Ontex revenue up 3.5% in FY24, volumes soar across segments

The sales prices were 2.2 per cent lower, reflecting the decrease of raw material indices and investments in increased competitiveness. Forex fluctuations were positive, adding 0.2 per cent, bringing total growth at 3.7 per cent, Ontex said in a press release.

The adjusted EBITDA was €223 million (~$245.3 million), up 28 per cent, bolstered by the sustained delivery of the cost transformation programme which added €70 million, thereby driving competitiveness and profitability.

Volume and mix growth contributed €21 million, although lower prices had a negative impact of €39 million, lower raw material prices added €39 million, whereas continued inflation drove other operating and selling, general and administrative expenses (SG&A) cost up by €28 million and €10 million respectively, and forex fluctuations adversely affected results by €3 million.

The adjusted EBITDA margin rose to 12.0 per cent, up 2.3 percentage points YoY, while operating profit stood at €76 million, including one-off restructuring expenses of €73 million, primarily related to the restructuring of the Belgian operations.

Adjusted profit from continuing operations doubled to €76 million, and when including the one-off restructuring charges, profit from continuing operations was €21 million. A loss from discontinued operations of €11 million—reflecting lower adjusted EBITDA due to scope reduction and divestment-related one-off costs – resulted in an overall profit for the period for the total group of €10 million.

“We achieved key strategic milestones last year, thanks to the dedication of Ontex’s teams. With all planned strategic divestments finalised or agreed, we will be fully focused on retailer and healthcare brands by end 2025. We also achieved a major step to make our European footprint leaner, with the transformation of our Belgian operations to be finalised early 2026,” said Gustavo Calvo Paz, chief-executive officer (CEO) at Ontex.

“These measures are necessary to continue driving our competitiveness and profitability, as we did in the last two years. We achieved strong volume growth in 2024, in North America, and in selected categories in Europe. Our biggest category has now become adult care, positioning us well to serve the needs of a growing and more active elderly population. Our margins expanded back to our historic levels, and while we continue to invest in our transformation, our free cash flow delivery has strengthened further. I have confidence that we will drive our free cash flow up over time, as we execute our growth and efficiency plans, and as the step-up investment phase of our transformation journey will fade down after 2025,” added Paz.

Fourth quarter (Q4) financial

In Q4 FY24, revenue reached €476 million, reflecting a 6.6 per cent YoY. Volumes were up by 9.0 per cent including mix effects, with growth observed in all categories, driven primarily by an acceleration in North America and sustained performance in selected European categories.

As anticipated, sales prices remained largely stable sequentially, though they were 2.4 per cent lower YoY due to previous declines in raw material indices and investments in enhanced competitiveness.

Outlook

For 2025, Ontex expects revenue to grow by 3 per cent to 5 per cent YoY, supported by double-digit volume growth in North America. Adjusted EBITDA is forecast to increase by 4 per cent to 7 per cent, driven by revenue growth and further improvements in operational efficiencies. Additionally, free cash flow is expected to remain strong, while Ontex continues the step-up of investments in its transformation programme, with this step-up nearing completion by the end of 2025.

ALCHEMPro News Desk (SG)