PRMW.TO - Earnings call transcript Q3 2024

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Operator

Good morning. My name is Elvis, and I will be your conference operator today. At this time, I would like to welcome everyone to the Primo Water Corporation's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] I'll now turn the call over to Jon Kathol, Vice President, Investor Relations.

Jon Kathol

Welcome to Primo Water Corporation's Third Quarter 2024 Earnings Conference Call. regarding is and live for results, will call and forward-looking call website Primo playback. This matters. the The financial related transaction, contains primowatercorp.com future including anticipated at be statements the BlueTriton Instructions] transaction, being trends benefits on webcast Water's conference and the [Operator operational company's of and BlueTriton the available synergies there estimated XX-Q this expressly these safe quarterly morning's regulators. The company's statements, Form required cautionary should press by statements connection and harbor Form forward-looking duty be statements actual in from company contained with the XX-K these statements materially no the in These applicable undertakes law. and differ other and with the and earnings to on filings release as company's reports considered disclaimers performance except report securities update in annual on could statements, and when most this of of A with in website company's on accordance reconciliation company's measures in earlier included earnings the during third GAAP Relations Investor the of or data the at non-GAAP the any quarter the announcement measures comparable estimated, primowatercorp.com. discussed is the released is morning call financial with section being capable

included thoughts transaction between will operations. you prepared a into accompanying Water's and throughout from and and quarter current remarks, the standalone results of over Robbert's of Primo this information performance Financial to now Water, posted Hass, ahead bluetriton.com. Officer; Officer. financial Water operations proposed deck addition Water's David transaction broken be call information represent Primo QX on to start supplemental the Primo continuing quarter turn of David to I the will their Today's the sections: Brands. I'm With the Robbert. and that, will Primo Robbert by continuing of To Executive X earnings followed accompanied In Robbert we Water, our note results Primo their discuss earlier have to BlueTriton BlueTriton deck that today's Brands. Please in at third Chief webcast on the Rietbroek, morning was by Chief related a BlueTriton's financial supplemental our with website slides assist copy discussion, presentation website. The third

Robbert Rietbroek

good Jon, morning, and you, everyone. Thank

to property. Before begin, the to by those moment want recent I the and loss sympathies take hurricanes extend a of I impacted my in and life extreme the southeast to

foremost, those still to and suffering, we are First our them. efforts for recovery affected. The was areas in to water and hard-hit high-quality associates to thoughts with a I want personally for these hope those and drinking admirable, deliver thank our speedy of people

We are bottles working of with strong transport for local affected been across able water to hundreds hurricanes. to of natural companies a it water and need critical and our to There serves water far like so during of demand those provide charities and the disasters Southeast. and floods donate is have thousands wildfires,

aid to this communities a for support of commitment unwavering. those associates remarkable in proud is The week, Our Brands. recognize BlueTriton and our serve to approved with and with rationale support The strong the stakeholders. transaction the our approving obviously us better are them. need special shareowner these affected share two of combining people resilience Earlier purpose the held we allowing companies, in of we and meeting owners great strategic transaction is

the share to with a third symbol and the we the next Stock of But closing We the the aside occur Brands thoughts of more begin expect plan Primo New the ready for customary trading first, to Corporation Brands necessary throughout as November stock Water Primo new Water's operations conditions, through including tomorrow, from approval the November trade have take of wanted closing received all you remaining of new PRMB on details Primo will expected quarter. to XX. I'll Monday, to a York Primo we with day, X. The on now I later. are the court Xth, continue few ticker transaction approvals, begin Exchange of arrangements on new my transaction and to company, the

quarter high am the inorganic the guidance $XX our previous growth demonstrating solutions compared of and pleased that up end EBITDA continued growth between we strength category. Revenue of year compared the was of organization. Total gains water increased exceeded I than including and last XX.X% driven X.X%, versus Adjusted of beverage growth matched guidance. The over robust revenue increase and across faster high offerings volume price. increased was consumer great the resulting remained X.X%. prior and when consisting to volume health continue of adjusted X.X% a the margin of From And margin million, EBITDA of a balance by strength to and packaged revenue balanced companies, by basis by the consumer million. to marked growth grow and X% growth the the our consumers and beverage across Another revenue pricing notably end companies. and of our X.X%, other rate XX.X%, growth with year's point goods our million, broader resilient macro business $XXX were XX.X%. perspective, $XXX organic our Revenue XX category, of and other of of

priorities identified must-win year. efforts their let our discuss that each that, to reflection of commitment on a and of the and achieve healthy our and our the are to and of customers remain has the I our accelerated see the our as specific results to products profitably. at and it consumers direct frontline-focused of business progress demand the hydration us our us allowed high-quality priorities. The start beverages. We to continue With focus commitment associates We of services must-win for grow

is with The the and consumed first growth portfolio. provide goal superior experience or water to customer yield organic our across a net to must-win gallons units

focused and driving are growth. on high-value customers We gallon acquiring annual maintaining

on is Our fulfilling successfully desire and for driving drinking relentless needs high-quality consumption. customers' focus increased our water

retail our at from of value sold channels, in super multi-format Mountain and sold delivered bottles their across our at glass, PET, premium to consumers on-premise direct water at all Valley offering spring to We strong various our locations. water seeing and door aluminum are station refill demand from or a

