Ontex FIRST LOOK: 3Q: -4% LFL revenue, EBITDA -10%, FY guidance kept
Despite a weaker than expected top line (-4% LFL), 3Q adjusted EBITDA dropped less than we expected (-10% y/y) whilst being close to consensus. Ontex reiterated FY25 guidance of € 200-210m adjusted EBITDA whilst we and consensus are more cautious (respectively 6% below the low end of the range and 2% for consensus). Whilst we still believe in the growth prospects of the US business on the back of lower private label penetration and Ontex' challenger status, we cannot be blind for the intensified competition in Europe and the low structural growth prospects. Valuation is attractive and prompts us to reiterate our Accumulate rating and € 8 target price.Ontex Group NV is a Belgium-based company, which operates in the manufacturing sector of industry. The Company is a producer of disposable personal hygiene solutions for babies, women and adults. It offers a range of such products as baby diapers, baby pants, baby wet wipes, pads, pantyliners, tampons, light incontinence products, pull-ups, belt diapers, all-in-one tape systems, shaped pads and underpards. Its products are distributed through retail partner brands, as well as under its own brands (canbebe, canped, Helen Harper, Moltex, Baby Charm) across several distribution channels, such as retail trade, care institutions and pharmacies. The Company is present in Europe, Northern Africa, Australia and Asia.
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