SECOND QUARTER 2023
HIGHLIGHTS
- OVERALL 2Q 2023 INVOICED SALES AMOUNTED TO €83.5 MILLION, A
DECREASE OF 28.5% VERSUS 2Q 2022, AND OF 9.4% VERSUS 2Q 2019, AS A
RESULT OF PERDURING MACROECONOMIC HEADWINDS AFFECTING THE
FURNISHINGS INDUSTRY. 2Q 2023 BRANDED INVOICED SALES, WHILE BEING
BELOW 2Q 2022, ARE UP 4.7% VS 2Q 2019.
- IMPROVED GROSS MARGIN AT 36.4% ON REVENUE, COMPARED TO 31.4%
IN 2Q 2022 AND 27.9% IN 2Q 2019. THE INCREASE IN GROSS MARGIN STEMS
FROM THE ADVANTAGES GAINED THROUGH IMPROVED PRICE DISCIPLINE AND
BETTER COST MANAGEMENT, WHICH HAVE OFFSET THE NEGATIVE IMPACT OF
REDUCED SALES VOLUME ON INDUSTRIAL PRODUCTION COSTS.
- IN THE SECOND QUARTER OF 2023, WE ACHIEVED OPERATING
BREAKEVEN. THIS COMPARES WITH AN OPERATING PROFIT OF €1.1 MILLION,
FROM €116.9 MILLION SALES IN THE 2Q OF 2022, AND AN OPERATING LOSS
OF (€7.8) MILLION FROM €92.2 MILLION SALES IN THE 2Q OF
2019.
- AS OF JUNE 30, 2023, WE HELD €44.5 MILLION IN CASH, COMPARED
TO €54.5 MILLION AS OF DECEMBER 31, 2022. OPERATING ACTIVITIES
GENERATED €1.6 MILLION IN CASH WHICH WAS MORE THAN OFFSET BY €7.6
MILLION IN INVESTMENTS, PRIMARILY ALLOCATED TO UPGRADING OUR
ITALIAN FACTORIES (€5.3 MILLION) AND OPENING NEW DIRECT STORES
(€2.0 MILLION). ADDITIONALLY, €5.2 MILLION OF CASH WAS USED FOR
LEASE PAYMENTS.
- IN THE CURRENT MARKET CONTEXT, COST AND CAPITAL EFFICIENCY
ARE CRUCIAL. WE LAUNCHED A SET OF INITIATIVES TO REDUCE COSTS AND
IMPROVE WORKING CAPITAL DISCIPLINE.
- WE CONTINUE TO EXPECT THE OVERALL ECONOMY AND THE FURNISHING
SECTOR TO REMAIN CHALLENGING THROUGHOUT THE REST OF 2023 AND THE
BEGINNING OF NEXT YEAR, WITH A POTENTIAL NEGATIVE IMPACT ON OUR
BUSINESS. WE REMAIN CONFIDENT IN THE STRENGTH OF OUR BRANDS
AND IN THE COMPANY’S LONG-TERM GROWTH PLAN.
Natuzzi S.p.A. (NYSE: NTZ) (“we”, “Natuzzi” or the “Company”
and, together with its subsidiaries, the “Group”), one of the most
renowned brands in the production and distribution of design and
luxury furniture, today reported its unaudited financial
information for the second quarter ended June 30, 2023.
Pasquale Natuzzi, Chairman of the Group, commented: “Our
industry globally continues to be negatively affected by consumers’
decision to postpone their purchasing, as a result of eroding
spending power and shift of spending in favor of travelling and
dining out. Real estate, which is a primary driver for the
furnishing market, has been negatively affected by high interest
rates. This has been one of the main causes of the weak store
traffic we have been witnessing for more than 15 months. I feel
reassured by the work our Group is doing to weather this adverse
market conditions, both on the commercial front, where we have
launched multiple initiatives to regain growth, and on
cost/efficiency front, where our team has intensified the effort to
mitigate the impact on our P&L of this negative sales trend.