Our on I spoke impressive continues past to continuing quarters, Mountain which focus results. about deliver Valley, in

During more retail of Mountain doubled single-serve revenue, than convenience by are Valley selling the aluminum X-pack our quarter, sales which Whole bottles, stores XX-ounce the our country. we driven throughout third at Foods

products. continue for sold Valley Direct and also more We X.X-gallon, levels of to multi-serve, our our customers we where Mountain Water see to single-use demand high X-gallon,

as addition, demand In and will continuing. expanded Mountain strong anticipate HEB grocers in in as for Texas Valley distribution to expand such our we've we consumer XXXX in continue

experience. improve consistently are We enhancing to touch customer various points the

also has refreshed to a features enhanced Spanish, such MyWater+ app, as easier now available design, upgraded access in Our customer support.

have customer our offer us. coverage customers increased chat improved experience expanded customer to to week. encouraging. have functionality, reaction our it even making to a availability reach The through our X days easier assist them to We experience our And center for we is support

and about consumers. Our delivery to improved potential social your ways QX, to you Pilot to community. the year-over-year. In interact we platform platform we to the Water and have tested service Google Business Trust reaching use seeking informed the with connecting scores reach stay We're always Primo expand consumers Nextdoor, the

planning before out and We to are rates of rolling engagement nationally. to understand high levels conversion test launch seeing markets additional

of numerous is with locations consumer or stations. preferred direct-to-consumer We through channels second exchange one retail The to or our delivery our the be water partner. by solutions meet must-win partners across refill the end

and future across meet have Refill, and volume needs Water of the We Exchange, each drive and of Water the at Direct, in solutions. The an retail, offer portfolio growth. number increasing in our drives budgets. and our water customers channels our connectivity and starts satisfy customers locations will increase across of Dispensers and locations to Customer volume which with customers' growth of sale

able quarter, in display our racks support resulting X% and and Direct Water to the channel growth, within retail the add stores third the customers for secure in we growth capacity were Exchange to channel quarter. During additional

filtration that continues our water. and their growth show is for to to water that steady our offering channel and includes with in and lifestyle. refill format fits daily in their product the quarter. This Meeting further critical they X.X% for sustenance customers a where consistent third drinking needs of needs high-quality performance high-quality evidence customer provides the satisfy are Our

operational is must-win third The excellence.

exceptional an customers. services, for grow. Maintaining to operating service our the well-being, that on deliver products environment systems associate and it's our we to prioritize we're to safe for our and optimized and support continue essential and thrive efficient top building our continue organizational as to as structure Specifically, a scaling delivering highest-quality safety focused and is them automation and priority, associates

During the moved we into delivery to and summer. traditionally of continued X-day third quarter, period schedules implement the our as busy X- we

the up prior in our Water Direct rate Exchange in-full XX% XX% on-time from channel year. in Our of was and

base. in customer full machine availability per Our X In of of and uptime the the efficiency supporting Production and vital business. cost unit. production higher product a maintained to our to are our XX%, growth we years, for capacity ensuring have lines, lower of invested efficiency yielding X our Refill past upgrade channel

We volume have of and pricing. profitability a balance a to plan growth clear good and with deliver

associates, and our resources business Our unique that all combination capable that delivering assets of resilient model stakeholders. a has of are results benefit

of we our as next Brands Corporation. the We with Brands to future phase create Primo for well positioned business into step combination are success BlueTriton

performance built that to support to on Before to the to business. our I now is and the dedication commitment of of the would all their Primo the David, over excellence. call over Water Their have for turn customer turn centered that, operational culture thank to call again we the once I and excellent like With the I associates will reflects service David. contribution

David Hass

Thanks, Robbert.

first on past quarter our would results, year. Before like I reflect third cover to I quickly the

sale ample focus cash a of of the margin were we businesses. and enhance catalyst business. updating growth. majority drive This It our helped on Just market, international North also set ago, American to on improved runway a where was profile the for we the the free to our renew the have investors stage our year flow of

transaction thank to and look a transition this We on behalf Brands with you to to that, Primo necessary very forward pending financial scale future. for provide in company. as let results during tremendous Water. the all BlueTriton, transformation near A Primo our are of With the further back communicating of parties the as this to me excited will journey, we the involved

with adjusted of margins quarter the at and EBITDA the high increasing operations to results X.X% of and EBITDA XX.X%. margins were adjusted to $XXX All focus previous XX.X% included million, EBITDA third optimization The or million, the above our $XXX adjusted reflect our of in end continuing driving business. guidance, metrics on increasing revenue our efficiencies

