Primo Brands shares climb 12% after sales outlook rise

8 articles · Updated · MarketWatch · May 7

The bottled water company lifted full-year organic net sales growth guidance to 1%-3% from flat to 1%, while first-quarter revenue rose to $1.63 billion, beating expectations.
Shares reached $22.17 and are up nearly 37% this year, even as quarterly profit slipped to $27.3 million and adjusted earnings of 23 cents a share missed analysts' estimates.
Primo said winter storms and freight and logistics costs added pressure, but stronger sales of premium brands including Saratoga and Mountain Valley helped support the improved outlook.

With sales soaring but profits shrinking, can Primo Brands' premium strategy actually deliver long-term value to its investors?

As plastic and freight costs surge, is the era of affordable premium bottled water coming to an end for consumers?