FOURTH QUARTER 2023
HIGHLIGHTS
- 4Q 2023 INVOICED SALES AMOUNTED TO €84.1 MILLION, REFLECTING
A DECREASE OF 27.8% COMPARED TO A STRONG 4Q 2022, WHICH BENEFITTED
FROM A €16.9 MILLION REDUCTION IN BACKLOG. NET OF THE BACKLOG
EFFECT, THE DECREASE WOULD HAVE BEEN OF 15.5%.
- DESPITE THE CHALLENGING MARKET CONDITIONS, WE CONTINUED
INVESTING TO STRENGTHEN OUR BRANDED BUSINESS AND TO ACCELERATE THE
RESTRUCTURING OF OUR OPERATIONS.
- IN 4Q 2023, BRANDED SALES REPRESENTED 92.2% OF TOTAL SALES,
CONFIRMING THE TRANSITION TO A LIFESTYLE BRAND, WHICH IS THE RESULT
OF MORE THAN A DECADE OF INVESTMENTS. SALES FROM RETAIL WERE 61.7%
OF THE TOTAL. THESE PERCENTAGES WERE RESPECTIVELY 85.3% AND 52.2%
AT THE BEGINNING OF 2021.
- IN 4Q 2023 WE COMPLETED THE ORGANIZATIONAL AND IT
INTERVENTIONS TO ENSURE A MODERN MANAGEMENT OF OUR RETAIL AND
COMMERCIAL OPERATIONS, WHICH SPREAD ACROSS 678 STORES AND 100
COUNTRIES.
- IN 4Q 2023 WE ACCELERATED THE RESTRUCTURING, BOTH WITHIN
FACTORIES AND HQ, AS A PART OF OUR LONG-TERM TRANSFORMATION PROCESS
TO INCREASE COMPETITIVENESS AND ENHANCE MARGIN GENERATION. IN
PARTICULAR, IN 4Q 2023, WE SUSTAINED €5.9 MILLION OF ONE-OFF
RESTRUCTURING COSTS.
- 4Q 2023 GROSS MARGIN, NET OF ONE-OFF RESTRUCTURING COSTS, IS
OF 36.2%, COMPARED TO 38.8% IN 4Q 2022 AND 34.6% IN 4Q
2019.
- NET OF ONE-OFF RESTRUCTURING COSTS, 4Q 2023 REPORTS AN
OPERATING LOSS OF (€1.4) MILLION.
- NET FINANCE COSTS OF (€2.8) MILLION, COMPARED TO NET FINANCE
COSTS OF (€4.8) MILLION IN 4Q 2022.
FULL YEAR 2023 HIGHLIGHTS
- 2023 INVOICED SALES AMOUNTED TO €328.6 MILLION, REFLECTING A
DECREASE OF 29.9% COMPARED TO 2022, WHICH BENEFITTED FROM A €58.4
MILLION REDUCTION IN BACKLOG. NET OF THE BACKLOG EFFECT THE
DECREASE WOULD HAVE BEEN OF 19.9% VS 2022.
- IN 2023, WE ACCELERATED OUR RESTRUCTURING, WITH €7.4 MILLION
OF ONE-OFF COSTS TO REDUCE THE WORKFORCE BY 514 PEOPLE. THIS
RESULTED IN A TOTAL REDUCTION OF 759 PEOPLE FROM 2021 TO 2023. THIS
REPRESENTS A REDUCTION OF 17.5%, LEADING TO €22.6 MILLION IN ANNUAL
SAVINGS COMPARED TO 2021 LABOUR COST.
- 2023 GROSS MARGIN, NET OF RESTRUCTURING COSTS, IS OF 36.3%,
COMPARED TO 35.6% IN 2022 AND 31.0% IN 2019.
- 2023 REPORTS AN OPERATING LOSS OF (€2.1) MILLION, EXCLUDING
THE IMPACT OF RESTRUCTURING COSTS.
- NET FINANCE COSTS OF (€8.5) MILLION, COMPARED TO NET FINANCE
COSTS OF (€5.2) MILLION IN 2022, MAINLY DUE TO PERSISTING RISING
INTEREST RATES.
