Ontex to Renew Focus on Core Markets

Following a disappointing first half, Ontex has identified four strategic shifts to bring its business  back to profitability. In its second quarter results, the Belgian hygiene maker reported a 9% drop in earnings amidst persistent cost inflation, a more volatile market environment and quickly changing market dynamics, particularly in the baby care market.

Moving forward, the Belgian hygiene manufacturer says it will prioritize profitability over volume growth in its North American baby care business and focus on growth opportunities in the European adult and baby care segments to return its business to profitability. 

“Market dynamics have evolved faster than expected, particularly in baby care, while the complexity of our product and manufacturing assets continues to limit efficiency,” says Laurent Nielly, CEO. “In North America, performance has not translated into the returns we expect from the investments made over recent years. At the same time, we continue to see significant opportunities in adult care in Europe, a structurally attractive market where Ontex already enjoys strong positions and competitive advantages.”

Additionally, Ontex has launched an expanded Focus to Value program, which is designed to boost productivity and save an incremental €40 million by the end of 2028, bringing the total savings at €240 million. The program will also optimize production and logistics, simplify initiatives and lean manufacturing practices and streamline the company’s organizational structure. This will reduce white collar positions by 20% the end of 2028.

Several initiatives are already underway including leadership in Europe and North America and the appointment of  Stéphane Re as Group CFO. Re will succeed Geert Peeters, who will pursue a new chapter in his professional career.