Primo Water Corporation reported that net sales increased 5% to $35.5 million for its third quarter ended September 30, 2016, from $33.9 million in the prior year quarter, driven by an increase in water segment net sales.
Water segment net sales increased 7% to $26.2 million from $24.5 million in the prior year quarter. The increase in water net sales was primarily due to increases of 8.1% and 5.4% in U.S. exchange and U.S. refill businesses, respectively. U.S. exchange was driven by continued, strong same-store unit growth of 8.9% compared to the prior year quarter. Dispenser segment net sales were essentially unchanged at $9.3 million compared to the prior year quarter. Sell thru of dispenser units increased 13.4% to 166,000 units compared to the prior year.
Net income increased to $2.5 million, or $0.08 per diluted share, from $1.3 million, or $0.05 per diluted share, in the prior year quarter.
“We are pleased to report another record quarter with both net sales and profitability above our guidance,” said Billy Prim, chief executive officer, Primo Water. “The strength and consistency of our financial results continues to be driven by more consumers choosing to purchase a water dispenser and bulk water for their home as well as a focus on executing our strategies. We are also excited about the progress we’ve made toward the closing of our acquisition of Glacier Water, which is on track to be completed by the end of 2016. The combination of Primo Water and Glacier Water will further our mission of inspiring healthier homes through better water.”