- IN 2023 WE INVESTED €11.8 MILLION, OF WHICH €4.6 MILLION IN
RETAIL EXPANSION AND €7.2 MILLION TO UPGRADE PRODUCTION FACILITIES,
IN ADDITION TO THE ABOVE-MENTIONED RESTRUCTURING ONE-OFF
COSTS.
- AS OF DECEMBER 31, 2023, WE HELD €33.6 MILLION IN CASH,
COMPARED TO €37.1 MILLION OF CASH AS OF SEPTEMBER 30,
2023.
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 fourth quarter and full year ended December 31,
2023.
Pasquale Natuzzi, Chairman of the Group, commented: “Market
conditions for the furniture industry have remained challenging
during 2023. It's evident that the furniture industry faced
extraordinary conditions in 2023, with major markets experiencing a
significant slowdown in demand, following two consecutive strong
years post-COVID. In this context, we continued investing to
complete the transition to a lifestyle brand, with direct access to
consumers through retail. This is a process I initiated about 20
years ago, which represented a profound transformation of the Group
I founded 65 years ago as a manufacturing company, focused on the
value segment of the market. Being globally recognized as a Brand
in the high-end segment of the market and delivering a superior
in-store customer experience has been a long journey that forced us
to review our processes, competences, and industrial capabilities.
I am now witnessing the progress of this hard work, which, in the
current market conditions, is even more important to competing and
reaffirming our leadership. Our team has been working with
determination also to evolve our production and increase our
operational agility, dealing with the industrial legacy of our
origins. Drawing from my 65 years of experience, in times such as
these, it's imperative to persevere in investment to strengthen our
commercial core assets while pursuing restructuring initiatives;
this is the agenda our management has been focusing on in
2023.”
Antonio Achille, CEO of the Group, commented: “2023 has clearly
been a challenging year for the overall industry. In the main
markets of our operations, North America, China and Europe, the
real estate, which is a primary source of new demand, has been
stagnant, because of the negative economic situation and high
interest rates. Consumers remained very prudent when it comes to
invest in durable products. This has been reflected on our
business, with a decrease in sales.
In this context, we continue working and investing in the two
fundamentals pillars for our transformation: completing the
transition to a brand-life style and restructure our
operations.
On the commercial front, Natuzzi today has completed the
transition to a brand / retail group. 92.2% of our sales comes from
Branded and 61.7% comes from retail. These percentage were
respectively 85.3% and 52.2% at the beginning of 2021.
In 2023, with an acceleration in the last quarter, we have
invested significantly to increase the control of our global retail
and commercial operations. This has led to two initiatives,
respectively aimed at improving the retail and the other at
managing our galleries and wholesales business.
To improve retail performance, we have established the
Global Retail Division under the leadership of Diego Babbo,
a manager with more than 20 years’ experience in Retail.
This division is dedicated to modernizing and professionalizing
our retail approach by developing tools to support our Regions and
Dealers in enhancing the retail performances and elevate the
in-store customer experience. We have standardized all retail
related KPIs to accelerate the diagnosis of areas requiring
immediate intervention to foster organic growth. Leveraging the
experience we have matured in our direct stores, we now offer our
franchising partners turn-key retail programs, which include IT
systems, training, and guidelines on store layout, merchandising,
and visuals. To improve the productivity of our DOS and Franchise
partners we closed the tail of not performing stores.
On the wholesale front, we introduced the Natuzzi
Commercial Excellence Program. This program allows us to assign
specific targets to each business account and drive commercial
priorities for each of our 304 employees in the global commercial
team. This constitutes a significant change in our way of working,
which enables us to centrally manage and control the activities of
our field force and independent dealers globally. In our search to
become a consumer centric company, we introduced a Consumer CRM to
maintain a constant dialogue between our stores and clients,
serving also to increase loyalty and incentivize product
repurchase.
As a results of these investments and actions taken over the
last 12 months, the control on our retail and wholesale business is
now significantly stronger and we are confident that this will
allow us to accelerate organic growth.
In 2023, despite the negative market conditions, based on the
confidence of our brand and retail project, we opened 9 DOS, of
which 6 in North America, namely in San Diego, Houston, Miami,
Atlanta, Frisco. One notable new opening is the flagship in
Manhasset situated in one of the most performing streets in Long
Island. In addition, we opened 3 DOS managed by our JV in
China.
