Ontex Stock Continues Its Decline at Midday This Monday, December 15
The stock of Belgian hygiene products manufacturer Ontex Group continues its sharp decline this Monday, December 15 at midday, showing a decrease of 4.9% at 4.755 euros. This latest drop is part of a context of widespread investor mistrust, occurring just four days after the earnings warning that had already caused the stock to fall nearly 20% on December 11.
Current Session Overview
At midday this Monday, Ontex Group's stock is down 4.9% at 4.755 euros, thus erasing the symbolic 5 euros reached last Friday. The traded volumes represent 0.51% of the capital, indicating a moderate but nonetheless sale-oriented activity. Over the week, the stock now shows a decline of 28.92%, amplifying the correction movement triggered on December 11 by the abrupt revision of the group's annual forecasts. Over three months, the depreciation reaches 24.52%, while the annual performance shows a decline of 42.22%. This downward trajectory illustrates the structural loss of confidence from investors towards the diaper and hygiene product manufacturer, faced with increasingly sluggish demand in Europe and North America. On December 11, Ontex issued a new earnings warning, the third in two years according to ING analysts. The group revised its adjusted EBITDA for 2025 downwards, now expected between 175 and 180 million euros compared to previously 200 to 210 million euros, a revision of about 13% at the midpoint. This degradation results from a demand weaker than expected for baby diapers in October and November, as well as volumes below expectations on new contracts signed in Europe and North America. The debt ratio is expected to climb to 3.2 times EBITDA against 2.5 times initially anticipated, heightening concerns about the group's financial solidity.
Technical Perspective
From a technical standpoint, Ontex's stock is now significantly below its reference moving averages, confirming a medium and long-term bearish trend. The 50-session moving average is at 6.25 euros, and the 200-day average at 6.99 euros, illustrating a gap of more than 30% with the current price. The Relative Strength Index (RSI) stands at 26, a level close to the oversold zone (30), suggesting that the stock is technically oversold but without necessarily guaranteeing an imminent rebound. This indicator reflects the severity of the corrective movement in recent days and the temporary exhaustion of selling pressure. The Chaikin Money Flow (CMF), at -0.29, signals a marked and sustained selling pressure, confirming that the traded volumes accompany the decline. The Bollinger Bands frame the movement between 5.41 euros (lower bound) and 7.06 euros (upper bound), but the current price is now clearly below the lower bound, showing a major technical break. The support identified at 5 euros was breached this Monday, potentially paving the way for further declines if the stock does not stabilize quickly. The short-term resistance is now at 6.69 euros, a level that appears distant in the current context.
Strategic and Management Changes
In response to the deterioration of its market environment, Ontex announced last Wednesday the acceleration of an efficiency improvement initiative covering operations and overhead costs, with a target of 200 million euros in savings over three years. The implementation costs of this plan are expected to remain below 40 million euros. This cost-cutting drive aims to restore the group's competitiveness in an environment marked by sluggish consumption of private label brands and intense promotional activity by major brands. The group now anticipates a decline in its comparable sales of 5 to 6% in 2025, compared to a previous forecast of 1 to 3%. Concurrently, the board of directors has appointed Laurent Nielly, currently president of the Europe division, as the next CEO effective May 5, 2026. He will succeed Gustavo Calvo Paz, who has led the group during a period of strategic transformation marked by the divestment of non-core activities. This change in governance comes at a pivotal time when the group must demonstrate its ability to reverse the trend and regain investor confidence. Complete results and outlook for 2026 will be detailed next February, at which time the market hopes to see concrete signs of operational improvement.
