Ontex Group, a leading Belgium-based international personal hygiene group, has reported a 4 per cent like-for-like revenue increase in the first quarter of fiscal 2024 (Q1 FY24), reaching €460 million (approximately $495.5 million). This growth was primarily fuelled by a 10 per cent increase in adult care sales, which offset the stable revenue in baby care and a slight decline in feminine care sales.

The company reported significant progress across various categories, particularly in North America, where double-digit growth was noted. Overall, volume and mix contributed to a 5 per cent year-on-year (YoY) increase.

Financially, Ontex achieved a substantial improvement in adjusted EBITDA, which rose to €53 million. This marks a €12 million increase compared to the first quarter of 2023, and a €6 million rise from the previous quarter. The adjusted EBITDA margin also saw an increase, reaching 11.5 per cent, which is up 2.4 percentage points YoY and 1.1 percentage points quarter-on-quarter.

The positive developments in EBITDA were slightly impacted by a €1 million gain from volume and mix growth, although this was partly offset by a €4 million negative impact from price decreases. The cost transformation programme, a key focus for Ontex, led to €18 million in net savings and reduced the operating cost base by 4.8 per cent.

Despite these savings, other operating costs increased by €5 million YoY, primarily due to inflationary pressures on salaries, energy, and distribution costs. Selling, general, and administrative expenses also rose by €6 million.

The operating profit for continuing operations reached €34 million, a notable increase from €17 million in the first quarter of the previous fiscal year.

“We delivered a strong start of the year. We finalised the Algerian divestment allowing us to focus more on our core markets, we rolled out new products and grew volumes by strong double digits in North America, and our cost transformation program has delivered structural savings yet again. Our achievements so far and the dedication of the Ontex teams give me confidence to make further way on our strategic journey to be the number 1 trusted partner for our retail and healthcare customers,” said Gustavo Calvo Paz, Ontex’s CEO.