Ontex pre-announces results, reflecting revenue and margin decrease in a weaker-than-expected market, leading to a review of full year guidance

Inside and regulated informationRevenue drop by 4% in H1, caused mainly by weak baby care demand in Europe;Adj. EBITDA margin down by 2.2pp in H1, due to lower fixed cost absorption caused by lower volumes, and a rising cost environment;Full year outlook reviewed, now expecting low single digit revenue contraction and adj. EBITDA in €200-210 million range. CEO quote “ Results in the second quarter were below our expectations. The geopolitical environment has...

Aalst, 16/07/2025 (informazione.news - comunicati stampa - servizi)

“ Results in the second quarter were below our expectations. The geopolitical environment has impacted consumer demand in our markets, particularly baby care, which declined at a high single digit rate. Retailer brands faced intense promotional activity by branded players, and some customers destocked in some of our key markets. These trends, combined with some temporary supply chain disruptions, resulted in significantly lower-than-expected volumes, which impacted our revenue and adjusted EBITDA margin. Importantly, however, our adult care business continues to participate in a strongly growing market and our contract gain/loss balance in baby care remains positive in Europe and in North America.

The first half results led us to revise the full year outlook. We expect higher revenue in the second half, thanks to the start-up of confirmed contracts in North America and in Europe, while market conditions remain similar. These will significantly enhance the absorption of the fixed costs, and our cost base shall also benefit as temporary supply chain disruptions in Europe are being solved and SG&A is aligned to our current reality. 

The weak second quarter, while disappointing, will not derail us from our strategic journey. We are steadily progressing and deliver results step by step. The reshaping of the portfolio and the strengthening of the balance sheet have been largely realized. The innovation pipeline has been strengthened and will continue to deliver. Our business in North America has demonstrated fast growth, on the pursuit of scale, and we have taken major steps toward best-in-class operations. These structural changes will gradually improve our resilience to market fluctuations.”

Results in the second half are anticipated to recover. Revenue is expected to rebound even if consumer demand remains soft. The main contributors to this revenue expansion over the first half year are the commencement of new contracts in Europe and North America during the third quarter and the end of customer destocking. This volume growth will strongly impact the adjusted EBITDA margin through fixed cost absorption. The temporary supply chain inefficiencies that affected both volume growth and caused additional costs have been resolved. Moreover, raw material costs are decreasing on lower indices. Meanwhile Ontex continues to implement its cost transformation program which will drive further savings and activate additional production capabilities in growing product categories.

Consequently, it is expected that for the second half of 2025:

Ontex thereby adapted its full year guidance to the new reality and now expects:

 

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This report may include forward-looking statements. Forward-looking statements are statements regarding or based upon our management’s current intentions, beliefs or expectations relating to, among other things, Ontex’s future results of operations, financial condition, liquidity, prospects, growth, strategies or developments in the industry in which we operate. By their nature, forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results or future events to differ materially from those expressed or implied thereby. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this report regarding trends or current activities should not be taken as a report that such trends or activities will continue in the future. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any such forward-looking statements, which speak only as of the date of this report.

The information contained in this report is subject to change without notice. No re-report or warranty, express or implied, is made as to the fairness, accuracy, reasonableness or completeness of the information contained herein and no reliance should be placed on it. In most of the tables of this report, amounts are shown in € million for reasons of transparency. This may give rise to rounding differences in the tables presented in the report.

This document and the related unaudited financial information of Ontex Group NV for the six months ended June 30, 2025, was authorized for publication in accordance with a resolution of the Board on July 15, 2025.

Management will host an audio webcast for investors and analysts on July 16, 2025 at 10:00 CEST / 09:00 BST. To attend, click on https://ontexgroup.engagestream.companywebcast.com/2025-07-16-call. A replay will be available on the same link shortly after the live presentation. A copy of the presentation slides will be available on ontex.com.

Ontex is a leading international developer and producer of baby care, feminine care and adult care products, for retailer and healthcare brands across Europe and North America. The group employs about 5,500 people with plants and offices in 12 countries (excl. discontinued operations), and its innovative products are distributed in around 100 countries. Ontex is headquartered in Aalst, Belgium and is listed on Euronext Brussel, where it is a constituent of the Bel Mid index. To keep up with the latest news, visit ontex.com or follow Ontex on LinkedIn.

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