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Ontex Group (ONTEX) investor relations material

Ontex Group Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary31 Jul, 2025

Executive summary

  • First half and Q2 results were disappointing, with revenue down 4% year-over-year due to weak baby care demand in Europe, customer destocking, and supply chain inefficiencies, partially offset by contract gains in North America.

  • Adjusted EBITDA margin contracted by 2.2pp to 9.8%, reflecting lower volumes, price carry-over, and higher costs, despite €34 million in cost transformation savings.

  • Strategic transformation continues, with a healthier balance sheet from refinancing, divestments, and a stronger innovation pipeline.

  • Operational efficiency improvements and a shift to a leaner, performance-driven culture are underway.

  • Loss for the period was €115 million, driven by a €111 million loss from discontinued operations, mainly the Brazilian divestment.

Financial highlights

  • H1 2025 revenue: €880 million (-4.0% LFL); adjusted EBITDA: €86 million (-21.5%); adjusted EBITDA margin: 9.8% (-2.2pp year-over-year).

  • Free cash flow was minus €40 million in H1; guidance expects about €40 million positive in H2.

  • Cost of goods sold increased sharply in Q2, with a step up of €16 million compared to Q1.

  • Net financial debt: €552 million (down from €612 million at year start); leverage ratio: 2.7x (up from 2.5x).

  • Loss from discontinued operations: €111 million, mainly due to the Brazilian business divestment and currency translation adjustments.

Outlook and guidance

  • H2 2025 expected to see revenue recovery to prior-year levels, with adjusted EBITDA returning to year-on-year growth and positive free cash flow.

  • Full-year 2025 guidance revised: revenue to contract low single digit (previously +3–5% LFL), adjusted EBITDA €200–210 million (previously €232–238 million), free cash flow around zero, leverage at ~2.5x.

  • Recovery driven by new contracts, end of destocking, resolved supply chain issues, and lower raw material costs.

  • No further guidance cuts anticipated; new contracts in North America and Europe are on track and expected to support H2 performance.

  • Market demand is expected to remain soft, with no assumptions of improvement in projections.

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Frequently asked questions

Ontex Group NV is an international personal hygiene company, based in Aalst, Belgium. Founded in 1979, Ontex specializes in designing, developing, manufacturing, and marketing a wide range of disposable products for babies, women, and adults. These products include diapers, panty liners, baby pants, wet wipes, pads, pull-ups, belt diapers, shaped pads, under pads, tampons, and rectangular pads. The company serves a diverse clientele, including hospitals, nursing homes, pharmacies, retailers, and institutional and private healthcare providers, delivering products directly to consumers as well. The company is headquartered in Aalst, Flandre Orientale, Belgium, and its shares are listed on Euronext Brussels.

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