, how does this affect your guidance, and are you adjusting supply plans for potential demand changes in the second half? A: Morris Goldfarb, CEO: The postponement was due to production challenges and tariffs. It wasn't a significant business yet, so the impact is minimal. We're cautiously optimistic about the second half, with new launches expected to drive demand. We're managing inventory prudently to align with potential demand fluctuations. Q: How much of the Q2 revenue outlook is impacted by timing shifts, and how do you plan to mitigate the $135 million tariff impact? A: Neal Nackman, CFO: About half of the Q2 decrease is due to supply chain issues, with shifts affecting both Q3 and Q4. We're working on mitigating tariffs through pricing adjustments, sourcing diversification, and vendor negotiations. The process is ongoing, and we're focused on minimizing the impact. Q: Can you provide insights into your inventory levels for Q2 and expectations for the rest of the year? A: Neal Nackman, CFO: Inventory levels are aligned with sales growth expectations. We're accelerating product movement to avoid potential tariff impacts. While the environment is uncertain, we're managing inventory effectively to ensure stability. Q: With industry-wide consumer uncertainty and inventory builds, what are your expectations for promotions, and how will you navigate potential headwinds? A: Morris Goldfarb, CEO: We're not feeling significant pressure for promotions. Our products are well-positioned and in demand, including exiting brands like Tommy and Calvin. Our inventory levels are slightly low for current demand, indicating strong sell-through and minimal promotional pressure. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
19 hours ago
- Business
- Yahoo
American Vanguard Corp (AVD) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...
Net Sales: $115 million in Q1 2025, down from $135 million in Q1 2024. Adjusted EBITDA: $3 million in Q1 2025, compared to $15.5 million in Q1 2024. Operating Expenses: Decreased by $5 million compared to the previous year. Net Trade Working Capital: Reduced by $86 million compared to the previous year. Gross Profit Margin: Declined to 26% in Q1 2025 from 31% in Q1 2024. Debt: Approximately $20 million lower than the previous year, a 14% decrease. Metam Sales: Increased by 14% in Q1 2025 compared to the previous year. Diamond Sales: Increased by 17% due to higher peanut acreage. Revenue Guidance for 2025: Adjusted to $535 million to $545 million. Adjusted EBITDA Guidance for 2025: Revised to $40 million to $44 million. CapEx for 2025: Expected to be in the range of $8 million to $9 million. Warning! GuruFocus has detected 7 Warning Signs with AVD. Release Date: June 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Operating expenses dropped by $5 million in Q1 2025 compared to the previous year. Net trade working capital improved by $86 million compared to the previous year. Metam sales increased by 14% in the quarter, indicating strong market demand. Diamond sales rose by 17%, driven by increased peanut acreage. The company is focused on cost containment and improving net working capital, which should lead to higher returns. Net sales decreased to $115 million from $135 million in the year-ago period. Adjusted EBITDA fell to $3 million from $15.5 million in the previous year. Continued destocking in Q1 2025 affected sales and inventory levels. The absence of a previously canceled product and weakness in the Mexican agave market impacted revenue. Gross profit margin declined to 26% from 31% due to a weaker pricing environment and lower volume. Q: Can you elaborate on the year-over-year top-line performance and the impact of destocking? A: Douglas Kaye, CEO, explained that the destocking continued through April, reaching historical lows. The destocking was more prolonged than initially anticipated, but positive sales trends were observed in May and June. The destocking appears to have bottomed out, but it's uncertain if inventory levels will be rebuilt. Q: What was the impact of the Dacthal product removal on first-quarter results? A: David Johnson, CFO, stated that Dacthal's removal resulted in a $6 million reduction in top-line revenue with a 3.5% gross margin impact. The absence of Dacthal, along with other factors like the Mexican agave market weakness and Australian drought, contributed to the year-over-year decline. Q: How does the shift in corn acreage affect your product portfolio? A: Douglas Kaye, CEO, noted that the USDA projects an increase in corn acres over soybeans. This shift benefits American Vanguard as their portfolio, particularly corn and soil insecticides, aligns well with corn acreage, leading to increased sales in that segment. Q: What are your expectations for cash taxes in 2025? A: David Johnson, CFO, indicated that cash taxes are expected to be in the $4 million to $5 million range, primarily due to international obligations. The tax situation remains challenging. Q: Can you provide more details on the competitive pricing environment and its impact? A: Douglas Kaye, CEO, explained that the competitive pricing environment in Q1 was unusual, driven by market-wide declines and competition for customer inventory space. While there was pressure on specific products like Folex, the company expects improvement due to their US-based production advantage. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Melden Sie sich an, um Ihr Portfolio aufzurufen.
