Double digit price increases and sustained volume, mix and cost reduction delivery, counter the further cost inflation, improving EBITDA sequentially
Record revenue, with LFL growth of 17%, outperforming the market, driven by volume, mix and pricing
Full year outlook confirmed
2022 Q3 results
Revenue [1] of Core Markets was €432 million, up 17% like for like versus 2021, of which 11% from overall higher prices, and 6% volume/mix growth, primarily in baby pants, feminine care and in North America. Including favorable forex, total revenue growth was up 23% year on year, and 9% compared to Q2, marking six consecutive quarters of sequential growth.
Adjusted EBITDA [1] of Core Markets was €24 million, down 41% year on year, but marking a 28% improvement quarter on quarter. Revenue growth contributed €48 million and operating savings €15 million to the year-on-year evolution, partly offsetting the adverse impact of raw material and operating cost inflation of €81 million. The adjusted EBITDA margin thereby dropped to 5.6%, down 6.1pp versus Q3 2021, and up 0.8pp versus Q2 2022.
Total Group revenue, including the discontinued Emerging Markets, was a record €638 million, up 17% like for like versus 2021, with pricing and volume/mix contributing 13% and 4% respectively. Adjusted EBITDA came in at €35 million, down 12% year on year, but up 41% quarter on quarter demonstrating the strong recovery. The adjusted EBITDA margin of 5.5% was down 2.3pp versus Q3 2021, and up 1.4pp versus Q2 2022.
Net debt for the total Group was €895 million at the end of September, compared to €826 million at the end of June, reflecting the increasing working capital needs on growing sales. The net debt does not take into account the expected net proceeds of about €250 million from the divestment of the Mexican business activities announced in July. Combined with a lower last-twelve-months adjusted EBITDA, the leverage ratio peaked at 7x compared with 6.8x at the start of the quarter. Based on annualized adjusted EBITDA of the last quarter, the leverage ratio started to decrease.
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Ontex Group NV published this content on 10 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2022 06:16:11 UTC.
Ontex Group NV is one of the world's leaders in manufacturing and marketing disposable hygiene products for children and adults. Products are sold under distributor and own brands (Canbebe, Canped, Helen Harper, iD, Serenity and Lille) via distribution areas, health facilities and drugstores. Net sales break down by product family as follows:
- baby care products (45.7%): baby diapers, baby pants and wet wipes;
- incontinence products (39.1%): panties and adult diapers, incontinence pads and bed pads;
- feminine hygiene products (13.3%): pads, panty liners and tampons;
- other (1.9%): primarily cosmetics and medical gloves.
Net sales are distributed geographically as follows: the United Kingdom (15.2%), France (10.9%), Italy (10.8%), the United States (12.3%) and other (50.8%).
ONTEX GROUP NV 
