Ontex Group NV — Earnings Release 2024

Feb 19, 2025

Strong revenue growth, margin expansion and FCF delivery in 2024, while investing significantly and reaching key transformation milestones

• Portfolio refocus nearly complete and major steps taken in transforming European and North American footprint;

• Innovation and operating efficiencies strengthened competitiveness, leading to 6% volume & mix growth and 28% adj. EBITDA increase;

• Solid operational result facilitated step up of investments in transformation and growth, while raising FCF to €48 million;

• 2025 outlook for revenue to grow by 3% to 5% LFL, adj. EBITDA by 4% to 7%, and FCF to remain strong;

CEO quote

Gustavo Calvo Paz, Ontex's CEO, said: "We achieved key strategic milestones last year, thanks to the dedication of Ontex's teams. With all planned strategic divestments finalized or agreed, we will be fully focused on retailer and healthcare brands by end 2025. We also achieved a major step to make our European footprint leaner, with the transformation of our Belgian operations to be finalized early 2026. These measures are necessary to continue driving our competitiveness and profitability, as we did in the last two years. We achieved strong volume growth in 2024, in North America, and in selected categories in Europe. Our biggest category has now become adult care, positioning us well to serve the needs of a growing and more active elderly population. Our margins expanded back to our historic levels, and while we continue to invest in our transformation, our free cash flow delivery has strengthened further. I have confidence that we will drive our free cash flow up over time, as we execute our growth and efficiency plans, and as the step-up investment phase of our transformation journey will fade down after 2025."

FY 2024 results

• Revenue [1] was €1,860 million, up 3.5% like for like. Volumes were up 5.7% including mix effects, growing in all categories, and by double digits in baby care in North America, as well as in adult care and baby pants in Europe. Sales prices were 2.2% lower, reflecting the decrease of raw material indices and investments in increased competitiveness. Forex fluctuations were positive, adding 0.2%, bringing total growth at 3.7%.

• Adjusted EBITDA [1] was €223 million, up 28%. Sustained delivery of the cost transformation program added €70 million, driving competitiveness and profitability. Volume and mix growth contributed €21 million and lower prices had a €(39) million effect. While lower raw material prices, in line with indices, added €39 million, continued inflation drove other operating and SG&A costs up by €(28) million and €(10) million respectively. Forex fluctuations had an adverse effect of €(3) million. The adjusted EBITDA margin [1] rose to 12.0%, up 2.3pp year on year. The operating profit[1] was €76 million, including one-time restructuring expenses of €(73) million, primarily related to the restructuring of the Belgian operations.

• Adjusted profit from continuing operations doubled to €76 million, and including the one-time restructuring charges, profit from continuing operations was €21 million. The loss from discontinued operations was €(11) million, reflecting lower adj. EBITDA due to the scope reduction, and divestment-related one-time costs. The profit for the period for the Total Group was thereby €10 million.

• Free cash flow amounted to €48 million, a significant increase compared to €9 million in 2023. Strong operational delivery and working capital management, more than offset the temporary step-up in investments to transform the Group in an accelerated way. Capital expenditure rose to €(112) million, reaching close to 6% of revenue in Core Markets, and €(39) million one-time spent was related mostly to the transformation of the Belgian operations.

Net financial debtfor the Total Group dropped €53 million to €612 million over the year. Combined with the adjusted EBITDA improvement, the leverage ratio was brought down from 3.25x at the start of the year to 2.46x at the end.

Q4 2024 results

• Revenue [1] was €476 million, up 6.6% like for like versus 2023. Volumes were up 9.0% including mix effects, and grew in all categories. The increase was driven primarily by the growth acceleration in North America as well as sustained growth in selected categories in Europe. As anticipated, sales prices were largely stable sequentially, and 2.4% lower year on year, reflecting the past raw material index decreases and investments in increased competitiveness. Forex fluctuations were supportive, adding 0.2%, bringing total growth at 6.8% year on year.

• Adjusted EBITDA [1] was €57 million, up 22% year on year. The cost transformation program delivered €17 million, driving stronger profitability and competitiveness. Volume and mix growth contributed €7 million. Sales prices had a €(11) million adverse impact. While raw material prices were stable overall year on year, continued inflation drove other operating costs up by €(6) million. SG&A costs were stable sequentially, but €4 million lower than in 2023. Forex fluctuations had an adverse effect of €(1) million. The adjusted EBITDA margin rose to 11.9%, up 1.5pp year on year. The operating profit[1] was €36 million, versus €23 million in 2023, reflecting the strong operational improvement.

• Discontinued operations generated an operating loss of €(5) million, compared to a profit of €13 million in 2023. Revenue was 8.4% lower like for like and the adjusted EBITDA margin dropped to 5.6%, reflecting more challenging market conditions in Brazil. The operating result also includes an impairment of €(6) million on the Turkish assets, triggered by the divestment process.

Strategic developments since Q4 2024

• In November, Ontex entered into a new syndicated facilities agreement, encompassing a new revolving credit facility with a maximum drawable amount of €270 million and a five-year maturity. The new facility replaces the previous one, which had maximum drawable amount of €242 million, and similarly holds a floating interest rate based on EURIBOR plus a margin, subject to certain conditions including the leverage ratio.

• In December, Ontex launched a share buyback program to acquire a maximum of 1.8% of its issued shares by June 2025. The acquired shares are to contribute to meeting Ontex's obligations under its current and future long-term incentive plans.

