Primo Water Corp

PRMW: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 52.50	Xjc	Btwltvpqp

Primo Water Earnings: Top Line and Profit Grow on Customer Activation Efforts and Cost Discipline

Dan Su

Aug 8, 2024

We plan to tick up our $18 and CAD 25 fair value estimates for no-moat Primo by a low-single-digit percentage after digesting its second-quarter results. Sales rose 7.6% on volume (up 4.5%) and pricing (3.1%), which we attribute to stepped-up investments in multichannel customer activation and enhanced delivery services. Adjusted EBITDA grew 15% on efficiency gains in production and water delivery, and expense leverage.

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