Ontex Group Nv Ord (ONXXF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, everyone, and thank you for joining us today and standing by while we were solving some technical issues. I'm Jeff Raskin from Investor Relations. I'm pleased to have with us Gustavo Calvopas, our CEO, and Geert Peters, our CFO, to present the first quarter results. Before that, let me remind you of the safe harbor regarding forward-looking statements. I will not read them out loud, but I will assume you will have duly noted them. With that keyed up, Gustavo, over to you. Thanks, Joff. While tense geopolitics led to a more challenging and uncertain economic environment, ONTEX showed resilience against these headwinds in the quarter. Thanks to the structural changes made in the last couple of years, and despite temporary drops in demand, we are confident and confirm our full year guidance. In quarter one, Revenue was a solid 451 million euro. Our continued positive contract gain loss balance partially upset the expected price decrease carryover and the drop in market demand, resulting in a net 10 million decrease versus last year. Adjusted EBITDA was 51 million euro, 2 million lower, reflecting the volume decrease and Forex, while our cost information program fully offset the sales price construction and higher cost. The margin thereby remained solidly above 11 percent. Let's go back to the market dynamics on the next slide. The geopolitical tense climate led to forex volatility, as well as recession and inflation fears, in particular the U.S. and reciprocal tariff threat, for which we took mitigation actions. The higher resulting cost are partially visible in our Q1 results, as Geert will discuss later. Importantly, ONTEX imports into the U.S. from its Mexican plant are manufactured under the tariff exception provided by the USMCA, thereby minimizing ...