Primo Brands Reports Strong Sales Growth, Seeks $7B Revenue Midpoint for 2025

Primo Brands Corporation reported disappointing fourth-quarter earnings, with revenue of $1.4 billion falling short of analyst expectations of $1.58 billion. Despite a 28.6% year-on-year growth, the company reported an operating loss of $81 million, contrasting with an income of $88.6 million in the previous year. Analysts, however, remain optimistic, with Jon Andersen of William Blair maintaining a Buy rating due to the company's robust full-year results and strong guidance for 2025, anticipating continued growth in the healthy hydration sector. The company also announced an increased quarterly dividend of 10 cents per share and projected net sales growth of 3% – 5% for FY25. Additionally, the management has accelerated its cost synergy capture estimates to $300 million, with $200 million expected in 2025. Overall, while recent earnings have raised concerns, the long-term outlook appears positive, supported by strategic initiatives and market positioning.