Growth continues for Natuzzi in third quarter

Italy
Published:  28 November, 2022
Credit: Natuzzi

Natuzzi has reported its financial results for the third quarter of 2022, with a consolidated revenue result of €116.6 million, up 14.5% year-on-year.

Looking at a comparison with the consolidated revenue result in the same period of pre-pandemic 2019, the company has achieved growth of 32.4%.

Natuzzi noted that, excluding “other sales of €2.6 million, invoiced sales for upholstered and home furnishing products during the third quarter totalled €114.0 million, up by 15.8% year-on-year and 36.3% on pre-pandemic Q3 2019.

North America remains the primary market for Natuzzi, with sales of €37.4 million in the third quarter, dropping slightly year-on-year. Meanwhile, Greater China is up by 118.8% to €20 million and West & South Europe has dropped by 8% to €26.6 million. The company has also achieved more than a third growth in Emerging Markets and the Rest of the World.

Gross profit margin for the period was 37.7% and profit after tax totalled €6.6 million, compared to a profit after tax of €2.5 million in 2021 that included a one-off gain of €4.8 million from the disposal of a formerly wholly owned subsidiary of the company.

Chairman Pasquale Natuzzi commented: “We continue improving our operating model, as shown by the EBIT result of this quarter. However, the business environment for the whole economy and specifically for our industry remains challenging. The high inflation is reducing the disposable income of our consumers.

“This, together with a perduring uncertainty on the geopolitical and economic outlook, is leading consumers to postpone their decision to buy furniture. These dynamics have caused a weaker demand starting from April.

“We remain committed to our long-term growth plan, but we need to acknowledge the unexpected conditions of the market we are facing. I have the highest confidence in our CEO and our team to overcome the short-term challenges posed by the market to our turnaround.”