Core Insights - The company reported disappointing second quarter results, primarily due to a decline in consumer demand in the baby care segment, which fell at a high single-digit rate [1][5][6] - The full-year outlook has been revised, now expecting low single-digit revenue contraction and adjusted EBITDA in the range of €200-210 million [5][10] - Despite the weak performance, the adult care business is growing, and the company is making progress in its strategic initiatives [3][8] Financial Performance - Revenue for H1 2025 was €880 million, reflecting a 4.0% like-for-like decrease, with baby care revenue down by 9.8% [5][6][12] - Adjusted EBITDA for H1 2025 was €86 million, down from €110 million in 2024, resulting in a margin contraction of 2.2 percentage points to 9.8% [5][12] - Free cash flow was negative at €(40) million, impacted by lower EBITDA and increased capital expenditure [9][12] Market Dynamics - The baby care category experienced a 9.8% revenue decline, attributed to weak consumer demand and heavy promotional activity from branded players [6][12] - The adult care segment saw a 2.6% revenue increase, driven by stable demand in both retail and healthcare channels [6][12] - Temporary supply chain disruptions in Europe affected production and distribution, but these issues are being resolved [6][8] Strategic Initiatives - The company is focused on a cost transformation program that delivered €34 million in net savings, reducing operating costs by 5% despite lower volumes [9][12] - New contracts in North America and Europe are expected to contribute to revenue growth in the second half of 2025 [2][8] - The company is reshaping its portfolio and strengthening its balance sheet, which is anticipated to improve resilience to market fluctuations [3][8]

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]