Shaping a new Ontex with fundamental transformation that includes restructuring and growth plans. Business stabilizing, yet outlook revised to reflect a more volatile market environment
Inside information - Regulated information
- Outcome of the strategic review defines a clear path towards a more focused, resilient, cash-generating and value-driven Ontex:
- New productivity program with €40 million additional EBITDA identified to be delivered by end 2028 on top of previously committed savings target of €200 million, including 20% reduction in white collar positions outside manufacturing;
-
- Fundamental transformation of North American operations to prioritize profitability;
- Adult to become cornerstone of future growth, while protecting baby and feminine care positions in Europe through more targeted approach;
-
- New CFO and Head of North America, and establishment of a Transformation Management Office to drive execution;
- Transformation plan implementation resulting in non-cash impairment of € (144) million, and additional restructuring cost of € (30)-(35) million over the next 24 months.
- Business results continued to stabilize in Q2, yet H1 adj. EBITDA remained 9% below prior year on weaker Q1. Pricing and productivity actions are gaining momentum, but persistent input cost inflation and a more volatile market environment lead Ontex to revise its full-year outlook. Adj. EBITDA is now expected in a €165-180 million range versus €176 million in 2025.
- Leverage decreased to 3.2x over H1, benefiting from positive cash flow. New leverage outlook is to remain below 3.5x at year end, with sufficient financial liquidity to execute transformation plan.
CEO comments: Building a new Ontex
During my first six months as CEO, my priorities have been clear: stabilize performance in an increasingly volatile environment, define the next phase of value creation for Ontex and bring changes to leadership positions. We have made meaningful progress on all fronts.
The case for change
Market dynamics have evolved faster than expected, particularly in baby care, while the complexity of our product and manufacturing assets continues to limit efficiency. In North America, performance has not translated into the returns we expect from the investments made over recent years. At the same time, we continue to see significant opportunities in adult care in Europe, a structurally attractive market where Ontex already enjoys strong positions and competitive advantages. These developments make it necessary to fundamentally transform our business.
Our actions
In parallel with pricing and cost actions to address near-term pressures, we completed our strategic review. With the support of external advisors, we identified opportunities to fundamentally transform our operations, simplify the business, unlock additional productivity, improve cash generation and increase returns on capital.
Several initiatives are already underway. We are reinforcing accountability and speed across the organization and simplifying the operating model. Finally, to accelerate and sustain execution, we have put new leadership in Europe and North America, announced a CFO transition and established a Transformation Management Office that will be key to ensure we sustain the pace and the impact of our intended changes.
4 strategic shifts
Ontex is now entering its next phase, with a sharper focus on the categories, geographies and capabilities where it can create the greatest value for customers, shareholders, and employees. It is based on four major shifts:
- Increase structural efficiency by launching an ambitious and expanded Focus to Value program: A central pillar of the next phase, this program builds on the deep reviews done jointly with external advisors concluding a more transversal, cross-functional approach is needed to unlock additional productivity and raising the saving target by an incremental €40 million by the end of 2028, bringing the total savings at €240 million. These savings will strengthen, competitiveness, mitigate cost inflation, and restore margins. Starting in 2026, immediate actions are taken to further adjust the cost base. The program includes production and logistics optimization, simplification initiatives, lean manufacturing practices and a streamlined organizational structure. The latter is expected to result in a reduction of more than 20% of white-collar positions by the end of 2028 (excluding manufacturing positions). To execute this program, Ontex expects €(30) to €(35) million additional cash restructuring costs leading to a total amount of €(60) to €(65) million phased over the next 24 months, of which about €(20) million impacting the second half of 2026.
- Reset the approach in North America to prioritize profitability over volume growth and return to sustainable cash generation: While the investments made in recent years created valuable capabilities and capacity, changing market dynamics require a more disciplined allocation of capital and a sharper focus on returns, prioritizing segments where we can win profitably. With a new leadership in place, we are executing actions to adjust overall capacity and operational set-up, reviewing the customer portfolio, while exploring partnership opportunities. The reset will allow to return to sustained cash flow generation on a right-sized asset base.
- Accelerate adult care growth in Europe: Adult care, a structurally attractive, growing category where Ontex already holds a strong position, becomes the cornerstone of the company’s future growth. We will increase focus and invest in capacity, innovation, and go-to-market to reinforce our leadership and grow volume ahead of market.
