Improved net results for Natuzzi

Worldwide
Published:  27 September, 2016

The Italian leather sofa specialist has succeeded in returning to a positive EBITDA profit of €6.7 million in the first half of 2016 thanks to a new organisation in its brand portfolio, and despite lower revenue margins.

Natuzzi has announced consolidated revenue of €230.6 million in the first half of 2016, down 4.6% compared with the same period the prior year. However, following a series of organisational improvements, EBITDA reached a positive €6.7 million against a loss of -€2.3 million in the same period last year.

The leather sofa specialist, which has created two separate divisions (Branded and Private Label Business), succeeded in reducing its net loss from -€13.3 million in the first half of 2015 to -€1.1 million in H1 2016.

Natuzzi branded sales accounted for 72% of the total revenue. Softaly, the Private Label representing 28% of core Group sales in the first six months of 2016, registered positive growth, in particular in the EMEA region +9.4% (France, Germany and Switzerland). The company also reported positive performance in northern Europe (Belgium, Holland and Sweden) and Spain, confirming western Europe and the U.S. as key markets for the development of the retail business

“The main objective of the new Natuzzi division is to launch the new retail business model, focused on boosting growth through an extended and re-balanced product offer, a wider consumer target and a new high traffic retail format. The Softaly division will support the growth of the B2B channel, leveraging on the product and production process knowhow and global industrial platform of the Natuzzi Group, which enjoys strong relations with the major international distribution groups”, said Pascale Natuzzi, CEO, Natuzzi.

The company has opened 27 new selling points since the beginning of 2016 and has become FSC (Forest Stewardship Council) certified. “The stringent corporate policy on deforestation, along with the use of photovoltaic energy and environmental and quality certifications are all actions in line with Corporate values and aimed at targeting consumers looking for beauty, comfort and sustainability”, added Vittorio Notarpietro, Chief Financial Officer, Natuzzi.

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