Natuzzi S.p.A.: Shareholder Letter and Financial Results 2023 – Fourth Quarter and Full Year Results
- Invoiced sales for the fourth quarter 2023 amounted to €84.1 million, a 27.8% decrease compared to the previous year.
- Branded sales represented 92.2% of total sales, indicating a successful transition to a lifestyle brand.
- Gross margin for the fourth quarter 2023 was 36.2%, with an operating loss of (€1.4) million.
- Net finance costs for the fourth quarter were (€2.8) million.
- Invoiced sales for full year 2023 totaled €328.6 million, reflecting a 29.9% decrease compared to 2022.
- The company invested €11.8 million in retail expansion and production facilities in 2023.
- Natuzzi held €33.6 million in cash as of December 31, 2023.
- Decrease in sales for both the fourth quarter and full year 2023.
- Operating losses reported for both periods.
- Net finance costs increased for the full year due to rising interest rates.
- One-off restructuring costs incurred in both periods.
- Reduction in workforce by 514 people in 2023.
The reported decline in invoiced sales for Natuzzi S.p.A. in the fourth quarter of 2023 is a reflection of the broader challenges faced in the furniture industry. The significant drop of 27.8% year-over-year, even when adjusted for backlog, indicates a contraction in demand. This contraction may be attributed to cyclical economic factors or a shift in consumer spending patterns post-COVID. Investors should note the strategic shift towards a lifestyle brand and the implications of such a transition, which may affect short-term profitability but could potentially position the company for a stronger brand presence and customer loyalty in the long term.
Furthermore, the restructuring efforts, including the reduction of the workforce and the investment in retail and production facilities, suggest a focus on operational efficiency and margin improvement. However, the immediate impact of these changes has resulted in one-off restructuring costs and an operating loss. The increase in net finance costs year-over-year, likely due to rising interest rates, is an additional pressure point on the company's financial health. The reported cash holdings provide some liquidity buffer, but the decline from the previous quarter warrants attention to the company's cash flow management.
Analyzing the gross margin trends, the slight improvement in 2023 compared to the previous year suggests that despite the decrease in sales, Natuzzi may be starting to realize some benefits from its restructuring efforts. The reported annual savings of €22.6 million in labor costs could be significant for the company's bottom line. However, the operating loss, even when excluding restructuring costs, raises questions about the core profitability of the company's operations.
From an investment perspective, the company's strategy to invest in brand and retail expansion during a period of reduced sales is a bold move that could either pave the way for future growth or strain financial resources if the anticipated sales recovery does not materialize. Investors should closely monitor the company's next earnings reports for signs of a successful turnaround or further challenges.
The transition of Natuzzi towards a lifestyle brand, with an increased focus on branded sales, is a significant development. The retail sector, particularly in luxury goods, has seen a shift towards direct-to-consumer models, which can offer higher margins and greater control over brand image. Natuzzi's increase in branded sales from 85.3% to 92.2% and retail sales from 52.2% to 61.7% since the beginning of 2021 indicates a successful pivot in this direction.
The investment in IT and organizational interventions to modernize management of retail and commercial operations is a forward-thinking approach to align with industry best practices. However, the effectiveness of these investments in driving sales growth and customer engagement in a competitive market will be important for the company's success. The retail expansion, particularly in the context of a global slowdown, carries risks but also the potential for capturing market share if consumer confidence rebounds.
FOURTH QUARTER 2023 HIGHLIGHTS
-
4Q 2023 INVOICED SALES AMOUNTED TO
€84.1 MILLION , REFLECTING A DECREASE OF27.8% 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 OF15.5% . - 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 WERE61.7% OF THE TOTAL. THESE PERCENTAGES WERE RESPECTIVELY85.3% AND52.2% 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 TO38.8% IN 4Q 2022 AND34.6% 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 OF29.9% COMPARED TO 2022, WHICH BENEFITTED FROM A€58.4 MILLION REDUCTION IN BACKLOG. NET OF THE BACKLOG EFFECT THE DECREASE WOULD HAVE BEEN OF19.9% 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 OF17.5% , 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 TO35.6% IN 2022 AND31.0% 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.
SANTERAMO IN COLLE,
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,
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.
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
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,
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
On the restructuring front, we continued addressing the industrial legacy of the group, particularly in
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
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
Excluding “other sales” of
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
ii) Natuzzi Editions, our contemporary collection, offers products entirely designed in
In 4Q 2023, Natuzzi’s branded invoiced sales amounted to
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.
InChina , sales continued to be affected by the overstock and negative economic and industry-specific momentum reported by our JV inChina , whereasEurope 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 inItaly , 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
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 % |
||||
|
25.9 |
|
30.6 |
|
(4.7) |
( |
||
|
7.1 |
|
10.5 |
|
(3.4) |
( |
||
West & |
24.5 |
|
41.1 |
|
(16.6) |
( |
||
Emerging Markets |
11.8 |
|
16.6 |
|
(4.9) |
( |
||
Rest of the World* |
12.4 |
|
14.6 |
|
(2.1) |
( |
||
Total |
81.7 |
|
113.4 |
|
(31.7) |
( |
||
Figures in €/million, except percentage. |
||||||||
*Include South and |
||||||||
The performance of invoiced sales in
In
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 |
|||
|
21 |
(1) |
8 |
29 |
||
West & |
33 |
101 |
134 |
|||
|
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
(2) All directly operated by our joint venture in
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
In 4Q 2023, invoiced sales from franchise stores amounted to
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
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
4Q 2023 GROSS MARGIN
During 4Q 2023, net of restructuring costs, we had a gross margin of
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
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
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
─ a
─ a
Such reduction in costs was partially offset by:
─ a
─ a
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 (
KEY RESULTS: FULL YEAR 2023
During 2023, the Company reported the following results:
─ Total revenue of
─ We had a gross margin of
─ 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
─ We had an operating loss of (
-
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 inItaly .
─ Net Finance costs were (
─ We had a loss after tax for the period of (
BALANCE SHEET AND CASH FLOW
During 2023,
─ a loss for the period of (
─ adjustments for non-monetary items of
─ a
─ interest and taxes paid for (
During 2023, (
In the same period, (
As a result, as of December 31, 2023, cash and cash equivalents was
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 (
*******
CONFERENCE CALL
The Company will host a conference call on Monday April 8, 2024, at 10:00 a.m.
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
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
Source: Natuzzi S.p.A.
