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Ontex reports sequential improvement across key financial indicators in Q3
Gustavo Calvo Paz, Ontex’s CEO, said: “ ”
Although market conditions remained soft in the third quarter, Ontex maintains its full year outlook, as shared in July, with cost efficiencies and volume gains as main drivers:
Revenue was €445 million, a 3.8% like-for-like decrease versus 2024. While sales prices, including mix, were stable, volumes were lower, in line with softer consumer demand for retailer brands in the quarter. Compared to the second quarter revenue grew 3.7% thanks to new contracts in baby care.
Volumes were down 3.9%. Baby care volumes were 11% lower, which was overall in line with softer demand in the quarter, especially for retailer brands, which continue to be affected by intense promotional activities by A-brands in certain countries. While Ontex’s volumes in North America were down, they outperformed market demand due to the start-up of new contract gains in the retail channel. Contract manufacturing dropped significantly, however. In Europe, baby care volumes were also lower, except for baby pants. Positively, in contrast to the second quarter, customer destocking and supply chain disruptions did not have an impact, as these came to an end. Feminine care sales volumes were up by 5%, outperforming stable market demand for retailer brands. Adult care volumes were up slightly, by 1%, which is less than the continuing demographic-driven growth for adult care in Europe, due to Ontex’s large exposure to the healthcare channel, where demand is more stable and the phasing of new capacity is delayed. Ontex is ramping up, with new capacity becoming operational gradually in the fourth quarter and beyond.
Sales prices , including a slightly positive mix effect, were flat year on year across regions and categories. Prices have been largely stable since mid-2024.
Forex fluctuations had a 1% adverse effect, mainly due to the depreciation of the British pound, Australian dollar and especially the US dollar versus the same period in 2024.
Adjusted EBITDA was €51 million, €6 million lower than in 2024, which is fully attributable to the €6 million negative impact from the revenue decrease, while delivery on the cost transformation program fully offset higher raw material prices and operating costs. Compared to the second quarter, adjusted EBITDA improved by €15 million, as a result of the combined effect of revenue recovery and cost optimization.
The cost transformation program delivered €16 million net operating savings, leading to an improvement of the operating efficiency by close to 5% year on year. This was the result of optimization efforts in purchasing, supply chain, product innovation and manufacturing, including the transformation of Ontex’s production footprint in Belgium.
Raw materials had a €10 million negative impact in the quarter, which was mainly due to year-on-year higher prices for fluff and packaging materials, exacerbated by transient inventory effects.
Other operating and SG&A costs were up by €5 million year on year, largely due to inflation of wages and service costs, as well as the costs related to the ramp-up in North America. These were partly offset by efforts made to curtail SG&A costs.
Forex fluctuations had a no material net impact.
The adjusted EBITDA margin was 11.4%, 0.6 percentage point lower compared to the third quarter in 2024, and 3.0 percentage point higher compared to the second quarter of 2025.
Operating profit from continuing operations was €29 million, compared to €8 million in 2024. While adjusted EBITDA was €6 million lower and depreciation was stable, restructuring charges were only €2 million in the period, consisting primarily of impairment of some old equipment, which compares to €29 million in 2024, when restructuring charges for the Belgian footprint transformation were provisioned.
Discontinued operations , consisting of the Turkish business activities, generated a revenue of €23 million and adjusted EBITDA of €2 million. The operating profit from discontinued operations amounted to €1 million, after deduction of divestment-related costs.
Net financial debt for the Total Group reduced by €9 million over the quarter from €552 million to €543 million, as a result of positive free cash flow generation. The latter was based on solid EBITDA contribution and capex optimisation efforts, in the absence of significant restructuring cash-out.
The leverage ratio remained at 2.7x, reflecting the net debt decrease and the slightly lower last-twelve-months adjusted EBITDA.
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.
The financial information in this document of Ontex Group NV for the nine months ended September 30, 2025 was authorized for issue in accordance with a resolution of the Board on October 29, 2025.
Management will host an audio webcast for investors and analysts on October 30, 2025 at 12:00 CEST / 11:00 BST. To attend, click on https://ontexgroup.engagestream.companywebcast.com/25q3_results_call. A replay will be available on the same link shortly after the live presentation. A copy of the presentation slides will be made available beforehand on https://ontex.com/investors/results-reports.
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. It employs about 5,500 people with plants and offices in 12 countries, and its innovative products are distributed in around 100 countries. The company is headquartered in Aalst, Belgium and is listed on Euronext Brussels, 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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