Volumes fell 3.9 percent. Baby care volumes were 11 percent lower, which was generally in line with weaker demand in the quarter, especially for retail brands, which continue to be affected by intense promotional activities by A-brands in certain countries. While Ontex volumes in North America declined, they exceeded market demand due to the start of new contract wins in the retail channel. However, contract manufacturing fell significantly. In Europe, volumes of baby items were also lower, except for baby pants.
Belgium-based Ontex reported revenue of €445 million (~$516.2 million) in Q3 2025, down 3.8 percent on a comparable basis, with lower volumes due to weak consumer demand. Adjusted EBITDA was €51 million (~$59.16 million), helped by €16 million (~$18.56 million) in cost savings. Sequentially, EBITDA increased by €15 million (~$17.4 million).
Sales prices, including a slightly positive mixed effect, remained stable year-on-year across all regions and categories. Prices have remained virtually stable since mid-2024.
Adjusted EBITDA was €51 million (~$59.16 million) in the third quarter, resulting in a margin of 11.4 percent. The year-on-year decrease of €6 million (~$6.96 million) can be attributed entirely to the drop in revenue. The cost transformation program generated net savings of €16 million (~$18.56 million), which fully offset higher raw material prices and operating cost increases driven primarily by inflation.
Compared to the second quarter, the company’s adjusted EBITDA improved by €15 million (~$17.4 million) and margin by 3.0 percentage points, thanks to the combined effect of revenue recovery and cost improvement.
“The significant sequential improvement in profitability in the third quarter as a result of new contracts and strong execution of our transformation program gives us confidence that we are on target for a strong finish to 2025 despite weak market conditions. Furthermore, most importantly, Ontex is going from strength to strength and seeing significant opportunities that excite me as we look to the future.” Gustavo Calvo Paz, general director of Ontexsaying.
Although market conditions remained weak in the third quarter, Ontex maintains its full-year outlook as shared in July, with cost efficiency and volume growth as the main drivers. The company expects revenue to decline by a low-single-digit percentage on a comparable basis, adjusted EBITDA to range between €200 million (~$232 million) and €210 million (~$243.6 million), free cash flow to be around zero, and leverage to end the year at approximately 2.5x.
Fiber2Fashion (RR) News Desk
