STAYING AHEAD OF THE CURVE After a game-changing year in 2014, with a successful IPO and a refocusing on consumer needs, Ontex is continuing to grow, particularly in developing markets.
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June 2014, Ontex, the Belgium-based manufacturer of hygienic disposable products, completed a successful IPO on the Euronext Brussels exchange. A total of some 33 million shares were sold, producing gross proceeds of €325 million. “In 2014 we completely transformed the financial structure of Ontex through our IPO and a subsequent refinancing,” explained CEO Charles Bouaziz. “In fact, the IPO was a milestone for Ontex, which not only helped to reduce our debt, but significantly improved our profile towards customers, suppliers and employees. Then in November 2014 we saw an opportunity to bring forward our refinancing plans to take advantage of the low cost of debt. Our interest charge will decrease by approximately €29 million in 2015. This stronger financial position is reflected in our rating with the credit agencies. “2014 was also the year we transformed the company from an R&D and manufacturing company operating in the consumer goods business, into a more consumer-focused company. We have worked hard to put the consumer at the center of our organization and increased efforts to work with our customers. In a tough competitive environment, customers want our insight and understanding of consumer needs across product categories. We deliver products that meet consumer needs 94 Industry Europe
– combining performance and affordability, and anticipate new trends, fueling our future growth. “Over the last few years our business has expanded its geographical presence both organically and through acquisitions and has increased the weight of our brands and incontinence products in our mix. In 2014 we achieved a strong performance in developing markets, while developed markets also advanced in a very challenging environment. All Divisions and categories contributed positively for both the quarter and year, demonstrating the strength of Ontex’s balanced portfolio: growing competitive retailer brands in developed markets, and offering our own brands for institutional channels and retail in developing markets. And we delivered profitable growth while maintaining a disciplined commercial approach and continuing to invest in the business.”
Global reach Since it began as a family company in Belgium in 1979 Ontex has grown into a truly global business. Today has a total of 15 manufacturing facilities in 12 countries across Western and Eastern Europe, the Middle East, Australia and China. It employs more than 5000