the or becomes of activity, business Water's that of of water activity definition is strong as Within or in in additions contribution disclosure to approximately customers our inorganic from base. supplemental from growth, our acquired closed less with indicating million organic of solutions, $XX irrespective the related X.X% results our our from to inorganic the activity. businesses acquired both from million traffic our approximately growth, pricing additional X.X% counts or sources. nature comes additional not different into customer includes $X all X.X% contribution complementary X.X% or included channel any contribution, part where in balance of deck. came XX gallons Primo approximately ago. After earnings quarter tiers. coming activity revenue approximately this acquired than price organic X.X% months split bulk-oriented retail acquired customer approximately in the growth consumed well or as Volume were revenue A means, XX actual known. Volume months, strength Exchange Refill or X% Separately, new volume table the case, businesses our normal be are or directly our can was and existing related across with offering any

occurred notice price channels, in Direct water and each gains our we X% Exchange a that strong welcome growth in in increase Refill Water revenue and and price channel. for Dispensers. Within our across except Filtration of X.X% will improved You decline volume and channels, Water had of the Water the

the The retailer premium channel, the water, which our business, The on-premise Water of the primarily representing up was Valley Mountain increased of XXX.X%. XX.X%. units other spring is sell-in Dispenser portion water to retail and

decline retailer quarter, reflective which coffee emphasis remaining approximately from end services, is the The not was the sell-through our current a those is X.X%. office approximately Water or dispenser units of other customer items in in model. of the down to channel noncore XXX,XXX our point sold

revenue to Water growth. a online. model As the the the includes approaches and growth dispenser recurring in and the selling dispenser: dispensers water our our our and enable commercial water in of of residential contribute water rental predictable through two of Both to water business and approaches and our business, our reminder, retail customers solutions Direct partners sale

sell-in exist results sell-through. confirm between in sell-in the quarter's will This retailer helped timing quarter-to-quarter the eyes the and of while strength category's variability

we with our have partners particularly connectivity e-commerce visibility compared higher our focused have where solutions brick-and-mortar We to on to greater retail and into been connectivity water the growth channels.

in previous manner but Dispenser initiated. refund previously XX% from process as was When calls, category last U.S. year. As under discussed receive reclassified in was a the the record we Water import same funds, our we was transaction. the government a And original them tariff

timing did government will approximately XXXX, the receipt. are approximately $XX.X of refund nature We During quarter refunds, $X.X Total receive year's interest the reflecting the cannot but through of we not any QX, including be received, third payments million. cumulatively received we have that funds we process. remain inconsistent inclusive million income. the When refunds outstanding of predict of confident last

the as OTIF in on-time Robbert experience and earlier, in-full of our ability short- to our The improving tool, rates. route further optimization, look to efficiently yield and mentioned is customers a into to continues ARO to we both metrics continues efficiencies. result commitment long-term or automated serve our our the critical and customer profitability operational As driver improved

coverage per our maintain while quarter, increased high and single route a route X%, units a Exchange third Water business to per During result of revenue unit as route by declined our metrics. service we support the by expanded

at customer of sheet Direct and flows. end retention approximately balance to remains slightly XXXX. Shifting our the at third Water higher than cash of Additionally, year last XX%, the quarter

third X.Xx the considering when adjusted basis trailing $XXX improvement remained balance unused Our operations, sheet, cash million EBITDA, liquidity net cash from our year-end. XX end leverage our fully a and XX-month flow a approximately the million on on strong the at point ratio stood our Similarly, cash within a basis with of at discontinued approximately quarter approximately the revolver. $XXX of

year-end. complete the and target of remain on in to by businesses the Israel We sale U.K.

adjusted cash collections as quarter was to million. The shifted lapping flow $XX last flow for driven onetime by $XX decline in the free results adjusted AR Our million, step-up a third in free of decline improved totaled year-over-year positive year's we cash totaling billing years $XX.X closer net cash we taxes net a shift time change capital relative million NOLs attributable to an in due to as as as growth. prior delivery well working approximately in fewer of to and the increase taxpayer to

expense, flow significant ended by taxes September the of XXXX, of XX, free reduced expenditures. totaled a interest $XX offset $XXX by cash increase increased earnings, and for importantly, capital, million, months adjusted driven cash increased improved More X year-over-year levels higher working million, net and slightly capital

with financial BlueTriton schedule. estimated these Regarding we to ahead plan work well transaction companies together Brands communicate two the great the of to in early we XXXX as pending for Brands, outlook our Primo bring originally our new

for to migration form of publicly we standards match those BlueTriton of closing both will XXXX, will Brands the results full accounting XXXX be transaction, acquirer recognition Water in performed how As BlueTriton, begin Brands its year in Water longer the current Primo no XXXX. the to during provide Primo Primo supplemental of held, we disclosures also of in report and the show and we our of record will the separately accounting of transaction. When February

