AALST - Personal care solutions specialist Ontex has posted a dip in revenue for its first quarter, hit by softer market demand in the feminine care sector.
Total revenue for the quarter was €451 million, down 2.8% on the same period last year. Overall volumes, including mix effects, were 1.3% lower, with lower demand in the quarter partly offset by mix improvement in Europe and double-digit volume growth in North America.
Feminine care sales volumes dropped due to some temporary supply constraints and soft market demand in Europe, albeit with better relative performance for retailer brands, Ontex said, adding that Adult care volumes were up, in line with continued market growth in the European retail channel and stable demand from the healthcare channel.
Baby care volumes in Europe were lower on softer demand, albeit that retailer brands performed slightly better, despite intensified promotional activities by A-brands.
Commenting on the results, company CEO Gustavo Calvo Paz, said: “These results demonstrate Ontex’s improved resilience in a more challenging economic environment, providing us confidence to confirm our full-year outlook.
“While we may encounter occasional challenging quarters, these are temporary fluctuations not indicative of the long-term trends our business is built on. Our focus is on achieving sustained success over the long term, and we are thereby committed to execute our strategic transformation roadmap, which fundamentally enhances our competitiveness to address the market even better.
“In the quarter, we also reached two significant strategic milestones, finalizing a major divestment and strengthening our balance sheet for the future, which allows us to focus even better.”
Adjusted EBITDA was down slightly to €51 million from €52.9 million, with a margin of 11.2%, while operating profit was down 15% to €29 million, including €3 million one-time restructuring costs.
In January, Ontex reached a binding agreement to sell its Turkish business activities to Dilek Grup for an enterprise value of approximately €24 million. The closing is expected during the second half of 2025, subject to customary conditions.
This was followed in April by the divestment of its Brazilian business.
While market conditions were soft in the first quarter, Ontex remains confident it will deliver its previously published outlook for 2025, with volume gains in the second half of the year as main driver. Revenue is expected to grow by 3% to 5% like for like, supported by double-digit volume growth in North America, with new contracts kicking in during the second half of the year.
