PRIMO WATER CORPORATION ANNOUNCES $100 MILLION STOCK BUYBACK PROGRAM AND DECLARATION OF QUARTERLY DIVIDEND

TAMPA, FL, August 10, 2022 /PRNewswire/ — Primo Water Corporation (NYSE: PRMW) (TSX: PRMW) (the “Company” or “Primo”), a leading provider of sustainable drinking water solutions in North America and Europeannounced that its Board of Directors has approved a new $100 million share repurchase program and announced a quarterly dividend.

STOCK BUYBACK PROGRAM

The Board approves a new 100 million dollars Share buyback program beginning on August 15, 2022 and expires on August 14, 2023. Under the program, the Company’s common stock is available for periodic repurchase through the open market or privately negotiated transactions through the facilities of the NYSE.

“Primo’s cash flow and balance sheet allow us to simultaneously return value to shareholders through regular quarterly dividends and an opportunistic share buyback program $100,000,000, while continuing to invest in internal and external opportunities that will further strengthen our operations and drive long-term growth. The board and management team firmly believe that Primo shares represent an attractive investment opportunity and share repurchases are an important part of our capital allocation strategy,” he said Tom HaringtonChief Executive Officer of Primo.

The actual timing, type, number and value of shares repurchased under the program will be determined by management in its sole discretion and will depend on a number of factors including the market price of Primo’s common stock, general market and economic conditions and applicable law and other requirements and other business considerations provided, however, that the price per common share does not exceed the market price at the time of purchase (plus reasonable brokerage fees and commissions) in accordance with applicable securities laws and stock exchange rules.

DECLARATION OF DIVIDEND

Primo also announced that its Board of Directors has approved a dividend of $0.07 per share of common stock, payable in cash on September 7, 2022 to registered shareholders at close of business on August 24, 2022.

ABOUT PRIMO WATER CORPORATION

Primo Water Corporation is a leading provider of pure water solutions in North America and Europe and generates about $2.1 billion in annual sales. Primo operates largely on a recurring razor/razor blade revenue model. The Razor in Sales model is Primo’s industry-leading line of stylish and innovative water dispensers, sold through retailers and online at a variety of price points. The dispensers help increase household penetration, resulting in repeat purchases of Primo’s razor blade offering. Primo’s range of razor blades includes Water Direct, Water Exchange and Water Refill. Through its Water Direct business, Primo delivers sustainable drinking solutions across its 21 countries right to the customer’s doorstep, whether at home or in business. Through its Water Exchange and Water Refill businesses, Primo offers pre-filled and reusable containers at approximately 14,000 locations, water dispensers at approximately 9,000 locations and water refill units at approximately 24,000 locations. Primo also offers water filtration units from its presence in 21 countries.

Primo’s water solutions expand consumer access to purified, spring and bottled water to promote healthier, more sustainable lifestyles while reducing plastic waste and pollution. Primo is committed to its water stewardship standards and is proud to be a partner of the International Bottled Water Association (IBWA). North America and with Watercoolers Europe (WE), which ensures strict compliance with safety, quality, hygiene and regulatory standards in favor of consumer protection.

Primo is headquartered in Tampa, Fla (UNITED STATES OF AMERICA). Visit www.primowatercorp.com for more information.

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which express management’s expectations regarding the future based on plans, estimates and projections as of the date of the Primo express statements. Forward-looking statements involve inherent risks and uncertainties, and Primo cautions you that a number of important factors could cause actual results to differ materially from those contained in such forward-looking statements. The forward-looking statements contained in this press release include, but are not limited to, statements regarding the number of shares that may be repurchased under the share repurchase program. Forward-looking statements are based on assumptions regarding management’s current plans and estimates. Management believes these assumptions are reasonable, however there can be no assurance that they will prove to be correct.

Factors that could cause actual results to differ materially from those described in this press release include, among others: the impact of the spread of COVID-19, related governmental actions and Primo’s strategy in response to our business , our financial condition and results of operations; Primo’s ability to compete successfully in the markets in which it operates; fluctuations in commodity prices and Primo’s ability to pass on increases in costs to its customers or to hedge against such increases in costs and the impact of such increases in prices on its volumes; Primo’s ability to maintain beneficial agreements and relationships with its suppliers; Primo’s ability to successfully manage his operations; currency fluctuations affecting the exchange between currencies including the US dollar, British pound sterling, euro and Canadian dollar; the impact on Primo’s financial results of uncertainty in financial markets and other adverse changes in general economic conditions; any interruption of production at Primo’s manufacturing facilities; Primo’s ability to maintain access to his water sources; the impact of climate change on Primo’s business; Primo’s ability to protect its intellectual property; the seasonal nature of Primo’s business and the impact of adverse weather conditions; the impact of national, regional and global events, including those of a political, economic, business and competitive nature; Primo’s ability to fully realize the potential benefits of any transaction or other strategic opportunity it pursues; Primo’s ability to realize cost synergies from its acquisitions due to integration difficulties and other challenges; Primos Intangible Assets Exposure; Primo’s ability to meet its obligations under its debt covenants and the risk of further increasing its indebtedness; Primo’s ability to maintain compliance with the covenants and terms of its debt arrangements; fluctuations in interest rates, which could increase Primo’s borrowing costs; Primo’s ability to recruit, retain and integrate new management; Primo’s ability to renew its collective agreements on satisfactory terms; compliance with product health and safety standards; liability for injury or illness caused by consumption of contaminated products; liability and damage to Primo’s reputation as a result of any litigation or legal proceeding; changes in the legal and regulatory environment in which Primo operates; Primo’s ability to appropriately address the challenges and risks associated with its international operations and to address difficulties in complying with laws and regulations, including the US Foreign Corrupt Practices Act and the UK Bribery Act of 2010; the impact on Primo’s tax obligations and effective tax rate resulting from changes in local tax laws or countries adopting more aggressive interpretations of tax laws; disruptions in Primo’s information systems; Primo’s ability to keep secure its customers’ confidential or credit card information or other private information relating to Primo’s employees or the Company; Primo’s ability to maintain its quarterly dividend; or credit rating changes.

The foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this release. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors, contained in Primo’s annual report on Form 10-K and quarterly reports on Form 10-Q and other filings with securities regulators. Except as expressly required by applicable law, Primo undertakes no obligation to update or revise these statements to reflect new information or future events.

SOURCE Primo Water Corporation