Personal hygiene firm Ontex has lifted its guidance for full-year 2024 after volume growth and cost transformation boosted profitability in the first half of its financial year.
The company now expects revenue to increase in a range of 4% to 5% on a like-for-like basis, up from its previous forecast of low-single-digit growth.
It has lifted its adjusted EBITDA margin to 12% from its previous range of 11% to 12%.
'Key Strategic Milestones'
Commenting on its performance, Ontex CEO, Gustavo Calvo Paz, commented, “We have achieved several key strategic milestones in the first half year. Two divestments were successfully completed, sharpening our focus on core markets further, and our cost transformation program delivered solid efficiency gains yet again.
“This consistent delivery, coupled with our sustainable innovation pipeline, allows us to grow our business in North America and strengthen it in Europe, which gives me confidence to deliver a strong year.”
First-Half Highlights
Belgium-based Ontex reported 3% year-on-year increase in revenue, to €916 million, in the first half, driven by volume growth of 5%.
The company reported double-digit volume growth in North America, and in selected product categories.
Adjusted EBITDA for the period amounted to €110 million, up 31% year on year, while adjusted EBITDA margin rose to 12%, up 2.6pp year on year.
The company's cost transformation programme continued to deliver 5% operational efficiencies, strengthening profitability and competitiveness.
Restructuring In Belgium
Operating profit amounted to €31 million, or €4 million lower than last year, as a result of one-time provisions and impairments from the planned restructuring of its Belgian operations.
Adjusted profit from continuing operations, excluding the restructuring costs, stood at €41 million, well above the previous year's €12 million.
Calvo Paz added, “Aiming to further strengthen our competitive position, we announced the intention to restructure our Belgian production and distribution activities.
“These measures will allow us to further reinforce and grow our business sustainably, while driving profitability and cash flow generation up.”
The group reduced its loss for the period to €6 million, down from €19 million in the same period last year.
Last year, the company agreed to sell its Algerian business to Hygianis SPA, its local distributor for more than 20 years.