Today Natuzzi has 678 stores (DOS and FOS) around the world and
665 branded galleries. This constitutes a significant platform for
organic growth and a distinctive competitive advantage. Among the
100 markets where we distribute our products, we have identified 3
strategic regions where to prioritize our future investment, namely
the US, China, and Europe, with a focus on the UK and Italy. Let me
provide an update on each of these three markets.
In US, we opened 6 DOS, 1 FOS and 7 Natuzzi galleries. We
reviewed the leadership organization to ensure focus on the two
main components of our business: Lou Mossotti has been recently
appointed to lead the retail, with Scott Kruger focusing on the
development of our gallery and our wholesale business. We also
strengthen our commercial team in the US, with the introduction of
14 new agents, reaching the total of 24 agents.
Out of the 678 stores, 346 stores are located in China,
of which 97 Natuzzi Italia and 249 Natuzzi Editions. We do not
consolidate our China stores as they are part of our 49% stake in
the joint venture (JV) we established in 2018. In 2023, we made
significant investments to align the JV team with our modern retail
approach and to ensure visibility into the JV's performance at a
granular level within our IT system. This allows us to support the
local JV team in enhancing performance through strategic choices in
stores layout, merchandising, branding, and customer
experience.
Europe has been mostly exposed to the negative consumer
dynamics in 2023. In UK, which is our largest market in Europe, we
are working to reduce our presence in multi-brand distributors to
focus and favor the performance of the 30 mono-brand stores, of
which 13 Natuzzi Italia and 17 Natuzzi Editions. In Italy, we
operate 78 stores, 12 of which are Directly Operated Stores (DOS),
distributing our Natuzzi Editions collection under the historical
local banner Divani & Divani by Natuzzi. We are working to
elevate the positioning of our brand by leveraging the distinctive
assets of our Group and collections, in contrast to local
competitors who rely heavily on aggressive promotion and
communication.
On the restructuring front, we continued addressing the
industrial legacy of the group, particularly in Italy, as we
transition into a lifestyle brand with our brands positioned in the
high/medium price segments of the market. This legacy includes
large manufacturing facilities established during a time when
Natuzzi had a significant output, producing across various price
ranges and acting as a third-party producer. In 2023, we
accelerated our restructuring, with €7.4 million one-off costs to
reduce the workforce by 514 people. This resulted in a total
reduction of 759 workers from 2021 to 2023, of which 266 workers
from Italian factories and HQ. This, in total, represents a
reduction of 17.5%, leading to €22.6 million in annual savings
compared to 2021.
We executed the staff restructuring, in compliance with our
ethics standards and with the labor regulations of the different
markets which are particularly restrictive in some geographic areas
we operate, chiefly in Italy. In doing so, we always ensure that
this operations have a break-even of 12-16 months and we measure
their NPV on the mid-term.
Following is a recap of the number of people involved in
restructuring at Group level in the three-year period 2021-2023,
the related costs and expected savings.
2021
2022
2023
Total
People involved in restructuring
(units)
91
154
514
759
Restructuring cost (€/mln)
1.0
2.6
7.4
11.0
Yearly saving -labor costs only-
(€/mln)
3.6
5.7
13.3
22.6
€/mln
At the same time, we have invested to introduce the competences
which are needed to ensure the success of our brand retail business
which include marketing, retail, merchandising, finance and IT, to
better support growth activities and the digital transformation of
the Company.
***
4Q 2023 CONSOLIDATED REVENUE
4Q 2023 consolidated revenue amounted to €84.1 million, from
€116.5 million in 4Q 2022. 4Q 2023 were affected by the persisting
macroeconomic and industry-specific challenges, resulting in a
reduced consumers’ spending capacity and postponement of durable
purchases. Furthermore, 4Q 2023 compares with a strong 4Q 2022 that
benefitted from a €16.9 million reduction in post-COVID
backlog.
Excluding “other sales” of €2.4 million, 4Q 2023 invoiced sales
from upholstered and other home furnishings products amounted to
€81.7 million, compared to €113.4 million in 4Q 2022.
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:
i) 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).
ii) 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 and Brazil).
