H1 2020 Babycare category revenue was down 5.1% compared with a year ago. Category sales have been strongly impacted in the second quarter as they slowed after the surge recorded in March as lockdown measures were implemented. They also reflect lower consumption patterns as consumers were largely confined throughout the quarter.
The Adult Incontinence (Adult Inco) category posted a 0.9% revenue increase in H1 2020. Adult Inco sales were up 4.5% in retail channels, with solid growth in the first quarter followed by lower market demand in Q2. Sales in institutional channels decreased as the result of the temporary suspension of a contract in its Healthcare Division, for which shipments have resumed in the second quarter.
Feminine Care revenue in H1 2020 ended up 5.3% above the same period last year on the back of a strong start to the year. Organic cotton tampons continued to exhibit solid growth in AMEAA.
Thierry Navarre, Ontex CEO, comments: “Ontex delivered a meaningful improvement in H1 operating performance amid the exceptional context of the COVID-19 pandemic, with an unprecedented surge and subsequent unwinding of demand, as well as extreme currency headwinds. While lower market demand weighs on our sales, we generated a substantial improvement in profitability, from gross margin to net profit, on the back of strong delivery from our T2G plan. I want to thank Ontex’s staff across the group and all our business partners, who are working tirelessly to ensure we supply daily-use personal hygiene products to our consumers and customers. While addressing current challenges, we invested to drive future growth, as attested by our recent announcement of a new manufacturing facility and the feminine care acquisition, both in the U.S. In an environment that remains uncertain, we will continue all efforts to protect our people, improve operations, and enhance profitability and cash generation.”