PRIMO WATER CORPORATION EXITS RUSSIA

Rhea-AI Summary

On July 21, 2022, Primo Water Corporation (NYSE: PRMW) announced its exit from the Russian market, which contributed only $14 million in revenues and less than 1% of consolidated EBITDA in 2021. The company focuses on sustainable drinking water solutions across North America and Europe, generating approximately $2.1 billion annually. Primo operates a recurring revenue model through water dispensers and offers services such as Water Direct, Water Exchange, and Water Refill, promoting healthier lifestyles while minimizing plastic waste.

Positive

• Successful exit from the Russian market minimizes potential risks and liabilities.
• Focus on sustainable drinking water solutions aligns with market trends for health and environmental responsibility.
• Strong revenue model generating approximately $2.1 billion annually.

Negative

• None.

TAMPA, Fla., July 21, 2022 /PRNewswire/ - Primo Water Corporation (NYSE: PRMW) (TSX: PRMW) ("Primo"), a leading provider of sustainable drinking water solutions in North America and Europe, today announced it has completed its previously announced exit from its business in Russia. Primo had a small presence in Russia, with 2021 revenues of approximately $14 million, representing less than 1% of 2021 consolidated revenues, and adjusted EBITDA of approximately $3 million, representing less than 1% of 2021 consolidated adjusted EBITDA.

ABOUT PRIMO WATER CORPORATION

Primo Water Corporation is a leading pure-play water solutions provider in North America and Europe and generates approximately $2.1 billion in annual revenue. Primo operates largely under a recurring razor/razorblade revenue model. The razor in Primo's revenue model is its industry leading line-up of sleek and innovative water dispensers, which are sold through retailers and online at various price points. The dispensers help increase household penetration which drives recurring purchases of Primo's razorblade offering. Primo's razorblade offering is comprised of Water Direct, Water Exchange, and Water Refill. Through its Water Direct business, Primo delivers sustainable hydration solutions across its 22-country footprint direct to the customer's door, whether at home or to businesses. Through its Water Exchange and Water Refill businesses, Primo offers pre-filled and reusable containers at over 13,000 locations and water refill units at approximately 22,000 locations, respectively. Primo also offers water filtration units across its 21-country footprint representing a top five position.

Primo's water solutions expand consumer access to purified, spring, and mineral water to promote a healthier, more sustainable lifestyle while simultaneously reducing plastic waste and pollution. Primo is committed to its water stewardship standards and is proud to partner with the International Bottled Water Association (IBWA) in North America as well as with Watercoolers Europe (WE), which ensure strict adherence to safety, quality, sanitation and regulatory standards for the benefit of consumer protection.

Primo is headquartered in Tampa, Florida (USA). For more information, visit www.primowatercorp.com.

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SOURCE Primo Water Corporation

FAQ

What was the significance of Primo Water's exit from Russia on July 21, 2022?

Primo Water's exit from Russia was significant as it eliminated a low-revenue segment that contributed less than 1% to total revenues, minimizing potential risks.

How much revenue did Primo Water generate from its Russian operations in 2021?

In 2021, Primo Water generated approximately $14 million in revenue from its Russian operations.

What is Primo Water's annual revenue figure?

Primo Water generates approximately $2.1 billion in annual revenue.

How does Primo Water operate its revenue model?

Primo Water operates a recurring revenue model primarily through water dispensers and various water service offerings.

What services does Primo Water provide to promote sustainable living?

Primo Water provides services such as Water Direct, Water Exchange, and Water Refill to promote sustainable drinking water solutions.