Primo Water Corporation improved both its net sales and income in its first quarter ended March 31.
Net sales increased 10.6% to $32.3 million from $29.2 million in the prior year first quarter, driven by increases in both water and dispenser segment net sales.
Water segment net sales increased 8.3% to $22.4 million from $20.7 million in the prior year quarter. The increase in water net sales was primarily due to increases of 11.9% and 5.2% in the U.S. exchange and refill businesses, respectively. U.S. exchange was driven by same-store unit growth of 9.3% compared to the prior year quarter. Dispenser segment net sales increased 15.9% to $9.9 million from $8.5 million in the prior year quarter, primarily due to the high level of shipments to retailers in the quarter as a result of the timing of inventory replenishments and a 22% increase in dispenser sales.
Net income increased to $1 million, or $0.04 per diluted share, from a loss of $0.2 million, or $0.01 per diluted share, in the prior year quarter.
“We are pleased with our strong start to 2016,” said Billy Prim, Primo Water’s CEO. “We experienced an acceleration of growth in consumer purchases of dispensers, which we believe will drive continued strong demand for our water. Additionally, we continued to operate the business with solid margin expansion that propelled our financial performance resulting in both net sales and adjusted EBITDA above our expectations for the first quarter. Going forward, we remain intently focused on the execution of our strategic plan to further grow our business and enhance long-term shareholder value.”