Q4 2022 results benefitted from a €16.9 million reduction in backlog. Net of the backlog effect, the decrease would have been of 15.5%. In Q4 2023 the company accelerated its restructuringprogramme both within its own factories and at its headquarters as a part of a long-term transformation process to increase competitiveness and enhance margin generation. In particular, in Q4 2023, the company had €5.9 million of one-off restructuring costs.

Q4 2023 gross margin net of one-off restructuring costs is 36.2%, compared with 38.8% in Q42022 and 34.6% in Q4 2019.

After the restructuring costs in the fourth quarter of 2023, Natuzzi reported an operating loss of €1.4 million.

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.”

Antonio Achille, CEO of the Group, commented: “2023 has clearly been a challenging year for the overall industry. In the main markets for our operations in North America, China and Europe the real estate market, which is a primary source of new demand, has been stagnant, because of the negative economic situation and high interest rates. Consumers remained very prudent when it came to invest in durable products. This has been reflected on our business, with a decrease in sales. On the commercial front, Natuzzi today has completed the transition to a brand/retail group. 92.2% of our sales comes from branded and 61.7% comes from retail. These percentage were respectively 85.3% and 52.2% at the beginning of 2021.