Ontex says profit growth slows in third quarter
BRUSSELS Nov 5 (Reuters) - Belgium's Ontex Group said on Thursday core profit growth slowed in the third quarter as the hygiene products maker faced costlier raw materials and weaker currencies in some of its growth markets.
Ontex also said it would buy Mexican disposable hygiene products maker Grupo Mabe for 5.65 billion Mexican pesos ($342 million). An additional 1.55 billion pesos would be due to the company should Grupo Mabe meet certain profit targets over the coming years, Ontex said.
The group, which makes disposable diapers as well as feminine care products, said weakness in the Turkish lira and the Russian rouble had negative effects on profits, while dollar prices for fluff pulp were at record levels in the third quarter.
Ontex said EBITDA, adjusted for one-off items, grew by 4.3 percent in the third quarter to 51.1 million euros ($55.56 million). This was down from the 11.5 percent growth in the first half of the year.
The group repeated its 2015 profit outlook saying it aimed to grow profit margins by 30 basis points.
($1 = 16.5207 Mexican pesos) ($1 = 0.9198 euros) (Reporting by Robert-Jan Bartunek; Editing by Kavita Chandran)
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