From GlobeNewswire: 2025-02-19 01:00:00

Ontex has made significant progress in portfolio refocus, with a 6% volume & mix growth and 28% adj. EBITDA increase in FY 2024. CEO Gustavo Calvo Paz highlighted the company’s transformation efforts, focusing on retailer and healthcare brands by end 2025. Revenue grew by 3.5% to €1,860 million, with adjusted EBITDA at €223 million.

In Q4 2024, Ontex reported revenue of €476 million, up 6.6% year on year. Adjusted EBITDA was €57 million, a 22% increase. The company saw growth in all categories, driven by North America and selected European categories. The adjusted EBITDA margin rose to 11.9%, showing a strong operational improvement.

Strategic developments include a new syndicated facilities agreement, a share buyback program, and the sale of Ontex’s Turkish business activities for approximately €24 million. The company aims to continue its transformation journey, with an outlook for revenue to grow by 3% to 5% LFL, adj. EBITDA by 4% to 7%, and FCF to remain strong by 2025. Ontex agrees to strategic refocus in Europe and North America by 2025, expecting €100 million net proceeds from divestment. Revenue projected to grow 3-5%, EBITDA by 4-7%, and free cash flow to remain strong. Q4 2024 Core Markets revenue up 6.6% YoY, with adult care and baby care showing strong growth. Adjusted EBITDA up 28% to €223 million. In Europe, Ontex saw increased volumes in adult care and baby pants, utilizing expertise in service and innovation. Sales prices remained stable quarter on quarter but decreased by 2.4% year on year due to past raw material index drops. Forex fluctuations were supportive, adding 0.2% thanks to the British pound and Polish zloty appreciation.

Adjusted EBITDA was €57 million, a 22% increase year on year. Volume and mix growth contributed €7 million, while sales prices had an €11 million adverse impact. The cost transformation program led to €17 million net operating savings, reducing operating costs by 4.4% year on year.

Ontex’s cost transformation program delivered €70 million savings, with a 25% increase versus 2023. The company is transforming its Belgium operations, investing €112 million in facilities and ramping up innovation efforts. Ontex secured a top 10 spot in Belgian European Patent Office applicants for the second consecutive year.

In 2024, Ontex focused on employee safety, reducing accident frequency rate by 9% compared to 2023. The company also committed to reducing its environmental footprint, investing in energy efficiency and renewable energy sourcing. Despite efforts, scope 1 & 2 emissions increased by 5.2% and scope 3 emissions by 1.4% compared to 2023. Ontex received recognition from CDP and EcoVadis for sustainability efforts. Ontex recognized in top 5% of assessed companies worldwide. Financial review of FY 2024 for Total Group shows adjusted EBITDA up 28%, net profit down 70%. Discontinued operations revenue decreased by 5%. Capital expenditure increased significantly, but free cash flow also rose. M&A proceeds totaled €10 million net. Share buy-back program in progress. Net working capital decreased by €49 million. The Total Group saw a drop in net financial debt by €53 million, leverage ratio decreased to 2.46x, and gross financial debt reduced by €97 million. Assets-held-for-sale, including Brazilian and Turkish businesses, have a net assets value of €155 million. Disclaimer: Report may include forward-looking statements. Financial calendar and corporate information provided. Ontex is a leading international developer and producer of baby care, feminine care, and adult care products. Listed on Euronext Brussel, Ontex employs 7,000 people and has a presence in 14 countries. Visit ontex.com for more information.



Read more at GlobeNewswire:: Strong revenue growth, margin expansion and FCF delivery in