Ontex Group NV, one of the world's leading suppliers of disposable personal hygiene products, posted revenue of €1.1 billion in H1, down 1.3 per cent like-for-like (LFL) for the six months ending June 30, 2019, versus H1 2018. Overall, in Europe, Ontex remained the leading supplier of retailer brands, more than two times the size of the next competitor.

The personal hygiene market of the company remained highly competitive in H1 2019. The main trends seen during the past couple of years were unchanged: Babycare category volumes were lower, Femcare category value was stable and Adult Inco category value grew on the back of higher volumes, said Ontex in a press release.

Babycare revenue decreased 1.6 per cent in H1 2019, as a result of lower retailer brand diaper volumes sold in Europe, while revenue of Ontex brand diapers in markets outside of Europe was higher. Baby pants grew in the first half of 2019.

Revenue of Adult Inco products in H1 2019 rose 0.4 per cent, on top of a strong performance in the first half of last year. Revenue in retail channels were up 4 per cent, while in institutional channels sales were lower. Adult pants sales posted broad-based growth, supported by the company's investments in expanding production capacity.

H1 2019 Femcare revenue was down 7.1 per cent, due to a high comparable base in 2018 and lower retailer brand volumes linked to contract losses. Sales of organic cotton tampons were well ahead of a year ago.

Europe Divisional revenue was down 8.4 per cent in H1 2019 on a challenging comparable period last year.

H1 2019 revenue in AMEAA was up 8.1 per cent, strongly outperforming the market, with a clear acceleration in Q2. Sales of Ontex brands, which is the focus of this Division, were higher in all three categories and nearly all geographies. In the Americas, revenue grew in both Brazil and Mexico due to Ontex's portfolio of local brands, while the US also posted higher revenue, mainly driven by retailer brands. Revenue in the Middle East and Africa also rose despite political and economic challenges in some markets. Sales in Asia were below last year, fully attributable to a soft start to the year followed by solid growth in Q2.

Revenue in the Healthcare Division was down 1.6 per cent in H1 2019 versus a strong first half in 2018. Sales of Adult Pants grew further, and actions continued to increase our presence in self-pay channels while maintaining a strong competitive position in institutional channels.

"We generated solid LFL revenue growth in AMEAA and significantly improved cash flow generation in the first half of 2019. In Europe, LFL revenue evolution reached a low point in H1 2019 as expected. Going forward we expect progressive improvement in LFL revenue trends in this Division on the back of organic growth from our large customer base, supported by product innovations in all categories," said Charles Bouaziz, Ontex CEO. "Our T2G programme is now being implemented and Ontex is fully mobilized to deliver the operational and cash generation improvements underpinning the mid-term objectives communicated in May at our Investor Update."

Ontex confirms its full year 2019 outlook of broadly stable sales at constant FX, with top-line growth in developing markets and lower revenue in developed markets and stable adjusted EBITDA at constant FX. (PC)