Natuzzi exceeds both 2020 and pre-pandemic results in Q1 2021

Italy
Published:  24 May, 2021

The Italian premium leather furniture maker has released its first quarter 2021 results, reporting a 23.1% increase in sales owing to a robust order backlog. Positive momentum has continued on written orders for the first 18 weeks, improving on key business performance compared with both 2020 and the pre-pandemic results of 2019.

Consolidated net sales (including non-core sales of €3.4 million) for the first quarter of 2021 were €101.5 million compared with the €82.5 million reported in 2020’s first quarter. Under constant exchange rates, consolidated net sales would have been up 31.3%, mainly due to the Euro appreciation compared with the US dollar.

Natuzzi Group’s strategy aims to capitalise on the strengths of its brands and continue to deliver positive results, the company said. Its branded invoiced sales were €86 million, up 31.9% compared with the first quarter of 2020 and up 10.9% compared to 2019. The branded business continues the quarter-on-quarter improvement in terms of turnover, representing 87.6% of the Group’s core business in the first quarter of 2021 versus 83.1% of 2020 and 76.6% in 2019 in the same period.

The Group reported strong momentum in invoiced sales in its key geographies compared with the first quarter of 2020, including increases of 24.9% in North America, 92% in Greater China, 5.9% in West and South Europe, 50.6% in emerging markets and 10.9% in the rest of the world, which includes Central & South America and the rest of Asia-Pacific regions.

Gross margin continued the sequential improvement, showing a 36.2% increase in the first quarter of 2021 compared to 34.2% in 2020 and 30.1% in 2019 for the same period.

The Group reported an operating profit of €3.3 million versus an operating loss of €4.9 million in the first quarter of 2020 and an operating loss of €3 million in the first quarter of 2019. It also reported a net profit of €5.9 million versus a €7.8 million loss in the same period of 2020 and a €4.6 million loss in the same period of 2019.

Credit: Natuzzi