PRIMO WATER CORPORATION ANNOUNCES THIRD QUARTER 2022 RESULTS, INCREASES 2022 FULL YEAR REVENUE GUIDANCE & INCREASES 2024 EARNINGS TARGETS.

TAMPA, Fla: Primo Water Corporation (NYSE: PRMW) (TSX: PRMW) (the "Company" or "Primo"), a leading provider of sustainable drinking water solutions in North America and Europe, today announced its results for the third quarter ended October 1, 2022.

(Unless stated otherwise, all third quarter 2022 comparisons are relative to the third quarter of 2021; all information is in U.S. dollars. Non-GAAP reconciliations presented on the exhibits to this press release)

THIRD QUARTER HIGHLIGHTS

Revenue increased 6% to $585 million compared to $551 million (increased 10% excluding the impact of foreign exchange), driven by revenue growth of 17% in Water Direct / Water Exchange, 11% in Water Refill / Water Filtration, and 47% in Water Dispensers, partially offset by the exit from our North American single use bottled water retail business and foreign exchange headwinds.

Reported net income and net income per diluted share were $1.3 million and $0.01, respectively, compared to reported net income and net income per diluted share of $18 million and $0.11, respectively. Adjusted net income and adjusted net income per diluted share were flat compared to the prior year, at $36 million and $0.22, respectively.

Adjusted EBITDA increased 10% to $117 million compared to $106 million and Adjusted EBITDA margin increased 80 bps to 20.0%.

The Company increases full year 2022 revenue target to between $2,222 million to $2,242 million. Full year 2022 Adjusted EBITDA outlook remains between $415 million and $425 million.

The Company maintains 2024 outlook for high single-digit organic revenue growth and increases 2024 annualized Adjusted EBITDA to approximately $530 million.

For the Three Months Ended

(in millions of U.S. dollars, except per share amounts, percentages and bps)

October 1, 2022

October 2, 2021

Y/Y Change

Revenue, net

$ 584.6

$ 550.8

6 %

Net income

$ 1.3

$ 18.1

$ (16.8)

Net income per diluted share

$ 0.01

$ 0.11

$ (0.10)

Adjusted net income

$ 35.7

$ 36.4

$ (0.7)

Adjusted net income per diluted share

$ 0.22

$ 0.22

$ -

Adjusted EBITDA

$ 116.9

$ 105.9

10 %

Adjusted EBITDA margin %

20.0 %

19.2 %

80bps

"During the quarter we continued to execute our differentiated Water Your Way platform, and despite near record inflation, we delivered strong revenue and Adjusted EBITDA growth. Our investment thesis remains intact with a portfolio of leading water solutions across multiple channels and geographies, strong consumer tailwinds, and a compelling financial...