Yahoo
19 hours ago
- Business
- Yahoo
Quanex Building Products Corp (NX) Q2 2025 Earnings Call Highlights: Record Sales Surge and ...
Net Sales: $452.2 million in Q2 2025, up 70% from $266.2 million in Q2 2024. Net Income: $20.5 million or $0.44 per diluted share in Q2 2025; adjusted net income of $27.9 million or $0.60 per diluted share. Adjusted EBITDA: Increased by 54.7% to $61.9 million in Q2 2025 from $40 million in Q2 2024. North American Fenestration Segment Sales: $151 million in Q2 2025, a decrease of 5.5% from $159.8 million in Q2 2024. European Fenestration Segment Sales: $61.3 million in Q2 2025, up 8.3% from $56.5 million in Q2 2024. North American Cabinet Component Segment Sales: $51.2 million in Q2 2025, compared to $51.1 million in Q2 2024. Tyman Business Sales: $190.1 million in Q2 2025. Cash Flow from Operations: $28.5 million in Q2 2025, compared to $33.1 million in Q2 2024. Free Cash Flow: $13.6 million in Q2 2025. Leverage Ratio: Net debt to last 12 months adjusted EBITDA at 3.2 times; debt covenant leverage ratio at 2.7 times. Share Repurchase: Approximately $23.5 million of stock repurchased in Q2 2025. Cost Synergies: Expected to realize $45 million over time, a 50% increase from the original target. Guidance: Reaffirmed net sales guidance of $1.84 billion to $1.86 billion and adjusted EBITDA guidance of $270 million to $280 million for fiscal 2025. Warning! GuruFocus has detected 3 Warning Signs with NX. Release Date: June 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Quanex Building Products Corp (NYSE:NX) reported a significant increase in net sales, reaching $452.2 million in Q2 2025, a 70% rise compared to the same period in 2024, primarily driven by the Tyman acquisition. The integration of the Tyman acquisition is progressing well, with cost synergies expected to reach $45 million, a 50% increase from the original target. The company has successfully localized supply chains to mitigate tariff impacts, with 22% of total cost of goods sold exposed to tariff risk, but USMCA compliance reduces this risk for Mexico and Canada. Quanex Building Products Corp (NYSE:NX) repurchased approximately $23.5 million of its stock in Q2 2025, taking advantage of a low share price and maintaining a healthy balance sheet. The company reaffirmed its net sales guidance of $1.84 billion to $1.86 billion and adjusted EBITDA guidance of $270 million to $280 million for fiscal 2025, indicating confidence in future performance. Despite the overall sales increase, net sales excluding the Tyman contribution declined by 1.4% in Q2 2025, largely due to lower volume in North America. The North American fenestration segment saw a 5.5% decrease in net sales, with volumes declining by approximately 7% year over year. Consumer confidence in North America and Europe is negatively impacted by higher interest rates and geopolitical tensions, affecting market conditions. Pricing pressures continue in Europe, although operational performance has helped offset price concessions. Free cash flow was impacted by one-time items related to integration costs and achieving cost synergies, resulting in $13.6 million for the quarter. Q: Can you give a little more color on raising the synergy target from $30 million to $45 million, and is there potential beyond that? A: George Wilson, CEO, explained that the increase in synergy targets is due to the efficiency and opportunities identified in the new operating segments. These include headcount reductions and sourcing synergies. While revenue synergies are still early, the team is confident in further potential as they continue to refine their strategies. Q: Is the tariff situation an opportunity for Quanex given your domestic manufacturing footprint, and are you seeing bids related to increased domestic sourcing? A: George Wilson, CEO, noted that their structured supply chain and diverse geographic footprint have indeed provided opportunities. They have seen increased quoting and execution of spot purchases, particularly in the cabinet segment, as customers seek to mitigate supply chain risks. Q: Where in the Tyman portfolio have you realized cost synergies faster than expected? A: Scott Zuehlke, CFO, highlighted that the main synergies came from procurement and corporate functions such as finance, HR, and IT. The integration of teams revealed more opportunities