• In January 2025, Ontex reached a binding agreement to sell its Turkish business activities to Dilek Grup for an enterprise value of approximately €24 million, net of cash disposed, and prior to taxes and transaction costs. The closing is expected during the third quarter of 2025 subject to customary conditions. With this agreement, Ontex will conclude its strategic refocus on retailer and healthcare brands in Europe and North America in 2025. Including the previously announced divestment of the Brazilian business, about €100 million net proceeds are expected to be received in the year.

2025 outlook

Based on solid delivery in the last two years, Ontex is well positioned to successfully complete its intensive three-year transformation journey, and thereby expects the following for 2025:

• Revenue to grow by 3% to 5% like for like, supported by double-digit volume growth in North America;

• Adjusted EBITDA to grow by 4% to 7%, supported by revenue growth and further improvement of operational efficiencies;

• Free cash flow to remain strong, while continuing the step-up of investments in Ontex's transformation. This stepup will be nearing completion by the end of 2025.

Key business indicators

Business results	Q4			Year
in € million	2024	2023	%	% LFL	2024	2023	%	% LFL
Core Markets (continuing operations)
Revenue	476.5	446.0	+6.8%	+6.6%	1,860.5	1,794.7	+3.7%	+3.5%
Adult Care	205.7	191.5	+7.4%	+7.5%	800.5	736.4	+8.7%	+9%
Baby Care	201.4	191.2	+5.4%	+5.1%	793.4	790.0	+0.4%	-0.1%
Feminine Care	59.5	57.3	+3.7%	+3.2%	236.6	241.3	-1.9%	-2.5%
Adj. EBITDA	56.8	46.5	+22%		222.6	173.9	+28%
Adj. EBITDA margin	11.9%	10.4%	+1.5pp		12.0%	9.7%	+2.3pp
Operating profit	36.3	23.5	+55%		75.8	88.3	-14%
Emerging Markets (discontinued operations) [2]
Revenue	72.7	98.7		-8.4%	306.9	546.8		-5.5%
Adj. EBITDA	4.1	11.8			29.2	49.4
Adj. EBITDA margin	5.6%	12.0%	-6.4pp		9.5%	9.0%	+0.5pp
Operating profit/(loss)	( 4.6)	12.8			2.1	22.3
Total Group [2]
Revenue	549.2	544.7		+4.3%	2,167.4	2,341.5		+2.0%
Adj. EBITDA	60.8	58.3			251.9	223.3
Adj. EBITDA margin	11.1%	10.7%	+0.4pp		11.6%	9.5%	+2.1pp
Operating profit	31.8	36.2			77.9	110.6

Core Markets revenue	2023	Vol/mix	Sales	2024	Forex	2024
in € million			price	LFL
Q4	446.0	+40.2	-10.7	475.5	+1.0	476.5
Year	1,794.7	+101.8	-39.2	1,857.2	+3.3	1,860.5

Core Markets adj. EBITDA [3]	2023	Vol/mix	Raw	Operat.	Operat.	SG&A/	Forex	2024
in € million		/price	mat'ls	costs	savings	Other
Q4	46.5	-3.7	-0.1	-5.6	+17.0	+3.9	-1.1	56.8
Year	173.9	-18.4	+38.8	-28.2	+69.8	-9.8	-3.5	222.6

[1] Reported P&L figures, represent continuing operations, i.e. Core Markets, only. As from 2022, Emerging Markets are reported as assets held for sale and discontinued operations, following the strategic decision to divest these businesses.

• [2] The Emerging Markets and Total Group year-on-year comparison is affected by divestments, i.e. the Mexican business activities in 2023 and the Algeria and Pakistan ones in 2024. The LFL comparison is corrected for this scope reduction.
• [3] The adjusted EBITDA bridge methodology was changed in order to only present currency translation effects separately, whereas before all foreign exchange and hedge effects were presented separately.

Unless otherwise indicated, all comments in this document are on a year-on-year basis and for revenue specifically on a like-for-like (LFL) basis (at constant currencies and scope and excluding hyperinflation effects). Definitions of Alternative Performance Measures (APMs) in this document can be found on page 10.

Full year 2024 business review of Core Markets (continuing operations)

Revenue

Revenue was €1,860 million, up 3.5% like for like, driven by strong volume and mix growth, which more than offset the anticipated lower prices. Including slightly supportive forex, revenue was up 3.7%.

Volumes grew in all categories, and were up 5.7% overall including mix effects, outperforming the market in Europe and especially in North America, which remained overall stable. Market demand for adult care products in European retail was up by mid-to-high single digits, supported by societal trends with an increasing and more active elderly population, and with retailer brands gaining market share. Ontex's volume/mix grew by double digits, mainly thanks to market share gains in the institutional channel. While market demand for feminine care products in Europe was largely stable, retailer brands gained share, and Ontex's sales volumes grew in line. Market demand for baby care products in Europe decreased by low single digit, reflecting the decreasing birth rate. Retailer brands consolidated their market share gains made in 2023, when consumers switched to better value-for-money alternatives. Ontex's baby care volumes in Europe were lower, largely in line with the market, albeit with a switch in the portfolio to more premium products, like baby pants, where volumes grew by double digits. Demand for baby care products in North America was largely stable, albeit that A-brands lost some market share to retailer and lifestyle brands. Ontex volumes were up by strong double digit growth in the region, boosted by contract gains with retailers, which started in the second half of 2023 and throughout 2024.

