Ontex FIRST LOOK: Acceleration of CEO transition and launch of strategic review
Ontex decided to accelerate its earlier announced CEO transition plan with Mr Nielly, President of Ontex Europe, to become the new CEO immediately. Ontex announced the launch of a strategic review, which seems mainly directed to enhancing the company's performance at this stage. We still see larger strategic moves like a combination with a US-focused peer as an eventual end game for Ontex, given the limited structural growth of its industry and the limitations to operational improvements. Despite the recent profit warning, we still expect Ontex to deliver c. 12% adjusted EBITDA growth in FY26 on a combination of efficiency improvements and a further ramp up of new (mainly US) contracts, whilst we also expect that the heavy promotional activity of the A-brands will at some point ease somewhat. Taking into account the depressed recent share performance and the attractive intrinsic valuation, we upgrade our rating from Hold to Accumulate while maintaining our € 6.5 TP.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.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.