than initially estimated. Q: Is the $6.5 million in intangible asset amortization realized in Q2 a good quarterly run rate, and what is the full-year expectation for D&A? A: Scott Zuehlke, CFO, confirmed that the Q2 figure is a reasonable run rate. The company initially guided around $60 million for adjusted D&A for the year, excluding intangible amortization, which remains a good estimate. Q: Can you provide more details on the impact of tariffs on your cost of goods sold? A: George Wilson, CEO, stated that approximately 22% of their total cost of goods sold is exposed to tariff risk, with 13% specific to Mexico and Canada. However, being USMCA compliant, the tariff rate is essentially zero for these countries, minimizing potential margin impacts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
08-05-2025
- Business
- Yahoo
Primo Brands Reports First Quarter 2025 Results
Delivers strong organic Net Sales growth, primarily driven by volume Expands Adjusted EBITDA margin Integration on schedule with cost synergies opportunity of $300 million, with $200 million expected to be captured in 2025; balance expected to be captured in 2026 Reaffirms full year 2025 Net Sales, Adjusted EBITDA and Adjusted Free Cash Flow guidance TAMPA, Fla. and STAMFORD, Conn., May 8, 2025 /CNW/ - Primo Brands Corporation (NYSE: PRMB) ("Primo Brands" or the "Company") today announced its results for the first quarter ended March 31, 2025. "During our first full quarter as Primo Brands, we achieved strong organic net sales, volume and market share growth, leading to increased earnings and expanded margins. We are on track to realize our $200 million cost synergies opportunity by 2025, supporting our full-year outlook for Net Sales, Adjusted EBITDA, and Adjusted Free Cash Flow," said Robbert Rietbroek, Chief Executive Officer. "In this macro environment, our resilient business model positions us for continued success. Our focus on domestic manufacturing scale and efficiency, cost control, and synergy capture, combined with exceptional customer service, should enable us to continue to grow volume and deliver margin expansion, resulting in continued shareholder value creation," added Mr. Rietbroek. (Unless stated otherwise, all first quarter 2025 comparisons are relative to the first quarter of 2024; all information is in U.S. dollars. Pursuant to applicable requirements, these GAAP results are a comparison of the 2025 results for Primo Brands against the 2024 results for former Blue Triton Brands only. Non-GAAP reconciliations are presented in the exhibits to this press release) FIRST QUARTER 2025 RESULTS CONFERENCE CALL Primo Brands will host a conference call, to be simultaneously webcast, on Thursday, May 8, 2025, at 10:00 a.m. Eastern Time. A question-and-answer session will follow management's presentation. To participate, please call the following numbers: Details for the Earnings Conference Call: Date: May 8, 2025 Time: 10:00 a.m. Eastern Time North America: (888) 510-2154 International: (437) 900-0527 Conference ID: 62685 Webcast Link: A slide presentation and live audio webcast will be available through Primo Brands' website at Replay Information: The earnings conference call will be recorded and archived for playback on the investor relations section of Primo Brands' website for a period of two weeks following the event. FIRST QUARTER PERFORMANCE For the Three Months Ended (USD $M except %, per share amounts or unlessas otherwise noted) March 31,2025March 31,2024Y/Y Change Net sales $ 1,613.7$ 1,135.842.1 % Net income from continuing operations $ 34.7$ 33.5$ 1.2 Net income per diluted share from continuing operations $ 0.09$ 0.15$ (0.06) Adjusted net income $ 111.9$ 49.1$ 62.8 Adjusted net income per diluted share $ 0.29$ 0.22$ 0.07 Adjusted EBITDA $ 341.5$ 217.756.9 % Adjusted EBITDA margin % 21.2 %19.2 %200 bps Net sales increased 42.1% to $1.6 billion compared to $1.1 billion primarily driven by net sales attributable to Primo Water due to the merger transaction. Gross margin was 32.3% primarily driven by gross profit attributable to Primo Water due to the merger transaction, as well as lower maintenance costs. SG&A expenses increased 49.9% to $327.8 million compared to $218.7 million. The increase was as a result of the merger transaction. Net income from continuing operations and net income per diluted share