Our Group also worked on the innovation process with the objective
of having “fewer and bolder” innovations, that are brought to the
market according to a new global launch process, which leverages
some of the best practices of the automotive and high-tech
industry. A clear example of this new way of approaching innovation
is the “Wellbe” launch, that will take place globally starting from
October. Wellbe is an innovative line of upholstery, which
leverages our unique craftsmanship knowhow, rooted in our DNA, of
combining functionality with aesthetic. We used these competences
to offer our customer a product which is completely innovative in
its technical content, as well in the way it will be presented to
the market. Wellbe is part of our Comfortness® philosophy, which
aspires to offer products with superior comfort and wellness to our
customers.”
Antonio Achille, CEO of the Group, commented: “It is evident
that business environment continues to be particularly challenging
for the furniture industry. The fact that most analysts are
comparing actual sales with data from 2019, speaks about the
extraordinary cycle that the furnishing market has experienced over
the past four years. This negative market cycle has not yet reached
a turning point, so it is crucial for us to remain highly focused
on actions that will enable us to navigate through this challenging
phase effectively. In this context, regaining growth is absolutely
the priority. We are focusing on organic growth. With nearly 700
stores, in addition to galleries, our absolute priority is to
improve like-for-like sales, starting from our direct stores.
Leveraging the experience on our direct stores, we progressively
strive to help our franchisee partners, both operating standalone
stores and galleries, to increase their sales by providing them
with turn-key IT systems, training and clear guidelines on store
layout, merchandising and visual. Natuzzi has accelerated this
process, also thanks to the newly introduced Global Retail
Division, which has been created early this year and that has
reported significant progresses in terms of creating impact across
geographies.
To support this process, we have strengthened our marketing
team, with the introduction of Mr. Daniele Tranchini, who will be
responsible for the communication strategy and its deployment for
all our brands. Daniele brings more than 30 years of experience
with international marketing agencies, where he held leadership
positions, including J. Walter Thompson and Publicis where he
successfully acted as CEO for the Italian business, and Leo
Burnett-Italy, where he covered the role of Managing Director. We
are convinced that Daniele will bring the right energy and
expertise to boost our marketing and communications activities.
At the same time, we should not, as the saying goes, “waste a
crisis” and we should use this phase of adverse market conditions
to reduce costs and streamline our operations. Our strategic
objective is to optimize our “back of the house” increasing the
efficiency of our staff services and operations, so that, when, as
I am sure, we regain growth momentum, we will be poised to attain
significantly higher margins and return on investments compared to
the pre-Covid.
We have therefore launched specific actions to reduce costs and
improve working capital, with the objective of increasing cash
conversion. As part of this initiative, we are working to optimize
our supply chain, starting by pruning the unnecessary complexity of
our collections which will enable us to cost and working capital
benefits. We are also directly tackling SG&A, where we aim for
a substantial transformation of our organization to become more
agile and cost effective, both in HQ and in the main Regions.
In terms of our industrial operations, the restructuring of our
Italian facilities is advancing in accordance with our long-term
strategy. Since 2021, we have reduced the Italian workforce by 153
individuals, with 103 of them being factory workers. This reduction
reflects a well-coordinated and socially responsible effort to
enhance efficiency by aligning our production capacity with our
mid-term sales plan. Taking into account also our international
operations, we saw a reduction of 577 personnel within the Group
during the same period, with 528 of them being factory workers.
Let’s talk about our priority markets, starting from China. The
removal of covid travel restrictions allowed us to be back in the
market to visit our stores and meet with JV management. We are
actively cooperating with the JV local team to improve the
performance of our retail with a better execution of store layout,
merchandising and visual. These improvements are essential to deal
with the negative dynamic of the furniture market in China, also
linked to the emerging real estate crisis, which is affecting our
JV sales since the beginning of the year.
U.S. is the other main strategic market. As mentioned in our
last press release, we've taken proactive measures to strengthen
our commercial organization while simultaneously enhancing the
quality and cost-effectiveness of our regional services. This
initiative commenced in March with the appointment of a seasoned
manager, Scott Kruger, to lead our wholesale and gallery
business.