Natuzzi Editions products are distributed in Italy under the brand
Divani&Divani by Natuzzi, which is manufactured in Italy to
shorten the lead time to serve the Italian market where the brand
is distributed. 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 4Q 2023, Natuzzi’s branded invoiced sales amounted to €75.3
million, compared to €103.9 million in 4Q 2022. In the context of
declining consumer spending and postponement of durable purchase,
Natuzzi Italia has been affected strongly given its premium
positioning versus Natuzzi Editions.
The following is the contribution of each Brand to 4Q 2023
invoiced sales:
- Natuzzi Italia invoiced sales amounted to €26.6 million,
from €51.8 million in 4Q 2022. As anticipated, in the current
generalized context of declining consumer spending and postponement
of durable purchase, Natuzzi Italia has been strongly affected
given its premium positioning. In addition, 4Q 2023 compares to a
strong 4Q 2022, which benefitted from about €8 million of backlog
reduction. In China, sales continued to be affected by the
overstock and negative economic and industry-specific momentum
reported by our JV in China, whereas Europe still struggles with a
difficult macroeconomic context and geopolitical instability.
- Natuzzi Editions invoiced sales (including invoiced
sales from Divani&Divani by Natuzzi) amounted to €48.7 million,
from €52.1 million in 4Q 2022. Specifically, while the
Divani&Divani by Natuzzi sales were affected by a more
aggressive competitive arena in Italy, Natuzzi Editions sales were
flat compared to 4Q 2022, thanks to the 6 Natuzzi Editions stores
opened in the US between the second part of 2022 and 2023, whose
overall productivity increased in 4Q 2023, offsetting the weak
performance in other regions.
A2. Unbranded business. Invoiced sales from our unbranded
business amounted to €6.4 million in 4Q 2023, from €9.5 million in
4Q 2022. 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
Below is a breakdown of 4Q 2023 upholstery and home-furnishings
invoiced sales compared to 4Q 2022, according to the following
geographic areas.
4Q 2023
4Q 2022
Delta €
Delta %
North America
25.9
30.6
(4.7)
(15.4%)
Greater China
7.1
10.5
(3.4)
(32.1%)
West & South Europe
24.5
41.1
(16.6)
(40.4%)
Emerging Markets
11.8
16.6
(4.9)
(29.2%)
Rest of the World*
12.4
14.6
(2.1)
(14.6%)
Total
81.7
113.4
(31.7)
(27.9%)
Figures in €/million, except
percentage.
*Include South and Central America, Rest
of APAC.
The performance of invoiced sales in North America was curbed
mainly by the weak performance of the wholesale channel, as
distributors continue to be focused on reducing their stock rather
than placing new orders.
In Greater China, the furniture industry continues to face
persistent challenges, driven by a more prudent consumers’
willingness to invest in durables and the difficulties of the real
estate market. Additionally, the joint venture is actively working
to reduce the inventory of Natuzzi Italia products accumulated
during 2022, thus leading to a reduced level in new orders. In
China, we are stabilizing the organizational structure with the aim
to improve the performances as well as focusing on the upgrade of
the store concepts to provide a more comprehensive store
experience. Lastly, we are harmonizing the merchandising offer to
better represent the Natuzzi DNA while addressing the customers’
local taste.
C. Distribution
During 2023, the Group distributed its branded collections in
110 countries, according to the following table.
Direct Retail
FOS
Total retail stores as
of
Dec. 31, 2023
North America
21
(1)
8
29
West & South Europe
33
101
134
Greater China
21
(2)
325
346
Emerging Markets
─
75
75
Rest of the World
4
90
94
Total
79
599
678
In an effort to continuously improve the productivity of our DOS
and Franchise partners we closed the tail of not performing
stores.
The Group also sells its branded products by means of 665 points
of sales located in five continents, encompassing mostly
shop-in-shop galleries (including 12 Natuzzi Concessions, i.e.,
store-in-store points of sale directly managed by the Mexican
subsidiary of the Group).
(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. FOS =
Franchise stores managed by independent partners.
During 4Q 2023, Group’s invoiced sales from direct retail, DOS
and Concessions directly operated by the Group, amounted to €19.2
million, compared to €22.2 million in 4Q 2022.