were $34.7 million and $0.09 per diluted share, respectively, compared to net income from continuing operations and net income per diluted share of $33.5 million and $0.15, respectively. Adjusted EBITDA increased 56.9% to $341.5 million compared to $217.7 million and Adjusted EBITDA margin increased 200 bps to 21.2%, compared to 19.2%. Net cash provided by operating activities from continuing operations of $38.8 million, less $69.5 million of capital expenditures and additions to intangible assets, resulted in $(30.7) million of free cash flow, or $54.7 million of Adjusted Free Cash Flow (adjusting for the items set forth on Exhibit 5), compared to net cash provided by operating activities from continuing operations of $6.0 million and Adjusted Free Cash Flow of $(23.6) million in the prior year. QUARTERLY DIVIDEND On May 1, 2025 Primo Brands announced that its Board of Directors declared a dividend of $0.10 per share on the outstanding common stock of the Company, payable on June 17, 2025, in cash, to the holders of record of such common stock of the Company at the close of business on June 6, 2025. ABOUT PRIMO BRANDS CORPORATION Primo Brands is a leading North American branded beverage company focused on healthy hydration, delivering responsibly sourced diversified offerings across products, formats, channels, price points, and consumer occasions, distributed in every U.S. state and Canada. Primo Brands has a comprehensive portfolio of highly recognizable and conveniently packaged branded water and beverages that reach consumers whenever, wherever, and however they hydrate through distribution across retail outlets, away from home such as hotels and hospitals, and food service accounts, as well as direct delivery to homes and businesses. These brands include established "billion-dollar brands" Poland Spring® and Pure Life®, premium brands like Saratoga® and Mountain Valley®, regional leaders such as Arrowhead®, Deer Park®, Ice Mountain®, Ozarka®, and Zephyrhills®, purified brands including Primo Water® and Sparkletts®, and flavored and enhanced brands like Splash Refresher™ and AC+ION®. Primo Brands also has an industry-leading line-up of innovative water dispensers, which create consumer connectivity through recurring water purchases. Primo Brands operates a vertically integrated coast-to-coast network that distributes its brands to more than 200,000 retail outlets, as well as directly reaching consumers through its Direct Delivery, Exchange and Refill offerings. Through Direct Delivery, Primo Brands delivers responsibly sourced hydration solutions direct to home and business customers. Through its Exchange business, consumers can visit approximately 26,500 retail locations and purchase a pre-filled, multi-use bottle of water that can be exchanged after use for a discount on the next purchase. Through its Refill business, consumers have the option to refill empty multi-use bottles at approximately 23,500 self-service refill stations. Primo Brands also offers water filtration units for home and business customers across North America. Primo Brands is a leader in reusable beverage packaging, helping to reduce waste through its multi-serve bottles and innovative brand packaging portfolio, which includes recycled plastic, aluminum, and glass. Primo Brands has a portfolio of over 90 springs and actively manages water resources to help assure a steady supply of quality, safe drinking water today and in the future. Primo Brands also helps conserve over 28,000 acres of land across the U.S. and Canada. Primo Brands is proud to partner with the International Bottled Water Association ("IBWA") in North America, which supports strict adherence to safety, quality, sanitation, and regulatory standards for the benefit of consumer protection. Primo Brands is committed to supporting the communities it serves, investing in local and national programs and delivering hydration solutions following natural disasters and other local community challenges. Primo Brands employs more than 13,000 associates with dual headquarters in Tampa, Florida, and Stamford, Connecticut. For more information, please visit Basis of Presentation As a result of the timing of the consummation of the business combination of Primo Water Corporation ("Primo Water") and Triton Water Parent, Inc. ("BlueTriton Brands"), to form Primo Brands Corporation