Making a Difference Ontex

MAKING A DIFFERENCE

Ontex, a leading international personal hygiene group, is setting new strategic priorities in order to restore growth and value creation. The company’s new CEO, Esther Berrozpe, has a clear vision for the way forward. Romana Moares reports.

Ontex, the Belgian group that delivers high-quality products for Baby Care, Feminine Care and Adult Care and is the partner of choice for consumers, retailers as well as institutional and private healthcare providers around the world, has re-defined its focus under the management of Esther Berrozpe, the new CEO who was appointed with effect from January 2021.

Mrs Berrozpe, selected from a strong pool of highly qualified candidates, has an impressive professional track record. During her long career at Whirlpool, Mrs Berrozpe led different business units in North America, Europe, the Middle East and Africa, driving business turnaround, improving Whirlpool’s competitiveness and strengthening its leadership position in these regions.

Entering her new role at the beginning of 2021, she said: “I am excited to have taken over as CEO of Ontex. The company possesses a number of major assets that once realigned will represent significant potential for value creation for our shareholders. Past initiatives have neither been sufficient nor have they delivered the expected benefits.”

“We have already started work on setting our priorities for the future to return Ontex to growth, sustainable margins and cash generation with a solid financial structure. I know that I can count on the commitment of Ontex’s employees to rise to this challenge and build a new successful chapter for the Group.”

Adaptive and sustainable

Ontex was founded in Belgium in 1979 as a supplier of underpads for Belgian hospitals, clinics and care homes. Since then the company has built an international business through organic growth and a number of key acquisitions.

Today Ontex employs some 10,000 people on five continents and its products are available in more than 110 countries. Around half are sold as Ontex brands and the remainder as retailer brands.

The group has 19 manufacturing sites in 15 countries in Europe, Russia, the Middle East, Africa, Pakistan, Australia and the Americas and runs some 30 sales and marketing offices, which enables it to adapt quickly to market changes in terms of both production

and delivery. The nine dedicated R&D centres in various regions are a clear sign of Ontex’s intent to continuously stay ahead with market-relevant products.

Ontex’s goal to deliver sustainable profitable growth rests on a two-pillar strategy: strengthen current leadership positions in its three Divisions, and expand into new businesses and geographies in core categories.

Smart products

Ontex’s focus on innovation and new product development is high. Recent launches include SecondDry - a smart solution to improve incontinence care for patients, accelerating innovation in adult care, a category that has seen good and steady growth in recent years.

This innovative solution comprises a top-quality diaper with a printed sensor, a transmitter clipped onto the diaper as well as an application for mobile devices, the combination of which accurately determines the saturation level of the diaper as well as the risk of leakage and alerts caregivers when it is necessary to

change the diaper. The smart diaper also reduces the environmental impact of care institutions by decreasing unnecessary diaper usage and allowing savings on laundry.

To support caregivers and other essential workers as a response to Covid-19, last year Ontex invested in the production of surgical face masks of the IIR type, which are typically used in hospitals. The new production line, installed in just 100 days and inaugurated in September 2020 - the result of Ontex’s own initiative with no government funding - has a capacity of around 80 million IIR-type surgical face masks per year.

Sustainable growth

Ontex pursues sustainable business practices that contribute to genuine business success. The group is committed to achieving climate neutral operations by 2030 and to moving towards a circular business model, striving to achieve a positive impact in its supply chain and to regenerate natural resources.

In line with its goals relating to carbon neutrality, at the end of last year Ontex inaugurated a large solar rooftop at its Spanish factory, one of the largest solar power projects for on-site electricity consumption in Spain.

Annick De Poorter, Ontex’s Vice President for R&D, Quality and Sustainability, said: “We can now produce a large part of the electricity we need to manufacture essential hygiene goods. Since 2017, all of Ontex’s European factories in nine countries run 100 per cent on electricity from renewable sources.”

After a volatile 2020 when financial performance was impacted by the pandemic-related shift to online sales as well as decreased demand in several emerging markets due to the economic downturn, the company expects the sales recovery to start in Q2 2021.

Mrs Berrozpe said: “I am committed to accelerating Ontex’s path towards further growth and I look forward to working together with the executive leadership team and the worldwide Ontex family that has shown incredible resilience this past year.” n