- Adopt a more targeted approach to protect baby and feminine care positions in Europe: We will focus resources on the markets, customers and product segments where we can create sustainable value and earn attractive returns. We will further simplify our product and asset portfolio. To that end, we made targeted adjustments to best align and simplify the asset base and enhance future efficiency.
Balance sheet adjustments
As part of this strategic repositioning and commitment to align the asset base with future priorities, Ontex recorded non-cash impairments of €(144) million. The goodwill in North America accounts for €(51) million. The remaining €(93) million mostly relate to the simplification and adjustment of production capacity in baby and feminine care in both North America and Europe, for €(55) million and €(38) million respectively, consistent with the ambition to simplify operations further. This impairment is impacting the operating profit in H1 2026.
Path forward & priorities for H2
We are now building a leaner, more efficient and cash-generating Ontex. We are clear on what to change, and we intend to share more of our progress in the coming months, including our financial mid-term ambition and the associated building blocks. Short-term, our priorities are:
- Continue pricing actions to offset higher input costs;
- Deliver additional productivity and efficiency gains through the Focus to Value program;
- Ramp-up new assets in adult care;
- Preserve balance sheet strength and financial flexibility while executing the transformation agenda;
- Continue to re-align the organization with future requirements.
H1 2026 report
Key business indicators [1]
| Business results | Q2 | H1 | ||||
| in € million | 2026 | 2025 | % | 2026 | 2025 | % |
| Revenue | 428.5 | 429.7 | -0.3% | 854.8 | 880.3 | -2.9% |
| Operating expenses (excl. DA) | (389.0) | (394.0) | +1.3% | (776.7) | (794.1) | +2.2% |
| Adj. EBITDA | 39.5 | 35.7 | +11% | 78.1 | 86.2 | -9.4% |
| Adj. EBITDA margin | 9.2% | 8.3% | +0.9pp | 9.1% | 9.8% | -0.7pp |
| Income and expenses related to changes to Group structure | (6.6) | (0.3) | n.a. | (9.3) | (2.5) | n.a. |
| Income and expenses related to major litigations | 0.0 | (0.0) | n.a. | (0.2) | (0.4) | n.a. |
| Income and expenses related to impairments of assets | (143.7) | (2.3) | n.a. | (143.9) | (2.4) | n.a. |
| Depreciation & amortization | (21.8) | (19.2) | -14% | (42.2) | (38.1) | -11% |
| Operating profit/(loss) | (132.6) | 13.9 | n.a. | (117.5) | 42.8 | n.a. |
| Revenue | 2025 | Volume | Price | 2026 | Forex | 2026 |
| in € million | /mix | LFL | ||||
| Q2 | ||||||
| Adult care | 203.7 | +0.0 | -1.3 | 202.4 | +0.8 | 203.2 |
| +0.0% | -0.6% | -0.6% | +0.4% | -0.2% | ||
| Baby care | 163.7 | +5.6 | -2.8 | 166.6 | -0.7 | 165.9 |
| +3.4% | -1.7% | +1.7% | -0.4% | +1.3% | ||
| Feminine care | 57.8 | -2.3 | -1.5 | 54.0 | +0.1 | 54.1 |
| -4.1% | -2.6% | -6.6% | +0.2% | -6.4% | ||
| Group | 429.7 | +3.3 | -4.8 | 428.2 | +0.3 | 428.5 |
| +0.8% | -1.1% | -0.4% | +0.1% | -0.3% | ||
| H1 | ||||||
| Adult care | 406.1 | +3.4 | -0.0 | 409.5 | +0.5 | 410.0 |
| +0.8% | -0.0% | +0.8% | +0.1% | +1.0% | ||
| Baby care | 351.9 | -15.3 | -2.4 | 334.1 | -6.1 | 328.0 |
| -4.4% | -0.7% | -5.1% | -1.7% | -6.8% | ||
| Feminine care | 114.0 | -4.3 | -2.6 | 107.0 | -0.4 | 106.7 |
| -3.8% | -2.3% | -6.1% | -0.3% | -6.4% | ||
| Group | 880.3 | -16.3 | -3.4 | 860.7 | -5.9 | 854.8 |
| -1.8% | -0.4% | -2.2% | -0.7% | -2.9% |
| Adj. EBITDA | 2025 | Reve- | Net | Forex | 2026 |
| in € million | nue | costs | |||
| Q2 | 35.7 | -4.0 | +7.1 | +0.8 | 39.5 |
| -11% | +20% | +2.2% | +11% | ||
| H1 | 86.2 | -12.2 | +2.4 | +1.8 | 78.1 |
| -14% | +2.7% | +2.1% | -9.4% |
[1] Business indicators represent continuing operations. In 2025 the Emerging Markets businesses, which have been divested meanwhile, were still contributing to the total result, reported as assets held for sale and discontinued operations.
