Coffee Service

Primo Water lifts Q3 2022 revenue, raises FY guidance

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November 11, 2022

Primo Water Corp. lifted its Q3 2022 revenue and increased its full year revenue guidance, according to an earnings release. Highlights include:

Revenue increased 6% from $551 million in Q2 2021 to $584.6 million for the quarter ending Oct. 1, 2022.
Revenue 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 the North American single-use bottled water retail business and foreign exchange headwinds.
Net income fell 16.8% from $18 million to $1.3 million.
Adjusted net income was flat at $36 million.
Net income per diluted share fell 10% from 11 cents to 1 cent.
Adjusted income per diluted share was flat at 22 cents.
North America revenue increased 8% to $447 million driven by revenue growth of 19% in water direct/water exchange, and 12% in water refill/water filtration driven by customer acquisitions and retention, partially offset by the exit from its single use bottled water retail business.
Europe revenue increased 6% to $71 million driven by increased demand from residential and B2B customers and tuck-in acquisitions, partially offset by foreign exchange headwinds.

Shares traded at $14.34 Thursday against a 52-week range of $12.15-$20.12.

The $584.6 million in quarterly revenue beat analyst expectations by $6.07 million and the non-GAAP EPS of 22 cents was in line with expectations, according to Seeking Alpha.

"The continued investment in our digital platforms, increased connectivity of dispenser sales to our water solutions and continued optimization of our route-based operations provides a strong foundation to achieve our long-term growth targets," CEO Tom Harrington said in the press release.

The company increased its full-year guidance from a $540 million to $560 million range to a $2.22 billion to $2.24 billion range.