Ontex completes divestment of Turkish business to Dilek Grup
This move aligns with Ontex’s strategic focus on its core retail and healthcare brands in its primary markets.
TURKEY – Ontex Group NV has finalized the sale of its Turkish operations to Dilek Grup.
This transaction encompasses Ontex’s entire business presence in Turkey, including exports to nearby countries.
The business is well-known in the region through leading brands such as Canbebe, Canped, and Prosafe, and includes the manufacturing facility located in Istanbul.
With this divestment, the former Ontex subsidiary will continue its focus on producing, marketing, and distributing mainly branded personal hygiene products, maintaining its strong market positions in Turkey and neighbouring areas, but now under the ownership of Dilek Grup.
Gustavo Calvo Paz, CEO of Ontex, stated, “With this transaction, we conclude our strategic refocus on retail and healthcare brands in our Core Markets of Europe and North America, where we have significant growth and margin improvement potential”
Financially, Ontex expects to receive net proceeds of about €25 million (USD 29.05 million) after deducting taxes, transaction costs, and net cash disposed of, although this figure may be adjusted post-closing.
The completion of this deal will result in Ontex recognizing a non-cash accounting loss estimated at approximately €70 million (USD 81.33 million), related to the accumulated currency translation reserves.
Ontex Q3 FY25 financial report
Ontex recently reported revenue of €445 million (USD 517.99 million), reflecting a 3.8% like-for-like decline compared to the same quarter last year, mainly due to softer consumer demand for retailer brands.
However, this was a 3.7% increase on the previous quarter, supported by volume growth from contract gains.
Adjusted EBITDA reached €51 million(USD 59.31 million), with a margin of 11.4%, which is 0.6 percentage points lower year-over-year but shows a notable 3% points increase versus the second quarter due to revenue recovery and cost optimization efforts.
Operating profit improved significantly to €29 million(USD 33.73 million), driven by lower restructuring costs than last year.
Ontex’s cost transformation program generated €16 million(USD $18.61 million) in net savings, offsetting the higher raw material and operating costs experienced during the quarter.
The company’s net financial debt decreased to €543 million from €552 million at the end of the previous quarter, maintaining a stable leverage ratio of 2.7 times.
Despite the soft market environment, Ontex confirmed its full-year outlook, expecting a low single-digit like-for-like revenue decline, adjusted EBITDA in the range of €200 million (USD 232.6 million) to €210 million(USD 244.23 million), near-zero free cash flow, and a year-end leverage ratio of around 2.5 times.
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