Natuzzi net sales down in 2016

Worldwide
Published:  06 April, 2017

Leather sofa and home furnishings manufacturer Natuzzi has posted consolidated net sales of €457.2 million in 2016, down 6.4% compared with the prior year, but says the company’s restructuring is progressing and margin improvements are to continue.

Natuzzi has posted consolidated net sales of €457.2 million in 2016, down 6.4% from €488.5 million in 2015. Under constant exchange rates, net sales would have declined 4.9%. Its core business (sofas, beds and furnishings) reached €431.7 million, down 5.9% from €458.7 million reported in 2015, while branded revenues dropped 4% and private label fell 10.6%.

Within the core business, furnishings sales grew 6.5% and now represent 20% of the Natuzzi Italia branded sales, demonstrating “the early success of the branded product efforts”. Overall price per seat increased 2.3% over 2015, “despite an unfavourable retail environment, helping the 2016 fourth quarter to show a lessening decline in revenues”.

Within Natuzzi branded sales (€313.1 million), a slight increase in the Asia Pacific region was recorded (+0.7% to €61 million), while EMEA results are said to have been negatively affected by the stronger euro versus local currency in the UK, one of the manufacturer’s core markets, as well as the ongoing reorganisation of the Italy-based distribution network of Divani & Divani by Natuzzi.

According to Natuzzi, directly operated stores had positive results in Spain, the U.S. and China, and efforts are now intensifying in the UK and Switzerland. The restructuring of the retail operations is to continue “aggressively” into 2017. Sales from the Softaly wholesale division were €118.5 million in 2016, down 10.6% against 201, attributed to the difficulties experienced with one of the major customers in North America. The manufacturer says it is focussing on implementing actions, both in organisation and marketing, to recover business in the North American market, considered as one of the best opportunities for growth. 

Net loss in the year amounted to €6.1 million, significantly improving from a net loss of €16.5 million in 2015 and, thanks to a positive cash flow from operations, year-end net financial position almost doubled from €14.5 million to €28.9 million.

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