Belgian firm Ontex's like-for-like revenue soars 10% in FY23

The adjusted EBITDA saw an impressive leap of 67 per cent to €174 million. This significant improvement was bolstered by a €5 million boost from volume mix optimization and a notable €72 million contribution from Ontex's cost transformation programme. This initiative has effectively reduced the operating cost base by 5 per cent for the second consecutive year, enhancing the adjusted EBITDA margin to 9.7 per cent, an increase of 3.5 percentage points.

The total group revenue stood at €2,342 million, marking a 10 per cent like-for-like uptick, which includes €547 million from the discontinued emerging markets operations. The company's profit for the year reached €35 million, with €27 million originating from continuing operations and an additional €8 million from discontinued operations, leading to a positive basic earnings per share of €0.43, the company said in a press release.

In the fourth quarter of FY23, Ontex maintained its revenue momentum with €446 million, stable on a like-for-like basis. The adjusted EBITDA for the quarter was €47 million, up 16 per cent YoY and 7 per cent quarter on quarter. This increase was primarily driven by the ongoing success of the cost transformation program, which contributed €17 million. The total group revenue for the quarter was reported as €545 million, maintaining stability like-for-like versus FY22, including €99 million from the discontinued emerging markets.

“We accelerated our 3-year transformation plan over the past year, and I am very pleased with the excellent momentum achieved and the encouraging results delivered in FY23. The solid level of activity, and continued delivery on the cost transformation program, all contributed to positive EPS and free cashflow for the first time in several years,” said Gustavo Calvo Paz, Ontex’s CEO.

Fibre2Fashion News Desk (DP)