Personal hygiene firm Ontex has reported 15% like-for-like revenue growth in the first half of its financial year, with the group citing 'unprecedented cost inflation' in the period.
Total group revenue (including discontinued emerging markets) for the half year came in at €1.15 billion, with the 15% growth driven by 6.6% volume mix and 8.4% pricing.
Adjusted EBITDA for the period was €49 million, down 51% compared to last year, while EBITDA margin of 4.3% was down 6.0 percentage points.
Net debt for the group stood at €826 million at the end of June, up €101 million over the half year period but slightly lower than at the end of March, due to 'working capital inflow', the group said.
“We are delivering on the group’s strategic priorities: turnaround of the top-line, bringing down the structural cost base and divestments to reduce net debt and refocus the group," commented Esther Berrozpe, Ontex CEO
"The unprecedented cost inflation has however hit our adjusted EBITDA significantly during the first half, so we will continue to accelerate pricing to alleviate this negative impact. Revenue growth and the lower cost base will be a major driver to margin recovery and value creation once the raw material environment improves.”
In the second quarter specifically, total group revenue rose 15% to €598 million, while adjusted EBITDA was down 52% to €25 million.
Looking ahead, Ontex said that the 'uncertain geo-political environment and resulting volatile inflationary macro-economic situation' is reducing visibility.
However provided that the situation doesn't get significantly worse, the group expects revenue growth to come in at 10% for the full year, with adjusted EBITDA margin for the next quarters to 'sequentially improve'.
The group saw revenue down 3% in its last financial year.