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From Home Furnishing Business
Second Quarter Sales Up 7.8% at Natuzzi Group
October 3,
2022 by HFBusiness Staff in Business Strategy, Industry 
Leather upholstery producer Natuzzi said second-quarter sales rose 7.8 percent to 116.9 million Euros, but its net loss widened to 600,000 Euros due largely to rising raw materials and transportation costs.
The Italian company said gross margin fell to 31.4 percent from 36.1 percent in last year’s second quarter as the price increases implemented during the most recent quarter didn’t keep pace with rapidly increasing raw materials prices.
In addition, Natuzzi’s factory in Shanghai was closed from late March until early May due to a Covid lockdown and did not resume operations at full capacity until the first week of June.
“The overall context in which we operate remains challenging,” said Antonio Achille, CEO. “Rising inflation, higher interest rates, prospects for global economic slowdown, persisting high energy costs and geopolitical uncertainty continue to impact our industry globally.”
Sales in North America fell 11 percent to 31.3 million Euros.
“Our retail partners, especially in North America, have in general witnessed a softer demand versus a very strong 2021. This has led them to postpone purchases of "new stock" products, while they are focusing on de-stocking,” said Achille.
For the first six months of the year, worldwide sales totaled 235.4 million euros, up 12.1 percent from 209.9 million euros in the first half of last year. ,
Natuzzi recorded six-month net income of 700,000 euros, down from 5.9 million euros in the first half of 2021.