Ontex’s revenue of Core Markets (continuing operations) was €446 million ($492 million), up 15% like for like versus the first quarter of 2022, driven by double digit price increases across all businesses. In baby care revenue grew 10% like for like compared to last year, driven by continued volume growth of baby pants. In adult care revenue growth was 22% like for like, and also up quarter on quarter based on solid demand, both in healthcare and in retail channels. Feminine care revenue grew 16% like for like. Including favorable forex, total revenue growth was up 16% year on year, and 3% lower compared to the fourth quarter of 2022, reflecting more pronounced seasonality.

Volume and mix changes had no significant net impact. In Europe the product mix improved, including higher growth of baby pants and adult care. Volumes were stable, compared to the first quarter of 2022 which was boosted by price-driven forward-buying of customers. Market demand continues to be supportive for retail brands, gaining market share in an overall flat market. Ontex volumes in North America reduced in the quarter, due to more pronounced destocking at certain lifestyle customers, also affecting the product mix.

Prices were up 15% on average versus last year, with double digit price increases in all categories and major regions. Following the huge increase in raw material and other input costs, Ontex steadily rolled out price increases over the course of 2022 to mitigate the impact. While the majority of the pricing in this quarter is the effect of this, Ontex continued to execute additional pricing to recover cumulative cost inflation.

Gustavo Calvo Paz, Ontex’s CEO, says: “The solid improvement in the Group’s performance has continued during the first quarter with strong revenue growth cementing the momentum delivered throughout last year. Most importantly, we have turned the corner in the restoration of margins and thereby pursued the process of bringing down the leverage ratio through higher profitability. These results and the completion of the Mexican divestment are another positive step, as we accelerate our efforts to simplify our operations, increase efficiencies, strengthen relations with our customers, and secure our financing.”