We've now taken another significant step by focusing Jason Camp
on the management and growth of our Retail, covering both Natuzzi
Italia and Natuzzi Editions brands. Retail represents our top
priorities for growth in the region. To facilitate this
realignment, we've entrusted Ottavio Milano, a seasoned executive
with over 30 years of experience within the Group, with the role of
President. Ottavio will oversee our staff functions, including
finance, customer care, HR, and more, ensuring that Scott and Jason
can fully concentrate on the commercial development of their
respective businesses, supporting them in functional relations with
the headquarters. Ottavio has achieved remarkable success in
turning around the South and Central America operations, a role he
continues to excel in. We have great confidence that this
organizational set up will not only drive business improvement in
the region but also enhance our service to our valued customers
The new organization is enabling us to accelerate our retail
efforts. We are actively promoting the implementation of the retail
excellence program to enhance organic growth in our Directly
Operated Stores (DOS) and further expand our retail footprint.
Organic growth is our priority. We have done significant steps
in standardizing and sharing our best practices, starting from our
DOS and to be extended also to our franchise partners. These
practices include: a defined store layout to efficiently walk our
customers through our products communicating the brand values in
our retail journey; a training to provide our sales force with a
consistent level of passion and knowledge so to offer the best
retail experience to customers. We also have turbo-boosted a
specific initiative to grow the trade business with the architects
and designers community. We are harmonizing our product
presentation through clear visual guidelines in order to achieve a
product blend within the sales area of a store, aimed to maximize
sales and conversion rate. Lastly, we developed an advanced
reporting system with the aim to analyze performance details of
each individual store, in real time.
During the year, we continued to extend our network of stores,
with 7 new openings of which 6 Natuzzi Italia stores located in San
Diego, Miami, Fort Worth, Manhasset, Atlanta and Houston and 1
Natuzzi Editions in Frisco, Dallas, counting both 5 fully owned
stores, 1 store in JV and 1 franchise. The location and the quality
of the new stores have been significant upgraded to reflect the
elevated positioning of our Brands, chiefly Natuzzi Italia. The
Natuzzi Italia Manhasset store, which opened in last July,
represents a vivid example of this journey. Located in North Shore
of Long Island, it is positioned at the focal point of the
prestigious Miracle Mile, the gate of Long Island’s premiere
destination for luxury shopping. The store has a commercial surface
of nearly 1.000 square meters with a signature architecture which
brings perfectly to live our ultimate Natuzzi Italia store
concept.
On the gallery/wholesale front, we are strengthening our
commercial coverage, with the introduction of 15 new independent
agents, which are progressively integrated into our team. We plan
to increase such commercial presence by engaging at least 10
further agents in the following months.
**********
In conclusion, it's evident that the current situation is
unlikely to see a rapid improvement. Given these conditions, it's
crucial that we establish clear and shared priorities. Our
strategic direction is now more defined than ever: we aim to
nurture our brands, with a focus on organic growth and retail in
our core markets, all while diligently reducing costs and enhancing
the agility of our organization to boost margins.
Our team is exceptionally united and fully committed to the
action plan designed to protect our top-line and continually
improve cost efficiency. We maintain our confidence in the
potential of our brands and remain steadfast in pursuing the growth
objectives outlined in our mid-term plan."
**********
2Q 2023 CONSOLIDATED REVENUE
2Q 2023 consolidated revenue amounted to €83.5 million, from
€116.9 million in 2Q 2022, sustained by the high level of
post-COVID backlog, and from €92.2 million in 2Q 2019. 2Q 2023
consolidated revenue has been affected by the persisting
macroeconomic and industry-specific challenges that continue to
affect the consumers’ spending capacity.
Excluding “other sales” of €2.4 million, 2Q 2023 invoiced sales
from upholstered and other home furnishings products amounted to
€81.1 million, compared to €112.0 million in 2Q 2022 and €88.4
million in 2Q 2019.
Revenues from upholstered and other home furnishings products
are hereafter described according to the main dimensions of the
Group’s business:
- A: Branded/Unbranded Business
- B: Key Markets
- C: Distribution
A. Branded/Unbranded business
The Group operates in the branded business (with Natuzzi Italia,
Natuzzi Editions and Divani&Divani by Natuzzi) and the
unbranded business, the latter with collections dedicated to
large-scale distribution.
A1. Branded business. Within the branded business,
Natuzzi is pursuing a dual-brand strategy:
- Natuzzi Italia, our luxury
furniture brand, offers products entirely designed and manufactured
in Italy and targets an affluent and more sophisticated global
consumer with a highly inspirational collection that is largely the
same across all our global stores to best represent our Brand.
Natuzzi Italia products are almost exclusively sold in mono-brand
stores (directly operated or franchises).
- Natuzzi Editions, our
contemporary collection, offers products entirely designed in Italy
and produced in different plants strategically located to best
serve individual markets (mainly China, Romania, Brazil). Natuzzi
Editions products are distributed in Italy under the brand
Divani&Divani by Natuzzi. The store merchandising of Natuzzi
Editions, starting from a common collection, is tailored to best
fit the opportunities of each market. The Natuzzi Editions products
are sold primarily through galleries and selected mono-brand
franchise stores.
In 2Q 2023, Natuzzi’s branded invoiced sales amounted to €74.5
million, from €98.7 million in 2Q 2022 and €71.2 million in the
pre-pandemic 2Q 2019.
The following is the contribution of each Brand to 2Q 2023
invoiced sales:
- Natuzzi Italia invoiced sales amounted to €31.0 million,
from €53.6 million in 2Q 2022 and €31.6 million in 2Q 2019, mainly
as a result of the impact of the overstock and negative industry
momentum reported by our JV in China, the gradual reduction of
inventory among wholesalers, especially in North America, as well
as the difficult macroeconomic context and geopolitical instability
that continue to affect Europe.
- Natuzzi Editions invoiced sales (including invoiced
sales from Divani&Divani by Natuzzi) amounted to €43.5 million,
from €45.1 million in 2Q 2022, almost entirely due to the weak
performance in Europe, affected by the difficult macroeconomic
context and geopolitical instability, that more than offset the
overall positive performance in the remaining markets. 2Q 2023
invoiced sales increased from €39.6 million in 2Q 2019.
A2. Unbranded business. Invoiced sales from our unbranded
business amounted to €6.6 million in 2Q 2023, from €13.3 million in
2022 and from €17.2 million 2019 same period. The Company’s
strategy is to focus on selected large accounts and serve them with
a more efficient go-to-market model.
B. Key Markets
Here below a breakdown of 2Q 2023 upholstery and
home-furnishings invoiced sales compared to 2Q 2022, according to
the following geographic areas.
2Q 2023
2Q 2022
Delta €
Delta %
North America
24.7
31.3
(6.6
)
(21.2
%)
Greater China
6.6
13.3
(6.7
)
(50.0
%)
West & South Europe
26.7
40.6
(13.9
)
(34.2
%)
Emerging Markets
11.3
13.1
(1.8
)
(13.7
%)
Rest of the World*
11.8
13.7
(1.9
)
(14.1
%)
Total
81.1
112.0
(30.9
)
(27.6
%)
Figures in €/million, except percentage *Include South and
Central America, Rest of APAC.
The performance of invoiced sales in North America was curbed by
the weak sales of the wholesale channel, both branded and
unbranded, as wholesale distributors continue to be mainly focused
on reducing their stock rather than placing new orders.
In China the furniture industry is suffering from a perduring
negative headwind, caused by a more prudent consumers’ willingness
to invest in durables and by the emerging crisis of the real estate
market. Furthermore, the joint venture is still actively reducing
the inventory of Natuzzi Italia products that had accumulated
during 2022.
West & South Europe Region continues to be affected by a
difficult economic scenario, high inflation as well as uncertainty
deriving from geopolitical instability.
C. Distribution
During the first six months of 2023, the Group distributed its
branded collections in 100 countries, according to the following
table.
Direct Retail
FOS
Galleries
Total as of
June 30, 2023
North America
18(1)
8
153
179
West & South Europe
33
100
127
260
Greater China
21(2)
349
─
370
Emerging Markets
─
75
129
204
Rest of the World
4
86
88(3)
178
Total
76
618
497
1,191
(1) Included 3 DOS in the U.S. managed in joint venture with a
local partner. As the Natuzzi Group does not exert full control in
each of these DOS, we consolidate only the sell-in from such DOS.
(2) All directly operated by our joint venture in China. As the
Natuzzi Group owns a 49% stake in the joint venture and does not
control it, we consolidate only the sell-in from such DOS. (3) It
includes 11 Natuzzi galleries (store-in-store points of sale)
directly managed by the Mexican subsidiary of the Group. FOS =
Franchise stores managed by independent partners.
During 2Q 2023, Group’s invoiced sales from direct retail, DOS
and Concessions directly managed by the Group, amounted to €18.8
million, from €22.0 million in 2Q 2022 and from €16.3 million in 2Q
2019.
In 2Q 2023, invoiced sales from franchise stores amounted to
€33.4 million, down from €46.6 million in 2Q 2022 and increasing
from €23.7 million in 2Q 2019.
We continue executing our strategy to evolve to a Brand/Retailer
and improve the quality of our distribution network. The weight of
the invoiced sales generated by the retail network (Direct retail
and Franchise Operated Stores, or FOS) on total upholstered and
home furnishings business in 2Q 2023 was 64.3% compared to 61.2% in
2Q 2022 and 45.2% in 2Q 2019.
The Group also sells its products through the wholesale channel,
consisting primarily of Natuzzi-branded galleries in multi-brand
stores, as well as mass distributors selling unbranded products.
During 2Q 2023, invoiced sales from the wholesale channel amounted
to €28.9 million, compared to €43.5 million in 2Q 2022 and €48.4
million in 2Q 2019. Such decrease is mainly attributable to lower
sales from our large distributors in North America that are
focusing on reducing their stock, thus postponing orders for new
products.
2Q 2023 GROSS MARGIN
In 2Q 2023, we had a gross margin of 36.4%, compared to 31.4% in
2Q 2022 and 27.9% in 2Q 2019, mainly due to a better price
discipline, improved brand and channel mix, a decrease in the
average consumption of raw materials and energy cost, which have
offset the negative impact of reduced sales volume on industrial
production costs. Enhancing gross margin is one of our top
strategic priorities.
2Q 2023 OPERATING EXPENSES
During 2Q 2023, operating expenses (which include selling
expenses, administrative expenses, other operating income/expenses,
and the impairment of trade receivables) were (€30.4) million (or
36.4% on revenue), compared to (€35.6) million (or 30.5% on
revenue) in 2Q 2022.
The decrease in the operating expenses was largely due to the
reduction in transportation costs (equal to €6.6 million, or 7.9%
on revenue, in 2Q 2023, compared to €12.9 million, or 11.1% on
revenue, in 2Q 2022) as result of lower volume delivered and
decreasing transportation rates.
While the Company is focused on controlling discretionary costs,
the low delivered sales in the quarter has not allowed to
adequately absorb fixed costs, resulting in the increase of the
weight of the overall operating expenses on revenue.
2Q 2023 NET FINANCE INCOME/(COSTS)
During 2Q 2023, the Company accounted for (€0.8) million of Net
Finance costs compared to Net Finance costs of (€1.4) million in 2Q
2022.
Rising interest rates continue to adversely impact our results
principally in terms of increased interest expense of rental
contracts as well as third-party financing, notwithstanding the
bank debt outstanding in the quarter on average decreased compared
to 2Q 2022. Specifically, during the quarter, the Company reported
Finance costs of (€2.7) million compared to Finance costs of (€2.0)
million in 2Q 2022.
KEY RESULTS: FIRST HALF OF 2023
During the first half of 2023, the Company reported the
following results:
- Total revenue of €169.6 million, a decrease of 28.0% compared
to first half of 2022 and a decrease of 14.5% compared to the
pre-pandemic first half of 2019.
- We had a gross margin of 36.0%, compared to 32.8% and 29.1%
reported in 2022 and 2019 first half, respectively. Excluding
(€1.1) million of labor-related accrual following the incentive
plan for workers who terminate their employment relationship, both
in Italy and abroad, 2023 first half gross margin would have been
36.6%.
- Depreciation and amortization for the period, which include the
depreciation charge of right-of-use assets related to the operating
leases and accounted for in the cost of sales, selling and
administrative expenses, amounted to €10.9 million, compared to
€10.7 million and €11.5 million in the first half of 2022 and 2019,
respectively.
- We had an operating loss of (€0.9) million, compared to an
operating profit of €2.5 million in 2022 first half and an
operating loss of (€10.8) million in 2019 first half. 2023
operating loss of (€0.9) million includes (€1.7) million of
non-recurring accruals, namely an accrual of (€0.4) million in
connection with the Company’s Stock Option Plan (SOP), (€0.2)
million accounted for in the operating expenses as incentive to
reduce the number of Italian employees, in addition to the already
mentioned (€1.1) million of labor-related accrual accounted for in
the cost of sales.
- Net finance costs were (€4.2) million, mainly as a result of
Finance costs of (€4.8) million, due to rising interest rates. 2023
Net Finance costs of (€4.2) million compare to net finance costs of
(€2.0) million in 2022 first half and net finance costs of (€4.6)
million in 2019 first half.
- We had a loss after tax for the period of (€3.7) million, which
compares to a profit after tax of €0.7 million in 2022 first half
and to a loss after tax of (€15.2) million for the first half of
2019.
BALANCE SHEET AND CASH FLOW
During the first half of 2023, €1.6 million of net cash were
provided by operating activities as a result of:
- A loss for the period of (€3.7) million;
- adjustments for non-monetary items of €13.1 million, of which
depreciation and amortization of €10.9 million;
- a (€3.3) contribution from working capital change, mainly as a
result of the decrease in trade and other payables for (€15.8)
million, (€2.3) for payments connected to the reduction of
workforce, partially offset by lower inventories for €6.8 million
and lower trade receivables and other assets for €8.2 million;
- interest and taxes paid of (€4.5) million.
During the first six months of 2023, (€4.6) million of cash were
used in investing activities, as a result of (€7.6) million of
capital expenditure partially offset by €3.0 million collected from
our JV in China following the share capital reduction.
In the same period, (€5.9) million of cash were used in
financing activities, due to the repayment of long-term borrowing
for (€2.1) million, (€1.8) million for short-term borrowing
repayment and (€5.2) million for lease-related payments, partially
offset by a new long-term subsidized borrowings of €3.2 million
received in connection with a program of public incentives aimed at
upgrading the Italian plants.
As a result, as of June 30, 2023, cash and cash equivalents was
€44.5 million, compared to €54.5 million as of December 31,
2022.
As of June 30, 2023, we had a net financial position before
lease liabilities (cash and cash equivalents minus long-term
borrowings minus bank overdraft and short-term borrowings minus
current portion of long-term borrowings) of (€0.3) million,
compared to €7.9 million as of December 31, 2022.
*******
CONFERENCE CALL
The Company will host a conference call to discuss financial
information on Monday October 2, 2023, at 10:00 a.m. U.S. Eastern
time (4.00 p.m. Italy time, or 3.00 p.m. UK time).
To join the live conference call, interested persons will need
to either:
- dial-in the following number: Toll/International:
+1-412-717-9633, then passcode 39252103#; or
- click on the following link:
https://www.c-meeting.com/web3/join/3PQUFXRW48XTKQ to join via
video. Participants also have option to listen via phone after
registering to the link.
