Primo Water Corporation, a provider of multi-gallon purified bottled water, self-service refill water and water dispensers, reported a net sales increase of 6.1% to $34.4 million for the second quarter ended June 30, 2016, driven by an increase in water segment net sales.
Water segment net sales increased 9.8% to $24.3 million from $22.1 million in the prior year. The increase in water net sales was primarily due to increases of 13.2% and 5.3% in exchange and refill, respectively. U.S. exchange was driven by an acceleration in same-store unit growth to 9.7% compared to the prior year quarter. Dispenser segment net sales decreased 1.8% to $10.1 million from $10.3 million in the prior year quarter due to the timing of orders from major retailers.
Net income increased to $2.3 million, or $0.08 per diluted share, from $0.7 million, or $0.03 per diluted share, in the prior year quarter.
“We experienced another quarter of strong water sales as we continue to benefit from a larger base of households using dispensers,” said Billy Prim, chief executive officer, Primo Water. “Our record top-line drove gross margin expansion through greater leverage of our supply chain costs and resulted in record adjusted EBITDA that was above our expectations for the second quarter. We are very pleased with our team’s execution and are excited about the opportunities ahead as we continue to deliver on our key strategic initiatives.”
