Belgium's Ontex Q3 revenue down 4% on soft demand, contract exits
Overview
Belgium hygiene products maker's Q3 revenue stable sequentially, down 4% yr/yr on soft demand
Q3 adjusted EBITDA fell 49% yr/yr as input costs rose sharply
Company revised 2026 outlook for adjusted EBITDA and free cash flow
Outlook
Ontex expects Q4 adj EBITDA between €39 mln and €44 mln
Ontex now sees 2026 adj EBITDA at €143-148 mln, down from prior €165-180 mln forecast
Company expects 2026 free cash flow between €(10) mln and €0 mln
Result Drivers
SOFT DEMAND & CONTRACT EXITS - Co said lower volumes were due to soft demand and exit from select overseas contracts
INPUT COSTS - Co said steep increase in input costs, especially raw materials and transportation, drove adjusted EBITDA decline
COST SAVINGS - Focus to Value program delivered €16 mln savings in Q3, but savings were insufficient to offset input cost inflation
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EBITDA | EUR 25.90 mln | ||
Q3 Adjusted EBITDA Margin | 6.10% | ||
Q3 Net Debt | EUR 536 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the personal products peer group is "buy."
Wall Street's median 12-month price target for Ontex Group NV is €3.00, about 71.8% above its October 27 closing price of €1.75
The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 4 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)