on November 8, 2024, the Company's GAAP consolidated financial information presented herein includes BlueTriton Brands' results for the three months ended March 31, 2024, and Primo Brands' results for the three months ended March 31, 2025. Non-GAAP Measures To supplement its reporting of financial measures determined in accordance with generally accepted accounting principles in the United States ("GAAP"), Primo Brands utilizes certain non-GAAP financial measures. Primo Brands utilizes organic net sales growth (which excludes the impact of acquisitions). Primo Brands also utilizes Adjusted net income (loss), Adjusted net income (loss) per diluted share, Adjusted EBITDA and Adjusted EBITDA margin to separate the impact of certain items as listed in the below reconciliations from the underlying business. Because Primo Brands uses these adjusted financial results in the management of its business, management believes this supplemental information is useful to investors for their independent evaluation and understanding of Primo Brands' underlying business performance and the performance of its management. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Net Sales. Additionally, Primo Brands supplements its reporting of net cash provided by (used in) operating activities from continuing operations determined in accordance with GAAP by excluding additions to property, plant and equipment and additions to intangible assets to present Free Cash Flow, and by excluding the additional items identified on the exhibits hereto to present Adjusted Free Cash Flow, which management believes provides useful information to investors in assessing our performance, comparing Primo Brands' performance to the performance of the Company's peer group and assessing the Company's ability to service debt and finance strategic opportunities, which include investing in Primo Brands' business, making strategic acquisitions, paying dividends, and strengthening the balance sheet. The non-GAAP financial measures described above are in addition to, and not meant to be considered superior to, or a substitute for, Primo Brands' financial statements prepared in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. Also, other companies might calculate these measures differently. Investors are encouraged to review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP measures included in this press release and the accompanying tables. In addition, the non-GAAP financial measures included in this earnings announcement reflect management's judgment of particular items, and may be different from, and therefore may not be comparable to, similarly titled measures reported by other companies. We have not reconciled our Adjusted EBITDA and Adjusted Free Cash Flow guidance to GAAP net income or loss and cash flows from operations, respectively, because we do not provide guidance for such GAAP measures due to the uncertainty and potential variability of stock-based compensation expense, acquired intangible assets and related amortization and income taxes, which are reconciling items between Adjusted EBITDA and Adjusted EBITDA Margin and their respective most directly comparable GAAP measures. Because such items cannot be provided without unreasonable efforts, we are unable to provide a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure. However, such items could have a significant impact on our future GAAP net income or loss and GAAP net income or loss margin. Safe Harbor Statements This press release contains forward-looking statements and forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 conveying management's expectations as to the future based on plans, estimates and projections at the time Primo Brands makes the statements. Forward-looking statements involve inherent risks and uncertainties and Primo Brands cautions you that several important factors could cause actual results to differ materially from those contained in any such forward-looking statement. You can identify forward-looking statements by words such as "may," "will," "would," "should," "could," "expect," "aim," "anticipate," "believe," "estimate," "intend," "plan," "predict," "project," "seek," "potential," "opportunities," and other similar expressions and the negatives of such expressions. However, not all forward-looking statements contain these words. The