Sales prices were lower across categories, down 2.2% overall. This was expected, reflecting planned investments in competitiveness, and adjustments for the decrease of raw material price indices since end 2023.

Forex fluctuations were supportive, adding 0.2%, mainly thanks to the appreciation of the British pound and the Polish zloty, which compensated for the depreciation of the Russian ruble.

Adjusted EBITDA

Adjusted EBITDA was €223 million, up 28%. Volume and mix growth contributed €21 million, and strong delivery of the cost transformation program €70 million. Lower sales prices for €(39) million, were offset by index-driven raw material tailwinds. Other operating and SG&A costs rose with inflation, however.

The cost transformation program delivered €70 million net operating savings, leading to a reduction of the operating cost base by 4.6% year on year, based on purchasing, supply chain, product innovation and manufacturing initiatives.

Raw material prices had a €39 million positive impact, in particular for super-absorbent polymers and for fluff. Raw material indices started to rise sequentially again in the second half of 2023 and first quarter of 2024, but largely stabilized since.

Other operating costs were up by €(28) million, largely due to inflation of salaries, as well as energy and distribution costs. These were exacerbated by temporary inefficiencies resulting from the North American production ramp-up and the footprint adjustments in Europe.

SG&A expenditure was up by €(10) million, mainly due to salary inflation. SG&A over revenue remained largely stable at 10.1%.

Forex fluctuations had a €(3) million net negative impact, mainly linked to the depreciation of the Mexican peso affecting the contribution from the Tijuana plant.

The adjusted EBITDA margin rose to 12.0%, up 2.3pp year on year.

Q4 2024 business review of Core Markets (continuing operations)

Revenue

Revenue was €476 million, up 6.6% like for like versus 2023, driven by a substantial volume increase, including mix, which more than offset the anticipated lower sales prices. Including slightly supportive forex, revenue was up 6.8% overall versus the prior year and 1.8% versus the prior quarter.

Volumes were up 9.0% year on year including mix effects, and grew in all categories. Volumes were up by double digits in North America, versus the previous quarter and especially versus the fourth quarter of 2023, mainly as orders from new contracts ramped up. In Europe volumes were up in all categories, especially in adult care and in baby pants, where Ontex's is leveraging its expertise in service and innovation.

Sales prices were largely stable quarter on quarter, as anticipated, and 2.4% lower year on year, reflecting the past raw material index decreases and investments in increased competitiveness.

Forex fluctuations were supportive, adding 0.2%, mainly thanks to the appreciation of the British pound and the Polish zloty, which compensated for the depreciation of the Russian ruble.

Adjusted EBITDA

Adjusted EBITDA was €57 million, up 22% year on year and largely in line sequentially versus the previous quarter. Volume and mix growth contributed €7 million. Sales prices had a €(11) million adverse impact. The cost transformation program continued to deliver solid results. While raw material prices were stable overall year on year and SG&A costs came out lower, continued inflation drove other operating costs up.

The cost transformation program delivered €17 million net operating savings, leading to a reduction of the operating cost base by 4.4% year on year, with purchasing, supply chain, product innovation and manufacturing initiatives.

Raw material prices were largely stable year on year, and slightly up versus the previous quarter, reflecting a slight increase in fluff prices.

Other operating costs were up by €(6) million year on year, largely due to inflation of salaries, and temporary inefficiencies resulting from the North American production ramp-up and the footprint adjustments in Europe.

SG&A expenditure was stable sequentially, but down by €4 million year on year. Inflation drove salaries up, but the fourth quarter of 2023 it compares to, was exceptionally high due to cost phasing over that year.

Forex fluctuations had a €(1) million net negative impact, mainly linked to the depreciation of the Mexican peso affecting the contribution from the Tijuana plant.

The adjusted EBITDA margin was 11.9%, up 1.5pp year on year compared to the fourth quarter of 2023, and slightly down by 0.1pp sequentially versus the third quarter of 2024.

Full year 2024 operational review

Supply chain

The cost transformation program delivered €70 million savings after netting with implementation costs. This represents an increase of about 25% versus 2023. These initiatives allowed to reduce raw materials and operating costs, prior to volume and inflation effects, by 4.6%. While the bulk of the savings were realized on procurement, the continuous implementation of the program allowed to further improve operational efficiencies and lower scrap rates. Service levels also improved from the 2023 level.

To further support these initiatives in the coming years, Ontex is transforming its operating footprint in Belgium, with the closure of its Eeklo plant in December of last year, and the transformation of its Buggenhout plant over the next two years into a center of excellence for research, development and production of medium and heavy incontinence care products. A total amount of €62 million was provisioned, covering the redundancy cost according to the Belgian legal requirements and the supplementary social plan.

Besides the optimization of the manufacturing footprint, Ontex continues to invest in its operations, ramping up in the year to €112 million for the Total Group, or 5.2% of revenue, and close to 6% for Core Markets only. As anticipated this is a step-up compared to 4.1% in 2023 and approximately double Ontex's depreciation [4] level. The vast majority was invested in Core Markets, with about half in business expansion, with new production lines for baby pants and adult care, and adding capacity in North America and about a quarter in operational efficiency improvement projects, mostly in Europe.

