Business
Q1 results lower year on year, as expected; Comprehensive action plan underway to address market challenges
Regulated information Growth in adult care offset by continued softness in baby care and expected decline in contract manufacturing, resulting in 4% LFL revenue decrease year on year; Capacity ramp‑up continued in adult care to support future growth;Adjusted EBITDA margin of 9.1%, down 2.2pp year on year, and stable quarter on quarter; Efficiency initiatives accelerated to improve profitability;Net debt reduced by a further 5% over the quarter to €550 million, strengthening the balance sheet; Ac
About this update from Gsk Plc
Regulated information CEO quote Laurent Nielly, Ontex’s CEO, said: “Our performance is clearly not yet at the level we aspire it to be, but in a quarter with new geopolitical instability and market demand a bit softer than expected, I am encouraged by the work of our teams to make Ontex resilient and deliver the anticipated profit level. We have a strong supply chain to navigate potential supply pressure and we have proven cost mitigation and targeted pricing capabilities to help us address the impact on our cost base caused by the recent oil price increase. Despite these headwinds, our previously shared outlook of improving adjusted EBITDA remains within reach. The on-going strategic review is progressing well and efficiency measures are accelerated, which will help in achieving the outlook in 2026 and grow further beyond.” Q1 2026 results Revenue was €426 million, decreasing by 2% quarter on quarter, which is overall in line with the softening market demand over the period, and by 4% like for like on a year-on-year basis. With the combined price and product mix impact largely stable, the year-on-year decrease was fully attributable to lower volumes. Volumes were up by 2% in adult care, reflecting the continued mid-single-digit growth of the retail channel and stable demand in the healthcare channel in Europe. In feminine care, Ontex’s volumes decreased by 4%, largely in line with slower market demand. In baby care, Ontex’s volumes were 11% lower than in Q1 2025, which benefited from order phasing over the first two quarters. Baby care demand in Europe was down by mid-single digits, and by high single digits in retailer brands, still impacted by promotional activity from A-brands. Ontex volumes were in line with the softer retailer brand market in the region. In North America, the decline of the retailer brand demand also persisted, but Ontex’s sales in this segment continued to grow thanks to new and previously realized contract gains. Sales in contract manufacturing were lower, however, as anticipated. Furthermore, some contracts were exited in other overseas markets. Including slightly adverse forex, mostly the depreciation of the US dollar, revenue decreased by 5% overall versus last year. Adjusted EBITDA was €39 million, which is in line with Q4 2025, and 24% lower compared to €51 million in Q1 2025. The revenue decrease had a €(8) million year-on-y...