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Primo Water Corporation announces 2Q 2021 results, declares quarterly dividend

Primo Water Corporation Mountain Glacier

TAMPA, Fla., US – Primo Water Corporation, a leading provider of sustainable drinking water solutions direct to consumers in North America and Europe, today announced its results for the second quarter ended July 3, 2021.

The Company also announced that its Board of Directors declared a quarterly dividend of US$0.06 per common share. The dividend is payable in cash on September 2, 2021, to shareowners of record at the close of business on August 19, 2021.

(Unless stated otherwise, all second quarter 2021 comparisons are relative to the second quarter of 2020; all information is in U.S. dollars.)

Primo Water Corporation: Second Quarter Highlights

  • Revenue increased 15% to $526 million compared to $457 million.
  • Reported net loss and net loss per diluted share were $8 million and $0.05, respectively, compared to reported net loss and net loss per diluted share of $132 million and $0.82, respectively. Adjusted net income and adjusted net income per diluted share were $28 million and $0.17, respectively, compared to adjusted net income and adjusted net income per diluted share of $13 million and $0.08, respectively.
  • Adjusted EBITDA increased 21% to $100 million compared to $83 million and adjusted EBITDA margin increased by 80 basis points to 18.9%.
  • Repurchased approximately 800,000 outstanding common shares for $13 million.
  • Company expects approximately 6% organic revenue growth in 2021, plus growth from tuck-in M&A. Full year outlook for Adjusted EBITDA raised $10 million to between $390 million and $400 million.

“We are very pleased with our second quarter and first half results which have exceeded our forecasts,” said Tom Harrington, Primo’s Chief Executive Officer. “We continue to see elevated demand from our residential customers even as our Water Direct commercial customer base slowly recovers, confirming our view that there is not a one-for-one tradeoff in demand between these customers as they return to work and mobility increases. As such, we feel confident raising our full year Adjusted EBITDA outlook by $10 million to between $390 million and $400 million.”

Outlook

Primo is targeting the following results from continuing operations for the third quarter and full year 2021: