Ontex Group (ONTEX) Q4 2024 earnings summary

Executive summary

• 2024 marked the second year of a transformation journey, delivering improved financial results, driven by 6% volume growth and operational efficiencies.

• All planned strategic divestments completed or under agreement, focusing on retailer and healthcare brands by end 2025.

• Major transformation of European and North American footprint, including Belgian restructuring and North American production ramp-up.

• Free cash flow reached €48 million, a significant improvement over 2023, supporting increased investments.

• Leverage ratio reduced to just below 2.5x, enhancing financial flexibility.

Financial highlights

• Revenue grew 3.5% like-for-like to €1,860 million, entirely from 6% volume growth, with double-digit gains in North America and select categories.

• Adjusted EBITDA increased by 28% to €223 million, with margin up 2.3 percentage points to 12%.

• Adjusted profit from continuing operations doubled to €76 million; total group profit for the period was €10 million.

• Free cash flow improved to €48 million, up from €9 million in 2023, despite higher capex and restructuring costs.

• Net debt reduced by €53 million to €612 million; gross financial debt fell from €834 million to €736 million.

Outlook and guidance

• 2025 revenue expected to grow 3%–5% like-for-like, with strong double-digit volume growth in North America and selected European categories.

• Adjusted EBITDA projected to grow 4%–7%; free cash flow expected to remain strong as transformation investments decrease.

• Completion of divestments in Brazil and Turkey expected in 2024–2025, with net proceeds reducing indebtedness.

• Transformation investments to fade out after 2025, with free cash flow conversion expected to strengthen significantly.