In 2021, Ontex’s revenue was €2.026 billion ($2.3 billion), down 1.5% like for like on lower volumes. Prices remained overall stable with a year-on-year increase in the second half of the year offsetting the decrease in the first half. Increases in the AMEAA division in the second half accelerated in the fourth quarter, offsetting a decrease in the Europe division resulting from pricing investments on tenders made in 2020 and early 2021. Volumes were down 1.4%, with improving performance in the second half, despite the impact of supply chain disruptions. These were particularly felt in the feminine care category, as well as some lifestyle brands where specialized raw materials were unavailable. 

In the Europe division revenue was down 5.7%, mainly on lower volumes and to a lesser extent price, but showed improvement in the second half. Growth in adult care continued, driven by continued progress and share gains in the retail & pharma markets, which more than offset softness in the institutional channel. In baby and feminine care sales were lower, mostly due to lost tenders in the prior years, and to supply chain disruption in the second half. The tender gain-loss balance which had been consistently negative over the last three years, reduced and was flat in the second half, turning positive in the last quarter and entering 2022.

In the AMEAA division revenue was up 5.6% like for like, on volume, mix and price increases and across main geographies. In North America revenue growth was volume-driven, gaining share in private label business with contract wins. The scope impact from the acquisition of feminine hygiene assets mid-2020 offset the lower U.S. dollar forex impact. In Central America the growth was more subdued and linked to adult care and the launch of baby pants. In South America revenue was spurred by pricing and volume growth in both adult and baby care, the latter with renewed brands. In the Middle East pricing was well up as well, but volume growth in adult was offset by lower sales in baby care.

Revenue in the fourth quarter was up 0.7% like-for-like as a result of 2.5% higher overall prices, coming from the AMEAA division, more than offsetting a 1.8% volume and mix contraction, mainly in the Europe division. Including the positive effect of forex fluctuations, i.e. the appreciation of the Mexican peso, Brazilian real and U.S. dollar, total revenue grew 1.5%.

In the Europe division revenue was 3.2% lower like-for-like. Volumes were down year on year in baby care and to a lesser extent feminine care, as supply chain disruptions continued to affect timely delivery. The underlying volume trend is solid, however, as the net gains/losses balance of major contracts is turning positive. In adult care volumes were well up. Prices were still lower year on year, subsequent to the price investments made earlier, but less toward year end as pricing initiatives started to have an effect, albeit slow due to the contracts structure.

In the AMEAA division prices were up. Ontex raised prices for its own brands, which make up the majority of its sales in emerging markets. The overall impact in these regions on volume was neutral. In North America, which is predominantly a partner brand business, effective price increases were limited so far. Volumes in that region were well up, mainly in baby care, despite the input supply chain complications.