Ontex Group (ONTEX) investor relations material

Executive summary

• Q1 2026 revenue declined 4% like-for-like year-over-year to €426.3 million, mainly due to weaker demand in baby and feminine care and lower contract manufacturing sales, partially offset by growth in adult care.

• Adjusted EBITDA margin fell to 9.1%, down 2.2 percentage points year-over-year, but remained stable quarter-on-quarter.

• Adult care, the largest category, continued to grow 2% year-over-year, outperforming softer baby and feminine care markets.

• Net financial debt reduced by 5% over the quarter to €550 million, with liquidity position improved to €262 million.

• Strategic review and comprehensive action plan underway, including cost improvements and portfolio optimization.

Financial highlights

• Revenue for Q1 2026 was €426.3 million, a 4% like-for-like decrease year-over-year and 2.4% lower than Q4 2025.

• Adjusted EBITDA was €38.6 million, down 24% year-over-year, with margin at 9.1%.

• Operating profit dropped to €15 million from €28.9 million, reflecting lower EBITDA and €3 million in restructuring costs and impairments.

• Net financial debt reduced from €577 million to €550 million during the quarter.

• Liquidity position improved to €262 million.

Outlook and guidance

• Full-year outlook maintained, expecting adjusted EBITDA to increase by 10% with gradual sequential improvement.

• Free cash flow expected to turn positive, supported by EBITDA growth and lower capital expenditure.

• Leverage ratio targeted to fall below 3x by year-end, from 3.36x at Q1 end.

• Stable revenue expected for the full year, with confidence in higher Q2 sales in North America.