Coffee Service

Primo Water improves sales and earnings for Q2 2021

Logo provided.

August 5, 2021

Primo Water Corp., a provider of water direct to consumers and water filtration services in North America and Europe as well as water dispensers, purified bottled water and self-service refill drinking water in the U.S. and Canada, reported improved revenue and earnings for the second quarter ending July 3, 2021, according to a press release.

The company's net revenue increased 15% from $456.8 million in Q2, 2020 to $526 million in Q2, 2021.

Net loss and net loss per diluted share improved from a $132 million loss and 82-cent loss per share in 2020 to an $8 million loss and 5-cent diluted loss per share in Q2, 2021.

Adjusted net income and adjusted net income per diluted share were $28 million and 17 cents, respectively, in Q2, 2021, compared to $13 million and 8 cents, respectively, for Q2, 2020.

The $526.1 million in quarterly revenue beat analyst expectations by $2108 million while the non-GAAP EPS of 17 cents beat expectations by 6 cents and the GAAP EPS 5-cent loss missed expectations by 13 cents, according to Seeking Alpha.

Shares traded today at $16.65 against a 52-week range of $12.39-$17.85.

"We continue to see elevated demand from our residential customers even as our Water Direct commercial customer base slowly recovers, confirming our view that there is not a one-for-one tradeoff in demand between these customers as they return to work and mobility increases. As such, we feel confident raising our full year Adjusted EBITDA outlook by $10 million to between $390 million and $400 million," Tom Harrington, Primo's chief executive officer said in the press release.

The company expects approximately 6% organic revenue growth in 2021. The full year outlook for adjusted EBITDA has been raised $10 million to between $390 million and $400 million.