Innovation

Innovation in Core Markets represented €18 million in operational and capital expenditure, a 5% increase compared to 2023, with 13 major product innovations launched in the year. All Ontex's innovation is thoroughly tested with consumers, to guarantee that new solutions offered to customers are comparable to leading A-brand standards.

Baby care focus in 2024 was to boost leak prevention, with the launch of baby diapers with front and back barriers, as well as baby pants with back barrier. The year also saw the introduction of larger pants sizes and bags with mechanical post-consumer recycled content. In adult care overnight extra -protection pads were brought to market. In feminine care the focus was on boosting recently introduced product concepts being the first follower of the A-brand equivalent, with ConfiDaily ™ pantyliners and SatinSense® tampons.

Ontex also secured its place in the top 10 of Belgian applicants at the European Patent Office, for the second year in a row. Ontex currently holds more than 800 patents grouped in 160 patent families.

Sustainability [5]

Ontex takes the safety of its employees to heart. In 2024 the accident frequency rate was 3.20, decreasing 9% versus 3.52 lost workday cases per million worked hours in 2023, and 41% compared to the base year 2020, by focusing on machine risk reduction, behaviors and leadership awareness. Ontex strives to reduce the number of accidents further down year after year to eventually reach its ultimate ambition to be a zero harm workplace.

Ontex is also committed to reducing its environmental footprint. Also in 2024, actions were undertaken to support Ontex's long-term climate strategy, investing in energy efficiency initiatives, increasing renewable energy sourcing and working closely with suppliers. Despite these initiatives, scope 1 & 2 emissions went up by 5.2% compared to 2023, reflecting higher electricity consumption in one of the plants. Scope 3 emissions also increased, by 1.4%, as supplier engagement efforts and more efficient product design were offset by the growing production volumes.

Ontex's sustainability efforts continue to be externally recognized, including recently by the global environmental nonprofit organization Carbon Disclosure Project (CDP), with an "A" score for leadership in corporate transparency and performance on climate change and an "A-" score on forestry, bringing Ontex in the leadership segment. Earlier in 2024, Ontex received a gold medal from sustainability rating agency EcoVadis for transparency in sustainable initiatives throughout the supply chain and operations. This recognition places Ontex in the top 5% of companies assessed worldwide.

[4] Depreciation adjusted for depreciation of right-of-use assets, as lease payments are not included in capex either.

[5] Preliminary unaudited figures for 2024

Key financial indicators

Financial results		Year
in € million	2024	2023	%
Adj. EBITDA	222.6	173.9	+28%
Depreciation & amortization	(74.1)	(70.7)	-4.8%
Net finance cost	(51.4)	(45.1)	-14%
Adj. income tax expense [6]	(21.3)	(19.5)	-9%
Adj. profit from continuing operations	75.8	38.6	+97%
EBITDA adjustments [7]	(72.7)	(14.9)	-387%
Impact of EBITDA adjustments on income tax [6] [7]	17.9	3.3	+448%
Profit from continuing operations	20.9	26.9	-22%
Profit/(loss) from discontinued operations	(10.7)	7.9	-236%
Profit for the period	10.3	34.8	-70%
Basic EPS (in €)	0.13	0.43	-71%
Capex	(112.4)	(96.5)	-17%
Free cash flow	47.9	9.1	+427%
Net working capital [8]	117.5	166.5	-29%
Working capital / revenue [8]	5.3%	7.6%	-2.3pp
Gross financial debt [8]	736.3	833.5	-12%
Net financial debt [8]	612.0	665.3	-8%
Leverage ratio [8]	2.46x	3.25x	-0.79x

[6] The Adjusted income tax expense consists of the income tax expense, as presented in the income statement, adjusted for the impact of EBITDA adjustments.

[7] EBITDA adjustments and their impact on income tax are subtracted from adjusted profit to obtain profit.

[8] Balance sheet data reflect the end of the period and compare to the start of the period, i.c. December 2023.

FY 2024 financial review of Total Group

P&L

Depreciation & amortization from continuing operations was slightly up at €(74) million, reflecting the higher investment level.

EBITDA adjustments of €73 million were made in continuing operations. These adjust for €(62) million restructuring provisions, and consist primarily of the provision taken to restructure the Belgian operating footprint. This amount reflects the redundancy cost for the employees concerned according to the Belgian legal requirements and the agreed social plan. EBITDA adjustments were also made for €(11) million impairments on redundant assets linked to the footprint transformation.

Net finance cost from continuing operations was €(51) million, higher than €(45) million in 2023. Net interest charges decreased, as a result of the lower indebtedness, following the repayment of the €220 million term loan mid-2023. Forex fluctuations had a negative impact on financing activities, compared to a positive impact in 2023.

Income taxes from continuing operations were €(3) million, compared to a €(16) million in 2023. The decrease is attributable to the impact of the restructuring charges on profit before income tax, and the lower effective tax rate, following the recognition of deferred tax assets in the period in view of the improving underlying profitability.

Discontinued operations, consisting of the Emerging Markets division, generated revenue of €307 million, a 5% like for like decrease, excluding forex and scope effects. The adjusted EBITDA margin was slightly up at 9.5%, versus 9.0% in 2023. The adjusted EBITDA was €29 million, lower than €49 million in 2023, due to the scope reduction, following the divestment of the Mexican business in the second quarter of 2023 and the Algeria and Pakistan businesses in the second quarter of 2024. The operating profit was €2 million and includes €(27) million divestment-related costs. The divestment of the Algeria and Pakistan businesses led to €(7) million costs and the non-cash recycling of €(20) million currency translation adjustments. The planned Brazilian divestment led to a €7 million impact, consisting of a capital gain and impairment reversal, netted with upfront divestment costs. In anticipation of the Turkish divestment a non-cash impairment of €(6) million was taken. The loss from discontinued operations was thereby €(11) million.

