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    Derek Lessard • TD Cowen

    Derek Lessard's questions to Primo Brands Corp (PRMB) leadership

    Derek Lessard's questions to Primo Brands Corp (PRMB) leadership • Q2 2025

    Question

    Derek Lessard of TD Cowen asked about the low point for service levels during the quarter and requested an update on the year-to-date synergy capture and the primary sources of synergies expected in the second half of the year.

    Answer

    CEO Robbert Rietbroek stated that service levels temporarily dropped below 80% in May but have since recovered to over 92%. CFO David Hass reported that the company has realized $60 million in synergies year-to-date ($20 million in Q1 and $40 million in Q2) and is on pace for $140 million in annualized savings from actions taken so far. The remaining activities are primarily technology transitions.

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    Derek Lessard's questions to Primo Brands Corp (PRMB) leadership • Q1 2025

    Question

    Derek Lessard asked for more detail on the expected ramp-up in net sales throughout the year and questioned why guidance was maintained despite accelerating sales and the base business performing ahead of plan.

    Answer

    CEO Robbert Rietbroek cited the Easter timing shift and over 5% in new distribution points as drivers for the sales ramp. CFO David Hass explained that guidance was held flat to account for macro uncertainty and potential investments in promotional activities for the tariff-impacted dispenser business to support retail partners and drive related water sales.

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    Derek Lessard's questions to Primo Brands Corp (PRMB) leadership • Q4 2024

    Question

    Derek Lessard inquired about the role of M&A in the 2025 outlook, for both retail brands and HOD tuck-ins, and asked about the potential for further efficiencies from route optimization.

    Answer

    CEO Robbert Rietbroek confirmed that HOD tuck-in acquisitions will continue but the primary focus for year one is merger execution and synergy delivery. CFO David Hass clarified the 3-5% growth guidance is purely organic and that route optimization is a top priority and a major driver of the increased synergy target.

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    Derek Lessard's questions to Primo Brands Corp (PRMB) leadership • Q4 2024

    Question

    Derek Lessard inquired about the role of M&A in the 2025 guidance and the company's acquisition strategy, as well as the potential for efficiencies from route optimization.

    Answer

    CEO Robbert Rietbroek confirmed the company will continue to pursue tuck-in acquisitions for its HOD business but will focus on merger execution before considering larger retail brand acquisitions. CFO David Hass clarified that the 3-5% growth guidance is purely organic and does not include M&A. Hass also noted that route engineering and branch consolidation are top priorities and key drivers of the increased synergy target.

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