forward-looking statements contained in this press release include, but are not limited to, statements regarding future financial and operating trends and results (including Primo Brands' 2025 outlook), anticipated synergies and other benefits from the business combination of BlueTriton and Primo Water, the impact of macroeconomic trends on Primo Brands' business and Primo Brands' competitive position. The forward-looking statements are based on assumptions regarding management's current plans and estimates. Management believes these assumptions to be reasonable, but there is no assurance that they will prove to be accurate. Factors that could cause actual results to differ materially from those described in this press release include, among others: our ability to manage our expanded operations following the business combination; we have no operating or financial history as a combined company; we face significant competition in the segment in which we operate; our success depends, in part, on our intellectual property; we may not be able to consummate acquisitions, or acquisitions may be difficult to integrate, and we may not realize the expected benefits; our business is dependent on our ability to maintain access to our water sources; our ability to respond successfully to consumer trends related to our products; the loss or reduction in sales to any significant customer; our packaging supplies and other costs are subject to price increases; the affiliates of One Rock Capital Partners, LLC own a significant amount of the voting power of the Company, and their interests may conflict with or differ from the interests of other stockholders; legislative and executive action risks; risks related to sustainability matters; costs to comply with developing laws and regulations, including those surrounding the production and use of plastics, as well as related litigation relating to plastics pollution; our products may not meet health and safety standards or could become contaminated, and we could be liable for injury, illness, or death caused by consumption of our products; and risks associated with our substantial indebtedness. The foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors contained in Primo Brands' Annual Report on Form 10-K and its quarterly reports on Form 10-Q, as well as other filings with the securities commissions. Primo Brands does not undertake to update or revise any of these statements considering new information or future events, except as expressly required by applicable law. Website: PRIMO BRANDS CORPORATION EXHIBIT 1 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in millions of U.S. dollars, except share and per share amounts)Unaudited Three Months Ended March 31,20252024 Net sales $ 1,613.7$ 1,135.8 Cost of sales 1,092.7790.3 Gross profit 521.0345.5 Selling, general and administrative expenses 327.8218.7 Acquisition, integration and restructuring expenses 39.85.8 Other operating expense (income), net 0.2(3.8) Operating income 153.2124.8 Other expense, net 0.1— Loss on modification and extinguishment of debt 18.6— Interest and financing expense, net 82.179.9 Income from continuing operations before income taxes 52.444.9 Provision for income taxes 17.711.4 Net income from continuing operations $ 34.7$ 33.5 Net loss from discontinued operations, net of tax (6.0)— Net income $ 28.7$ 33.5 Net income (loss) per common shareBasic:Continuing operations $ 0.09$ 0.15 Discontinued operations $ (0.01)$ — Net income per common share $ 0.08$ 0.15 Diluted:Continuing operations $ 0.09$ 0.15 Discontinued operations $ (0.01)$ — Net income per common share $ 0.08$ 0.15 Weighted-average shares of common stock outstanding (in thousands) Basic 379,251218,618 Diluted 381,613218,618 PRIMO BRANDS CORPORATION EXHIBIT 2 CONDENSED CONSOLIDATED BALANCE SHEETS(in millions of U.S. dollars, except share amounts)Unaudited March 31, 2025December 31, 2024 ASSETSCurrent Assets:Cash, cash equivalents and restricted cash $ 449.7$ 614.4 Trade receivables, net of allowance for expected credit losses of $7.2 ($4.7 as ofDecember 31, 2024) 504.6444.0 Inventories 252.2208.4 Prepaid expenses and other current assets 120.9150.4 Current assets held for sale 65.2111.8 Total current assets 1,392.61,529.0 Property, plant and equipment, net 2,045.32,083.9 Operating lease right-of-use-assets, net 622.6628.7 Goodwill 