In 4Q 2023, invoiced sales from franchise stores amounted to
€31.3 million, compared to €46.6 million in 4Q 2022.
We continue executing our strategy to evolve into 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 4Q 2023 was 61.7%
compared to 60.7% in 4Q 2022 and 51.5% in 4Q 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 4Q 2023, invoiced sales from the wholesale channel amounted
to €31.3 million, compared to €44.6 million in 4Q 2022 and €46.4
million in 4Q 2019.
4Q 2023 GROSS MARGIN
During 4Q 2023, net of restructuring costs, we had a gross
margin of 36.2%.
The decrease in sales between 4Q 2023 and 4Q 2022 resulted in a
higher incidence of fixed costs on sales, which has been partially
offset by increased efficiency in the average consumption of raw
materials, improved brand and channel mix, as well as pricing
discipline.
Indeed, 4Q 2023 cost of labor included €5.1 of one-off
extraordinary costs connected to the reduction plan of workers,
especially within the Italian factories.
The application of the related accounting principle imposed us
to accrue the overall restructuring cost as soon as the
corresponding liability arises, the majority of which occurred in
the fourth quarter of 2023, while all the benefits will be
reflected starting from 2024.
We will continue to go in this direction, as the increase in the
Group’s flexibility to enhance gross margin is among our top
priorities of our plans.
4Q 2023 OPERATING EXPENSES
During 4Q 2023 we have reduced the operating expenses (which
include selling expenses, administrative expenses, other operating
income/expenses, and the impairment of trade receivables) by €8.7
million, passing from (€41.3) million in 4Q 2022 to (€32.6) million
in 4Q 2023.
While the Company is focused on decreasing those discretionary
costs that are not directly connected to sales, the limited
turnover reported in the quarter have hindered its ability to
effectively absorb fixed costs. Consequently, this has led to an
increase in the percentage weight of the overall operating expenses
in relation to revenue.
Specifically, the overall €8.7 million reduction is mainly due
to the following: ─ a €8.4 million reduction in transportation
costs, as result of renegotiation of transportation rates and lower
volume delivered; ─ a €1.2 million reduction in custom duties due
to fewer products manufactured in Asia.
Such reduction in costs was partially offset by: ─ a €0.7
million increase due to one-off costs in connection to the staff
reduction plan at the HQ in Italy, and ─ a €0.2 million increase in
amortization following the DOS openings in 2023.
The Company will continue to focus on reducing selling and
administrative expenses also in 2024, by renegotiating contracts
with suppliers, reviewing its staff allocation at retail level, and
by reviewing its overall processes, looking for further
efficiency.
4Q 2023 NET FINANCE INCOME/(COSTS)
During 4Q 2023, the Company accounted for (€2.8) million of Net
Finance costs compared to Net Finance costs of (€4.8) million in 4Q
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 outstanding bank debt in the quarter on average decreased
compared to 4Q 2022.
KEY RESULTS: FULL YEAR 2023
During 2023, the Company reported the following results: ─ Total
revenue of €328.6 million, compared to €468.5 million in 2022. ─ We
had a gross margin of 34.3%, from 35.1% and 29.7% reported in 2022
and 2019, respectively. 2023 gross margin also includes (€6.3)
million of restructuring costs connected to the overall reduction
plan of workers at Group level. ─ Depreciation and amortization for
the period, which also 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 €22.4 million in 2023, compared to €21.7 million and
€25.1 million in 2022 and 2019, respectively. ─ We had an operating
loss of (€9.5) million, compared to an operating profit of €8.5
million in 2022 and an operating loss of (€22.5) million in 2019.
2023 operating loss of (€9.5) million includes (€7.4) million of
extraordinary costs to reduce the number of workforce, and
specifically:
- within the cost of sales, the above-mentioned (€6.3) million of
labor-related restructuring costs;
- within selling and administrative expenses, a (€1.1) million of
labor-related restructuring costs in connection to the reduction
plan of employees in Italy.
─ Net Finance costs were (€8.5) million, mainly as a result of
rising interest rates, compared to Net Finance costs of (€5.2)
million in 2022 and net finance costs of (€9.9) million in 2019. ─
We had a loss after tax for the period of (€16.2) million, which
compares to a profit after tax of €1.3 million in 2022 and to a
loss after tax of (€33.7) million in 2019.