Profit of the period for the Total Group was €10 million, compared to €35 million the year before, and consists of the €(11) million loss from discontinued operations and a €21 million profit from continuing operations. The latter compares to €27 million in 2023, and includes the impact of restructuring and impairment related costs. Excluding these, the adjusted profit from continuing operations was €76 million, well up versus €39 million the year before. Basic earnings per share of the Total Group were €0.13, compared to €0.43 in 2023.

Cash flow

Capital expenditure was €(112) million, representing 5.2% of the Total Group revenue, a significant increase versus €(96) million or 4.1% of revenue in 2023. Combined with lease payments of €(25) million, it represented 1.9x the depreciation. The intensification of capital investments was planned, and is foreseen to remain at a high level in 2025 to support the business expansion in North America and the further implementation of the cost transformation program.

Free cash flow amounted to €48 million, well up compared to €9 million in 2023. Strong operational delivery, more than compensated for the higher capital expenditure and one-time restructuring and divestment-related cash-out. These accounted for €(39) million, of which €(29) million relates to the restructuring of the Belgian operations. Solid working capital management contributed €9 million. Cash taxes were €(10) million and net financing cash-out totaled €(31) million, substantially lower than in 2023, as the interest payments decreased.

M&A proceeds totaled €10 million net. Ontex completed the divestment of its Algeria and Pakistan business in the second quarter of 2024, for which it received net cash proceeds of €17 million, net of cash disposed, taxes and transaction costs. The deferred receivable, linked to the divestment of the Mexican business in 2023, was partly collected. €15 million were received from the acquirer and €11 million remains outstanding. Prior to the finalization of the divestment of the Brazilian business, expected in the second quarter of 2025, €(21) million transaction-related costs were paid in 2024.

The on-going share buy-back program, launched in December, led to the acquisition of 146,338 shares for €(1) million. By June 2025 Ontex foresees to buy back 1.5 million shares in total for the program.

Balance sheet

Net working capital for the Total Group at the end of the period was €118 million, a €49 million decrease versus the end of 2023, linked to the scope reduction following the divestment of the Algeria and Pakistan businesses, as well as good working capital management. Net working capital decreased from 7.6% end 2023 to 5.3% end 2024 relative to revenue. Trade receivables remained stable, with increased needs for the growing business offset by slightly higher factoring activity. Factoring increased by €12 million to €176 million over the year. Inventories were up to support the ramp-up in revenue in North America and the footprint adjustments in Europe. These were more than offset by higher trade payables, reflecting the growing business and better payment terms as a result of the cost transformation program.

Net financial debt for the Total Group dropped €53 million, from €665 million to €612 million over the year, thanks to the solid free cash flow and the net proceeds on divestments. The leverage ratio decreased from 3.25x at the start of the year to 2.46x at the end, as a combination of the net financial debt reduction and especially the further increase of the adjusted EBITDA of the Total Group of the last twelve months.

Gross financial debt of the Total Group reduced even more, by €97 million, from €834 million to €736 million, thanks to cash optimization. It consists primarily of the €580 million bond at fixed 3.5% rate maturing in July 2026, of €123 million of short- and long-term lease liabilities, and of €24 million drawn on the new floating rate revolving credit facility with a maximum capacity of €270 million maturing in November 2029. The available liquidity of the Total Group increased from €322 million to €370 million, consisting of the €124 million cash and cash equivalents and the undrawn part of the revolving credit facility.

Assets-held-for-sale at the end of the period, i.e. mainly the Brazilian and Turkish businesses, have a net assets value of €155 million at the end of the year, including a €51 million net cash position. The balance sheet also includes €(211) million of cumulative translation reserves in equity related to these assets, that will be recycled through the P&L once the divestments are finalized.

Consolidated financial statements for the year

Consolidated income statement

Consolidated income statement		Year
in € million	2024	2023
Revenue	1,860.5	1,794.7
Cost of sales	(1,316.7)	(1,327.3)
Gross Profit	543.8	467.4
Distribution expenses	(207.0)	(190.5)
Sales and marketing expenses	(81.9)	(81.5)
General administrative expenses	(96.3)	(85.6)
Other expenses, net	(10.1)	(6.6)
Income and expenses related to changes to Group structure	(61.9)	(10.3)
Income and expenses related to impairments and major litigations	(10.8)	(4.6)
Operating profit	75.8	88.3
Net finance cost	(51.4)	(45.1)
of which finance income	4.2	7.0
of which finance costs	(49.1)	(57.6)
of which net exchange differences relating to financing activities	(6.5)	5.5
Profit before income tax	24.3	43.2
Income tax expense	(3.4)	(16.3)
Profit for the period from continuing operations	20.9	26.9
Profit/(loss) for the period from discontinued operations	(10.7)	7.9
Profit for the period	10.3	34.8
of which attributable to the owners of the parent	10.3	34.8

