Ontex Group (ONTEX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was €451 million, down 2.8% like-for-like, with adjusted EBITDA of €51 million and margin at 11.2%, reflecting resilience amid soft demand and price decreases, partially offset by mix improvement and double-digit North American growth.

• Strategic transformation advanced through portfolio refocus, operational efficiencies, and innovation initiatives, including the sale of Turkish and Brazilian businesses.

• Moody's upgraded the credit rating to B1, and S&P Global to B+ at the end of last year.

• Long-term financing secured with a new €400 million bond maturing in 2030, replacing the previous €580 million bond.

• Full-year outlook confirmed, expecting volume gains in H2 2025 as the main driver.

Financial highlights

• Like-for-like revenue decreased by 2.8% year-over-year, with volumes down 1.3% and sales prices down 1.6%.

• Adjusted EBITDA was €51 million, down 4.4% year-over-year; margin at 11.2%, down 0.3pp.

• Net operating savings delivered 4% operational efficiencies, offsetting sales price contraction and cost increases.

• Net financial debt increased to €656 million at March-end, mainly due to higher inventories, working capital, and reduced factoring.

• Share buyback program completed, with €10 million cash out and 1.5 million shares repurchased.

Outlook and guidance

• 2025 revenue expected to grow 3%-5% like-for-like, driven by double-digit North American volume growth and new contracts in H2.

• Adjusted EBITDA forecasted to grow 4%-7%, with further operational efficiency improvements and tariff exemptions under USMCA.

• Free cash flow anticipated to remain strong; leverage ratio expected to fall below 2.5x by year-end.

• Confidence in outlook based on signed contracts with major U.S. retailers and ongoing innovation pipeline.

• Transformation investments nearing completion by year-end.