Q3 2024 Ontex Group NV Earnings Call Transcript
Key Points
- Ontex Group NV (ONXXF) achieved a 4% volume growth in Q3, with double-digit growth in adult care and North America baby care.
- The adjusted EBITDA margin increased to 12%, a 2.4 percentage point improvement from the previous year, driven by volume growth and cost transformation.
- The company reduced its leverage ratio to 2.4x, strengthening its balance sheet.
- Ontex Group NV (ONXXF) launched innovative products like Dreamshield 360 baby pants and SatinSense tampons, enhancing its product portfolio.
- The company received an EcoVadis Gold rating for ESG transparency, highlighting its commitment to sustainability.
- Sales prices decreased by 2.6% year-on-year, reflecting past raw material price decreases.
- The company revised its revenue growth guidance to 2-3%, down from a previous higher outlook.
- There were inefficiencies in the supply chain due to production ramp-up and asset transformation, impacting operating costs.
- The feminine care category experienced lower sales volumes due to a strategic refocus.
- Ontex Group NV (ONXXF) faces intensified promotional activity from branded players, affecting market share dynamics.
Good afternoon, everyone, and thank you for joining us today. This is Geoff Raskin from IR. I'm pleased to have today with us Gustavo, our CEO; and Geert Peeters, our CFO, to present the third quarter results.
Before that, let me remind you of the safe harbor regarding forward-looking statements. I will not read them out loud, but I will assume you will have duly noted it. You're well aware that since 2022, our P&L is based on continuing operations, which consists of our core market activities only, while the emerging markets are reported as discontinued operations. We have already divested or are in the process of divesting most of these. But meanwhile, these activities continue to contribute to our results.
Please note that since the start of the year, we have changed the definition of free cash flow to reflect free cash flow after financing and the operating savings in our EBITDA bridge, we have readjusted to a net figure after subtraction of implementation costs. We have now also
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