08.01.24
Ontex reported strong results for the first half of 2024, leading to a revision of its full year outlook with volume growth and cost transformation projects driving profitability up and leverage down further. Revenues increased 3% driven by 5% volume growth while adjusted EBITDA rose 31% increasing margins up to 12%.
“We have achieved several key strategic milestones in the first half year. Divestments were successfully completed, sharpening our focus on core markets further and our cost transformation program delivered solid efficiency gains yet again,” says CEO Gustavo Calvo Pas. “This consistent delivery coupled with our sustainable innovation pipeline allows us to grow our business in North America and strengthen it in Europe, which gives me confidence to deliver a strong year. Aiming to further strengthen our competitive position, we announced the intension to restructure our Belgian production and distribution activities. These measures will allow us to further reinforce and grow our business sustainably while driving profitability and cost innovation up.”
Revenues were €916 million, up 3% while volumes were up 5% driven by double-digit volume growth in North America as well as in select market categories. Higher volume driven adult care sales of 11% more than compensated for price-related decrease in baby car and fem care of 2% and 3%, respectively.
The strong increase in North America contrasted with stable demand for baby care products in the region, thereby highlighting Ontex’s share gains, which were based on new contracts signed during the second half of 2023 and first half of 2024. In Europe, sales for baby care products weakened while remaining stable for fem care items and growing for adult care products, in line with the demographic evolution.
Earnings increased 31% thanks to a cost transformation program that delivered 5% operational efficiencies while volume growth and product mix improvement contributed 6%. For the second quarter, revenue was reported at €456 million, up 2% also driven by volume growth in North America and selected product categories while adjusted EBITDA was up 32% for €57 million.
The company expects full year sales to grow in a range of 4-5%.
“We have achieved several key strategic milestones in the first half year. Divestments were successfully completed, sharpening our focus on core markets further and our cost transformation program delivered solid efficiency gains yet again,” says CEO Gustavo Calvo Pas. “This consistent delivery coupled with our sustainable innovation pipeline allows us to grow our business in North America and strengthen it in Europe, which gives me confidence to deliver a strong year. Aiming to further strengthen our competitive position, we announced the intension to restructure our Belgian production and distribution activities. These measures will allow us to further reinforce and grow our business sustainably while driving profitability and cost innovation up.”
Revenues were €916 million, up 3% while volumes were up 5% driven by double-digit volume growth in North America as well as in select market categories. Higher volume driven adult care sales of 11% more than compensated for price-related decrease in baby car and fem care of 2% and 3%, respectively.
The strong increase in North America contrasted with stable demand for baby care products in the region, thereby highlighting Ontex’s share gains, which were based on new contracts signed during the second half of 2023 and first half of 2024. In Europe, sales for baby care products weakened while remaining stable for fem care items and growing for adult care products, in line with the demographic evolution.
Earnings increased 31% thanks to a cost transformation program that delivered 5% operational efficiencies while volume growth and product mix improvement contributed 6%. For the second quarter, revenue was reported at €456 million, up 2% also driven by volume growth in North America and selected product categories while adjusted EBITDA was up 32% for €57 million.
The company expects full year sales to grow in a range of 4-5%.