BALANCE SHEET AND CASH FLOW
During 2023, €3.2 million of net cash were provided by operating
activities as a result of: ─ a loss for the period of (€16.2)
million; ─ adjustments for non-monetary items of €26.9 million, of
which depreciation and amortization of €22.4 million; ─ a €0.7
positive contribution from working capital change, mainly as a
result of a €8.0 million decrease in the inventory level, a €9.8
million decrease in trade receivables and other assets, partially
offset by a (€11.2) million decrease in trade payables and other
liabilities, and (€4.4) million for payments connected to the
reduction of workforce; ─ interest and taxes paid for (€8.3)
million.
During 2023, (€7.9) million of cash were used in investing
activities, as a result of (€11.8) million of net capital
expenditure partially offset by €3.0 million collected from our JV
in China at the beginning of the year following the share capital
reduction, and a €0.9 million of public grant received by the
Italian Government in connection with the modernization plan of the
Italian factories.
In the same period, (€15.7) million of cash were used in
financing activities, mainly due to the repayment of long-term
borrowing for (€8.7) million, (€6.7) million for short-term
borrowing repayment and (€11.1) million for lease-related payments,
partially offset by the €10.9 million of new financing, namely €6.4
million as subsidized loans in connection with a program of public
incentives aimed at upgrading the Italian plants and €4.5 in favor
of our Romanian subsidiary.
As a result, as of December 31, 2023, cash and cash equivalents
was €33.6 million.
As of December 31, 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 (€6.6) million,
compared to €7.9 million as of December 31, 2022.
*******
CONFERENCE CALL
The Company will host a conference call on Monday April 8,
2024, at 10:00 a.m. U.S. Eastern time (4.00 p.m. Italy time, or
3.00 p.m. UK time) to discuss financial information.
To join live the 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 fourth quarter of 2023 and 2022
on the basis of IFRS-IAS (expressed in millions Euro, except as
otherwise indicated)
Fourth quarter ended on
Change Percentage of revenue 31-Dec-23
31-Dec-22 % 31-Dec-23
31-Dec-22 Revenue
84.1
116.5
-27.8
%
100.0
%
100.0
%
Cost of Sales
(58.8
)
(73.4
)
-19.9
%
-69.9
%
-63.0
%
Gross profit
25.4
43.1
-41.2
%
30.1
%
37.0
%
Gross profit, net of restructuring
30.5
45.2
-32.5
%
36.2
%
38.8
%
Other income
1.1
1.7
1.3
%
1.5
%
Selling expenses
(23.2
)
(32.1
)
-27.9
%
-27.5
%
-27.6
%
Administrative expenses
(10.4
)
(9.5
)
8.6
%
-12.3
%
-8.2
%
Impairment on trade receivables
0.1
(0.0
)
0.1
%
0.0
%
Other expenses
(0.3
)
(1.4
)
-0.3
%
-1.2
%
Operating profit/(loss)
(7.3
)
1.8
-8.6
%
1.5
%
Operating profit/(loss), net of restructuring
(1.4
)
4.2
-1.6
%
3.6
%
Finance income
0.2
0.2
0.3
%
0.2
%
Finance costs
(2.6
)
(2.7
)
-3.1
%
-2.3
%
Net exchange rate gains/(losses)
(0.4
)
(2.4
)
-0.5
%
-2.0
%
Net finance income/(costs)
(2.8
)
(4.8
)
-3.4
%
-4.1
%
Share of profit/(loss) of equity-method investees
0.5
(1.6
)
0.6
%
-1.4
%
Profit/(Loss) before tax
(9.6
)
(4.6
)
-11.4
%
-4.0
%
Income tax expense/(benefit)
(0.2
)
(0.6
)
-0.3
%
-0.5
%
Profit/(Loss) for the period
(9.8
)
(5.3
)
-11.6
%
-4.5
%
Profit/(Loss) attributable to: Owners of the Company
(9.8
)
(6.0
)
Non-controlling interests
(0.0
)
0.7
Natuzzi S.p.A. and
