The Board of Directors of Natuzzi S.p.A. (NYSE:NTZ), Italy’s
largest furniture manufacturer and world’s leading manufacturer of
leather-upholstered furniture, today announced its financial
results for the fourth quarter and full year of 2010.
FULL YEAR 2010
- Total Net Sales were €518.6 million, up
0.6% as compared to FY 2009
- Industrial Margin was €197.1 million as
compared to €185.6 million in FY 2009
- Positive EBIT of €0.4 million vs. a
negative EBIT of €10.6 million in FY 2009
- Net Group Loss of €11.1 million vs. a
Net Group Loss of €17.7 million in FY 2009
FOURTH QUARTER 2010
- Total Net Sales were €132.0 million,
down 13.3% as compared to fourth quarter 2009
- Industrial Margin was €51.3 million as
compared to €59.3 million in fourth quarter 2009
- Positive EBIT of €0.2 million, vs. a
positive EBIT of 2.1million in fourth quarter 2009
- Net Group Loss of €1.4 million vs. a
Net Group Loss of €2.5 million in fourth quarter 2009
- Positive Net Financial Position of
€45.6 million
FULL YEAR 2010 CONSOLIDATED RESULTS
During 2010 Total Net Sales (including raw materials and
semi-finished products sold to third parties) were €518.6 million,
increasing by 0,6% with respect to 2009.
Upholstery net sales were at €460.5, up by 2.2% as compared to
full year 2009.
The break-down of upholstery net sales by geographic area was as
follows: Europe (excluding Italy) 40.5%, the Americas 35.7%, Italy
11.2% and Rest of the World 12.6%.
The best commercial performances were reported in the Rest of
the World area with an increase of 23.8% over 2009 (in particular,
Australia up by 25.1% and China up by 51.9%), and in the Americas
where we recorded a 17.5% increase. In Europe, even if we recorded
an overall negative performance of minus 11.4%, we point out the
positive performance of 13.5% from Great Britain.
Industrial Margin improved in 2010 reaching a 38.0% on
sales versus a 36.0% in full year 2009, thanks to important
industrial rationalization activities started in 2009.
The incidence of Selling Expenses on sales passed from
29.0% in full year 2009 to 29.8% in full year 2010 due to a
remarkable increase of shipping costs and commissions, partially
balanced by a reduction both in advertising costs, commercial
labour costs and other commercial costs.
The incidence of General & Administrative Expenses on
sales, on the contrary, improved in 2010, passing from 9.0%
in 2009 to 8.2% in full year 2010, thanks to the rationalisation
and reorganisation actions carried out by the Group, that allowed a
total saving of €4.1 million.
EBITDA improved from positive €16.2 million in 2009 to
positive €23.8 million for the full year 2010.
The full year 2010 EBIT highlighted a return to a
positive margin of €0.4 million vs. a negative EBIT of €10.6
million for the full year 2009.
The full year 2010 Net Group Result recorded, despite the
greater incidence of extraordinary costs and a lower contribution
from forex, a loss of €11.1 million improving from the €17.7
million loss reported for the full year 2009.
FOURTH QUARTER 2010 CONSOLIDATED RESULTS
Total Net Sales (including raw materials and
semi-finished products sold to third parties) were at €132.0
million.
Upholstery net sales were at €115.8 million, down by 13.5% from
€133.9 million reported in the same period of 2009.
The break-down of upholstery net sales by geographic area was as
follows: Europe (excluding Italy) 43.3%, the Americas 31.8%, Italy
11.3% and Rest of the World 13.6%.
Industrial Margin was at €51,3 million, with an incidence
on sales equal to 38,9% (in line with the 39.0% reported in the
last quarter of 2009).
EBITDA was at €5,4 million as compared to €8,1 million in
the fourth quarter of 2009.
EBIT went from positive €2,1 million in fourth quarter
2009 to positive €0,2 million in the fourth quarter of 2010.
During the fourth quarter of 2010 the Group reported a Net
loss of €1,4 million as compared to a net loss of €2,5 million
in the same period of last year.
CONSOLIDATE BALANCE SHEET
Net Financial Position as of December 31st, 2010 remained
positive at €45.6 million although the reduction of €13.0 million
versus December 31st, 2009, mainly due to industrial investments in
fixed assets of €17.7 million.
Pasquale Natuzzi, Chairman and CEO of Natuzzi S.p.A., stated:
”Despite steady total sales in 2010, we finally reached a positive
operating result after three years of negative EBIT.
Financial figures are encouraging and confirm the good quality
of the work so far undertaken. We believe these results are below
our growth potential, that we expect to reach in the following
years considering the investments made in factories
requalification, development and awareness of the brands, as well
as in the expansion of foreign commercial branches to improve our
market presence.
Our Group maintains and strengthens its credibility and
leadership within historical markets such as Europe and the United
States, as well as in emerging markets such as India, China and
Brazil.
The re-launch of a company with strong Italian roots like
Natuzzi, goes along with product innovation as well as production
processes improvement.
We have done a good job on brands portfolio and made investments
to give a particular identity to the three brands, “Natuzzi”,
“Italsofa” and “Editons”; each of them addressing different
clients.
We are working to integrate brands , markets, distribution
channels and factories to support the three brands. We have
to further strengthen the Sales organization to increase the
presence in the markets and will continue to leverage on our
high-quality brand by relying on our management skills and
experience”.
The Company will host a conference call on March 30th, 2010 at
10:00 a.m. Eastern Time to discuss fourth quarter and full year
2010 financial results. To participate, dial toll-free
1-877-879-6201 and dial international 1-719-325-4858. A live web
cast of the conference call will be available online at
http://www.natuzzi.com/ under the Investor Relations section.
A replay of the call will be available shortly after the
completion of the conference call through April 30th 2011. To
access the telephone replay, participants should dial
1-877-870-5176 for domestic calls and 1-858-384-5517 for
international calls. The access code for the replay is:
1136006.
Natuzzi S.p.A.
Il Gruppo Natuzzi, fondato nel 1959 da Pasquale Natuzzi,
disegna, produce e vende una vasta collezione di poltrone, divani e
complementi d’arredo. Con un fatturato nel 2010 di 518.6 milioni di
euro, Natuzzi è il più grande produttore italiano nel settore
dell’arredamento ed è leader mondiale nel settore dei divani in
pelle. Il Gruppo esporta divani e poltrone innovativi e di elevata
qualità in 130 mercati nei 5 continenti. Design, superiorità
artigianale italiana, innovazione ed un’avanzata struttura
verticalmente integrata rappresentano le caratteristiche che hanno
fatto del Gruppo Natuzzi il leader di mercato. Natuzzi S.p.A. è
quotata al New York Stock Exchange dal 13 Maggio 1993. Il Gruppo
Natuzzi è certificato ISO 9001 e 14001.
Natuzzi S.p.A. and Subsidiaries
Unaudited Consolidated Profit & Loss for the quarter ended
on December 31, 2010 on the basis of Italian GAAP (expressed in
millions Euro except for share data)
Three months ended on
Change Percent of Sales 31-déc-10
31-déc-09 % 31-déc-10 30-déc-09
Upholstery net sales 115.8 133.9 -13.5% 87.7% 88.0% Other sales
16.2 18.3 -11.5% 12.3% 12.0%
