Hygiene products maker Ontex has entered into an agreement to sell its Algerian business to Hygianis SPA, its local distributor for more than 20 years.
The transaction includes Ontex’s business in Algeria and related exports to certain neighbouring countries, the company said in a statement.
Ontex generated about €50 million in sales in Algeria in 2022.
The company's business in Algeria is part of its emerging markets activities, which have been classified as discontinued operations following the strategic decision to divest these in 2021.
The personal hygiene firm is seeking to close the transaction, subject to customary conditions, by the end of September 2023.
Hygianis markets products for infant hygiene, incontinence and paper hygiene as well as food products.
Financial Performance
In May, Ontex reported a 15% increase in first-quarter revenue in its core markets, driven by 'double-digit price increases across all businesses'.
Revenue for the quarter (in core markets) stood at €446 million, while adjusted EBITDA came in at €41 million, up 95% year-on-year.
Total group revenue stood at €652 million, a 16% increase on the corresponding quarter last year.
Looking ahead to the remainder of the year, Ontex said that revenue in its core markets is expected to grow by a high single-digit rate, consolidating the improvement the company realised in 2022 and 'further balancing the portfolio'.
New Chief Executive
Last year, Ontex appointed Gustavo Calvo Paz as its new chief executive officer, succeeding Esther Berrozpe in the role.
He has led operations across Latin America, North America and Europe during his career, and served as an executive member of Kimberly-Clark’s Global Leadership Team.
