Ontex off to flying start in first quarter

Belgian Ontex, mostly known for its baby care products, had a very strong first quarter, with turnover up nearly 25 % and growth for every division.

Ontex Brazil acquisition

The company’s total first quarter turnover grew 23.1 % to 556.9 million euro, largely thanks to the acquisition of Brazilian Hypermarcas Personal Hygiene (now called Ontex Brazil). Nevertheless, it also achieved a 3.6 % like-for-like turnover growth and its adjusted EBITDA grew 22.8 % in the first quarter, up to 70 million euro.

“Our first quarter performance confirms the solid progress that we are making in competitive markets as well as the ongoing transformation of Ontex. We also completed the acquisition of Ontex Brazil in early March, welcoming new colleagues who have built a strong branded business, resulting in market leadership in adult incontinence, and a top three position in baby diapers in Brazil”, CEO Charles Bouaziz said.

Like-for-like turnover drop in Eastern Europe

Ontex’ main area of growth was, obviously, in the emerging markets, with a 30.6 % turnover increase and a 14.4 like-for-like turnover growth. Turnover went up 3.4 % in the other markets, but that dropped down to 2 % on a like-for-like basis. Eastern European like-for-like turnover did actually slump 3.3 %.

The baby care division posted the highest growth numbers, with a 34.4 % turnover increase. In the end, it is only a 4 % like-for-like turnover growth. Adult incontinence products’ turnover went up 12 % and care products for women grew 7.5 %.