Earnings per share		Year
in €	2024	2023
For continuing operations
Basic earnings per share	0.26	0.33
Diluted earnings per share	0.25	0.32
For continuing and discontinued operations
Basic earnings per share	0.13	0.43
Diluted earnings per share	0.12	0.42
Weighted average number of ordinary shares outstanding during the period (in million)	81.2	81.1

Consolidated statement of financial position

Consolidated statement of financial position	31/12
in € million	2024	2023
Goodwill	799.4	796.0
Intangible assets	33.8	32.6
Property, plant and equipment	497.6	461.5
Right-of-use assets	100.9	105.2
Deferred tax assets	27.6	11.7
Non-current receivables	11.1	29.0
Non-current assets	1,470.4	1,436.1
Inventories	292.9	252.8
Trade receivables	204.1	206.1
Prepaid expenses and other receivables	67.2	63.5
Current tax assets	3.3	4.9
Derivative financial assets	6.3	5.1
Cash and cash equivalents	56.9	97.2
Assets classified as held for sale	259.3	296.1
Current assets	890.2	925.7
Total assets	2,360.6	2,361.7
Share capital & premium	1,208.0	1,208.0
Treasury shares	(31.0)	(32.3)
Cumulative translation reserves	(242.6)	(246.8)
Retained earnings and other reserves	(8.7)	(26.8)
Total equity	925.7	902.0
Employee benefit liabilities	13.4	14.9
Interest-bearing debts	667.1	671.8
Deferred tax liabilities	16.0	19.9
Other payables	2.0	1.0
Non-current liabilities	698.5	707.5
Interest-bearing debts	53.1	141.1
Derivative financial liabilities	2.0	5.4
Trade payables	440.1	370.5
Accrued expenses and other payables	21.1	20.6
Employee benefit liabilities	45.3	41.0
Current tax liabilities	31.8	27.0
Provisions	38.3	10.0
Liabilities related to assets classified as held for sale	104.6	136.6
Current liabilities	736.3	752.2
Total liabilities	1,434.8	1,459.7
Total equity and liabilities	2,360.6	2,361.7

Consolidated statement of cash flows

Consolidated statement of cash flows	Year
in € million	2024	2023
Profit for the period	10.3	34.8
Adjustments	202.7	175.6
for income tax expense	9.7	21.9
for depreciation and amortization	74.1	70.7
for impairment losses and items relating to investing activities	32.4	18.9
for provisions (including employee benefit liabilities)	32.5	5.5
for change in fair value of financial instruments	(4.0)	4.8
for net finance cost	57.9	53.9
Changes in working capital	9.0	(35.6)
in inventories	(45.4)	17.2
in trade and other receivables and prepaid expenses	(16.3)	(52.9)
in trade and other payables and accrued expenses	70.8	0.1
Current employee benefit liabilities	4.0	6.6
Income taxes paid	(10.3)	(20.8)
Net cash generated from operating activities	215.7	160.6
Purchases of property, plant and equipment and intangible assets	(112.4)	(96.5)
Proceeds from disposal of property, plant and equipment and intangible assets	0.2	15.8
Proceeds from divestments, net of cash disposed and transaction costs	10.3	199.6
Net cash generated from / (used in) investing activities	(101.9)	119.0
Proceeds from borrowings	67.4	121.9
Repayment of borrowings	(184.7)	(385.8)
Interests paid	(37.6)	(50.8)
Interests received	7.2	4.4
Other costs of financing	0.9	(3.3)
Realized foreign exchange (losses)/gains on financing activities	0.1	7.1
Derivative financial assets	(1.5)	(3.2)
Net cash generated from / (used in) financing activities	(148.1)	(309.8)
Net decrease in cash and cash equivalents	(34.3)	(30.3)
Effects of exchange rate changes on cash and cash equivalents	(9.7)	(10.2)
Cash and cash equivalents at the beginning of the period	168.3	208.7
Cash and cash equivalents at the end of the period	124.2	168.3
of which presented as part of assets classified as held for sale	67.3	71.1

Notes to the financial statements

Note 1 Basis of preparation

The accounting policies used to prepare the financial statements for the period from January 1, 2024 to December 31, 2024 are consistent with those applied in the audited consolidated financial statement for the year ended December 31, 2023 of Ontex Group NV. The accounting policies have been consistently applied to all the periods presented.

The amounts in this document are presented in € millions, unless noted otherwise, for reasons of transparency. This may give rise to rounding differences in the tables presented in the report.

Note 2 Liquidity situation

The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business.

On November 27, 2024, the Group entered into a new revolving credit facility, replacing the one of €242 million which had a maturity date in December 2025. The current revolving credit facility has a maximum amount of €270 million until maturity, i.e. November 2029. The new revolving credit facility is subject to one financial covenant, being a leverage covenant. The leverage ratio of net financial debt over the last-twelve-months adjusted EBITDA is not to exceed 3.50x throughout all reporting periods.

Management has prepared detailed budgets and cash flow forecasts for the next years, which reflect the strategy of the Group, and is confident that, taking into account its available cash, cash equivalents and facilities available to the Company as committed facilities, it has sufficient liquidity to meet its present and future obligations and cover working capital needs.

The Group complied with all requirements of the loan covenants on its available credit facilities throughout the reporting period.

Note 3 Events after the end of the reporting period

In January 2025, Ontex reached a binding agreement to sell its Turkish business activities to Dilek Grup for an enterprise value of approximately €24 million, net of cash disposed, and prior to taxes and transaction costs. The closing is expected during the third quarter of 2025 subject to customary conditions.

