The company reported revenue of €468.5 million for the year, which was up by 9.6% over 2021, with a gross margin of 35.1%. Natuzzi noted that its gross margin was affected by the high cost of raw materials and a spike in energy costs.
Operating profit for the year was €8.4 million, a 71.4% increase over 2021 and a significant improvement over a loss of €22.5 million in 2019. Profit after tax totalled €1.3 million.
In the fourth quarter alone, the company achieved consolidated revenue of €116.5 million, an increase of 0.7% year-on-year and 15.8% up on the fourth quarter of 2019. Gross margin for the period was 37%, up from 35.6% in Q4 2021.
For the fourth quarter, the net financial result was a loss of €4.8 million compared to an income of €1.7 million in the same period of 2021.
Natuzzi highlighted that, excluding “other sales” of €3.1 million, sales of upholstered and other home furnishings products in the fourth quarter totalled €113.4 million, 1.5% up year-on-year and 18.5% up on 2019.
Branded sales in the fourth quarter, which represented 91.6% of upholstered and other home furnishings products sales, totalled €103.9 million, up 5% year-on-year and 28% over 2019. Natuzzi Italia brought in €51.7 million (20.7% up on 2021 and 38.1% up on 2019) while Natuzzi Editions had invoiced sales of €52.1 million (7% down on 2021 and 19.2% up on 2019.). The year-on-year loss for Natuzzi Editions is attributed to a de-stocking process of large retailers in North America.
Meanwhile, the unbranded business had total invoiced sales of €9.5 million, falling by 25.6% on 2021 and 34.5% from 2019 results.
In the fourth quarter, North America totalled €30.6 million in invoiced sales, with an increase of 2% year-on-year. Greater China brought in €10.5 million, falling by 48.6%, while West & South Europe had a total of €41.1 million in sales, up by 6.8%. Emerging Markets had €16.6 million in sales, up by 18.6%, while the Rest of the World (including South and Central America and the rest of the APAC region) totalled €14.6 million, up by 8.15% year-on-year.
In its statement, Natuzzi noted that performance in North America was primarily impacted by weak sales in its unbranded business, while operations in China were affected by Covid restrictions.
Chairman Pasquale Natuzzi said: “We continue reporting an operating profit as a result of the execution of our Brand-Retailer strategy and of the work done by our team to streamline costs. We are focusing on these two elements, execution of our Brand-Retailer strategy and cost discipline, to ensure our group gets through a challenging phase for the entire industry.
“High interest rates have caused a freezing of the house market and negatively impacted the purchases of durables. These trends are negatively affecting the furniture industry globally. Also, the broader business environment remains uncertain, with perduring geopolitical instability, continued inflation despite the increase in interest rates, high stock market volatility.
“We remain committed to our long-term plans, looking for business expansion and internal efficiency; at the same time, we are extremely vigilant to ensure a tight cost control and high financial discipline to navigate these difficult times.”
