Canada's Primo Brands Q4 revenue up 11.2%, beats estimates

Reuters02-26
Canada's Primo Brands Q4 revenue up 11.2%, beats estimates

Overview

  • Beverage company's Q4 revenue grew 11.2%, beating analyst expectations

  • Adjusted EPS for Q4 beat analyst expectations

  • Company reported net loss from continuing operations narrowed significantly

Outlook

  • Company plans strategic reinvestment to leverage strong category momentum

  • Primo Brands aims to drive sustained growth and margin expansion

  • Company focuses on improving customer experience and leveraging brand power

Result Drivers

  • MERGER IMPACT - Net sales growth driven by inclusion of Primo Water sales post-merger, partially offset by sale of Ontario facility

  • SG&A EXPENSES - SG&A expenses rose due to merger-related costs, offset by prior year nonrecurring fees

  • GROSS MARGIN DECLINE - Gross margin affected by lower margins from Primo Water and integration costs

Company press release: ID:nCNWHjkhfa

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Beat

$1.55 bln

$1.51 bln (10 Analysts)

Q4 Adjusted EPS

Beat

$0.26

$0.21 (11 Analysts)

Q4 Adjusted Net Income

Beat

$94.10 mln

$70.53 mln (7 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the non-alcoholic beverages peer group is "buy"

  • Wall Street's median 12-month price target for Primo Brands Corp is $22.50, about 14.6% above its February 25 closing price of $19.63

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment