Ontex: stock down after margin warning
(CercleFinance.com) - The Ontex share is down nearly 4% at lunchtime today in Brussels after the Belgian specialist in nappies and personal protection products reported a provisional version of its 2017 accounts.
Following difficulties in Brazil, the group has cut its margin forecast.
In Q4 2017, organic growth is expected to accelerate to 7.2%, driven by volumes rather than prices and all product categories. Annual turnover therefore reaches 2.35 billion euros, or +5.5% like-for-like.
However, the recent Brazilian acquisition is not entirely satisfactory, with "problems related to commercial practices" having been mentioned: without taking this into account, the group's adjusted EBITDA margin would be around 12% in 2017, including 11.3 % in Q4.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Following difficulties in Brazil, the group has cut its margin forecast.
In Q4 2017, organic growth is expected to accelerate to 7.2%, driven by volumes rather than prices and all product categories. Annual turnover therefore reaches 2.35 billion euros, or +5.5% like-for-like.
However, the recent Brazilian acquisition is not entirely satisfactory, with "problems related to commercial practices" having been mentioned: without taking this into account, the group's adjusted EBITDA margin would be around 12% in 2017, including 11.3 % in Q4.
Copyright (c) 2018 CercleFinance.com. All rights reserved.