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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.

Performance in 2016

Turnover reached EUR 1,993 million in 2016, up by 0.2% in organic terms and 18.0% in reported figures following the acquisition of Grupo Mabe. Regarding product categories, the group’s growth is mainly attributable to incontinence solutions for adults while the Babycare and Femcare categories are declining in 2016. Geographically, growth is driven by Eastern Europe and the Middle East / North Africa.
The adjusted EBITDA margin grew by 10 bps to 12.5% thanks to an improvement in the gross margin (+ 122 bps), offset by a negative currency effect of EUR 37 million.
Compared with 31 December 2015, net debt increased by EUR 255 million to EUR 665 million following the acquisition of Grupo Mabe. The net financial debt/EBITDA ratio is 2.7x the EBITDA.

Outlook

In 2017, Ontex is forecasting revenue growth above the underlying market in all its divisions, driven by commercial investments in its brand portfolio and that of its retail partners. The macroeconomic environment will remain challenging with, among other things, volatile exchange rates and certain pressures on raw materials prices. Ontex is maintaining its assumption of a moderate margin expansion over time.

Governance

Board of Directors (1/8*)
Member
* Number of GBL's representatives in statutory bodies in relation to the total number of members