Challenging 2025, with results in line with latest outlook, but significantly lower than initial expectations; Clear priorities set for 2026 to resume profit growth and improve cash generation, and strategic review initiated

Press release
Regulated information

• Full year results in line with latest reviewed outlook:
  Revenue decreased by 4.9% LFL and adj. EBITDA margin by 2pp to 10%, on soft demand for baby care retailer brands and supply chain constraints;
• Net debt reduced by 6%, despite negative FCF, thanks to net proceeds from the completion of the Emerging Markets divestments, while leverage increased to 3.3x on lower adj. EBITDA;
• Recent challenges being addressed with clear priorities set for 2026 to resume volume growth, extend the cost transformation program, as well as laser focus on cash;
• Targeting adj. EBITDA growth of 10% in 2026, albeit gradually improving throughout the year from soft Q1, thereby leading to positive FCF and leverage to drop to 3x or lower by year end;
• Strategic review initiated to unlock additional value creation.

CEO quote

Laurent Nielly, Ontex’s CEO, said: “I am honored by the Board’s trust to lead the company in this difficult moment. Our performance in 2025 has clearly not met expectations.  While we continued to make progress to transform the business, the pace was not enough to compensate for the market unexpected demand drop and our own execution challenges. While we have started a review of the strategy, we are focusing on the execution of our existing plans with stronger financial discipline. We aim to resume adjusted EBITDA growth, while continuing to find additional fuel to reestablish the baseline for sustained growth as the year progresses. We have strong assets and people, and I am convinced that the work started will allow us to unlock Ontex’s intrinsic value.”

FY 2025 results summary

• Revenue was €1,762 million, a ‑9% like-for-like decrease, entirely linked to lower volumes, with improving product mix offsetting limited targeted price decreases. Demand for baby care retailer brands dropped in Europe and North America, on low consumer demand amplified by intense A-brand promotions. Ontex’s sales volumes in baby care decreased more, linked to its specific regional and customer exposure, as well as customer destocking and supply chain constraints, which also affected other product categories. Ontex’s volumes in feminine care were slightly down, largely in line with market demand, while growth in adult care continued albeit at a lower pace.
• Adjusted EBITDA was €176 million, compared to €223 million in 2024, representing a margin contraction by ‑2.0pp to 10.0%. The decrease largely reflects the impact of the revenue reduction, including the effect of lower fixed cost absorption. The cost transformation program helped to mitigate most of the higher costs, caused by inflation and raw material indices, as well as by temporary inefficiencies.
• Operating profit was €79 million, compared to €76 million in 2024. It includes €(19) million one-off costs, related to some additional restructuring and impairments of obsolete assets and intangibles, which is less than the €(73) million in 2024.
• Free cash flow was €(25) million, compared to €48 million in 2024. The decrease reflects the lower adjusted EBITDA contribution, the business scope reduction following the divestments, and higher financing cash-out, while restructuring cash-out remained high. This was partly compensated by lower capital expenditure.
• Net financial debt was €577 million at year end, compared to €612 million at the year start. The €35 million decrease over the period is linked to the net divestment proceeds, which more than offset the negative free cash flow, the cash-out for the share buy-back and an increase in lease liabilities, as some real estate contracts were renewed. The lower EBITDA contribution, however, drove the leverage ratio up from 2.46x to 3.29x.

Q4 2025 results summary

• Revenue was €436 million, ‑6% lower like for like year on year and ‑2.1% lower quarter on quarter. Pricing remained at the third quarter level, but was slightly down versus last year, offset by mix improvement. Market demand for baby and feminine care came down further in Europe sequentially, leading to lower sales volumes. This was also the case for baby care in North America, especially in contract manufacturing, whereas in retailer brands, the contract gains offset the market contraction.
• Adjusted EBITDA was €39 million, compared to €57 million in 2024, representing a margin contraction by ‑3.0pp to 8.9% year on year, and by ‑2.4pp quarter on quarter. The decrease reflects primarily the lower revenue impact. While the cost transformation program continued to deliver solid results, these were insufficient to compensate for the higher costs and the inventory level adjustments.
• Operating profit was €7 million, including €(12) million one-off costs, linked to some additional restructuring and impairment of obsolete assets and intangibles.

Strategic developments in FY 2025

• Ontex concluded the divestment of its remaining Emerging Markets businesses, with the Brazilian business sold in April, and the Turkish business in November. These divestments generated €131 million net proceeds combined, albeit that this amount remains subject to customary balance sheet adjustments and transaction costs.
• In March, Ontex issued a €400 million high-yield bond which matures in April 2030 and holds a fixed interest rate of 5.25%. This bond replaces the former €580 million high-yield bond, which has been repaid to the bond holders.
• In December, Ontex announced a leadership transition, with Gustavo Calvo Paz handing over the CEO responsibility to Laurent Nielly, the former President of the European business. Subsequent to this change a strategic review was initiated, with regular updates to be shared as progress is made.

2026 outlook

Market circumstances in 2026 are anticipated to remain challenging, with continued soft baby care demand and persistent A-brand promotional activity. Adult care demand, however, is expected to continue to be supported by demographic and societal trends.

Ontex aims for a gradual improvement in performance throughout the year, underpinned by the continued ramp-up of recently gained contracts and the extension of the cost transformation program. The ambitions for the year are thereby set as follows:

• Adjusted EBITDA is to increase by around 10% overall, based on a largely stable revenue and net efficiency improvements. The improvement will be gradual through the year, starting from a soft first quarter, which is expected in line with the fourth quarter of 2025, but therefore lower than the strong first quarter of 2025.
• Free cash flow is to turn positive, based on the EBITDA improvement and lower transformation-related capital expenditure and restructuring cash-out;
• Leverage is to drop to 3x or lower by year end.

Unless otherwise indicated, all comments in this document are on a year-on-year basis and for revenue specifically on a like-for-like (LFL) basis (at constant currencies and scope and excluding hyperinflation effects). Definitions of Alternative Performance Measures (APMs) in this document can be found on page 13 in the pdf).

Key financial indicators

[3]    The Adjusted income tax expense consists of the income tax expense, as presented in the income statement, adjusted for the impact of EBITDA adjustments.

[4]    EBITDA adjustments and their impact on income tax are subtracted from adjusted profit to obtain profit.

[5]    Balance sheet data reflect the end of the period and compare to the start of the period, i.c. December 2024.

Further details are available in the pdf:

• full year 2025 financial review
• consolidated financial statements for the year
• consolidated statement of financial position
• consolidated statement of cash flows
• notes to the financial statement