Back to top

Image: Bigstock

Primo Brands' Spring Water Sales Increase 4.1%: What's Driving Growth?

Read MoreHide Full Article

Key Takeaways

  • PRMB's regional spring water net sales increased 4.1% in the second quarter of 2026.
  • PRMB gains both value and volume share as growth remained broad across brands and channels.
  • PRMB sees cold and immediate consumption as under-penetrated, high-growth, high-margin opportunities.

Primo Brands Corporation (PRMB - Free Report) delivered strong and broad-based growth, with regional spring water net sales increasing 4.1% in the second quarter of fiscal 2026. The performance reflects continued strength in the regional spring water business and its contribution to broad-based retail growth. The growth increase underscores the positive performance of the company’s regional spring water portfolio during the second quarter.

The company continues to see growth across its regional spring water brands and Pure Life, with performance remaining broad-based across almost every channel in which it operates. Importantly, the company also achieved gains in both value and volume share, which management views as an encouraging indicator of overall performance. Management remains encouraged by the breadth of growth across its brands and channels, along with the improvement in both value and volume share.

Primo Brands sees multiple opportunities to support future growth through continued brand building and innovation, while also improving its in-store presence through a more strategic and holistic approach to revenue growth management. Management also sees meaningful potential in cold and immediate consumption, where the company remains under-penetrated in what it describes as a high-growth, high-margin segment. Expanding its presence in these areas is one of the growth opportunities identified by the company.

Overall, the company’s broader retail momentum was supported by new points of distribution and continued improvements in retail presence, while management remains focused on maintaining balanced growth across volume and price. Management also identified brand building, innovation and revenue growth as opportunities to support future growth. Its focus on achieving both value and volume share gains is consistent with the broader goal of maintaining balanced growth across volume and price.

The Zacks Rundown for PRMB

PRMB shares have lost 5.7% in the past six months against the industry’s growth of 0.9%.

Zacks Investment Research
Image Source: Zacks Investment Research

From a valuation standpoint, PRMB trades at a forward price-to-earnings ratio of 13.47, lower than the industry’s average 18.60. The company currently carries a Zacks Rank #3 (Hold).

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for PRMB’s current and next fiscal-year earnings implies year-over-year growth of 1.5% and 14.2%, respectively.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks have been discussed below:

The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. CHEF currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.8% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4% on average.

Chagee Holdings Limited (CHA - Free Report) offers classic espresso-based drinks, energy drinks and savory and sweet items under the all-day breakfast brand. CHA currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for CHA’s current fiscal-year sales and earnings implies growth of 14.5% and 2.8%, respectively, from the year-ago actuals. CHA delivered a trailing four-quarter negative earnings surprise of 2% on average.

The Coca-Cola Company (KO - Free Report) offers classic espresso-based drinks, energy drinks, and savory and sweet items under the all-day breakfast brand. KO currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for KO’s current fiscal-year sales and earnings implies growth of 4% and 9.7%, respectively, from the year-ago actuals. KO delivered a trailing four-quarter earnings surprise of 4.6% on average.

Published in