In H1 2025, Ontex saw a 4% drop in revenue and a 2.2pp decrease in Adj. EBITDA margin due to weak baby care demand in Europe. CEO Gustavo Calvo Paz remains optimistic about the company’s strategic progress. Ontex’s revenue was €880 million, with volumes decreasing by 3% and adjusted EBITDA at €86 million.
Despite challenges, Ontex anticipates a revenue rebound in H2 2025, driven by new contracts and the end of customer destocking. The company expects revenue to recover to 2024 levels, adjusted EBITDA to grow, and free cash flow to be positive. Full-year guidance has been adjusted to account for market conditions, with revenue expected to decrease by a low single digit. In Europe, Ontex faced supply chain disruptions due to raw material unavailability, a plant outage in Spain, and delayed capacity ramp-up. Volumes in baby care were down 7.8%, with weak consumer demand in Europe and North America. Feminine care volumes decreased by 4.8%, while adult care volumes increased by 2.9%. Sales prices were down 1.0% overall, with adjusted EBITDA at €86 million, down from €110 million in 2024.
Q2 2025 saw Ontex’s revenue decrease by 5.2% to €430 million, mainly due to lower volumes. Volumes in baby care decreased by 4.8%, with stable volumes in North America but lower demand in Europe. Sales prices were down 0.4% overall, and adjusted EBITDA was €36 million, a decrease from €57 million in 2024. Raw material costs rose by 4%, impacting financial results. The adjusted EBITDA margin contracted by 4.2pp to 8.3%. Total Group’s H1 2025 financial review shows a loss of €115 million, with a €111 million loss from discontinued operations. Adjusted profit from continuing operations was break-even, down from €41 million in 2024. Basic EPS was €1.43, compared to €0.07 in 2024. Capital expenditure was €45 million, representing 4.6% of revenue, an increase from €38 million in 2024. Free cash flow was €40 million, reflecting lower adjusted EBITDA contribution and increased capital expenditure. M&A proceeds were €101 million, with €99 million from the divestment of the Brazilian business. Net working capital was €123 million, with a working capital over revenue of 6.8%, compared to 5.3% at the start of the year. Net financial debt was €552 million at the end of June, down from €612 million at the start of the year. The leverage ratio of net financial debt over adjusted EBITDA increased from 2.5x to 2.7x due to a decrease in adjusted EBITDA from €248 million to €206 million. Gross financial debt reduced to €698 million as a 3.50% bond for €580 million was redeemed early.
Assets-held-for-sale, mainly Turkish businesses, had a net asset value of €70 million with a €49 million net cash position. Alternative performance measures were used in the press release to provide supplemental performance and liquidity information. Net working capital and like-for-like revenue and growth were also discussed.
Adjusted EBITDA is defined as earnings before net finance cost, income taxes, depreciation, and amortization, plus adjustments. EBITDA adjustments are made for certain income and expenses that are considered not to relate to the ordinary course of business. Adjusted profit and adjusted EPS were calculated, and free cash flow was defined and explained. Ontex Group NV released financial information for the first half of 2025, showing an operating profit/(loss) of €66.7 million and EBITDA of €28.5 million. Free cash flow before financing activities was reported at €14.7 million. The company also provided a disclaimer regarding forward-looking statements and upcoming events.
The report from Ontex Group NV highlights the need for caution when interpreting forward-looking statements due to potential risks and uncertainties. The financial information presented in the report may be subject to change without notice. Amounts are shown in € million for transparency, with the Dutch version of the report taking precedence in case of discrepancies.
Ontex Group NV, a global producer of hygiene products, employs approximately 5,500 people across Europe and North America. The company, headquartered in Belgium, is listed on Euronext Brussels and is part of the Bel Mid index. To stay updated on Ontex news, visit their website or follow them on LinkedIn. The company will be hosting an audio webcast for investors and analysts on July 31, 2025.
Read more at GlobeNewswire: Ontex confirms H1 results with revenue and margin decrease