a with would and revenue, guidance government. No international the As anticipate all on XXXX have adjusted tariff estimates across receivables X, record our a flexibility acquired shares we on the year Primo to basis, directionally from offset the November Primo to of adjusted we of dividend in our the achieve shares. full improved repurchased October owners long-term that were for full for adjusted confident with turn future to call in on financial cash I have the growth previous compelling XXXX. In foundation remaining businesses company, from new the payable Robbert pace flow. This over divested we that, new BlueTriton. Primo the and on we free outstanding flow are November XXXX, remain also is combined Brands, Brands. of year-to-date still cash approximately that affirming to a Water our potential transaction XX, $X.XX values Water of worth the financial company, cash third receiving with his free profile with U.S. that closing, pending relevant operations common thoughts Primo on of continuing $XX.X along special the free year adjusted will EBITDA, success are growth the Primo share and flow BlueTriton would With quarter, announced On a Water the the solid XX, per even and from fully transaction confirm our outlook of back million share

Robbert Rietbroek

its the Earlier leading distribution shareholders Primo combination associates. highly brands creates these look I companies company Water's approved superior BlueTriton with Corporation vertically-integrated branded with Primo and growth of leading a Brands decisively with to of network new to David. the Brands. a customer Thanks, is transaction world-class deliver positioned week, drive team competitive well portfolio this unique The beverage of service. that and manufacturing to forward

companies As results, strength. QX from enter this transaction demonstrated the respective both position by financial of a

as November their has defining both we teams announced, transaction Next upon Exchange Brands BlueTriton the Primo identifying Water Primo of leadership Monday, were progress efforts with create that be complementary corporation. I to once The beverage ground new across closing. XX, opportunities value York expect success structure and trading as Delaware we an integration both capture North from leading hit have organization branded America the tasked company organization is with a planning Brands in on position positioned optimized believe in to U.S.-domiciled positioned a growth, generate planning organizations as assets new for the Stock the working both to was from ticker Primo the the with close. We that long-term a representatives combined deliver Brands. a team We away-from-home. symbol diligent company taken residential, and begin companies, platform, New companies. will under PRMB, efficiencies commercial, pleased am and an is aspects to diversified we experienced in created and returns After place, running with transform legacy company the in of premier brands, to superior financial leveraging believe retail, unique teams and executive the been operations,

and Directors to Primo positioned an of have Dean two the have our will player Board an portfolio water iconic in Brands is and exceptional Poland brands, Life including Chairman, of new brands, also bottled Metropoulos. leading U.S. category. billion-dollar Spring Pure well established We by be the led

have of includes Ozarka, and Park, offerings array Deer Water like an and as will that We purified such Ice brand and Mountain, brands regional other Arrowhead, Primo Zephyrhills, Sparkletts.

recycled also We business, retail over including part fabric back that to XXXXs aluminum, brands, dating the America Frutitas sourced mix are brands Splash. large-format brands in flavored have with and available our years and bottles. our materials and include a X old industry-leading established of In the of reusable glass, plastic that packaging are with content, four beverage water of responsibly XXX

our residential in-store We a the can direct-to-customer purchase multi-use Water Water bottles also and Refill self-serve their consumers delivery our and away-from-home Filtration, own unit and directly; stores; or beverage can using and commercial, dispensers strong their installed commercial services; includes a business, where residential rent location. at Water return and have consumers of have consumers where program sale can a platform, Exchange, dispensers, fill outside bottles their inside where which

any any even able company, more will time, solutions provide branded combined place, beverage be we a anywhere. to As

benefit to in attractive positioned bottled U.S. market highly from be will water. We dynamics

adoption a and strategic growth. Positive a retailers, demand lifestyle become frequent partner more with to and quality our functional healthier preference and for digital for us water products, consumption stronger an helping category value, engagement. trends allow bottled include of manage a choices, will premium the occasions, for consumer them growing scale increased Our

supply We for watershed for water from water. springs, and drinking wetlands a company company, to protect As and XX,XXX resources safe area municipal Brands and the sources numerous of Primo sustainability, wells of owned long-term clean, manage vertically-integrated assure to help more than helping water a supplies. acres steady by preservation

efforts, Consumers it about during ties products, particularly tangible continue Beyond strong presence its local support geographic a broad safety, disasters. enable convenience. to Brands most through and local Primo make The to will company's charitable quality, will natural actively care nationwide. impact and taste, communities

in and multiple stable America. across locations customer and the platform, and base growth believe we our the with existing and scale Beyond growing commercial accelerate across will North attractive backdrop, expanding including levers new retail to the company our our resources have combined footprint

between will Our balanced into diversified channel residential, We and to geographies. mix commercial, plan well new and high-potential expand and be away-from-home. channels retail,

in committed safe, As access acquisition. segments functional, in are areas compete of the high-quality meet the across to either and innovation to the challenge country, through growing the beverages drinking more flavored expanding high-growth a branded demand. We water becomes or to within plan we to premium areas category,

utilize enhancing We network will our design, demand and both from to machine route production analytics experience. and practices companies apply the and planning, best all customer learning forecast, optimize while