Note 4 Auditors Report

The statutory auditor has confirmed that the audit, which is substantially complete, has not to date revealed any material misstatement in the draft consolidated accounts, and that the accounting data reported in the press release is consistent, in all material respects, with the draft accounts from which it has been derived.

The scope of the audit procedure does not cover quarterly data. The sustainability data reported in the press release have not been reviewed by the statutory auditor.

Note 5 Alternative performance measures

Alternative performance measures (non-GAAP) are used in this press release since management believes that they are widely used by certain investors, securities analysts and other interested parties as supplemental measure of performance and liquidity. The alternative performance measures may not be comparable to similarly titled measures of other companies, have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of operating results, performance or liquidity under IFRS.

Adjusted EBITDA and adjusted EBITDA margin

Adjusted EBITDA is defined as earnings before net finance cost, income taxes, depreciations and amortizations (commonly defined as EBITDA) plus EBITDA adjustments. The adjusted EBITDA margin is the adjusted EBITDA divided by revenue.

EBITDA adjustments are made for income and expenses that are considered by management not to relate to transactions, projects and adjustments to the value of assets and liabilities taking place in the ordinary course of activities

of the Group. These income and expenses are presented separately, due to their size or nature, so as to allow users of the consolidated financial statements of the Company to get a better understanding of the normalized performance of the Company, and relate to:

• acquisition-related expenses;

• changes to the measurement of contingent considerations in the context of business combinations;

• changes to the Group structure, business restructuring costs, including costs related to the liquidation of subsidiaries and the closure, opening or relocations of factories;

• impairment of assets and major litigations.

In the consolidated income statement these EBITDA adjustments are composed of the following items:

• income/(expenses) related to changes to Group structure; and

• income/(expenses) related to impairments and major litigations.

Reconciliation of income statement			2024			2023
in € million		Cont.	Discont.	Total	Cont.	Discont.	Total
Q4
Revenue	a	476.5	72.7	549.2	446.0	98.7	544.7
Operating profit/(loss)	b	36.3	(4.6)	31.8	23.5	12.8	36.2
Depreciation & amortization	c	(19.0)	(0.0)	(19.0)	(18.6)	0.0	(18.6)
EBITDA	d = b-c	55.3	(4.6)	50.7	42.1	12.8	54.9
Income & expenses related to changes to Group structure	e	5.6	(2.3)	3.3	1.3	0.9	2.3
Income & expenses related to impairments & major litigations	f	(7.1)	(6.4)	(13.4)	(5.7)	(0.0)	(5.7)
EBITDA adjustments	g = -e-f	1.5	8.7	10.1	4.4	(0.9)	3.5
Adj. EBITDA	h = d+g	56.8	4.1	60.8	46.5	11.8	58.3
Adj. EBITDA margin	i = h/a	11.9%	5.6%	11.1%	10.4%	12.0%	10.7%
Year
Revenue	a	1,860.5	306.9	2,167.4	1,794.7	546.8	2,341.5
Operating profit	b	75.8	2.1	77.9	88.3	22.3	110.6
Depreciation & amortization	c	(74.1)	(0.0)	(74.1)	(70.7)	(0.0)	(70.7)
EBITDA	d = b-c	149.9	2.1	152.0	159.0	22.3	181.3
Income & expenses related to changes to Group structure	e	(61.9)	(51.6)	(113.5)	(10.3)	(14.4)	(24.7)
Income & expenses related to impairments & major litigations	f	(10.8)	24.5	13.7	(4.6)	(12.7)	(17.4)
EBITDA adjustments	g = -e-f	72.7	27.1	99.9	14.9	27.1	42.0
Adj. EBITDA	h = d+g	222.6	29.2	251.9	173.9	49.4	223.3
Adj. EBITDA margin	i = h/a	12.0%	9.5%	11.6%	9.7%	9.0%	9.5%

More information on the EBITDA adjustments can be found on page 8.

Like-For-Like (LFL) revenue and growth

Like-for-like revenue is defined as revenue at constant currency excluding change in scope of consolidation or M&A and hyperinflation impacts. The reconciliation of like-for-like revenue can be found on page 3. Like-for-like growth compares the like-for-like revenue with the revenue of the previous year.

Adjusted profit and adjusted EPS

Adjusted profit is defined as profit for the period plus EBITDA adjustments and the impact of these EBITDA adjustments on tax. Adjusted basic earnings per share are defined as adjusted profit divided by the weighted average number of ordinary shares.

Reconciliation of adjusted profit			Year
in € million		2024	2023
Profit from continuing operations	j	20.9	26.9
EBITDA adjustments	g	72.7	14.9
Impact of EBITDA adjustments on income tax	k	(17.9)	(3.3)
Adj. profit from continuing operations	l = j+g+k	75.8	38.6
Weighted average number of shares outstanding in the period (in million)	o	81.2	81.1
Adj. basic EPS from continuing operations (in €)	m = l/o	0.93	0.48

Free cash flow

Free cash flow is defined as net cash generated from operating activities (as presented in the consolidated cash flow statement, i.e. including income taxes paid) less capital expenditures (Capex, defined as purchases of property, plant and equipment and intangible assets), less repayment of lease liabilities and including cash (used in)/from disposal, less financing cash flows, i.e. Interests paid and received, other costs of financing, realized foreign exchange (losses)/gains on financing activities and derivative financial assets.

