Ontex Group (ONTEX) Q2 2025 TU earnings summary

Executive summary

• H1 2025 revenue declined 4% like-for-like to €880 million, mainly due to weak baby care demand, intense promotional activity, and supply chain disruptions.

• Adjusted EBITDA margin dropped by 2.2pp to 9.8%, with a 22% year-over-year decrease in adjusted EBITDA.

• Cost transformation and growth investments led to a €40 million free cash outflow, but divestment of the Brazilian business reduced net debt.

• Strategic initiatives and transformation programs are ongoing, with North America showing strong growth potential.

• Adult care segment grew, while baby and feminine care segments declined.

Financial highlights

• H1 2025 revenue was €880 million, down 4% like-for-like year-over-year.

• Adjusted EBITDA was €86 million, margin at 9.8%, down from 12.0% in H1 2024.

• Free cash flow was negative €40 million, expected to recover in H2.

• Net debt reduced to €552 million, leverage ratio increased to 2.7x due to lower EBITDA.

• Capex was €45 million in H1, temporarily elevated for transformation and growth.

Outlook and guidance

• Full-year revenue now expected to decline low single digits like-for-like, with adjusted EBITDA guidance of €200–210 million.

• Free cash flow expected to be around zero for the year, with leverage targeted at ~2.5x by year-end.

• H2 2025 anticipated to see revenue and EBITDA recovery as new contracts ramp up, supply chain issues resolve, and cost improvements take effect.