Ontex Group N.v. · EURONEXT:ONTEX
Ontex — Ontex Group Nv Ord — FY2024 Earnings Presentation
21 slides from Ontex's earnings presentation, Feb 19, 2025
Slide 1: Full year 2024 results
Full year 2024 results February 19, 2025
Slide 2: Disclaimer
Disclaimer Forward-looking statements Accounting changes This presentation may include forward-looking statements. Forward-looking Continuing operations encompass the statements are statements regarding or based upon our management’s Group’s Core Markets. As from 2022, current intentions, beliefs or
Slide 3: Financial Highlights
Financial Highlights 3 3
Slide 4: Volume growth and cost transformation program boost profitability in 2024
Volume growth and cost transformation program boost profitability in 2024 and restore financial health Core Markets Total Group (Europe & North America) Revenue Adj. EBITDA Free Leverage growth margin Cash Flow ratio +3.5% 12.0% €48M 2.46x LFL +2.3pp vs €9M in 2023 vs 3.25x 4 LFL = Like For Like, ex
Slide 5: 6% volume growth drives 2024 revenue up 3.5% LFL
6% volume growth drives 2024 revenue up 3.5% LFL more than offsetting expected price reductions Revenue (Core), €M +5.7% -2.2% 1,857 +0.2% 1,860 Other 1,795 Adult care Baby care Sales Forex stable LFL Volume +9% LFL price /mix 2024 Revenue €1,860M 2023 2024 2024 Feminine care LFL -2% LFL 5
Slide 6: Volume & operating efficiencies boost adj. EBITDA by 28%
Volume & operating efficiencies boost adj. EBITDA by 28%, more than offsetting operating cost inflation Core adj. EBITDA, €M +39 -28 -10 +70 -3 223 Operating +21 -39 Raw costs SG&A Forex 174 materials Volume /mix Sales Net price operating savings 2023 2024 9.7% Margin +2.3pp 12.0% 6
Slide 7: Strong adj. EBITDA translates in solid adj. profit increase
Strong adj. EBITDA translates in solid adj. profit increase Non-recurring costs lower the basic EPS • Adjusted profit [1] of €76M, close to doubling vs 2023 Core • Post-tax non-recurring costs €(55)M, including a pre-tax €(62)M provision for Belgian footprint restructuring and €(11)M of non-cash imp
Slide 8: Solid FCF delivery thanks to adj. EBITDA increase
Solid FCF delivery thanks to adj. EBITDA increase after funding higher capex and restructuring costs 2024 Adj. EBITDA to FCF bridge, €M • WC/revenue improved by 2.3pp to 5.3% benefiting from solid management - Inventories up to support the volume growth and the transformation plan +9 -25 - Payables
Slide 9: Net and gross financial debt significantly down in 2024
Net and gross financial debt significantly down in 2024 Financial debt evolution, €M • M&A inflow of €10M 124 (736) - €16M net from Algeria and Renewed RCF Pakistan divestments (665) +48 3% • €270M max, drawn for 10% - €(6)M net of deferred receivable +10 -5 (612) • Floating rate from Mexico and upf
Slide 10: Balance sheet further strengthened
Balance sheet further strengthened Adj. EBITDA (LTM, Total Group) Net financial debt • LTM EBITDA, as well as net debt, Leverage ratio improving year on year (in €M) 248 241 - Except for Net debt in Q4 due to social 236 plan cash out for closing Eeklo plant 229 205 • Leverage improvement over 2024 1
Slide 11: Strategy update
Strategy update 11 11
Slide 12: 2025 Outlook: Final year of intensive transformation
2025 Outlook: Final year of intensive transformation, clearing the path for sustainable value creation Core Markets Total Group Revenue Adj. EBITDA Free LFL growth growth Cash Flow Remain 3% to 5% 4% to 7% strong Supported by double-digit Supported by revenue Including final year of more volume grow
Slide 13: Divestments: All assets sold, completion on final expected in 2025
Divestments: All 5 assets sold, completion on final 2 expected in 2025 April June February Mexican business Pakistan business Turkish business sold to Softys sold to Asaia Holding sold to Dilek Grup (closing exp. in Q3 2025) 2023 2024 2025 April September Algerian business Brazilian business sold to
Slide 14: Two years ago, we started a journey to create value
Two years ago, we started a journey to create value Competitive & Best-in-class Business expansion sustainable innovation operations to in Europe & to be the fastest A-brand structurally improve our North America equivalent cost efficiency 14
Slide 15: Competitive & sustainable innovation
Competitive & sustainable innovation • 13 innovations launched in 2024, across our 3 categories • Strong pipeline with more than 25 upcoming innovations • In top 10 of patent filings in Belgium • CDP ‘A’ rating awarded for our Climate Change disclosure in 2024 Strengthening further our competitivene
Slide 16: Best-in-class operations
Best-in-class operations By the end of 2025, we will have achieved: • Portfolio simplification. Reduction of 45% in product combinations • Assets harmonization & upgrade. More than 50% of our production lines impacted • Belgian operations transformation • More than €200M structural net cost savings,
Slide 17: Business expansion
Business expansion Europe North America • Consolidating our leadership in Retailer • Double digit volume growth Brands • >50% volume growth in baby care retailer • Double digit volume growth brands, chasing challenger position in adult care and baby pants • Growth fuelled by new contracts, • Ability
Slide 18: Free cash flow conversion to strengthen significantly beyond 2025
Free cash flow conversion to strengthen significantly as transformation investments fade out beyond 2025 2025 2026+ Growth & 3.5 – 4.0% To support our strong growth in maintenance Stable of revenue North America CAPEX Transformation investments Transformation 2.0 – 3.0% (CAPEX & restructuring) will
Slide 19: Key takeaways
Key takeaways • Three-year transformation program well on track • Delivering strong top-line growth and profitability • Structural improvement in free cash flow generation 19
Slide 20: Thank you Q&A
Thank you Q&A 20 20
Slide 21: Ontex—Here for you.
Ontex— Here for you.