Volumes were down 1.3 per cent including mix effects. 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. Adult care volumes were up, however, 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. Ontex’s focus on selective product categories, led to a further mix improvement. In North America, baby care sales volumes were up by double digits, thanks to the contract gains in the retail channel built up since mid-2024. Market demand was lower, especially for retailer brands, which were impacted by intense promotional activities by A-brands, the company said in a press release.
In the first quarter, adjusted EBITDA was €51 million (~$57.77 million) with a margin of 11.2 per cent. The slight decrease reflects business resilience in a more challenging environment. The cost transformation programme, including the initial contribution from the Belgian footprint optimisation, delivered €15 million (~$16.99 million) net savings, which fully offset the sales price decrease and the operating cost increase.
Sales prices were lower across regions and categories, and 1.6 per cent down overall. While these have been largely stable since mid-2024, the decrease reflects the carry-over effect of the price decreases in the first half of 2024.
“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, finalising a major divestment and strengthening our balance sheet for the future, which allows us to focus even better,” Gustavo Calvo Paz, Ontex’s CEO, said.
Despite soft market conditions in Q1, Ontex remains confident in meeting its 2025 outlook, driven by expected volume gains in the second half. The company projects 3–5 per cent like-for-like revenue growth, supported by strong North American demand and new contracts, and 4–7 per cent growth in adjusted EBITDA, aided by operational efficiencies and tariff exemptions under the USMCA for products imported from Mexico.
ALCHEMPro News Desk (RR)
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