Natuzzi Embarks Upon Long-Term Plan

October 23, 2008  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on October 2008 Natuzzi has launched a new three-year business plan with a goal of exceeding 1 billion euros in consolidated net sales at the end of 2011.

Dubbed 11-1-15, the plan calls for the company to focus on three key emerging markets where the the company has little business today--Brazil, Russia and India. At the same time, the company will support its strong growth in Asia and will build a factory in North America as part of strategy aimed at devising shorter routes to markets.

The brand strategy calls for the Natuzzi brand to address the high-end segment of the market while Italsofa targets younger, more dynamic consumers. Wednesday’s announcement said the company expects to self-finance the operational and investment projects defined in the plan.

The goal of 1 billion euros represents a significant increase in sales for the company. In the first six months of the year, the company’s sales totaled about one-third of that amount.

The plan was developed over the past 100 days since new CEO Aldo Uva was appointed, and it was approved by the company’s board last week after an in-depth discussion. “We think that in challenging market conditions, new opportunities may arise for market leaders such as us. We are looking to achieve break-even by 2009, growth acceleration in full 2010 and consolidation for new expansion in 2011,” Uva said. “I am pleased that the plan has the full approval of the board (who) I thank for the trust placed in the plan. Natuzzi management, at all levels, is aware of the important challenges and market opportunities we are faced with and committed to achieve the ambitious goals set by our business plan.

Natuzzi’s senior management will visit clients and investors in the United States and United Kingdom during November to discuss the new business plan.