Q1 2026 Ontex Group NV Earnings Call Transcript
Key Points
- Ontex Group NV (ONXYY) managed to deliver stable adjusted EBITDA despite lower demand and geopolitical instability, showcasing resilience.
- Adult care, the company's largest category, continues to grow, with plans to ramp up capacity to fuel future growth.
- The company successfully reduced net financial debt from EUR577 million to EUR550 million over the quarter.
- Ontex Group NV (ONXYY) is implementing strategic initiatives to streamline SG&A, aiming for a 15% reduction in positions over the next 12 to 18 months.
- The strategic review is progressing, with a focus on cost improvements and positioning the portfolio for profitable growth.
- Revenue was down 4% like-for-like compared to the previous year due to weaker market demand in Baby and feminine care.
- Adjusted EBITDA decreased by more than 20% year-on-year, with a margin decline of 2.2 percentage points.
- The company faces ongoing challenges with lower volumes and higher net costs, partially mitigated by savings efforts.
- Geopolitical instability and rising oil prices are expected to put temporary pressure on margins.
- The Baby care segment continues to experience a decline, with volumes down 11% compared to a strong Q1 '25.
Good morning, everyone, and thank you for joining us today. I'm Geoffroy Raskin from Investor Relations. I'm pleased to have with us Laurent Nielly, our CEO and Geert Peeters, our CFO, to present the results for the first quarter of 2026.
Before that, let me remind you of the safe harbor regarding forward-looking statements. I will not read it out loud, but I will assume you will have duly noted it. With that cleared up, Laurent, over to you.
Thanks, Jeff. Good afternoon, everyone. I will provide a few introductory comments on the quarter. Geert will cover the financial analysis, and then I will come back to give you a few thoughts on what we see and also on our strategic review progress.
Overall, Q1 was a relatively soft quarter. Not a surprise, as we had indicated in February that our results this quarter would be in line with Q4 of last
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