By Alan Hatfield
Sustainable drinking water provider Primo Water Corporation (NYSE: PRMW; TSX: PRMW) reiterated its 2022 full year guidance after a strong first quarter that saw revenue, profit, and EBITDA growth despite the exit of the company’s remaining single-use retail bottled water business in North America.
Revenue increased 10% over the prior year to $526 million, or 14% if excluding the aforementioned exit, driven by customer growth, increased demand from both residential and business-to-business customers, price increases, and tuck-in acquisitions.
Net loss came in at $7 million, or $0.04 per diluted share, improving on the $10 million net loss and $0.06 net loss per diluted share reported in the first quarter of last year. The bottom line was impacted by higher SG&A expenses resulting from higher selling and operating costs supporting the volume and revenue growth of the business as well as general inflationary cost increases.
Adjusted EBITDA climbed 15% on the year to $88 million, aided once again by pricing actions, increased demand across Primo’s customer base, and the single-use bottled water business exit.
“I am very pleased with our performance in the first quarter of 2022, having delivered double digit revenue growth vs. the prior year. Strong customer demand continued, led by our Water Direct/Exchange business. Our customer base increased organically, and customer retention rates improved once again as we worked diligently to enhance the overall customer experience. I am proud of the efforts of our team and am pleased with everyone’s continued commitment to safety, customer satisfaction and growth,” said Chief Executive Officer Tom Harrington in a statement.
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