In the first half (H1) of fiscal 2023 (FY23), Ontex Group, a Belgium-based personal hygiene company, has reported revenue of €892 million. This marked a 15 per cent like-for-like improvement year-on-year (YoY), propelled by double-digit price increases across all categories. These figures remained robust even amidst adverse forex, resulting in a 14 per cent YoY revenue increase.

Adjusted EBITDA for H1 FY23 stood at €84 million, a noteworthy leap of 2.1 times the EBITDA of H1 FY22. This growth was attributed to the improved mix and ongoing structural cost savings, which trimmed the operating cost base by 5 per cent. The adjusted EBITDA margin rose to 9.4 per cent, up 4.3 percentage points (pp) YoY, the company said in a press release.

The operating profit for H1 FY23 was €36 million, a significant turnaround from the €84 million loss seen a year prior. This positive outcome includes €11 million restructuring costs. However, a loss of €19 million was recorded for the period, compared to a larger deficit of €171 million in H1 FY22. This loss came as a result of €21 million in discontinued operations, despite the €2 million positive contribution from continuing operations.

The group reported free cash flow of €4 million, marking a vast improvement over the minus €59 million reported in H1 FY22. Investments in business expansion, i.e., capex of €44 million, as well as restructuring efforts and inflation-driven working capital needs were financed by EBITDA growth.

Q2 FY23 saw revenue growth of 15 per cent like-for-like versus Q2 FY22, amounting to €446 million. This was driven by double-digit price increases, with volumes up in selected product categories. Adjusted EBITDA was €43 million, marking a 129 per cent YoY increase. Adjusted EBITDA margin rose to 9.7 per cent, up 4.9 pp YoY and 0.6 pp quarter-on-quarter. Operating profit was €19 million, compared to a loss of €85 million a year prior.

“Four quarters of sequential EBITDA recovery, driven by relentless delivery of cost reduction measures and disciplined pricing to recover cost inflation, is pleasing and highlights the potential of our business. On strategy and balance sheet, progress on the portfolio refocus resulted in reduced debt, and the EBITDA increase in improved leverage. Combined with the extension of bank financing maturities, it results in a healthier balance sheet,” said Gustavo Calvo Paz, Ontex’s CEO.