Ontex reports 4% increase in revenues in first quarter 2024
Personal hygiene company highlighted growth in specific segments and improvement in profit margin
Ontex, an international leader in hygiene products, recently announced a 4% increase in revenues, totaling €460 million in the first quarter of 2024, compared to the same period last year.
This increase was mainly due to a 10% growth in sales of adult care products, which offset stable revenues in baby care and a slight decline in sales of feminine care products. Total revenue growth, including currency effects, was 3% compared with the previous year.
Volume and product mix increased 5% compared to the previous year, especially in selected categories, with strong growth in North America. This increase was mainly attributable to new contracts that came into effect during the second half of 2023 and the first quarter of 2024.
In the European market, demand for baby care products remained weak, while retail brands outperformed demand in feminine care and gained market share in adult care.
Average prices declined 1% compared to the prior year, reflecting the drop in raw material prices over the past year.
Adjusted EBITDA increased to €53 million, representing an increase of €12 million compared to the first quarter of 2023. This increase was mainly due to the continued focus on implementing the cost transformation program. Adjusted EBITDA margin increased to 11.5%, representing an increase of 2.4 percentage points compared to the previous year.
Cost transformation measures resulted in net savings of €18 million, reducing the operating cost base by 4.8%.
In the Discontinued Operations segment, revenues amounted to €91 million, a year-on-year decrease due to the sale of the Mexican business in the second quarter of 2023.
Despite the challenges faced, Ontex continues to demonstrate resilience, with a reduction in net debt/EBITDA ratio to 2.8x compared to the beginning of the year.
In addition, the company recently completed the sale of its Algerian business to Hygianis SPA, which should contribute to a further improvement in net debt/EBITDA ratio.
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