H1 2026 business results
Revenue was €855 million, decreasing by 2% like for like on a year-on-year basis, broadly in line with the overall market trend. With the combined price and product mix impact largely stable, the year-on-year decrease was entirely attributable to lower volumes. These were up by 1% in adult care, reflecting solid demand in the European healthcare channel, whereas in the retail channel volumes were more subdued, linked to underperformance of some customers and to capacity constraints earlier in the year. In feminine care, Ontex’s volumes decreased by 4%, as a result of lower sales in contract manufacturing, while in retail it grew slightly better than retailer brands overall in Europe. In baby care, Ontex’s volumes came out 4% lower, linked to anticipated lower sales in contract manufacturing in North America and some contract exits in other overseas markets. Ontex’s baby care volumes for retailer brands outperformed the soft market segment thanks to double-digit growth in baby pants. Including adverse forex, mostly the US dollar depreciation, revenue decreased by 3% overall versus last year.
Adjusted EBITDA was €78 million, 9% lower year on year, entirely linked to the lower revenue, which had a €(12) million year-on-year impact. The on-going productivity program mitigated supply chain inefficiencies encountered earlier this year and the inflationary pressure on input costs. The crisis in the Middle East has been driving transportation costs up since March, whereas raw material prices, especially for oil-derivatives, rose mostly as from June. Pricing pass-through actions still had limited impact in Q2 yet Ontex benefitted from the additional SG&A productivity actions, leading to an overall €2 million net cost improvement. The translational forex impact was slightly positive, adding €2 million. The adjusted EBITDA margin contracted by 0.7pp versus H1 2025 to 9.1%.
Operating profit was €(118) million, compared to €43 million in H1 2025. It includes €(42) million depreciation and amortization, as well as one-off costs and non-cash impairments. The former totaled €(9) million net, consisting of €(21) million mostly restructuring provisions, including initial restructuring costs related to the Focus to Value program, as well as a €12 million positive provision related to the recovery of undue paid taxes in the meanwhile divested Brazilian operations. The strategic review also triggered €(144) million impairments to realign the asset base, of which €(93) million tangible asset impairments and €(51) million goodwill.
Q2 2026 business results
Revenue was €428 million, broadly stable sequentially and year on year. Adult care volumes were overall flat, with robust performance in healthcare offset by somewhat weaker volumes in the retail channel. In baby care volumes were up 3%, boosted mainly by continued growth of baby pants. Baby volumes in the retail channel were up both in Europe and in North America, compared to mid-single digit decrease of demand for retailer brands in the regions. Including contract manufacturing in North America, however, volumes were down, as anticipated. Feminine care volumes decreased by 4%, also entirely linked to a decrease in contract manufacturing.
Adjusted EBITDA was €40 million, slightly better than in Q1 2026 and up 11% compared to Q2 2025, which had been impacted by production disruption in Europe. The year-on-year revenue impact was negative for €(4) million, as the volume increase was offset by the slightly lower sales price. The on-going productivity program more than offset the inflationary pressure on input costs, i.e. the higher transportation costs and, since June, the higher raw material prices. The overhead structure productivity initiative brought SG&A costs further down, despite continued salary inflation. Costs thereby improved by €7 million net. The adjusted EBITDA margin improved by 0.9pp to 9.2% versus Q2 2025, and by 0.1pp versus Q1 2026, reflecting further progress on stabilizing the business and operations.
Operating profit was €(133) million, compared to €14 million in Q2 2025, and besides €(22) million depreciation and amortization includes €(7) million net restructuring provisions and €(144) million non-cash impairments, as described above.
