Ontex, a Belgium-based manufacturer of personal hygiene products, has reported a 15 per cent like-for-like (LFL) increase in the revenue for core markets to €1,672 million in fiscal 2022 (FY22). Increase in revenue was driven by 7 per cent growth in volume. The company reported an adjusted EBITDA of €104 million for core markets, down 33 per cent from the previous year.

The total group revenue, including discontinued emerging markets, was €2,464 million, up 17 per cent LFL, with adjusted EBITDA at €136 million, down 21 per cent YoY. The resulting EBITDA margin of 5 per cent was down 3 percentage points YoY.

Ontex also reported adjusted earnings per share (EPS) of continuing operations at minus €0.62 in FY22, compared to €30 in FY21, and basic EPS at minus €3.34, compared to minus €0.76 in FY21.

In the fourth quarter (Q4) of FY22, the company's core markets revenue increased by 20 per cent on a like-for-like basis, reaching €460 million. The growth was attributed to a 6 per cent volume and mix contribution and a 14 per cent increase in prices. Adjusted EBITDA for core markets also rose by 31 per cent YoY to €40 million, with revenue growth and gross savings more than offsetting the impact of raw material and operating cost inflation. The company's total group revenue, including discontinued emerging markets, was €675 million, up 20 per cent LFL, and the adjusted EBITDA came in at €51 million, up 64 per cent YoY.

Ontex is anticipating a continued restoration of its profitability in FY23 with a high single-digit growth in revenue for core markets. The company expects an adjusted EBITDA margin of 8 per cent to 10 per cent for core markets, and is focusing on reducing its leverage from 6.4x to less than 4x by year end through improving profitability and cash flow discipline.

“I’m happy to see that we have turned the corner, giving us momentum to deliver further recovery in 2023. My first 100 days as CEO increased my conviction that there is a significant opportunity. Our strategy is working, and I commit to accelerate its execution. Complexity reduction and laser-focus on the strategy execution, will bring us to best-in-class competitivity, which Ontex deserves as a performance-driven organisation,” said Gustavo Calvo Paz, Ontex’s CEO.