Natuzzi up in Q2 despite struggles in China

Italy
Published:  03 October, 2022
Credit: Natuzzi

Natuzzi has reported growth for its second quarter and first half financial results, for the period ended June 30, 2022.

The company achieved consolidated revenue of €116.9 million for the second quarter, an increase of 7.8% year-on-year and 26.8% over the same period in pre-pandemic 2019. Natuzzi noted that lockdowns in China impacted these results with a loss of production in the quarter estimated at around €15 million.

Gross margin for the second quarter of the financial year was 31.4%, a decline year-on-year which Natuzzi attributed to rising raw material and energy costs which more than offset improvements in sales mix.

For the first six months as a whole, the company reports total revenue of €235.4 million, an increase of 12.1% over the same period in 2021 and 18.7% up on 2019. Gross margin for the first half of the year was 32.8%, while profit after tax came to €0.7 million, compared with a result of €5.9 million in 2021, which included a one-off gain of €4.8 million.

Pasquale Natuzzi, Chairman of the Group, said: “We have been able to deliver sales above 2021 in the first part of the year, notwithstanding the closure of our Chinese factory which impacted negatively the second quarter.

“Since April, the business environment has been more challenging because of multiple external factors, such as the high level of inflation globally, the war in Europe and the continuing presence of Covid-19. This market context encourages us to accelerate the transformation of our Group, which is on the way to becoming more agile and cost effective.”