Belgium · Delayed Price · Currency is EUR Ontex Group NV Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw a 4% revenue decline and over 20% drop in adjusted EBITDA year-over-year, mainly due to lower baby and feminine care demand, while adult care grew. Strategic cost-saving and restructuring initiatives are underway, with full-year EBITDA expected to improve 10% and leverage to fall below 3x.
Fiscal Year 2025
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2025 saw a 5% revenue decline and a 2-point drop in Adjusted EBITDA margin, mainly from lower baby care volumes, but adult care grew to 47% of revenue. Strategic transformation and divestments reduced net debt by 6%. 2026 targets a 10% EBITDA improvement and positive free cash flow.
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Q3 saw a 4% sequential revenue increase and a 3-point EBITDA margin improvement, driven by new contracts and cost savings, despite a 5% year-over-year revenue decline. Q4 is expected to deliver further growth, with guidance reaffirmed and leverage set to improve.
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First half results were below expectations due to weak demand and higher costs, but operational improvements and new contracts are expected to drive a recovery in H2. Leverage is set to decrease with asset sales and improved cash flow, while market conditions remain challenging.
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First-half results were impacted by weak demand, supply chain issues, and promotional pressure, leading to a 4% revenue decline and 22% drop in adjusted EBITDA. H2 is expected to recover with new contracts, easing costs, and improved cash flow, with full-year EBITDA guided at EUR 200–210 million.
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Q1 revenue and EBITDA declined year-over-year due to softer demand and price decreases, but operational efficiencies and portfolio refocusing supported margins and balance sheet strength. Guidance for 2025 is reaffirmed, with strong volume growth expected in North America and improved free cash flow.
Fiscal Year 2024
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2024 saw 3.5% like-for-like revenue growth driven by strong volumes, a 28% rise in adjusted EBITDA, and a significant reduction in leverage. The outlook for 2025 anticipates continued revenue and EBITDA growth, strong free cash flow, and completion of key divestments.
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Q3 delivered strong volume and EBITDA growth, with adult care and North America baby care leading gains. Revenue guidance was revised to 2%-3% due to phased U.S. customer onboarding, while leverage and net debt improved. Sale of the Brazilian business and continued cost transformation support future growth.
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Strong first half results featured 3% like-for-like revenue growth and a 31% rise in Adjusted EBITDA, with North America driving double-digit volume gains. Upgraded 2024 guidance anticipates 4%-5% core market revenue growth and a 12% EBITDA margin, supported by ongoing cost transformation and portfolio refocusing.