*******
Natuzzi S.p.A. and Subsidiaries Unaudited consolidated
statement of profit or loss for the second quarter of 2023 and 2022
on the basis of IFRS-IAS (expressed in millions Euro, except as
otherwise indicated)
Second quarter ended
on
Change
Percentage of revenue
30-Jun-23
30-Jun-22
%
30-Jun-23
30-Jun-22
Revenue
83.5
116.9
-28.5%
100.0
%
100.0
%
Cost of Sales
(53.1
)
(80.2
)
-33.7%
-63.6
%
-68.6
%
Gross profit
30.4
36.7
-17.2%
36.4
%
31.4
%
Other income
2.4
1.8
2.8
%
1.5
%
Selling expenses
(22.8
)
(28.7
)
-20.5%
-27.3
%
-24.5
%
Administrative expenses
(9.8
)
(8.6
)
14.4%
-11.8
%
-7.3
%
Impairment on trade receivables
(0.0
)
(0.1
)
0.0
%
-0.1
%
Other expenses
(0.1
)
(0.0
)
-0.1
%
0.0
%
Operating profit/(loss)
0.0
1.1
0.0
%
0.9
%
Finance income
0.2
0.0
0.3
%
0.0
%
Finance costs
(2.7
)
(2.0
)
-3.2
%
-1.7
%
Net exchange rate gains/(losses)
1.6
0.6
2.0
%
0.5
%
Net finance income/(costs)
(0.8
)
(1.4
)
-1.0
%
-1.2
%
Share of profit/(loss) of equity-method investees
0.8
(0.2
)
1.0
%
-0.2
%
Profit/(Loss) before tax
0.1
(0.5
)
0.1
%
-0.4
%
Income tax expense/(benefit)
(0.4
)
(0.1
)
-0.5
%
-0.1
%
Profit/(Loss) for the period
(0.4
)
(0.6
)
-0.4
%
-0.5
%
Profit/(Loss) attributable to: Owners of the Company
(0.3
)
(1.0
)
Non-controlling interests
(0.0
)
0.4
Natuzzi S.p.A. and Subsidiaries
Unaudited consolidated statement of profit or loss for the six
months of 2023 and 2022 on the basis of IFRS-IAS (expressed in
millions Euro, except as otherwise indicated)
Six months ended on
Change
Percentage of revenue
30-Jun-23
30-Jun-22
%
30-Jun-23
30-Jun-22
Revenue
169.6
235.4
-28.0%
100.0
%
100.0
%
Cost of Sales
(108.6
)
(158.1
)
-31.3%
-64.0
%
-67.2
%
Gross profit
61.0
77.3
-21.1%
36.0
%
32.8
%
Other income
3.6
2.8
2.1
%
1.2
%
Selling expenses
(46.6
)
(60.2
)
-22.6%
-27.5
%
-25.6
%
Administrative expenses
(18.7
)
(16.9
)
10.8%
-11.0
%
-7.2
%
Impairment on trade receivables
(0.1
)
(0.4
)
0.0
%
-0.2
%
Other expenses
(0.1
)
(0.1
)
-0.1
%
0.0
%
Operating profit/(loss)
(0.9
)
2.5
-0.5
%
1.1
%
Finance income
0.3
0.0
0.2
%
0.0
%
Finance costs
(4.8
)
(3.7
)
-2.8
%
-1.6
%
Net exchange rate gains/(losses)
0.2
1.7
0.1
%
0.7
%
Net finance income/(costs)
(4.2
)
(2.0
)
-2.5
%
-0.9
%
Share of profit/(loss) of equity-method investees
2.0
0.8
1.2
%
0.3
%
Profit/(Loss) before tax
(3.1
)
1.3
-1.9
%
0.6
%
Income tax expense
(0.5
)
(0.6
)
-0.3
%
-0.3
%
Profit/(Loss) for the period
(3.7
)
0.7
-2.2
%
0.3
%
Profit/(Loss) attributable to: Owners of the Company
(3.6
)
(0.0
)
Non-controlling interests
(0.1
)
0.7
Natuzzi S.p.A. and Subsidiaries
Unaudited consolidated statements of financial position
(condensed)on the basis of IFRS-IAS(Expressed in millions of
Euro)
30-Jun-23
31-Dec-22
ASSETS Non-current assets
180.0
177.6
Current assets
162.8
191.0
TOTAL ASSETS
342.8
368.6
EQUITY AND LIABILITIES Equity attributable to Owners
of the Company
81.8
87.9
Non-controlling interests
4.4
4.7
Non-current liabilities
99.9
95.3
Current liabilities
156.7
180.8
TOTAL EQUITY AND LIABILITIES
342.8
368.6
Natuzzi S.p.A. and Subsidiaries Unaudited consolidated
statements of cash flows (condensed) (Expressed in millions of
Euro)
30-Jun-23
31-Dec-22
Net cash provided by (used in) operating activities
1.6
18.7
Net cash provided by (used in) investing activities
(4.6
)
(4.6
)
Net cash provided by (used in) financing activities
(5.9
)
(13.5
)
Increase (decrease) in cash and cash equivalents
(9.0
)
0.5
Cash and cash equivalents, beginning of the year
52.7
52.2
Effect of movements in exchange rates on cash held
(0.8
)
(0.1
)
Cash and cash equivalents, end of the period
43.0
52.7