Additionally, minimum free years we enhance business capital initiatives cost positioned rate run are of positioning efficiently. plan to our us implement several earlier. Overall, flow, across to million within of margins, $XXX various utilize accelerate well closing estimated optimization basis realize or and to a functions, cash an on more X synergies we

We our to leverage well commercial, customers, retail and in differentiated with direct-to-customer vast is well medium new residential, are term branch fleet. following to reducing as to last-mile committed generate valued that as we're company-owned our away-from-home our closing. The both ratio It's small-format compared our national and leveraging competitive sales network positioned to company partners and peers. truly delivery the building net

is on are hydration solutions healthy drink not declining as soft We of dependent focus we segment resilient strength demonstrating both positioning and volatility breadth points economic across for macroeconomic resilience persistent growth offerings. to inflationary and and to environment. Across during our remain believe ourselves revenue formats. our our and and volume brands on combined We depth times the of price we across packaging companies, demand have of are multiple our and deliver a continued portfolio, sustained carbonated

integration months With Q&A. to to levels through customer on high call speed, that, a We the coming for I'll report turn service. results our progress. I move regarding us while agility, Jon back intend the focus information maintaining with the to to take and more of will in Primo and share Brands, decisively us excited I'm

Jon Kathol

Thanks, please the open line Operator, Robbert. Instructions] [Operator for questions.

Operator

have We CJS Daniel Moore Instructions] [Operator Securities. from

Dan Moore

off jumping left new but planning only from just strategic When little about company? think bit merger off. say, XX you the where talk the the first, you Can Robbert, months initiatives you Maybe, a you're just not of described, $XXX to order on. million years, as the you next can of minimum and synergies which attack you those terms I the cost if synergy about of over plan early X-plus wondering them in rank buckets you timing highlights was for

Robbert Rietbroek

thanks, Dan. Great Well, Yes. question.

very I'm feeling So merger. very, good about the

recap, price create coast-to-coast brands we're branded Just across across of a different to to a portfolio distribution and going and manufacturing have a points. I we that variety say leading very have of strong also we'll to integrated, a really vertically want will beverages company, America. play we're and network competitive North and formats

be you we as company. at beverage to and accelerate best-in-class positioned customers strategic and to a and priorities, think growth, aim I look U.S. will products we're for deliver our consumers, superior services

very brand We have a iconic portfolio.

Poland Pure Spring We like will have brands, recognized billion-dollar that behind. Life and brands growth driving be

opportunities. high-growth have Saratoga distribution like premium and great We Valley have which Mountain brands

significant the have brands We potential. in the spring in space valuable other purified with growth

it that delivering refer to creation, as value drive our sustainable strategic these when you results. transformative would efficiencies synergy whilst operational to those and be to goals So capture long-term shareholder strong goal financial initiatives, we comes achieve

the is our XXXXs, and really for the aging good And I brands over deal for the investors. year -- that as all access for think turns emergencies. XXX, the -- to the And part American is sources years they're water old, customers, XXX drinking seven increasingly stakeholders. all you brands six important have the municipal consumer, when dating know, Sparkletts fabric. there and high-quality from of next the infrastructure, we'll those are water associates, It's will to because with four drought, the of compelling are for back way of be for

So well going drivers good be part frontline are Systems We a a have is and maintained. The the you growth. Also, strategic for is been are culture, the fleets for to work routes, the components These environment work and same of it if production key as know said, and going deal after brands incredible to organization we of revenue let the the share, very and grow And assets excellent to our once quite a shape. winning in our the portfolio is safe our value you big I to capture. first at secure look customer. We'll want or production And brand of closed we're tomorrow. to in of facilities ensure are better strong service level and leverage we'll portfolio market really the shape. and synergies the simple. the more leadership a the year, associates, with want a strong of end optimization. to synergy ensure and drive that's customer initiatives and on team

up a and Thanks, in have long-term upon for to obviously, since to the can certainly, and commercial receiving actively synergy communicated But involved, Dan. revenue review of than the opportunities. And begin everybody been And further first get all expect faster. would about we've with the we'll committing working right company we're first but to in time. and goal get and now, prudent more X articulate to million progress. that we're we noncommercial get set the be whether we attributes long-term our close, faster, targets is opportunities. on understanding Well, in those $XXX $XXX make success them we together we approval, the we will want then we years. sure regulatory communicate And technical years. the asking to to the define synergies, X in the regards Now intend million But them

Dan Moore

X% geographic terms Obviously, in mix has their merger of and different accomplish. compare months reported Really would we momentum momentum -- X growth BlueTriton I to X as go what the stand-alone helpful. over maybe to And comment we helpful. seeing sales solid any there then the and EBITDA been just you're very momentum. one the Primo concentrations, believe Obviously, follow-up. last be Maybe growth. able double-digit but to as into

Robbert Rietbroek

to closed. released go speak And and that. can't their details this speak is morning to the www.bluetriton.com were Dan. business know, can Well, results. I'm as to to of you website, until directly to deal see results their we very strong. BlueTriton the happy Sure, you they those

companies filings a will we'll both QX website, And pro forma the momentum. And strong new closing, tomorrow the Both and tomorrow website an have both results be on of night. be companies ir.primobrands.com. of part companies' which Now combined had following will release QX. released excellent