Key financial indicators
| P&L and cash flow | H1 | ||
| in € million | 2026 | 2025 | % |
| Adj. EBITDA | 78.1 | 86.2 | -9.4% |
| Depreciation & amortization | (42.2) | (38.1) | -11% |
| Adj. EBIT | 35.9 | 48.1 | -25% |
| Net finance cost | (19.1) | (43.3) | +56% |
| Adj. income tax expense [2] | (8.3) | (4.5) | -84% |
| Adj. profit/(loss) from continuing operations | 8.5 | 0.3 | +2747% |
| EBIT adjustments [2,3] | (153.4) | (5.3) | n.a. |
| Impact of EBIT adjustments on income tax | 1.9 | 1.3 | n.a. |
| Profit/(loss) from continuing operations | (143.0) | (3.7) | -3774% |
| Profit/(loss) from discontinued operations | 0.0 | (111.1) | n.a. |
| Profit/(loss) for the period | (143.0) | (114.8) | -25% |
| Basic EPS | (1.79) | (1.43) | -25% |
| Capex | (29.2) | (44.5) | +34% |
| Free cash flow | 6.6 | (40.3) | n.a. |
| Balance sheet | 30/06 | 31/12 | |
| in € million | 2026 | 2025 | % |
| Net working capital | 77.3 | 89.0 | -13% |
| Net working capital / revenue | 4.5% | 5.1% | -0.6pp |
| Gross financial debt | 619.0 | 647.4 | -4.4% |
| Cash and cash equivalents | 79.1 | 70.4 | 12.4% |
| Net financial debt | 539.8 | 577.0 | -6.4% |
| Leverage ratio | 3.22x | 3.29x | -0.06x |
[2] The adjusted income tax expense consists of the income tax expense, as presented in the income statement, adjusted for the impact of EBIT adjustments.
[3] EBIT adjustments are made for Income and expenses related to changes to Group structure, major litigations and impairments of assets. Combined with their impact on income tax, these are subtracted from adjusted profit to obtain profit.
H1 2026 financial results
Adjusted profit was €9 million, versus €0 million for continuing operations in H1 2025, which had been negatively impacted by a temporary effect of net exchange differences that were offset in H2. Net financial costs for H1 2026 were €(19) million and adjusted income tax was €(8) million.
Loss for the period was €(143) million, compared to €(115) million in H1 2025. Both figures are negative due to significant one-time non-cash movements, i.e. the afore-mentioned impairments in H1 2026, whereas in H1 2025 the Brazilian divestment triggered the non-cash recycling of cumulative translation reserves.
Free cash flow improved to €7 million from €(40) million in H1 2025. The lower adjusted EBITDA was compensated by €4 million working capital improvements and a €5 million positive effect on employee benefits caused by the pay-out in 2026 of the low 2025 variable remuneration. Capex was €(29) million, relatively lower at 3.4% of revenue, due to phasing over the year halves. Restructuring cash-out amounted to €(11) million, related to the finalization of the Belgian footprint optimization program and initial actions of the Focus to Value program. Cash-out for financing was €(20) million. The capex, restructuring, and financing cash-outs came out lower than in H1 2025, thereby positively impacting the year-on-year comparison.
Net working capital was €77 million at the end of June, compared to €89 million at the start of the year, with the ratio over revenue improving by 0.6pp to 4.5% as a result of continuous efforts to improve inventory levels and payment terms. Off balance-sheet factoring at the end of June was €187 million, largely stable compared to the start of the year.
Net financial debt was €540 million at the end of June, compared to €577 million at the start of the year. The €37 million improvement is attributable to the positive free cash flow and positive M&A cash inflow. The latter consists of the repatriation during Q1 of the cash position in Algeria, which had been reclassified as financial asset in 2025, netted with some remaining post-closing divestment adjustments. Lease positions, included in the debt, were broadly unchanged versus the start of the year at €146 million. Ontex’s liquidity position thereby strengthened to €279 million, encompassing €79 million cash and cash equivalents, and the 75% undrawn portion of the €270 million revolving credit facility. The net financial debt reduction more than offset the impact of the lower last-twelve-months adjusted EBITDA contribution, improving the leverage ratio from 3.3x to 3.2x over the half year.
2026 outlook
As announced earlier this year, Ontex is impacted by the increased geopolitical instability, leading to volatile and inflationary input costs, and a shift in consumer patterns. Mitigation actions, encompassing pricing pass-through actions, mix management and efficiency improvement measures, are being implemented. As market challenges continue, including a faster and greater cost impact than initially planned over Q2 and Q3, as well as continued soft demand, Ontex revises its 2026 full year outlook and broadens its range. It now expects:
- Adjusted EBITDA to end up between €165 and €180 million, or ‑6% to +3% versus €176 million in 2025 (previously to increase by around 10%). The performance is based on largely stable revenue and improving margin in H2, as pricing pass-through actions are kicking in and productivity actions accelerate.