3,572.23,572.2 Intangible assets, net 3,161.53,191.7 Other non-current assets 74.770.1 Non-current assets held for sale 113.1118.9 Total assets $ 10,982.0$ 11,194.5 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent Liabilities:Current portion of long-term debt $ 67.9$ 64.5 Trade payables 485.6471.6 Accruals and other current liabilities 578.3697.7 Current portion of operating lease obligations 94.295.5 Current liabilities held for sale 79.982.2 Total current liabilities 1,305.91,411.5 Long-term debt, less current portion 4,976.74,963.6 Operating lease obligations, less current portion 549.3555.6 Deferred income taxes 736.5738.7 Other non-current liabilities 51.049.8 Non-current liabilities held for sale 29.531.1 Total liabilities $ 7,648.9$ 7,750.3 Stockholders' Equity:Common stock, $0.01 par value, 900,000,000 shares authorized, 376,197,105 shares and379,792,996 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively $ 3.8$ 3.8 Additional paid-in capital 4,979.44,971.3 Accumulated deficit (1,637.4)(1,513.7) Accumulated other comprehensive loss (12.7)(17.2) Total stockholders' equity 3,333.13,444.2 Total liabilities and stockholders' equity $ 10,982.0$ 11,194.5 PRIMO BRANDS CORPORATION EXHIBIT 3 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions of U.S. dollars) Unaudited Three Months Ended March 31,20252024 Cash flows from operating activities of continuing operations:Net income $ 28.7$ 33.5 Less: Net loss from discontinued operations, net of income taxes (6.0)— Net income from continuing operations $ 34.7$ 33.5 Adjustments to reconcile net income from continuing operations to cash flows from operating activities of continuing operations:Depreciation and amortization 128.675.2 Amortization of debt discount and issuance costs 6.13.5 Stock-based compensation costs 12.00.3 Restructuring charges 0.5— Inventory obsolescence expense 1.22.5 Charge for expected credit losses 7.12.1 Deferred income taxes (2.6)(17.3) Other non-cash items 1.5(2.8) Changes in operating assets and liabilities, net of effects of businesses acquired:Trade receivables (67.1)(61.3) Inventories (45.7)(37.4) Prepaid expenses and other current and non-current assets 34.67.3 Trade payables 13.934.2 Accruals and other current and non-current liabilities (86.0)(33.8) Net cash provided by operating activities of continuing operations 38.86.0 Cash flows from investing activities of continuing operations:Purchases of property, plant and equipment (62.0)(23.5) Purchases of intangible assets (7.5)(21.2) Proceeds from sale of other assets 45.6— Proceeds from settlement of split-dollar life insurance contracts —3.0 Other investing activities 0.7— Net cash used in investing activities of continuing operations (23.2)(41.7) Cash flows from financing activities of continuing operations:Proceeds from 2024 Incremental Term Loan, net of discount —392.0 2024 Incremental Term Loan debt issuance costs —(5.1) Proceeds from borrowings from ABL Credit Facility —25.0 Repayment of Term Loans (7.7)(8.0) Proceeds from borrowings of other debt —2.1 Principal repayment of other debt (1.3)(0.4) Principal payment of finance leases (7.2)(0.8) Financing fees (7.5)— Issuance of common stock 1.2— Common stock repurchased and cancelled (119.2)— Dividends paid to common stockholders (38.6)— Dividends paid to Sponsor Stockholder —(382.7) Other financing activities (0.5)— Net cash (used in) provided by financing activities of continuing operations (180.8)22.1 Cash flows from discontinued operations:Net cash provided by operating activities from discontinued operations 2.9— Net cash used in investing activities from discontinued operations (8.0)— Net cash provided by financing activities from discontinued operations 2.4— Net cash used in discontinuing operations (2.7)— Effect of exchange rates on cash, cash equivalents and restricted cash 0.5(0.3) Net decrease in cash, cash equivalents and restricted cash (167.4)(13.9) Cash and cash equivalents and restricted cash, beginning of period 620.747.0 Cash and cash equivalents and restricted cash, end of period $ 453.3$ 33.1 Cash and cash equivalents and restricted cash of discontinued operations, end of period 3.6— Cash and cash equivalents and restricted cash of continuing operations, end of period $ 449.7$ 33.1 PRIMO BRANDS CORPORATION EXHIBIT 4 SUPPLEMENTARY INFORMATION - NON-GAAP - EARNINGS BEFORE