XX%. actually, up XX% X.X%, what BlueTriton From Now strong volume's had quarter. really I revenue was saw, up strong results. was Year-to-date, very EBITDA up a X.X%,

and Our strong channels, growth, with growth. balanced quarter broad-based all water was very volume strengthen

X.X%. X.X%, the Exchange, by we We're which was David versus driven Water As X%; the performance volume, X.X% manufacturers. We the growth Direct because beverage of was and was had which said, in context which and in Organic good we're of really up a growth is a year really doubled price. performance X% X.X% ago got Refill, Mountain and that revenue up was of excited about driving. the distribution then Valley other

I'll I have we results. think say So about both last strong that, yes, the very thing

great priorities our sales growth, on touch must-win have like and metrics key customer been Promoter Our focused points service, ensuring are stay working. Scores. improved Net We'll organic retention,

go our scores Pilot up the seen Now and for over we've X Primo, last months. Google significantly Trust

Dan. Thanks, So right. we something doing know we're

Operator

Our next from question comes from William Andersen Jon Blair.

Jon Andersen

be that support look part and combination benefit companies? here comments transaction. the how a the Robbert, may new opportunity Congrats quarter in some you're then of functional and channels a color that from build a with capabilities a mentioned high-potential thinking you and at geographies, functional add water And the you combination presence an of about the white enhanced the of close the more the good also how will today. Could space just to the greater bit talk from or to a the water out see of of channel not prepared of on biggest about of sales geographic both you a pending areas you two or presence you enhanced opportunity, or in and where have big as then perspective expanding little the where also perspective? and into kind just

Robbert Rietbroek

Thanks, Jon. Very good question.

will outlets combination bottled presence XXX,XXX in have business the the So with over water. combination, retail

in XX,XXX Our will in be can our you big machines XX,XXX. in Refill of the bottles will Exchange present program, store, present front And buy the over outlets. be over that

point for So incredible starting that's growth. an

Now distribution I'm big that giving. regards and value the to on believer so is opportunities drive distribution, many that gift there to capture, keeps a with are

if brands brand over think customers trucks having about and Water is onto our and those our serving So brands a million purified to ability Spring opportunity Primo the like those Sparkletts alongside huge BlueTriton in and direct-to-customer. bring you portfolio distribute Spring of X the

strength in have a opportunity second obviously, sales channel. with Primo. The that DIY drive case great we There's pack to in one,

in opportunities to We where channel there's are Mountain with is strong brand. hospitals. And can Valley we a mass strength both has be Think is going and Triton Natural, brands businesses. distribute has important. Valley Mountain that and have Triton The true away-from-home definitely about there. schools and opportunity come that small-format our increasingly to for restaurants

size opportunities the win to determining and and very go be diligent So in then after to have great we're disciplined those market operational price with and share. and of executional growth accelerated drive the excellence, excellence, them going to

Jon Andersen

activities? Could helpful. that of guess the fleshing how from then of you, how standpoint, you're that. playing think super kind more of you've just out side kind of those integration one ultimately out bit overall an just and to follow-up, already the very but just that manage see extent, I the that execution involves Yes, going the not and organizing management talk how you're That's project integration little internally done which of you a some forward? kind project synergies, identification I organizing to about

Robbert Rietbroek

Yes. definitely Jon. speak to I'll that,

work we'll to pre-execution office the able remainder We'll X, be able Directors, stage executive specific We've and very be synergies identify committee. been follow two put of together executive integration So streams XX website would put synergies. consists with from that identified, we has have at initiatives. level, and an Board be which on IMO. an committee value world-class both our management where a ensure we to advisers new over plans the practice. QX. It be tomorrow. in consulting three the to we've will tomorrow. And capture planning best day starting out we're They've now integration the office, capture of worked ground of IMO That announced And identified able as and working XX companies we're on running leads companies. to well announcing hit gone be then on to and we We of quarter the the stages through the management at stage website that executing this conceptual together first

help streams, firms best of the work from multistage execution in with the IMO, through world. conceptualization and consulting the organized to really So

Operator

Teixeira Our Andrea JPMorgan. comes next from question from

Andrea Teixeira

guidance a bigger for for And profile the these. growth. the long should a see think context well category on out rebranding and to backseat. you a think sort the company we distribution? to the about of to company inorganic. in see called in in brand? in the want of X/X of as or Sorry take What Primo Just acquisitions and leading is about extending this do term win thinking transaction, growth the potentially brands functional, of brand, just takes one want focused we thinking company drove you potential a beverage branded you Valley as the the be the just fourth to the terms adjacencies we that the midst last of the at of I that be could going about especially to Mountain be the Brands, for hydration, kind the organic of as leverage go? And stand-alone where What how And of right quarter. then like Obviously, as you make that business company to clarification. more looking to a all of the ask But

