2024-04-08 12:31:05 ET
Summary
- Primo Water has seen a 19% increase in its stock price and has a positive outlook for future growth.
- The company's CEO outlined key strategies, including a consumer-centric approach and operational excellence, to drive success.
- Primo Water provided guidance on margin expansion, adjusted EBITDA, and strong cash flow expectations for the coming years.
Water product and services company Primo Water ( PRMW ) got a new CEO in January (after former CEO Tom Harrington retired) and business has been good. PRMW is up about 19% year-to-date and has been on a tear since its last earnings report. That earnings report established the new CEO’s signature and stamp for the company. Accordingly, CEO Robbert Rietbroek spent considerable time during the earnings conference call explaining and promoting the company’s strategy and plan to execute. For example, when asked during the Q&A portion of the earnings conference call what best practices he will bring from his extensive experience in the consumer goods industry, Harrington responded with three key points:
- Consumer-Centric Approach : Prioritize creating a superior and frictionless customer experience in all interactions, whether through the website, app, or with associates, ensuring every contact is exceptional.
- Partner of Choice : Focus on building strong relationships with associates, communities, investors, and especially retail partners, recognizing their crucial role in the company’s growth and positioning as a preferred partner.
- Operational Excellence : Emphasize the importance of forecast accuracy, clear demand signals, and efficient production planning. Ensure the sourcing of dispensers and other logistics like transportation and delivery are optimized for quality and timeliness.
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The New Primo Water Has Momentum Primed For An Eventual Breakout