Ontex Accelerates CEO Change, Launches Strategic Overhaul Amid Headwinds

AALST, BELGIUM – January 13, 2026 – Ontex Group NV has initiated a decisive and rapid strategic pivot, accelerating the appointment of its new Chief Executive Officer, Laurent Nielly, and launching a comprehensive review of its entire business. The move, announced today, signals a sense of urgency from the board as the personal care giant grapples with market headwinds and a recent downward revision of its financial outlook.

In a significant shake-up, the Euronext-listed company also announced the appointment of Lorenzo Grabau, a seasoned executive with deep experience in capital markets and corporate transformation, to its Board of Directors. Together, these actions underscore a clear mandate: to unlock value and chart a new course for profitable growth in the highly competitive global personal care market.

Mr. Nielly’s appointment as CEO is effective immediately, a significant acceleration from the previously announced transition date. The board stated this decision “reflects the Board’s confidence in Mr. Nielly’s readiness” and enables him to take full ownership of the company's 2026 plan from the very beginning of the financial year. Outgoing CEO Gustavo Calvo Paz, who steered the company through a multi-year transformation, will remain through the end of January to ensure a seamless handover.

A Mandate For Urgent Change

The urgency behind the leadership transition is underscored by Ontex’s recent financial performance. The company recently revised its full-year 2025 outlook downwards, citing persistent weakness in consumer demand for baby care products. It now anticipates a mid-single-digit percentage decline in like-for-like revenue, a notable step back from its earlier forecast of a low-single-digit drop.

This revenue pressure is expected to impact profitability, with adjusted EBITDA now projected to land between €175 million and €180 million, down from a previous guidance of up to €210 million. Furthermore, the company projects a negative free cash flow of approximately €35 million for 2025, a stark contrast to the breakeven point it had previously targeted. These figures paint a picture of a company needing to act swiftly to stabilize its financial footing and restore investor confidence.

The strategic review, to be conducted under Nielly's new leadership, will be all-encompassing. Ontex has confirmed the review will scrutinize all levers available, including its business portfolio, operational footprint, and route-to-market strategies. The explicit goals are to improve cash generation and bolster return on investment, addressing the core financial challenges head-on. To facilitate this process, a new Strategy Committee of the Board of Directors will be established to accelerate decision-making and provide rigorous oversight.

New Leadership, New Playbook

The selection of Laurent Nielly and Lorenzo Grabau points to a dual-pronged approach focusing on operational excellence and strategic financial maneuvering. Nielly is an internal candidate with a deep understanding of the business, having joined Ontex in 2017. He successfully led the company's business in Brazil and South America before being promoted to President of the crucial Europe Division in 2021. His extensive 25-year career prior to Ontex includes senior leadership roles at consumer goods titans like Procter & Gamble, PepsiCo, and Coty, as well as a stint at the consulting firm McKinsey & Company, giving him a broad perspective on strategy, innovation, and performance management.

Complementing Nielly’s operational expertise is Lorenzo Grabau, whose career is steeped in high-stakes finance and corporate strategy. His co-option to the board as a non-executive director brings what Ontex calls “invaluable” expertise. Grabau spent 17 years at Goldman Sachs, where he became a Partner and Managing Director with a focus on mergers and acquisitions in the consumer, retail, and media sectors. Following his banking career, he served as President and CEO of Kinnevik AB, a major Swedish listed investment company, where he was credited with streamlining and consolidating the firm's extensive portfolio of assets. His track record of advising on and executing complex corporate transformations and M&A activities aligns perfectly with the objectives of Ontex's newly announced strategic review.

Navigating a Shifting Personal Care Landscape

Ontex's strategic overhaul comes as the entire personal care industry navigates a period of significant change. The company operates in a fiercely competitive market, facing off against global giants like Procter & Gamble and Kimberly-Clark, while also contending with the significant bargaining power of large retail chains, which are crucial to its large private-label business.

The review will likely assess how Ontex can better leverage key industry trends. The growth of private-label products, which have been outpacing branded goods in recent years, represents a core strength for Ontex and a major opportunity. As consumers, particularly millennials, increasingly seek value and quality, the perception of private labels has shifted from cheap alternatives to genuine innovators. Ontex's ability to partner with retailers is a key differentiator, evidenced by recent double-digit volume growth in its North American baby care contracts.

At the same time, sustainability has become a non-negotiable for consumers. Ontex has made strides in this area, earning a top 'A' rating from the environmental disclosure non-profit CDP for its climate change transparency. The strategic review could identify ways to further embed sustainability into its product portfolio and operations as a competitive advantage. Furthermore, demographic shifts, such as an aging population in its core European and North American markets, are fueling demand for adult care products—a segment where Ontex has been actively innovating with new product lines. The strategic review will provide a critical framework for the new leadership team to decide where to place its bets, whether through portfolio divestments, operational restructuring, or aggressive investment in high-growth categories and markets. For Ontex, the path ahead involves a fundamental reassessment of its operations and strategy, a challenging but necessary journey as it seeks to redefine its value proposition for shareholders and consumers in the years to come.