Robbert Rietbroek

No, very good.

start I'll there's it with I'll David. three you and Andrea, your your hand then part So the over of question. first parts thank for and to question,

have brand initially, portfolio we'll Our -- brand to will get consolidation. current go some through

So of our then the in into existing will the understand distribution migrate about brands. billion-dollar be we'll couple years. And and then brands which white priorities, of driving We transition need and to XX other brands and those over really next we're some be on strong we'll combination. the space opportunities

is the with other year And on and anything a key do get things in we X So focused before objects. stay we'll to drive we growth, strong success distracted shiny core the integration very that of source before else. business

and focused So be be channels. distribution we'll will customer on value space gains white capture then on revenue service, in we'll be primarily synergies, focused which integration,

look Where Now part acquisitions inorganic that, consider as would the very, grow carbonated probably either in growth or and consider we opportunities looking decline as capital strategy. ourselves -- can we at play is always of beyond obviously, wouldn't our there the hydration, very have segments category. to to into occupied whether at. would and we definitely on in that we whether whether That can be the us energy. for brands that's we markets, beverage drink are we opportunities. that because branded We and we'll it's are that's that's strongest innovate look allocation segment a soft busy acquire our that water is And also think interesting there spaces isotonic, the other existing because additional space. But brands,

we where are. that's So

Now let regards guidance. David me it with to to pass

we very is mass, growth one I Let one Walmart. retailers say channel. That to say big-box opportunity. Valley for me refer obvious more the we mass before that. The a When to Valley into like very, big Mountain Mountain do is about thing get

will going here. a it So All take forward David that would key be to from right, distribution. gain priority

David Hass

some items. the Yes. Mountain guidance And on part Heading quarter, Valley going within quarter, maybe grow was a to the which on of XX%. question Valley the to into was part Mountain the your minute build about financial of for believed we tied to

with and company you lofty forecast even success, pretty Valley Mountain our ability see outperformed So its still expectations. to the accurate even that can our

excited of improve is that's continue our meet about more increase capacity exciting the we're there opportunity when perfectly. to Saratoga note with our you on become to And tablecloth for your secure that regard other both teams and what sort very us. to And the the our retail on-premise that to so actually we fully in in And that and be to that obviously and sales to demand. ceiling opportunity to ability to provide hit opportunities. With produce morning taken the expand pair will of not aware it this what we've addition and water to rights guidance,

merits deal closes communicate really opens any Friday supersedes to ability of on balance to transaction the our for then own regard financial ticker a year, new the as Monday with company and and So name. this on the

will a the incredibly we revenue as well of been remain guidance. architecture. move company that, things empty line, QX like the confident where bottles you'll updating would were and are changes sovereign in things Primo to the But after in talking that see if there's as have where Within We today we used capitalize, accounting as goods. nuances we to no cost really previously again, of, in

ours, volume and which no of both be that takeaway not should notably communicating results pleased position on there both are we the with and BlueTriton's from are So companies incredibly line. morning communicated the any producing we of weakness. Again, momentum results with the that pace this and are

incredibly into think heading again, So remain confident year-end. I we

back full BlueTriton. should highlighting help as its organically strength so an we results that We communicate year tomorrow. And as finished have with entity a we're to though even sovereign will reassured that how with as well when activities and in disclose Primo doing where that Primo be on update bridges will clarify change would today, we the February, everyone performed accounting are that with

Andrea Teixeira

just can is one, a It of helpful, super Canadian explain regulation accommodation investors cannot David. a appears If down stock. even regulatory of who reasons which some U.S.-listed some might there That's regulation one a own the down and there restrictions why specific for can the than the why be puts it investors opened what for with who and of more is investors the that own are to from a stock now. takes squeeze anything may you I and -- perhaps are It the share an U.S.-listed. be like cannot standpoint? understand Is to

David Hass

Yes.

or X%, own record So have regulatory But when small, say X% Canadian we I the investment attribute to won't policy. I be small, maybe able did everyone's even and last than X% less perfectly far or of explicit shareholders. very a

As other we American country. home or might that own or them their owning domestic they have precludes reasoning policy opportunities of either outside their delist, from

to the open. clearly related of our this any close at the nor was volatility BlueTriton's, because, It's results unaware obviously, are on ahead why there not we schedule. disruption to nor pending far We deal are track of

banking potentially part and desks, remain the into happened. confident to of we the maybe knowledge, partners I what can the as disruption we'll have had question of equity again, that's Obviously, our momentum of our quarter morning. a with and it's us. But and communicate So incredibly best this today proud I ahead great and look the know. what But we

Andrea Teixeira

Congrats again.

