Ontex revises 2025 outlook after baby diaper sales drop in Europe and North America

Ontex has revised its 2025 guidance after reporting a 4% like-for-like revenue decline in the first half, driven primarily by lower demand for baby diapers in Europe and North America. Revenue in the baby care segment fell 9.8% year-on-year, reflecting weak consumer demand for private label products, intensified competition from branded players, and customer destocking—particularly in countries like the UK and Poland.

“Results in the second quarter were below our expectations. The geopolitical environment has impacted consumer demand in our markets, particularly baby care, which declined at a high single digit rate. Retailer brands faced intense promotional activity by branded players, and some customers destocked in some of our key markets”, stated Gustavo Calvo Paz, company’s CEO.

Adjusted EBITDA margin fell by 2.2 percentage points to 9.8%, affected by lower volumes and reduced fixed cost absorption amid rising costs for raw materials and logistics. The impact was partially offset by Ontex’s cost transformation program, which generated €34 million in net savings in the period.

In contrast to the drop in baby care, the adult care segment continued to perform positively, with revenue up 2.6% like-for-like, supported by ongoing demand in the retail channel and stable sales in the institutional channel across Europe. Feminine care revenue declined 5.5%, influenced by price adjustments and temporary supply chain constraints.

The company now expects a low single-digit revenue contraction for the year (versus the previous 3% to 5% growth projection), and adjusted EBITDA between €200 and €210 million—below the previously expected range of €232 to €238 million.

Despite the setbacks, Ontex remains optimistic about the second half. The start-up of new contracts in Europe and North America is expected to drive volume recovery and help restore profitability margins. Supply chain disruptions are being resolved, and the ongoing transformation of operations is set to strengthen cost-efficiency and resilience.