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  • 19.98%
    Share capital 30/09/2018
  • 302 EUR M
    Value of the stake 30/09/2018
  • 19.98%
    Voting rights 30/09/2018
  • 1
    Number of representatives in statutory bodies 30/09/2018
Investment Year 2015 Investment history

Ontex is a growing international group specialised in hygienic products for baby, adult and feminine care. Ontex products are distributed in more than 110 countries under the company’s own brands and retailer brands. The main sales channels are retail trade, medical institutions and pharmacies.

Performance in 2017

Ontex total revenues for 2017 is EUR 2.36 billion, up by 18.2% on a reported basis and by 5.5% on a Like-For-Like (“LFL”) basis, outperforming the broadly flat personal hygiene market. In 2017, Ontex delivered revenue growth across all three categories (baby care, adult care, and feminine care). This demonstrated strong consumer demand for Ontex’s products, resulting in market share gains across most divisions.

FY 2017 revenue was broad-based with most geographies delivering higher LFL revenue. As a result of double-digit LFL growth and the Brazil acquisition, sales in the Americas rose to 27% of group sales, while the proportion of group sales in Western Europe was less than 50% for the first time ever, despite the solid increase in this region.

Adjusted EBITDA of EUR 266.4 million (margin of 11.3%) was 7.1% higher year-on-year despite EUR 7.8 million FX headwind.

Adjusted EBITDA margins of the group excluding Brazil proved robust at 12.0% compared to 12.5% in 2016. This was a resilient performance, with Ontex’s cost savings and efficiencies programs largely offsetting significant external headwinds, and some capacity constraints that limited Ontex’s profitability in the near term.

The overall performance of the Brazilian business acquired in March 2017 fell well short of Ontex’s expectations. Challenging market conditions provided a difficult backdrop.

Significant actions have already been taken to address the issues in Brazil, including some changes in the sales incentive system, reinforced processes and controls. Ontex is reviewing ways in which the company can sustainably improve the business performance on the top and bottom line.

The refinancing of debt in the second half of 2017 resulted in a meaningful extension of

debt maturities to 2022 and 2024, and a lower average cost of debt with the interest rate risk largely hedged, in line with the group’s hedging policy. Estimated annual savings before tax are expected to be approximately EUR 10 million.

The Board of Directors proposes to pay a gross dividend of EUR 0.60 per share, an increase of EUR 0.05 per share subject to approval by shareholders at the next Annual General Meeting.

Investment case

The growth of the industry is 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 in retailer brands, (ii) increases in share of its own brands, including premiumisation and (iii) its greater exposure to emerging countries and adult incontinence products.


Audit and Risk Committee (1/3*) Remuneration and Nomination Committee (1/4*) Board of Directors (1/7*)
Member Member Member
* Number of GBL's representatives in statutory bodies in relation to the total number of members. Governance information is dated 31/12/2017, except where superseded by more recent public disclosures.