Revenues generated by Natuzzi’s core business (sofas, beds and furnishings) were €109.1 million, up +5% compared with the second quarter of 2016. In particular, furnishings net sales are reported to have increased +15.3%, year-on-year, totalling €7.4 million and representing 20.2% of the Natuzzi Italia branded sales.
Natuzzi branded revenues increased 4.1% to €79.6 million in the quarter, partly attributed to an increase of 5.2% of the average price per seat. Within Natuzzi branded sales, an increase was recorded in the Americas (+6.5%), and Asia-Pacific region (+13.8%), while the EMEA reported a decrease in sales (-1.1%) over the same period of last year, mainly due to the Italy-based Divani&Divani by Natuzzi network, says the manufacturer.
The direct retail operations (DOS) generated sales of €15.1 million during the second quarter of 2017, up +32.3% over the same period in 2016, and representing 13.8% of Natuzzi’s core business, against 11% a year ago. Improvements in DOS was observed in the UK, China, U.S., Spain and Switzerland, while the Divani&Divani by Natuzzi retail network is reported to still be undergoing a restructuring phase. The recently acquired Mexican stores were still in the start-up phase in second quarter 2017. The Italian manufacturer says it plans to open five new-generation stores, three in the last quarter of 2017 and two in the first quarter of 2018.
Sales from the Softaly Division were €29.5 million (+7.6%), thanks to a +15.2% increase in the Americas and +4.5% increase in EMEA. However, sales in the Asia-Pacific decreased -31.2% in the quarter, after increasing +101.7% in the first three months of the 2017. “In spite of such positive results in the quarter, Softaly “Private Label” division of the Natuzzi Group is still challenged by the limited number of accounts on the North American market which has caused a reduction of the volumes”, says a company statement.
Over the past few quarters Natuzzi says it started implementing its retail strategy in priority markets, such as North America and China, whose execution has required investments in the organisation, and resulted in increased SG&A. In spite of the overall improvement of the business, the Company reported a net operating loss of €2.9 million versus net operating loss of €1 million in the second quarter of 2016. According to the report, the Group reported a net loss for the second quarter of €4 million, from a loss of €0.8 million in the same period of 2016. Its net financial position was positive at €13.6 million, up from a €12.8 million reported at the end of first quarter of 2017.
