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From Home Furnishing Business

Natuzzi  Reports First Quarter 2024 Results

Natuzzi S.p.A., producer and distributor of design and luxury furniture, reported its unaudited financial information for the first quarter ended March 31, 2024.

Pasquale Natuzzi, Chairman of the Group, commented, "Our business is still confronting difficult market conditions alongside cautious customer behavior. Persistent high interest rates are postponing the housing market recovery, which remains a primary driver for new demand of furnishing.”

“In this market context, our team is efficiently allocating resources and tightly managing discretionary expenses. Our primary objective remains leveraging our brand strength to regain growth and execute our mid-term plan. We continue investing in the quality of our collections, in coherence with the DNA of our Brand, that blends design, functions, materials and colors to create harmonious living.”

“The recent endorsement of our CEO and Board of Directors provides the competences and stability needed to navigate these challenging times. I am confident that our combined efforts will drive us towards achieving our mid-term growth objectives and enhancing the efficiency of our operating model.”

First Quarter 2024 Highlights

1Q 2024 Overall Invoiced Sales Amounted to €84.5 Million, Substantially in Line With the Level of Activity of Last Year.

In 1Q 2024, Sales From Directly Operated Stores Were €20.5 Million, up 13.6% From 1Q 2023 and 10.0% From 1Q 2022, Confirming Our Focus on Strengthening Direct Retail. In North America, DOS Sales Grew 29.8% From 1Q 2023 and 32.4% From 1Q 2022, Highlighting Our Commitment to Regional Retail Growth, Especially for Natuzzi Italia.

Improved 1Q 2024 Gross Margin at 36.9%, Compared to 35.6% in 1Q 2023, 34.3% in 1Q 2022 and 30.1% Versus the Pre-COVID Level of 1Q 2019.

1Q 2024 Operating Profit of €0.6 Million Compared to an Operating Loss of (€0.9) Million in 1Q 2023 and (€3.0) Million Versus the Pre-COVID Level of 1Q 2019.

Net Finance Costs of (€2.2) Million, Compared to Net Finance Costs of (€3.4) Million in 1Q 2023. Finance Costs Negatively Affected by Persisting High Interest Rates.

In 1Q 2024 We Continued Our Restructuring With a Reduction of 94 Headcount as Part of Our Long-Term Transformation Process to Increase Competitiveness and Enhance Margin Generation. Total Headcount Reduced by ~18% Compared to 2021.

In 1Q 2024 We Invested €1.6 Million in Capex of Which €0.4 Million in DOS Located in the US and €1.2 Million Mainly to Upgrade Our Italian Factories.

As of March 31, 2024, We Held €29.7 Million in Cash.

The Market Remains Challenging, Delaying the Full Impact of Our Retail Expansion. We Remain Focused on Adapting Our Fixed Cost Structure as Part of Our Long-Term Transformation.

CONFERENCE CALL

The Company will host a conference call on Monday June 24, 2024, at 10:00 a.m. U.S. Eastern time (4.00 p.m. Italy time, or 3.00 p.m. UK time) to discuss financial information.

To join live the conference call, interested persons will need to either dial-in the following number:
Toll/International: + 1-412-717-9633, then passcode 39252103#,

or

click on the following link: https://www.c-meeting.com/web3/join/3PQUFXRW48XTKQ to join via video. Participants also have option to listen via phone after registering to the link.



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