Ontex Group (ONTEX) investor relations material

Executive summary

• Announced a fundamental transformation following a strategic review, focusing on productivity, profitability, and targeted growth in core segments, with over 100 initiatives tracked by a Transformation Management Office and new leadership appointments.

• Transformation centers on the Focus to Value program, North America reset, and targeted strategies for Europe’s adult, baby, and feminine care, with a 20% reduction in white-collar positions outside manufacturing.

• North American operations are being fundamentally restructured to prioritize profitability, while adult care in Europe is positioned as the main growth driver.

• H1 2026 business stabilized, but full-year outlook revised downward due to persistent input cost inflation and market volatility.

Financial highlights

• H1 2026 revenue was €855 million, down 2.2% like-for-like year-over-year, mainly due to lower volumes in baby and feminine care; adult care volumes grew 1%.

• Adjusted EBITDA margin declined by 0.7pp to 9.1%, with adjusted EBITDA at €78 million, down 9% year-over-year.

• Operating loss of €118 million in H1, compared to a €43 million profit in H1 2025, driven by €144 million in non-cash impairments and €9 million in restructuring costs.

• Free cash flow improved to €7 million from €(40) million in H1 2025, supported by working capital improvements and lower capex.

• Net financial debt reduced to €540 million from €577 million at year-end 2025; leverage ratio improved to 3.2x.

Outlook and guidance

• Full-year 2026 adjusted EBITDA expected between €165–180 million, revised from previous guidance of ~10% growth over €176 million in 2025.

• Revenue expected to remain broadly stable, with margin recovery anticipated in Q4 as pricing and efficiency actions offset cost inflation.

• Free cash flow now expected between €(25) and €(10) million, reflecting lower EBITDA and higher restructuring outflows.

• Leverage ratio to remain below 3.5x at year-end.