Ontex reports sequential improvement across key financial indicators in Q3

Core Insights - Ontex's CEO highlighted a significant sequential improvement in profitability for Q3 2025, driven by new contracts and effective execution of the transformation program, indicating confidence in achieving a strong end to 2025 despite challenging market conditions [1] Q3 2025 Results - Revenue for Q3 2025 was €445 million, reflecting a 3.8% like-for-like decrease compared to Q3 2024, with volumes down 3.9% due to softer consumer demand for retailer brands [4][9] - Adjusted EBITDA was €51 million, with a margin of 11.4%, down €6 million year-on-year, entirely due to the revenue drop, but improved by €15 million compared to Q2 2025 [6][13] - The cost transformation program yielded €16 million in net savings, offsetting higher raw material prices and inflation-driven operating cost increases [14][15] Business Segment Performance - Adult care revenue increased by 0.5% year-on-year, while baby care revenue decreased by 12.5%, and feminine care revenue rose by 5.4% [4] - Baby care volumes were significantly impacted, down 11% overall, while feminine care volumes increased by 5% [10] Financial Indicators - Operating profit from continuing operations was €29 million, significantly higher than €8 million in 2024, with net financial debt reduced to €543 million from €552 million [7][19] - The leverage ratio remained stable at 2.7x, reflecting a slight decrease in net debt and lower last-twelve-months adjusted EBITDA [2][19] 2025 Outlook - Despite soft market conditions, Ontex maintains its full-year outlook, focusing on cost efficiencies and volume gains as key drivers [3]