Total Net Sales 132.0
152.2 -13.3% 100.0% 100.0%
Consumption (*) (53.2) (61.4) -13.4% -40.3% -40.3% Labor (18.9)
(20.8) -9.1% -14.3% -13.7% Industrial Costs (**) (8.6) (10.7)
-19.6% -6.5% -7.0% of which Depreciation, Amortization (2.6) (3.4)
Cost of Sales (80.7)
(92.9) -13.1% -61.1% -61.0%
Industrial Margin
51.3 59.3 -13.5% 38.9% 39.0%
Selling Expenses (40.0) (44.7) -10.5% 30.3% 29.4% of which
Transportation (13.3) (13.8) 10.1% 9.1% of which Advertising (9.6)
(12.2) 7.3% 8.0% of which Depreciation, Amortization (1.6) (1.5)
G&A Expenses (11.1) (12.5) -11.2% 8.4% 8.2% of which
Depreciation, Amortization (1.0) (1.1)
EBITDA 5.4 8.1 -33.3%
4.1% 5.3%
EBIT 0.2 2.1 -90.5% 0.2%
1.4% Interest Income/(Costs), Net (0.1) (0.3) Foreign
Exchange, Net 0.6 1.2 Other Income/(Cost), Net (1.3) (2.1)
Earning before Income
Taxes (0.6) 0.9 -0.4% 0.6%
Current taxes (0.8) (3.3) -0.6% -2.2%
Net result (1.4) (2.4)
-42.5% -1.0% -1.6% Minority interest
(0.0) (0.1)
Net Group
Result (1.4) (2.5) 43.5% -1.1%
-1.6% Net Group
Result per Share (0.03) (0.05)
Key
Figures in U.S. dollars Three months ended on
Change Percent of Sales (millions)
31-déc-10
31-déc-09 % 31-déc-10 30-déc-09
Total Net Sales 179.2 206.7
-13.3%
100.0% 100.0% Gross Profit 69.7 80.5
-13.5% 38.9% 39.0% Operating Income
(Loss) 0.3 2.9
-90.5% 0.2% 1.4%
Net Group Result (1.9) (3.4)
43.5%
-1.1% -1.6% Net Group Result per Share
(0.0) (0.1)
Average exchange rate (U.S.$ per
€) 1.3579
(*) Purchases plus beginning stock minus final stock (**)
Including Third-party manufacturers
UPHOLSTERY NET SALES BREAKDOWN
Geographic
breakdown Net sales million euro Net sales seats
three months ended
on three months ended on
31 December 2010 31 December
2009 Change % 31 December 2010 31 December
2009 Change % Americas 36.8
31.8% 43.8 32.7% -16.0% 207,270
41.6% 245,578 43.3% -15.6% Natuzzi 3.5
2.5% 3.6 2.7% -2.8% 9,378 1.9% 6,951 1.2% 34.9% All brands (*) 33.3
28.8% 40.2 30.0% -17.2% 197,892 39.7% 238,627 42.1% -17.1%
Europe 50.1 43.3% 61.0 45.6%
-17.9% 186,996 37.5% 216,769
38.2% -13.7% Natuzzi 24.7 21.3% 29.9 22.3% -17.4%
57,785 11.6% 62,210 11.0% -7.1% All brands (*) 25.4 21.9% 31.1
23.2% -18.3% 129,211 154,559 27.3% -16.4%
Italy
(Natuzzi) 13.2 11.3% 15.3 11.4%
-13.7% 44,441 8.9% 47,421 8.4%
-6.3% Rest of the world 15.7
13.6% 13.8 10.3% 13.8% 59,972
12.0% 57,090 10.1% 5.0% Natuzzi 8.3
7.2% 8.1 6.0% 2.5% 19,359 3.9% 20,132 8.4%
-3.8% All brands
(*) 7.4 6.4% 5.7 4.3% 29.8% 40,613 8.1% 36,959 6.5% 9.9%
Total 115.8
100.0% 133.9 100.0% -13.5%
498,679 100.0% 566,858 100.0%
-12.0%
Brands breakdown Net sales million euro Net sales
seats
three months
ended on three months ended on
31 December 2010 31 December
2009 Change % 31 December 2010 31 December
2009 Change % Natuzzi 49.7
42.9% 56.9 42.5% -12.7% 130,963
26.3% 136,713 24.1% -4.2% All
brands (*) 66.1 57.1% 77.0 57.5%
-14.2% 367,716 73.7% 430,144
75.9% -14.5%
Total 115.8 100.0% 133.9
100.0% -13.5% 498,679 100.0%
566,858 100.0% -12.0%
(*) Italsofa, Natuzzi Editions,
Editions and unbranded
Natuzzi S.p.A. and
Subsidiaries Unaudited Consolidated Profit
& Loss for the quarter ended on December 31, 2010 on the basis
of Italian GAAP (expressed in millions Euro except for share
data)
Twelve months ended on Change Percent of Sales
31-déc-10 31-déc-09 % 31-déc-10
31-déc-09 Upholstery net sales 460.5 450.6 2.2% 88.8%
87.4% Other sales 58.1 64.8 -10.3% 11.2% 12.6%
Total Net
Sales 518.6 515.4 0.6% 100.0%
100.0% Consumption (*) (213.6) (212.5) 0.5% -41.2%
-41.2% Labor (75.8) (78.5) -3.4% -14.6% -15.2% Industrial Costs
(**) (32.1) (38.8) 17.3% -6.2% -7.5% of which Depreciation,
Amortization (11.5) (14.5)
Cost of
Sales (321.5) (329.8) -2.5% -62.0%
-64.0%
Industrial Margin 197.1 185.6 6.2%
38.0% 36.0% Selling Expenses (154.3) (149.6)
3.1% 29.8% 29.0% of which Transportation (50.7) (42.5) 9.8% 8.2% of
which Advertising (28.1) (31.9) 5.4% 6.2% of which Depreciation,
Amortization (7.6) (7.9) G&A Expenses (42.4) (46.6) -9.0% 8.2%
9.0% of which Depreciation, Amortization (4.3) (4.4)
EBITDA 23.8 16.2
46.9% 4.6% 3.1%
Operating Income/(Loss) (EBIT) 0.4
(10.6) 103.8% 0.1% -2.1%
Interest Income/(Costs), Net (1.0) (1.1) Foreign Exchange, Net 1.1
6.9 Other Income/(Cost), Net (4.5) (2.6)
Earning before Income Taxes
(4.0) (7.4) 45.9% -0.8% -1.4%
Current taxes (7.0) (9.9) -1.3% -1.9%
Net result (11.0) (17.3)
36.4% -2.1% -3.4% Minority interest 0.1
0.4
Net Group
Result (11.1) (17.7) 37.3% -2.1%
-3.4% Net Group
Result per Share (0.20) (0.32)
Key
Figures in U.S. dollars Twelve months ended on
Change Percent of Sales (millions)
31-déc-10
31-déc-09 % 31-déc-10 31-déc-09
Total Net Sales 688.1 683.8
0.6% 100.0%
100.0% Gross Profit 261.5 246.3
6.2%
38.0% 36.0% Operating Income (Loss) 0.5
(14.1)
103.8% 0.1% -2.1% Net Group
Result (14.7) (23.5)
37.3% -2.1%
-3.4% Net Group Result per Share (0.3) (0.4)
Average exchange rate (U.S.$ per €) 1.3268
(*) Purchases plus
beginning stock minus final stock (**) Including Third-party
manufacturers
UPHOLSTERY NET SALES
BREAKDOWN
Geographic breakdown Net
sales million euro Net sales seats
Twelve months ended on Twelve
months ended on
31 December 2010 31 December 2009
Change % 31 December 2010 31 December 2009
Change % Americas 164.2 35.7%
139.8 31.0% 17.5% 886,471 45.4%
785,156 40.8% 12.9% Natuzzi 15.5 3.4% 15.3
3.4% 1.3% 40,112 2.1% 43,520 2.3% -7.8% All brands (*) 148.7 32.3%
124.5 27.6% 19.4% 846,359 43.3% 741,636 38.6% 14.1%
Europe 186.4 40.5% 210.3 47.2%
-11.4% 685,124 35.1% 776,057
40.4% -11.7% Natuzzi 93.3 20.3% 106.5 23.6% -12.4%
208,298 10.7% 247,831 12.9% -16.0% All brands (*) 93.1 20.2% 103.8
23.0% -10.3% 476,826 24.4% 528,227 27.5% -9.7%
Italy
(Natuzzi) 51.7 11.2% 53.5 11.9%
-3.4% 162,328 8.3% 167,046 8.7%
-2.8% Rest of the world 58.2
12.6% 47.0 10.4% 23.8% 220,670
11.3% 194,961 10.1% 13.2% Natuzzi 31.6
6.9% 27.8 6.2% 13.7% 73,050 3.7% 70,855 3.7% 3.1% All brands (*)
26.6 5.8% 19.2 4.3% 38.5% 147,620 7.6% 124,106 6.5% 18.9%
Total 460.5
100.0% 450.6 100.5% 2.2%
1,954,592 100.0% 1,923,220 100.0%
1.6%
Brands breakdown Net sales million euro Net sales
seats
Nine
months ended on Nine months ended on
31 December 2010
31 December 2009 Change % 31 December 2010
31 December 2009 Change % Natuzzi
192.1 41.7% 203.1 45.1% -5.4%
483,788 24.8% 529,251 27.5%
-8.6% All brands (*) 268.4 58.3%
247.5 54.9% 8.4% 1,470,805 75.2%
1,393,969 72.5% 5.5%
Total 460.5 100.0%
450.6 100.0% 2.2% 1,954,592
100.0% 1,923,220 100.0% 1.6%
(*) Italsofa,