Reconciliation of free cash flow		Year
in € million		2024	2023
Operating profit (Total Group)	b	77.9	110.6
Depreciation & amortization (Total Group)	c	(74.1)	(70.7)
EBITDA (Total Group)	d = b-c	152.0	181.3
Non-cash items and items relating to investing & financing activities	j	61.0	29.1
Changes in working capital	k	9.0	(35.6)
Current Employee benefit liabilities	l	4.0	6.6
Cash from operating activities before taxes	m = d+j+k+l	226.0	181.4
Income taxes paid	n	(10.3)	(20.8)
Net cash generated from operating activities	o = m+n	215.7	160.6
Capex (Purchases of PPE & intangible assets)	p	(112.4)	(96.5)
Proceeds from disposal of PPE & intangible assets	q	0.2	15.8
Repayment of lease liabilities	r	(24.8)	(25.0)
Free cash flow before financing	s = o+p+q+r	78.7	54.9
Interests paid	t	(37.6)	(50.8)
Interests received	u	7.2	4.4
Cost of refinancing & other costs of financing	v	0.9	(3.3)
Realized foreign exchange (losses)/gains on financing activities	w	0.1	7.1
Derivative financial assets	x	(1.5)	(3.2)
Free cash flow	y = s+t+u+v+w+x	47.9	9.1

Net financial debt and leverage ratio

Net financial debt is calculated by adding short-term and long-term debt and deducting cash and cash equivalents. The leverage ratio is calculated by dividing the net financial debt by the adjusted EBITDA for the last twelve months (LTM). It excludes the contribution of businesses divested since, i.e. the Mexican business activities, divested in the second quarter of 2023, and the Algeria and Pakistan businesses in the second quarter of 2024.

Reconciliation of net financial debt		31/12/2024 31/12/2023
in € million		Cont.	Discont.	Total	Cont.	Discont.	Total
Non-current interest-bearing debts	A	667.1	10.9	678.0	671.8	15.3	687.0
Current interest-bearing debts	B	53.1	5.2	58.3	141.1	5.4	146.5
Gross financial debt	C = A+B	720.2	16.1	736.3	812.9	20.7	833.5
Cash & cash equivalents	D	56.9	67.3	124.2	97.2	71.1	168.3
Net financial debt	E = C-D	663.3	(51.2)	612.0	715.7	(50.4)	665.3
Adj. EBITDA (LTM) [9]	F	222.6	25.7	248.3	173.9	30.7	204.6
Leverage ratio	G = E/F			2.46x			3.25x

[5] The Last-Twelve-Months (LTM) adj. EBITDA excludes the contribution from the divested Mexican businesses for 2023, and the Algeria and Pakistan businesses for 2024.

Net working capital

Net working capital is calculated by adding inventories, trade receivables and prepaid expenses and other receivable and deducting trade payables and accrued expenses and other payables. The ratio to the annualized ratio of the last three months excludes the contribution of businesses divested since, i.e. the Algeria and Pakistan businesses, divested in the second quarter of 2024.

Reconciliation of working capital		31/12/2024			31/12/2023
in € million		Cont.	Discont.	Total	Cont.	Discont.	Total
Inventories	H	292.9	34.0	326.9	252.8	57.7	310.5
Trade receivables	I	204.1	41.2	245.3	206.1	63.6	269.7
Prepaid expenses & other receivables	J	67.2	4.8	72.0	63.5	7.9	71.4
Trade payables	K	440.1	58.2	498.3	370.5	82.2	452.7
Accrued expenses & other payables	L	21.1	7.2	28.3	20.6	11.8	32.4
Net working capital	M = H+I+J K-L	103.0	14.5	117.5	131.3	35.2	166.5
Working capital / revenue (L3M)	N = M/(4*a)			5.3%			7.6%

[9] The Last-Twelve-Months (LTM) adj. EBITDA excludes the contribution from the divested Mexican businesses for 2023, and the Algeria and Pakistan businesses for 2024.

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 forwardlooking 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. In most of the tables of this report, amounts are shown in € million for reasons of transparency. This may give rise to rounding differences in the tables presented in the report.

Corporate information

The financial information in this document of Ontex Group NV for the twelve months ended December 31, 2024 was authorized for issue in accordance with a resolution of the Board on February 18, 2025.

Audio webcast

Management will host an audio webcast for investors and analysts on February 19, 2025 at 12:00 CET / 11:00 BT. To attend, click on https://channel.royalcast.com/landingpage/ontexgroup/20250219\_1. A replay will be available on the same link shortly after the live presentation. A copy of the presentation slides will be available on ontex.com.

Financial calendar

> April 30, 2025	Q1 2025 results
---------------------	-----------------

• May 5, 2025 2025 Annual general meeting of shareholders

• July 31, 2025 Q2 & H1 2025 results

• October 30, 2025 Q3 2025 results

Enquiries

>	Investors	Geoffroy Raskin	+32 53 33 37 30	investor.relations@ontexglobal.com
>	Media	Catherine Weyne	+32 53 33 36 22	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. Ontex's innovative products are distributed in around 100 countries through retailers and healthcare providers. Employing some 7,000 people, Ontex has a presence in 14 countries, with its headquarters in Aalst, Belgium. Ontex is listed on Euronext Brussel and is a constituent of the Bel Mid® index. To keep up with the latest news, visit ontex.com or follow Ontex on LinkedIn.