AALST – Ontex reported first quarter 2026 revenue of €426.3 million, down 5.4% year on year, with adjusted EBITDA down 24% to €38.6 million and an adjusted EBITDA margin of 9.1%. The group said the decline reflected softer baby and feminine care demand and reduced contract manufacturing activity, partly offset by growth in adult care and cost-saving measures.
Adult incontinence products remained the main growth driver, with volumes up 2% and revenue up 2.2% on a like-for-like basis, supported by mid-single-digit growth in European retail channels and stable demand in healthcare. By contrast, feminine hygiene volumes fell 4%, broadly in line with slower market demand, while baby care volumes were 11% lower than in the first quarter of 2025, which had been boosted by order phasing.
In baby care, Ontex said European demand declined by mid-single digits overall and by high single digits in retailer brands, reflecting continued promotional pressure from leading A-brands. The company noted that its own baby care volumes were in line with the softer retailer brand segment, indicating continued share pressure in this highly promotional category.
In North America, retailer brand demand in baby and adult hygiene also remained weak, but Ontex indicated that its sales in this segment continued to grow thanks to new and previously secured private label contracts. Sales in contract manufacturing declined as anticipated and some contracts in other overseas markets were exited, contributing to lower group volumes.
On the cost side, indices helped to reduce prices for fluff pulp, superabsorbent polymer (SAP) and nonwoven materials, but higher backsheet films, packaging and other raw materials resulted in a net negative impact. Additional pressure came from inflation, higher transportation costs and residual supply chain inefficiencies, partly mitigated by the company’s ongoing cost transformation programme and stable SG&A costs.
Chief executive Laurent Nielly said the group’s performance “is clearly not yet at the level we aspire it to be” but highlighted a resilient supply chain and “proven cost mitigation and targeted pricing capabilities” to offset higher oil-derived input costs. He added that the strategic review launched at the start of the year is progressing well and that accelerated efficiency measures would support the targeted improvement in adjusted EBITDA in 2026 and beyond.
Operating profit for the quarter was €15 million, compared with €28.9 million a year earlier, and included €3 million of restructuring costs and impairments linked mainly to new restructuring initiatives.
As part of its strategic review, Ontex has begun a series of restructuring and optimisation measures focused on organisation, capacity and working capital. These include plans to reduce SG&A headcount by about 15% over 12–18 months, adjust production capacity in Europe and North America, and cease baby diaper production in Australia by year-end to align manufacturing with revised demand.
For nonwovens converters and machinery suppliers serving Ontex and the wider hygiene market, the company’s emphasis on capacity “right-sizing” and flexible redeployment suggests further optimisation of converting and packaging lines, particularly in baby diapers and adult incontinence.
The combination of weaker private label baby care volumes and continued investment in adult incontinence retail brands is likely to influence future orders for high-speed diaper and light incontinence lines, as well as demand for advanced nonwoven topsheet and backsheet materials.
Looking ahead to the full year, Ontex expects adjusted EBITDA to increase by around 10%, driven by largely stable volumes, efficiency gains and pricing actions to offset higher raw material and energy costs.
The company said it will provide more detail on its strategic options and execution priorities at its second-quarter results, against a backdrop of continued energy cost volatility, geopolitical uncertainty and pricing pressure in global hygiene markets.