INTEREST,TAXES, DEPRECIATION & AMORTIZATION (EBITDA)(in millions of U.S. dollars, except percentage amounts)Unaudited Three Months Ended March 31,20252024 Net income from continuing operations $ 34.7$ 33.5 Interest and financing expense, net 82.179.9 Provision for income taxes 17.711.4 Depreciation and amortization 128.675.2 EBITDA $ 263.1$ 200.0 Acquisition, integration and restructuring expenses (a) 39.85.8 Stock-based compensation costs (b) 12.00.3 Unrealized loss (gain) on foreign exchange and commodity hedges, net (c) 0.2(3.8) Write off of long lived assets (d) 1.51.6 Loss on modification and extinguishment of debt (e) 18.6— Management fees (f) —9.3 Purchase accounting adjustments (g) 1.2— Other adjustments, net (h) 5.14.5 Adjusted EBITDA $ 341.5$ 217.7 Net sales $ 1,613.7$ 1,135.8 Adjusted EBITDA margin % 21.2 %19.2 % Three Months Ended March 31,Location in Consolidated Statements ofOperations 20252024 (Unaudited) (a) Acquisition, integration and restructuring expenses Acquisition, integration and restructuringexpenses $ 39.8$ 5.8 (b) Stock-based compensation costs Selling, general and administrative expenses 12.00.3 (c) Unrealized loss (gain) on foreign exchange andcommodity hedges, net Other operating expense (income), net 0.2(3.8) (d) Write off of long lived assets Cost of sales 1.51.6 (e) Loss on modification and extinguishment of debt Loss on modification and extinguishment ofdebt 18.6— (f) Management fees Selling, general and administrative expenses —9.3 (g) Purchase accounting adjustments Cost of sales 1.2— (h) Other adjustments, net Selling, general and administrative expenses 5.14.5 PRIMO BRANDS CORPORATIONEXHIBIT 5 SUPPLEMENTARY INFORMATION - NON-GAAP - FREE CASH FLOW AND ADJUSTED FREE CASH FLOW (in millions of U.S. dollars) UnauditedThree Months Ended March 31, 20252024Net cash provided by operating activities of continuing operations$ 38.8$ 6.0 Less: Additions to property, plant and equipment(62.0)(23.5) Less: Additions to intangible assets(7.5)(21.2) Free cash flow$ (30.7)$ (38.7)Acquisition, integration and restructuring cash costs65.25.8 Cash costs related to additions to property, plant and equipment and intangible assets for integration of acquired entities2.8— Management fees—9.3 Debt restructuring costs17.4— Adjusted free cash flow$ 54.7$ (23.6) PRIMO BRANDS CORPORATIONEXHIBIT 6 SUPPLEMENTARY INFORMATION-NON-GAAP-ADJUSTED NET INCOME AND ADJUSTED EPS (in millions of U.S. dollars, except share amounts) Unaudited Three Months Ended March 31, 20252024 Net income from continuing operations$ 34.7$ 33.5Adjustments: Amortization expense of customer lists22.14.7 Acquisition, integration and restructuring expenses39.85.8 Stock-based compensation costs12.00.3 Unrealized loss (gain) on foreign exchange and commodity hedges, net0.2(3.8) Loss on modification and extinguishment of debt18.6— Management fees—9.3 Purchase accounting adjustments1.2— Other adjustments, net5.14.5 Tax impact of adjustments1(21.8)(5.2) Adjusted net income$ 111.9$ 49.1Earnings Per Share (as reported) Net income from continuing operations$ 34.7$ 33.5Basic EPS$ 0.09$ 0.15 Diluted EPS$ 0.09$ 0.15Weighted average shares of common stock outstanding (in thousands) Basic379,251218,618 Diluted 381,613218,618Adjusted Earnings Per Share (Non-GAAP) Adjusted net income from continuing operations (Non-GAAP)$ 111.9$ 49.1 Adjusted diluted EPS (Non-GAAP)$ 0.29$ 0.22Weighted average shares of common stock outstanding (in thousands) Basic379,251218,618 Diluted weighted average common shares outstanding (in thousands) (Non-GAAP)2381,613218,6181 The tax effect for adjusted net income is based upon an analysis of the statutory tax treatment and the applicable tax rate for the jurisdiction in which the pre-tax adjusting items incurred and for which realization of the resulting tax benefit (if any) is expected. A reduced or 0% tax rate is applied to jurisdictions where we do not expect to realize a tax benefit due to a history of operating losses or other factors resulting in a valuation allowance related to deferred tax assets. 2 For the periods presented, the non-GAAP diluted weighted average shares of common stock outstanding equaled the reported diluted weighted average shares of common stock outstanding. View original content to download multimedia: SOURCE Primo Brands Corporation View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
