Ontex Group touts €186 million liquidity, €280 million note redemption

By Lisa Kerner

Charlotte, N.C., Nov. 26 – Ontex Group NV’s €75 million revolving credit facility remained undrawn at the end of the third quarter, resulting in available liquidity of €186 million as of Sept. 30.

The company had cash and cash equivalents totaling €111 million, net debt of €535 million and net leverage of 2.8 times at quarter-end, according to the earnings news release.

Ontex “fundamentally improved” its financial position by redeeming its €280 million floating-rate notes in July and reaching an agreement to refinance its remaining debt in November, according to chief executive officer Charles Bouaziz.

Additionally, Ontex’s credit ratings improved two notches as disclosed by two major rating agencies (Moody’s Ba3; S&P BB-).

Increased cash flow

Third-quarter revenue was up 5% year over year at €398.4 million. Revenue was up 9.1% at €1.2 billion for the nine months ended Sept. 30.

Adjusted EBITDA was up 8.6% in the quarter at €49 million and up 15.7% year over year for the nine-month period.

Ontex’s free cash flow for the quarter increased 34.5% from the prior-year period to €48 million. The increase was attributed primarily to higher adjusted EBITDA contribution and lower working capital.

Growth in the third quarter “was broad-based, with all divisions, categories and geographies contributing to the performance,” the release stated.

Ontex is an Aalst-Erembodegem, Belgium-based manufacturer of branded and retailer-brand disposable hygienic products marketed in Europe, the Middle East and Africa.

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