Ontex reported a sales increase of 17% in Core Markets for the third quarter when sales reached €432 million due to higher selling prices (11%) and volume/mix growth (6%) in baby pants, feminine care and overall revenue growth in North America. The quarter marked six consecutive quarters of growth. Meanwhile, EBITDA of care markets was down 41% to €24 million, compared to last year, but marked a 28% improvement for the previous quarter. Total group sales, including the discontinued Emerging Markets, was a record €638 million, up 17%, on improved pricing and voume mix.

The volume and mix increase of 6% was based on strong market momentum supplemented by the contract gains secured in 2021 both in Europe and North America. Retail brands are gaining market share in Europe, as consumers seek better value-for-money alternatives, mostly in feminine care and baby pants. The year-on-year uplift is in line with the second quarter but lower than the first quarter, as it benefitted from pre-loading by customers.

Prices were up 11% on average versus last year, an acceleration versus 2% in the first quarter and 5% in the second. Price increases were reflected in all categories and will further support revenue going forward, responding to the inflation of input costs.

In baby care revenue grew 15% like for like compared to last year, driven by strong double digit growth of baby pants, benefitting from a new product range, share gains by our customers, and the success of retail brands. In adult care revenue growth was 14% like for like, mostly driven by pricing and volume growth in retail channels. Feminine care revenue grew 29% like for like, mostly driven by the success of retail brands.

While the uncertain geo-political environment and resulting volatile inflationary macro-economic situation persists, Ontex confirmed its full year 2022 outlook and expects revenue of core markets an the total Group to grow about 15% like for like, pursuing the positive growth momentum and delivering on further price increases.  Adjusted EBITDA of Core Markets is expected be within a €100 to €110 million range, while total Group adjusted EBITDA, including discontinued Emerging Markets, is expected at the high end of the previously shared range of €125 to €140 million.

Peter Vanneste, Ontex’s CFO, says, “I believe that we are now at a turning point with a start to our performance recovery visible in the Q3 results, and this despite the continued sequential cost inflation. Our strong revenue growth shows that Ontex’s reputation for innovative and high quality products remains solid. The Group’s profitability has now started to recover from the low point in Q2 and will continue to do so in Q4.”