- Free cash flow to be between €(25) and €(10) million (previously to turn positive versus €(25) million in 2025). This reflects the lower adjusted EBITDA outlook and higher restructuring cash-out related to initial initiatives of the Focus to Value program.
- Leverage ratio to remain below 3.5x at year end (previously to decrease to 3.0x or lower, from 3.3x at the end of 2025).
Strategic review update
Ontex has concluded the its strategic review and set out a clear path to resume sustained value creation. The review builds on the transformation of recent years, including the refocus in Europe and North America on retailer and healthcare brands, as well as major investments over the 2023–2025 period to expand capacity. Ontex will have a sharper focus on the categories, geographies and capabilities where it can create the greatest value for customers, shareholders, and employees. It is based on four major shifts:
- Increase structural efficiency by launching an ambitious and expanded Focus to Value program, raising the productivity target by an incremental €40 million by the end of 2028, bringing the total savings at €240 million;
- Reset the approach in North America to prioritize profitability over volume growth and return to sustainable cash generation;
- Accelerate adult care growth in Europe;
- Adopt a more targeted approach to protect baby and feminine care positions in Europe.
As part of this strategic repositioning and commitment to align the asset base with future priorities, Ontex recorded non-cash impairments of €(144) million of which €(51) million on the goodwill in the North American business, and €(93) million mostly related to the simplification and adjustment of production capacity in baby and feminine care in both North America and Europe. In addition, Ontex expects €(30) to €(35) million additional cash restructuring costs for a total amount of €(60) to €(65) million phased over the next 24 months.
To ensure rapid results, a transformation management office has been established with dedicated senior resources in both North America and Europe. They aim to bring more robust governance, support complex cross-functional initiatives to properly balance day-to-day business needs with the transformation required, minimizing the implementation costs and potential disruptions from the initiatives. The transformation management office will be the leading change agent to embed the owner-operator culture needed to build a new leaner, more efficient and cash-generating Ontex.
The strategic committee will continue to work with management to identify additional value-creation opportunities.
Practical information
Disclaimer
This report may include forward-looking statements. Forward-looking statements are statements regarding or based upon our management’s current intentions, beliefs or expectations relating to, among other things, Ontex’s future results of operations, financial condition, liquidity, prospects, growth, strategies or developments in the industry in which we operate. By their nature, forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results or future events to differ materially from those expressed or implied thereby. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this report regarding trends or current activities should not be taken as a report that such trends or activities will continue in the future. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any such forward-looking statements, which speak only as of the date of this report.
The information contained in this report is subject to change without notice. No re-report or warranty, express or implied, is made as to the fairness, accuracy, reasonableness or completeness of the information contained herein and no reliance should be placed on it. Amounts in the report are shown mostly in € million for reasons of transparency. This may give rise to rounding differences. This report has been prepared in Dutch and translated into English. In the case of discrepancies between the two versions, the Dutch version will prevail.
Corporate information
The financial information in this document of Ontex Group NV for the six months ended June 30, 2026 was authorized for issue in accordance with a resolution of the Board on July 29, 2026.
Audio webcast
Management will host an audio webcast for investors and analysts on July 30, 2026 at 12:00 CEST / 11:00 BST. To attend, click on https://ontexgroup.engagestream.euronext.com/q2-2026-results. A replay will be available on the same link shortly after the live presentation. A copy of the presentation slides will be made available beforehand on https://ontex.com/investors/results-reports.
Financial calendar
- October 28, 2026 Q3 2026 results publication
- February 11, 2027 Q4 & full year 2026 results publication
- April 30, 2027 Q1 2027 results publication
- May 5, 2026 Annual general meeting
- July 29, 2026 Q2 & H1 2027 results publication
Enquiries
| Investors | Geoffroy Raskin | +32 53 333 730 | investor.relations@ontexglobal.com |
| Media | Catherine Weyne | +32 53 333 622 | corporate.communications@ontexglobal.com |
About Ontex
Ontex is a leading international developer and producer of baby care, feminine care and adult care products, both for retailers and healthcare, primarily in Europe and North America. The group employs around 5,000 people, with plants and offices in 12 countries, and its innovative products are distributed in around 100 countries. Ontex is headquartered in Aalst, Belgium and is listed on Euronext Brussel. To keep up with the latest news, visit ontex.com or follow Ontex on LinkedIn.
ONTEX Group NV Korte Keppestraat 21 – 9320 Erembodegem (Aalst) – Belgium 0550.880.915 RPR Ghent – Division Dendermonde
Attachment
