Personal hygiene firm Ontex has posted 15% year-on-year growth in like-for-like revenue to €1.7 billion across core markets in its financial year 2022.
The Belgian company attributed its performance to 7% volume and mix growth and 8% overall higher prices.
The performance also confirms Ontex’s top line turnaround after several years of organic sales decline and response to raw material price increases, the company noted.
Adjusted EBITDA in its core markets amounted to €104 million, down 33% year-on-year, with revenue growth contributing €164 million and gross savings of €55 million.
While these were more than offset by raw material and operating cost inflation of €280 million during the financial year, it reversed the negative trend seen in the fourth quarter, the company added.
Ontex chief executive, Gustavo Calvo Paz, said “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.”
The adjusted EBITDA margin for the year dropped to 2%, down 4.9pp, while operating loss was €69 million, including €11 million restructuring costs, €92 million non-cash impairments and €70 million depreciation.
Total group revenue, including discontinued emerging markets, amounted to €2.5 million, up 17% on a like-for-like basis, driven by 6% volume and mix and 11% higher prices.
Adjusted EBITDA came in at €136 million, down 21% year-on-year, with EBITDA margin down 3.0pp year-on-year at 5%.
Ontex hopes to continue to restore its profitability in 2023 and has forecast high single-digit growth in revenue in its core markets.
It expects adjusted EBITDA margin for core markets to range between 8% and 10%.
© 2023 European Supermarket Magazine – your source for the latest A-Brands news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.