Natuzzi Editions, Editions and unbranded Natuzzi S.p.A. and
Subsidiaries
Unaudited Consolidated Balance Sheets
as at December 31, 2010 on the basis of Italian GAAP (Expressed
in millions of euro)
ASSETS 31-déc-10
31 Dec 09 Current assets: Cash and cash
equivalents 61.1 66.3 Marketable debt securities 0.0 0.0 Trade
receivables, net 95.8 97.1 Other receivables 51.7 54.5 Inventories
87.4 81.6 Unrealized foreign exchange gains 0.2 0.3 Prepaid
expenses and accrued income 1.3 1.4 Deferred income taxes 1.1 0.7
Total current assets
298.6 301.9 Non current assets:
Net property, plant and equipment 196 193.9 Other assets 9.3 12.8
Total non current assets
205.3 206.7 TOTAL ASSETS
503.9 508.6 LIABILITIES AND
SHAREHOLDERS' EQUITY Current
liabilities: Short-term borrowings 0.1 0.8 Current portion of
long-term debt 2.6 1.1 Accounts payable-trade 64.3 66.5 Accounts
payable-other 27.9 29.3 Unrealized foreign exchange losses 1.1 0.4
Accounts payable-shareholders for dividends 0.0 0.0 Income taxes
2.9 3.7 Salaries, wages and related liabilities 9.9 15.0
Total current liabilities 108.8
116.8 Long-term liabilities: Employees'
leaving entitlement 28.4 29.6 Long-term debt 12.8 5.9 Deferred
income for capital grants 10.4 11.2 Other liabilities 18.2 18.2
Total long-term liabilities
69.8 64.9
Minority interest 2.1 1.9
Shareholders' equity: Share capital 54.9 54.9 Reserves 12.0
12.0 Additional paid-in capital 9.3 9.3 Retained earnings 247.0
248.8
Total shareholders' equity
323.2 325.0 TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 503.9 508.6 Natuzzi
S.p.A. and Subsidiaries
Consolidated Statements of
Cash Flows (Expressed in million of euro)
31 Dec
10 31 Dec 09 Cash flows from operating
activities: Net earnings (loss) (11.1)
(17.7) Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation and
amortization 23.4 26.8 Employees' leaving entitlement (1.2) (2.1)
Deferred income taxes (0.4) 3.7 Minority interest 0.1 0.4 (Gain)
loss on disposal of assets 0.6 (0.1) Unrealized foreign exchange
losses and gains 0.8 (4.4) Impairment of long lived assets (0.7) -
Deferred income for capital grants (1.0)
Non monetary operating
costs 22.6 23.3 Change in assets and
liabilities: Receivables, net 1.2 25.7 Inventories (5.8) 10.5
Prepaid expenses and accrued income 0.1 (0.2) Other assets 2.8
(8.3) Accounts payable (2.2) (2.1) Income taxes (0.7) 1.9 Salaries,
wages and related liabilities (5.1) (1.8) Other liabilities (0.2)
2.6
Net working capital (9.9) 28.3
Net cash provided by operating activities 1.6
33.9 Cash flows from investing
activities: Property, plant and equipment: Additions (17.9)
(9.2) Disposals 0.2 0.2 Marketable debt securities: - -
Net cash used in investing activities (17.7)
(9.0) Cash flows from financing activities:
Long-term debt: Proceeds 9.8 3.9 Repayments (1.3) (0.7)
Short-term borrowings (0.7) (8.9) Capital injection - - Dividends
paid to minority interests - -
Net cash used in financing
activities 7.8 (5.7) Effect of translation
adjustments on cash 3.1 (0.2)
Increase (decrease) in cash
and cash equivalents (5.2) 19.0 Cash
and cash equivalents, beginning of the year 66.3
47.3 Cash and cash equivalents, end of the
year 61.1 66.3
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