Operator

TD from Our next Cowen. Derek Lessard from comes question

Derek Lessard

the and the legacy to quarter the closing of on just Congratulations -- I stick Primo. the deal. I'll

Just expect, projects? it's and much can your new from you the your you to out, where how squeeze guess, efficiency -- you of whether automatic route I are optimization, we lines? for maybe And terms to could in schedules, upgrades your production delivery

David Hass

Yes, absolutely.

in few parts. touch different on a let's that So

So we network, look line the manufacturing two fifth be completed we at as route And our of best between leveraging network we then market year. companies. practices to this will and

ratios, is reduce it's to waste. and improve us allowed opportunity maintain And so what's about efficiency water nice that and labor

team between that ourselves as X-gallon. is strength could American both that is of North is we and when or manufacturer to superior in we companies BlueTriton occurred. What manufacture the that X-gallon. to run it's So more position the help sovereign nice of a we for in bringing whether small-format insights regard has communicated sort to together be a today BlueTriton, they how the wanted efficiencies, everything manufacturing sort with efficiencies Clearly, production tremendous company of achieve we're on efficient for goal and know-how look of

customers. of X X.X% And in have last significant quarter momentum. be per well the with as do sort is of took third Exchange we reduce were we volume road, So that's our that if those racks each the to of have both choice. across of we conscious of our of quarter, you as ARO. both appropriate and with also route still only QX as We less counts, Immediately wanted volume, the we delivery. and this unit. was drove the was with after strength one typically to route ARO, but quarters, QX, notice to we X% the a lines. On look were north on headed this seeing, them Not revenue which QX, volume productivity but achievements. We route to we our the our per or the steps And with ability run routes miles quarter, both regard conscious you'll driver down serve been X% routes into optimized which

into rationalize to again the fulfill make those demand that. heading And of the so take of we could took routes quarter, back appropriate steps summer a the sustain to choice, reduce and year then inside we sure conscious half sort and and the of sort peak the

of that Lastly, an $X us basically we to gets a million to targets. across calendar run of will about we $XX late achieved take again, QX with have that the for been us QX, any rate irrespective from full the have different activity, the communicated were track activities Primo sovereign previously in regard XXXX. And million items few committed that to synergy year, a annualized not on basis, a the to end in preclude its on times place took optimization capture, business deliver in remain achieving and program, optimization a synergy which of of million. we will would balance $XX Between that does which

but as us efficient, come can find EBITDA more which for quarter, we making can So as of the that. see to fulfill our margin capture guidance how the you on to great exceed with into we momentum, synergy ourselves closed original is allows we deal both look in and our the see well

Derek Lessard

last -- would is just still the I'm strong really a contract pertains wanted -- I again, growth just me there? on adds. just has gains just you're one be organic the Costco sorry, it I as customer on, David, able to or for organic And guess, touch organic growth the your initiatives Primo, color. driver? meaningful from to to if highlight you getting that Any, and one that customer maybe largely And good stabilized your -- wondering your

David Hass

Yes.

channels. me that few let address a quickly of our So across

space. continue be web Costco other and gains to So Water in in-club our will of and Direct growth, water yes, remains activity a in great driver

seeing are we importantly, More customer retention.

So to right on many want be the can we they you as the as seek want talked bring about, service. that value-oriented but customers always and as need in this we've With there customers, retention our to in those our you them, we're business. maintaining on Exchange, ceiling customer retaining better this rates. Quickly to no of is and more see really can top, service as

their to we entry purified well then it. consumer locations environment are a count that's great to side at cannot clearly, provides brands as high incredibly our them product this you XX,XXX in BlueTriton over Refill, value-oriented that add resonating with current X,XXX water to We water from spring there. And to the get with still the pleased We on inflationary regional wait when the access a great price. have great as

into the our the all deal can their all our great better of price coming momentum points, get we joining So brands family only and on are of with then and with BlueTriton regard really to brands.

So I as feel clearly, very speaks business. Valley itself Saratoga with confident there. their And Mountain in for

had feel So momentum. A great to side continued inorganic tuck-ins has in again, in we that the the space. and confident acquire the is business Andrea to mentioned more very our adjacencies, organic and have continue the doing Water quick on the opportunity Direct I of item

ability working pipeline allocation to sort our prioritize capital that's for will hear and towards but to us. you'll exciting continue time, of keep more We that, over an that

Derek Lessard

the that, next and for luck Awesome on good chapter.

David Hass

you, Thank Derek.

Operator

over I'd now Rietbroek closing to to this for further no are time. like Robbert the at questions There call turn final comments.

Robbert Rietbroek

your legacy continued we our create exciting company. transaction as mark for tremendous The we've all new that interest companies with will and the together in in company. the attending shaping Brands. an call made you the chapter today's strengths bring pleased thank Well, Primo of to of the of the closing for both I'm future progress

been and across on post combined our to you and ensuring us organizations ground working business. both for of we joining structure, hit Thank close. We've the Our step build synergies throughout opportunities, have on focused your the unlock running intensely optimized identify teams been the an interest next transformation.

Operator

ask lines. gentlemen, disconnect you. you thank that and today. your for conference We Ladies Thank your please you for participating concludes and this call

Primo Water (PRMW) 7 Nov 242024 Q3 Earnings call transcript