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Ontex is a group specialised in hygiene products for babies, women and adults. Ontex products are distributed in more than 100 countries under the company’s own brands and distributors’ private labels. The main sales channels are retail trade, medical institutions and pharmacies.

Investment case

The growth of the industry in recent years has been supported by (i) the resilience of the business (hygiene basics), (ii) an ageing population in mature countries and (iii) the growth in population and product adoption rates for hygiene products in emerging countries.
Ontex should be able to continue to outperform the market thanks to (i) increases in market share for private label products, (ii) the premiumisation of its brands and (iii) its greater exposure to emerging countries and adults incontinence products.

Half-year results 2017

  • Revenue stands at EUR 1,174 million, up 22% on a reported basis, driven by the acquisition of Ontex Brazil. On a like-forlike basis, growth was of 5.2%, with a positive contribution from each division and each category.
  • Adjusted EBITDA grew by 17.4% but the margin dropped by 50 bps to 12.3%, due to pressures on the supply chain, increasing raw materials prices, a changing business mix following the acquisitions and higher distribution costs.
  • Net debt at 30 June 2017 was EUR 744 million, up by EUR 79 million compared to 31 December 2016 notably following the acquisition of Ontex Brazil (closing in early March 2017), leading to a net financial debt/adjusted EBITDA ratio of 2.75x.

Outlook for 2017

Ontex is forecasting revenue growth ahead of its underlying markets for 2017. The recent acquisition of Ontex Brazil is anticipated to perform in line with the group’s expectations for 2017. The macroeconomic environment will remain challenging, with volatile exchange rates and ongoing pressures on raw materials costs.

Governance

Board of Directors (1/10*)
Member
* Number of GBL's representatives in statutory bodies in relation to the total number of members