Core Insights - The company experienced a weak first half of 2025, with a revenue drop of 4.0% year-on-year, primarily due to decreased demand in the baby care segment in Europe [5][6][13] - Adjusted EBITDA decreased to €86 million, down from €110 million in 2024, reflecting a margin contraction of 2.2 percentage points to 9.8% [19][30][23] - The company anticipates a recovery in the second half of 2025, driven by new contracts in Europe and North America and the end of customer destocking [4][11] Financial Performance - Revenue for H1 2025 was €880 million, a 4.0% like-for-like decrease, with volumes down 3.0% [6][13] - Adjusted EBITDA for H1 2025 was €86 million, a decline of 21% compared to the previous year [30][19] - Free cash flow was negative at €(40) million, reflecting lower EBITDA and increased capital expenditures [40][62] Segment Performance - Baby care revenue decreased by 9.9% in H1 2025, significantly impacted by weak consumer demand and customer destocking [8][15] - Adult care revenue grew by 2.9%, indicating stable demand in the healthcare channel [8][16] - Feminine care revenue declined by 5.4%, affected by supply chain disruptions [8][16] Strategic Developments - The company has completed the divestment of its Brazilian business, generating net cash proceeds of €99 million [6][44] - A new €400 million high-yield bond was issued, maturing in April 2030, replacing a previous bond [6][46] - The cost transformation program delivered €34 million in net savings, despite the lower volume base [22][28] Outlook - The company expects low single-digit revenue contraction for the full year 2025, with adjusted EBITDA projected in the range of €200 million to €210 million [11][5] - The leverage ratio is anticipated to be around 2.5x by year-end, reflecting the impact of divestments and operational adjustments [11][45]

Core Insights - Ontex demonstrates improved resilience in a challenging economic environment, confirming its full-year outlook despite occasional fluctuations [1][6] - The company achieved significant strategic milestones, including a major divestment and strengthening of its balance sheet [1][4] Financial Performance - Revenue for Q1 2025 was €451 million, reflecting a 2.8% like-for-like decrease, with softer market demand partially offset by mix improvement in Europe and double-digit volume growth in North America [4][11] - Adjusted EBITDA was €51 million, with a margin of 11.2%, showing resilience despite a 4.4% year-on-year decrease [4][14] - Operating profit was €29 million, down from €34 million in the previous year, impacted by higher restructuring and depreciation costs [19] Strategic Developments - The divestment of the Brazilian business was successfully concluded, generating net cash proceeds of €81 million, with an additional €18 million expected [5][21] - A new €400 million bond was issued, maturing in 2030, to replace an existing bond, enhancing long-term financing [5][21] - The company finalized a share buyback program, acquiring 1.5 million shares to meet obligations under incentive plans [5][21] Market Dynamics - Market conditions were soft in Q1, but Ontex anticipates volume gains in the second half of 2025 as a key driver for growth [6][10] - The company expects revenue growth of 3% to 5% like-for-like, supported by new contracts and operational efficiencies [10] Cost Management - The cost transformation program delivered €15 million in net savings, fully offsetting sales price decreases and operating cost increases [15][14] - Raw material prices increased by €3 million, primarily due to higher indices for fluff and other materials [16]