Ontex’s revenue in H1 2025 was €880 million ($1.02 billion), a 4% like-for-like decrease. The carry-over from price decreases in 2024 resulted in an expected price reduction of 1%, mostly occurring in the first quarter. Volumes decreased by 3% including mix effects, primarily in the second quarter, which was overall in line with the drop in demand in Ontex’s key markets.  Net contract gains contributed positively to the volumes, especially in North America. While in Europe, Ontex faced temporary supply chain disruptions caused by unavailability of certain raw materials, the plant outage in Spain, and delayed capacity ramp-up in certain new products.

Revenue in the baby care category was 9.8% lower like for like, of which 7.8% on volume and mix, reflecting the very weak consumer demand for retailer brands in the European and North American markets, which declined by high single digit overall. Retailer brands faced heavy promotional activity by branded players in both regions. The impact on Ontex revenue was higher due to its particular exposure to countries where these effects were more pronounced, such as the U.K. and Poland, and due to some customers destocking. 

Revenue in feminine care was down by 5.5% like for like, lower than the slight decrease in consumer demand in Europe, caused by the price decrease and temporary supply chain constraints mainly linked to the plant outage in Spain.

Revenue in adult care was up by 2.6% like for like, reflecting continued demand in the retail channel and stable demand in the healthcare channel in Europe.

Gustavo Calvo Paz, CEO of Ontex, comments: “Results in the second quarter were below our expectations. The geopolitical environment has impacted consumer demand in our markets, particularly baby care, which declined at a high single digit rate. Retailer brands faced intense promotional activity by branded players, and some customers destocked in some of our key markets. These trends, combined with some temporary supply chain disruptions, resulted in significantly lower-than-expected volumes, which impacted our revenue and adjusted EBITDA margin. Importantly, however, our adult care business continues to participate in a strongly growing market and our contract gain/loss balance in baby care remains positive in Europe and in North America.

“The first half results led us to revise the full year outlook. We expect higher revenue in the second half, thanks to the start-up of confirmed contracts in North America and in Europe, while market conditions remain similar. These will significantly enhance the absorption of the fixed costs, and our cost base shall also benefit as temporary supply chain disruptions in Europe are being solved and SG&A is aligned to our current reality. 

“The weak second quarter, while disappointing, will not derail us from our strategic journey. We are steadily progressing and deliver results step by step. The reshaping of the portfolio and the strengthening of the balance sheet have been largely realized. The innovation pipeline has been strengthened and will continue to deliver. Our business in North America has demonstrated fast growth, on the pursuit of scale, and we have taken major steps toward best-in-class operations. These structural changes will gradually improve our resilience to market fluctuations.”