Wall Street Trader schreef op 11 juni 2023 13:47:
[...]Some keynotes and feedback from the Conference.Divestments:
the divestment processes for the remaining non-core assets are continuing, with the divestment process of
the activities in Algeria and Pakistan probably a bit more advanced than Brazil and Turkey.• US:
Ontex still sees a lot of room for private label to grow, as for example in baby care private label represents only 24% of
the market vs a share of private label of c. 40% in Europe.
• Capex in the medium term is guided at around 4% of revenue, while capex needs in the shorter term might be a bit higher,
ao given ongoing efforts to uniformize machinery and the production footprint.
• Ontex organized an interesting demo on its innovative diaper for elderly care. The company has developed software and a
sensor mechanism that signals the personnel of the elderly care homes which persons require a diaper change. The product
has been tested in around 100 elderly care homes in the past few years and has received excellent feedback whilst being
ready now for commercial roll-out.• Raw materials:
fluff prices are up for Ontex in 2023, but for other raw materials the company is starting to see some
easing. It will take a bit of time (6 months) for that to filter through to the P&L.• The board has set a long term incentive program for management solely based on a share price of € 15 (i.e. roughly double
the current share price)• End game? Ontex has halted the preliminary combination talks with Attindas a while ago. While the company now looks set to execute the targeted strategic transformation alone, we would not exclude to see Ontex eventually being acquired or merged with another group
I have to agree with bruguy this stock has unfortunately been dead money for more than a year now.
Let's hope the turnaround will finally continue in the upcoming months, if effectively executed, it can deliver significant value for us as shareholders.