Aalst – Erembodgem (Belgium), 11th of April 2017. Ontex published its annual report for 2016 today. The report shows that the successful integration of Mexican-based Grupo Mabe has significantly strengthened Ontex’ international presence as well as enhanced its portfolio of own brands. Integrating the recent personal hygiene acquisition in Brazil, implementing an ambitious sustainability program and further developing the branded and retailer brand businesses are key priorities for 2017.
The full annual report can be downloaded in English and Dutch.
New Americas Retail Division contributes to international expansion and growth
The highlight of 2016 was the establishment of Ontex’ Americas Retail Division in March, following the acquisition of Grupo Mabe, a leading personal hygiene company based in Mexico. This acquisition further diversified the Ontex branded products portfolio, and expanded our geographic footprint into North and Latin America, widening our growth opportunities. The successful integration of Grupo Mabe helped Ontex to reach a 40% market share of the baby diapers category in the Mexican modern retail. By the end of the year, the Americas Retail Division was further strengthened when the agreement to acquire the personal hygiene business of Hypermarcas SA in Brazil was signed.
The personal hygiene deal in Brazil is expected to nearly double the Americas Retail Division. In 2016, Ontex Group revenue approached €2 billion in for the first time, with reported revenue 18% higher than the previous year.
Charles Bouaziz, CEO of Ontex: “The strategic acquisitions in the Americas play a key role in accelerating the growth of our geographical presence and branded business. Our approach is to build on what the business has achieved locally, share best practices and enhance them with the scale we can offer. Acquisitions related synergies such as procurement, manufacturing and supply chain help to secure investments in our business and operations, as illustrated by Dourges.”
The opening of a new production plant in Dourges, France, on December 1, marked another highlight for Ontex in 2016. This new plant for adult care products was built in less than 10 months and is already on stream. The improved production machinery and room for future expansion will help Ontex to serve European clients even more effectively.
Increasing importance of own brands
Traditionally, Ontex has a strong portfolio and expertise in producing and marketing a range of retailer brands. At the same time, the company has a growing share of own brand products, spanning baby care, feminine care and adult care, which are distributed in a wide array of countries. Examples include Canbebe diapers in baby care, adult care brands such as iD, Serenity and Canped, and the Helen Harper brand for baby and feminine care. The acquisition of Grupo Mabe and the personal hygiene business of Hypermarcas, whose success is built on strong local brands such as PomPom or AdultMax, significantly adds to this development. In 2016, Group revenue from Ontex brands was 44%, up from 37% in 2014, and following the two acquisitions, the proportion of revenue from Ontex brands will exceed 50% for the first time ever.
Oriane Perraux, Group Marketing Director: “Over the last years, Ontex has developed from a manufacturing company into an international consumer goods company. Our own brand product lines will gain further importance in the future. Our production strategy, however, remains the same. Developments and innovations in both categories, own brand and retailer brand, are tailored to local markets and are driven by extensive consumer research. Insights from consumers provide the creative spark that helps us to design something new and cater for an unmet need.”
New structure for sustainability
In 2016, Ontex created a new structure to embed sustainability in all Ontex operations and Divisions. As a result of an extensive materiality review, the approach to sustainability was grouped into four areas: sustainable growth, people at the heart of the company, human rights and business ethics, and responsible production. Ambitious targets have been set in each one of these areas. In responsible production, for example, the company plans to reduce CO2 emissions of goods transport in 2017 by 20% compared with 2012. Another example is that by 2020, all consumed electricity should originate from renewable sources.
Annick De Poorter Group R&D, Quality and Sustainability Director: “As one of the world’s leading hygiene solutions providers, we are constantly aware of the need to reduce the environmental impact of our products, and we are committed to the wellbeing of our people. This new structure and the ambitious targets brings sustainability to the core of our production”.
The full sustainability report can be downloaded here.
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