Weakened demand in the European baby care market was a key factor in a 4% revenue drop at Ontex during the first half of 2025, the company reports. Additionally, the company expects a low single digit revenue contraction for the full year while EBITDA will be in the €200-210 million range.

“The weak first half of the year, while disappointing, will not derail us from our strategic journey,” says CEO Gustavo Calvo Paz. “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.”

While revenue dropped 4% to €880 million, volumes decreased 3%. The decrease was most pronounced for baby care in Europe, which was magnified by some customers destocking. Net contract gains contributed positively to the volumes, mainly in North America. While in Europe, Ontex faced temporary supply chain disruptions caused by the unavailability of certain raw materials, a plant outage in Spain, and delayed capacity ramp-up in some growing product categories.

Ontex concluded the divestment of its Brazilian business at the start of April, for which preliminary aggregate net cash proceeds for €99 million were received. Earlier in the year, Ontex has reached a binding agreement to sell its Turkish business activities for an enterprise value of approximately €24 million, and of which the closing is expected during the second half of 2025.

Results in the second half are anticipated to recover. Revenue is expected to rebound even if consumer demand remains soft. The main contributors to this revenue expansion over the second half year are the start of new contracts in Europe and North America during the third quarter and the end of customer destocking.