For the full year 2023, Ontex’s revenue was €1.8 billion ($1.9 billion), a 10% like-for-like improvement, driven by price increases across all categories. In a generally lower market, volumes were stable and grew in selected categories, such as pants. In adult care revenue growth was 16% like for like, with strong growth in the healthcare channel. Baby care revenue grew 5% like for like and feminine care 9%, both on pricing. Including the adverse forex effect, revenue was up 7%.

Volume and mix were overall stable. In Europe, lower overall demand for baby care was offset by retail brand share gains, owing to consumers shifting to better value-for-money alternatives. In feminine care market share gains by retailer brands led to growth, whereas the overall demand was slightly down. Demand for adult care products continued to grow, both for branded products and for retail brands. Ontex European sales volumes were overall in line with the retail brand trends, but outperformed in baby pants, and realized strong growth in the healthcare channel. In North America demand for retail brands decreased more than the overall market. Ontex sales volumes in North America were in line with the market, as new contract gains in the second half offset softer sales in the first half, which was subject to some customer destocking.

Prices were up 9% on average, a strong increase visible across categories and especially in the healthcare channel, where the ramp-up in 2022 was slower. The majority of the year-on-year price increase in 2023 is the effect of the price roll-out in 2022 to mitigate the impact of the huge increase in raw material and other input costs. In the first half of 2023, prices still rose sequentially, but they started to decrease slightly in the second half, reflecting decreasing raw material prices. Combined over the last two years this represents an overall increase of 18%.

In the fourth quarter of 2023, revenue was €446 million ($480 million), stable like for like. While the year-on-year price increase reduced, in line with lower input costs, it retained a positive impact, offsetting slightly lower volumes. Baby care revenue was down 9% and feminine care down 3% like for like, compared to a high comparable in 2022. Adult care sales continued to grow strongly by 13% like for like, both on volume and on price. Overall revenue came in lower at 3% due to adverse forex.

Volume and mix impacted revenue negatively by 3%, compared to a strong last quarter of 2022 when promotional activities in Europe boosted baby care sales in December, and phasing by certain customers in North America drove orders for baby and feminine care up temporarily. This reduction was partly offset by continued growth in selected product categories and in adult healthcare channels.

Prices were up 3% on average versus last year. While prices have been coming down slightly since the second quarter, managed in function of sequentially decreasing raw material costs, year on year they retained a positive impact.