For the purpose of the statements of cash flow,
cash and cash equivalents comprise the following: (Expressed in
millions of Euro)
30-Jun-23
31-Dec-22
Cash and cash equivalents in the statement of financial position
44.5
54.5
Bank overdrafts repayable on demand
(1.5
)
(1.8
)
Cash and cash equivalents in the statement of cash flows
43.0
52.7
CAUTIONARY STATEMENT CONCERNING
FORWARD-LOOKING STATEMENTS
Certain statements included in this press release constitute
forward-looking statements within the meaning of the safe harbor
provisions of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, as amended. These
statements may be expressed in a variety of ways, including the use
of future or present tense language. Words such as “estimate,”
“forecast,” “project,” “anticipate,” “likely,” “target,” “expect,”
“intend,” “continue,” “seek,” “believe,” “plan,” “goal,” “could,”
“should,” “would,” “may,” “might,” “will,” “strategy,” “synergies,”
“opportunities,” “trends,” “ambition,” “objective,” “aim,”
“future,” “potentially,” “outlook” and words of similar meaning may
signify forward-looking statements. These statements involve risks
and uncertainties that could cause the Company’s actual results to
differ materially from those stated or implied by such
forward-looking statements including, but not limited to, potential
risks and uncertainties described at page 3 of this document
relating to the supply-chain, the cost and availability of raw
material, production and shipping and the modernization of our
Italian manufacturing and those relating to the duration, severity
and geographic spread of the COVID-19 pandemic, actions that may be
taken by governmental authorities to contain the COVID-19 pandemic
or to mitigate its impact, the potential negative impact of
COVID-19 on the global economy, consumer demand and our supply
chain, and the impact of COVID-19 on the Company's financial
condition, business operations and liquidity, as well as the
geopolitical tensions and market uncertainties resulting from the
Russian invasion of Ukraine and current conflict. Additional
information about potential factors that could affect the Company’s
business and financial results is included in the Company’s filings
with the U.S. Securities and Exchange Commission, including the
Company’s most recent Annual Report on Form 20-F. The Company
undertakes no obligation to update any of the forward-looking
statements after the date of this press release.
About Natuzzi S.p.A.
Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. is one of
the most renowned brands in the production and distribution of
design and luxury furniture. With a global retail network of 694
mono-brand stores and 497 galleries as of June 30, 2023, Natuzzi
distributes its collections worldwide. Natuzzi products embed the
finest spirit of Italian design and the unique craftmanship details
of the “Made in Italy”, where a predominant part of its production
takes place. Natuzzi has been listed on the New York Stock Exchange
since May 13, 1993. Always committed to social responsibility and
environmental sustainability, Natuzzi S.p.A. is ISO 9001 and 14001
certified (Quality and Environment), ISO 45001 certified (Safety on
the Workplace) and FSC® Chain of Custody, CoC (FSC-C131540).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230929880563/en/
Natuzzi Investor Relations Piero Direnzo | tel. +39
080-8820-812 | pdirenzo@natuzzi.com Natuzzi Corporate
Communication Giacomo Ventolone (Press Office) | tel.
+39.335.7276939 | gventolone@natuzzi.com
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