Belgium's Ontex posts revenue of €1,152 mn in H1 2022

Ontex’s total group revenue, including discontinued emerging markets was €1,152 million in the first half (H1) of 2022, went up 15 per cent like for like (LFL), driven by 6.6 per cent volume/mix and 8.4 per cent pricing, while adjusted EBITDA came in at €49 million, down 51 per cent year on year. The resulting EBITDA margin of 4.3 per cent was down 6.0pp year on year.

In the first half of 2022, the company’s revenue of core markets was €781 million, went up 12 per cent like for like, driven by 8.1 per cent volume/mix growth, and 3.5 per cent overall higher prices. The strong increase denotes Ontex’s top line turnaround after several years of organic sales stagnation or decline.

Total Group revenue, including discontinued emerging markets was €598 million in the second quarter, up 15 per cent LFL, driven by 10 per cent pricing and 4.3 per cent volume/mix, while adjusted EBITDA came in at €25 million, down 52 per cent year on year, but slightly up quarter on quarter demonstrating stabilisation at total group level. The resulting EBITDA margin of 4.1 per cent was down 6.1pp versus Q2 2021, and 0.3pp sequentially versus Q1 2022.

“We are delivering on the group’s strategic priorities: turnaround of the top-line, bringing down the structural cost base and divestments to reduce net debt and refocus the group. The unprecedented cost inflation has however hit our adjusted EBITDA significantly during the first half, so we will continue to accelerate pricing to alleviate this negative impact. Revenue growth and the lower cost base will be a major driver to margin recovery and value creation once the raw material environment improves,” Esther Berrozpe, Ontex’s CEO, said.

The uncertain geo-political environment and resulting volatile inflationary macro-economic situation is persisting, causing visibility to remain low. Provided that the market momentum persists and inflationary pressure on commodity and energy prices does not further expand. For full year 2022, the company expects revenue of core markets and of the total group, including discontinued emerging markets, to grow at least 10 per cent like for like, based on positive market momentum and continued price increases.