Personal hygiene manufacturer Ontex has reported a 15% increase in first-quarter revenue in its core markets, driven by 'double digit price increases across all businesses', it said in a statement.
Revenue for the quarter (in core markets) stood at €446 million, while adjusted EBITDA came in at €41 million, up 95% year-on-year.
Total group revenue stood at €652 million, a 16% increase on the corresponding quarter last year.
“The solid improvement in the group’s performance has continued during the first quarter with strong revenue growth cementing the momentum delivered throughout last year," commented Gustavo Calvo Paz, Ontex’s CEO.
"Most importantly, we have turned the corner in the restoration of margins and thereby pursued the process of bringing down the leverage ratio through higher profitability."
Read More: Gustavo Calvo Paz Succeeds Esther Berrozpe As Ontex CEO
Looking ahead to the remainder of the year, Ontex said that revenue in its core markets is expected to grow by a high single-digit rate, consolidating the improvement the company realised in 2022 and 'further balancing the portfolio'.
The personal care firm expects adjusted EBITDA for its core markets to come in 8% to 10% higher, with further price increases likely to offset cost inflation headwinds.
It also added that discontinued operations, such as its former Mexican facility, which was recently divested, will contribute positively to adjusted EBITDA and free cash flow.
"These results and the completion of the Mexican divestment are another positive step, as we accelerate our efforts to simplify our operations, increase efficiencies, strengthen relations with our customers, and secure our financing," Calvo Paz added.
Read More: Ontex Activates Solar Installation In Italian Factory
© 2023 European Supermarket Magazine – your source for the latest A-brand news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.