Subsidiaries Unaudited consolidated statement of profit or loss
for the twelve months of 2023 and 2022 on the basis of IFRS-IAS
(expressed in millions Euro, except as otherwise indicated)
Twelve months ended on Change Percentage of
revenue 31-Dec-23 31-Dec-22 %
31-Dec-23 31-Dec-22 Revenue
328.6
468.5
-29.9
%
100.0
%
100.0
%
Cost of Sales
(215.8
)
(304.2
)
-29.1
%
-65.7
%
-64.9
%
Gross profit
112.9
164.3
-31.3
%
34.3
%
35.1
%
Gross profit, net of restructuring
119.2
166.6
-28.4
%
36.3
%
35.6
%
Other income
7.1
6.5
2.2
%
1.4
%
Selling expenses
(91.4
)
(124.9
)
-26.9
%
-27.8
%
-26.7
%
Administrative expenses
(37.6
)
(35.5
)
6.0
%
-11.4
%
-7.6
%
Impairment on trade receivables
(0.0
)
(0.3
)
0.0
%
-0.1
%
Other expenses
(0.5
)
(1.7
)
-0.1
%
-0.4
%
Operating profit/(loss)
(9.5
)
8.5
-2.9
%
1.8
%
Operating profit/(loss), net of restructuring
(2.1
)
11.0
-0.6
%
2.4
%
Finance income
0.9
0.9
0.3
%
0.2
%
Finance costs
(9.3
)
(8.5
)
-2.8
%
-1.8
%
Net exchange rate gains/(losses)
(0.1
)
2.4
0.0
%
0.5
%
Net finance income/(costs)
(8.5
)
(5.2
)
-2.6
%
-1.1
%
Share of profit/(loss) of equity-method investees
2.9
0.4
0.9
%
0.1
%
Profit/(Loss) before tax
(15.1
)
3.6
-4.6
%
0.8
%
Income tax expense
(1.1
)
(2.3
)
-0.3
%
-0.5
%
Profit/(Loss) for the period
(16.2
)
1.3
-4.9
%
0.3
%
Profit/(Loss) attributable to: Owners of the Company
(16.1
)
(0.5
)
Non-controlling interests
(0.1
)
1.8
Natuzzi S.p.A. and
Subsidiaries Unaudited consolidated statements of financial
position (condensed)on the basis of IFRS-IAS(Expressed in millions
of Euro)
31-Dec-23
31-Dec-22
ASSETS Non-current assets
188.6
177.6
Current assets
149.7
191.0
TOTAL ASSETS
338.3
368.6
EQUITY AND LIABILITIES Equity attributable to Owners
of the Company
68.9
87.9
Non-controlling interests
4.3
4.7
Non-current liabilities
110.4
95.3
Current liabilities
154.7
180.8
TOTAL EQUITY AND LIABILITIES
338.3
368.6
Natuzzi S.p.A. and Subsidiaries Unaudited consolidated
statements of cash flows (condensed) (Expressed in millions of
Euro)
31-Dec-23 31-Dec-22 Net cash provided
by (used in) operating activities
3.2
18.7
Net cash provided by (used in) investing activities
(7.9
)
(4.6
)
Net cash provided by (used in) financing activities
(15.7
)
(13.5
)
Increase (decrease) in cash and cash equivalents
(20.4
)
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
31.6
52.7
For the purpose of the statements of cash flow, cash and
cash equivalents comprise the following: (Expressed in millions
of Euro)
31-Dec-23 31-Dec-22 Cash and cash
equivalents in the statement of financial position
33.6
54.5
Bank overdrafts repayable on demand
(2.0
)
(1.8
)
Cash and cash equivalents in the statement of cash flows
31.6
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, among the
others, from the Russian invasion of Ukraine and current conflict
and the recent conflict in the Middle East. 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 678
monobrand stores in addition to 665 galleries as of December 31,
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/20240405801047/en/
For information: Natuzzi
Investor Relations Piero Direnzo | tel. +39 080-8820-812 |
pdirenzo@natuzzi.com Natuzzi Corporate Communication
Giancarlo Renna (Communication Manager) | tel. +39. 342.3412261 |
grenna@natuzzi.com Giacomo Ventolone (Press Office) | tel.
+39.335.7276939 | gventolone@natuzzi.com
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