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    Breaking News

    Ontex Reports Lower Revenues

    Sales down 16.5%

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    • Ontex to Pilot Smart Diaper Program in EU
    04.28.21
    Ontex’s Q1 2021 revenue of €480 million ($580 million) was down 11.1% like-for-like (LFL) against a very strong quarter a year ago, including a surge in demand in March 2020. Sales were down 16.5% on a reported basis, which includes a €33 million ($39.9 million) unfavorable currency effect from the depreciation from March 2020 of several key currencies against the euro, notably the Brazilian Real, Mexican Peso, Turkish Lira and Russian Ruble. The decrease in LFL sales is mainly explained by a high prior year comparable, lower demand for personal hygiene products in tracked retail channels, and contract losses in Europe.

    Esther Berrozpe, Ontex CEO, comments: “We are not satisfied with the Q1 2021 trading performance which, although as anticipated, clearly demonstrates the potential for significant improvement. Having passed a low point for sales in Q1, our teams are working to ensure a recovery of sales for the balance of the year, and to mitigate the impact of rising raw material prices.

    “We are taking important steps to turn the strategic priorities into action. I am very pleased to announce the appointments of a number of new leaders, including a chief financial officer and chief supply chain officer, and look forward to driving the turnaround of Ontex with my team. I am also very encouraged by the engagement and commitment of our people to make the necessary changes to improve our operational and financial performance.”

    Q1 2021 Baby Care revenue was down 15.9% compared with strong growth in the first quarter a year ago. The decrease is mainly due to a drop in sales in Europe resulting from lower demand and customers contract losses, while AMEAA revenue was also below a high comparable last year.

    Sales of Adult Incontinence products were up 1.3% in Q1 2021, with this category demonstrating ongoing growth driven by long-term demographic trends. Adult Inco revenue in retail channels grew 6% with both retailer brands in Europe and Ontex brands in AMEAA markets including Brazil, Mexico and Turkey, being above prior year. Sales in institutional channels were lower as a result of reduced occupancy rates in care homes which was not fully offset by higher sales in self pay channels. Adult Pants delivered another quarter of solid top-line growth.

    Feminine Care sales in Q1 2021 decreased 26.8%, after 14.7% growth in the same quarter of 2020. Revenue was down against strong comparables in both Europe, where the majority of our Femcare sales take place, and AMEAA.

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      CURRENT ISSUE

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