Natuzzi S.p.A. Reports Full Year and Fourth Quarter Results

April 24, 2025  by Karen Parrish in Business Strategy, Industry   

Full Year 2024: Highlights

Total net sales were €318.8 million, compared to €328.6 million in 2023 (-3.0%).

Branded sales were €287.9 million, compared to €295.9 million in 2023 and €295.9 million in 2019. Branded sales were 92.7% of total sales, compared to 92.5% in 2023 and 80.2% in 2019.

DOS sales were €76.1 million, up 4.1% from 2023 and up 18.2% from 2019. 2024 growth was driven mainly by a 14.6% sales increase from our DOS in the U.S. In the U.S. we opened 1 additional store in Denver. In 2024, we closed 2 non-performing Natuzzi Italia stores, 1 in Spain and 1 in Switzerland, and 1 Divani&Divani by Natuzzi store in Italy, as part of our ongoing effort to progressively improve the quality of our retail.

As part of our transformation, in 2024, we accelerated our restructuring which affected P&L results with (€5.3) million of one-off severance costs:

(€4.5) million accrued in Cost of Sales;

(€0.8) million accrued in Selling and Administrative expenses.

In 2024, 638 persons exited our group, of which 331 related to the planned closure of our Shanghai factory. These exits were partially offset by hires in strategic areas such as retail, marketing and merchandising. From 2021 to December 2024, we had a net reduction of 1,141 Persons, equivalent to a ~26% of total.

In 2024, gross margin was 36.3%, improving 2 pp from 34.3% in 2023. Gross margin was 29.7% in 2019. Excluding (€4.5) million of one-off severance costs, gross margin would have been 37.7%, which compares to 36.3% in 2023 and 31.0% in 2019.

In 2024, we had an operating loss of (€6.3) million, compared to an operating loss of (€9.5) million in 2023 and an operating loss of (€22.5) million in 2019. Excluding (€5.3) million of one-off severance costs in 2024, we would have reported an operating loss of (€1.0) million, which compares to an operating loss of (€2.0) million in 2023 and to an operating loss of (€16.9) million in 2019.

Net finance costs were (€8.8) million, compared to (€8.5) million in 2023 and (€9.9) million in 2019, mainly due to additional €0.7 million of interest expenses on lease liabilities as we increased the average number of DOS in 2024 compared to 2023.

During 2024, we invested €7.1 million, primarily to upgrade our Italian factories and for the DOS located in the U.S. and Italy.

We continue the divestment program of non-strategic assets we announced:

We completed the sale of the building located in High Point, NC, to a company owned by the majority shareholder and received the final payment of $8.3 million in March 2025, therefore not yet reflected in 2024 consolidated cash flow statement.

We are progressing in the sale of a land in Romania. The Group expects to complete this transaction in 2025.

As of December 31, 2024, we held €20.3 million in cash, from €33.6 million as of December 31, 2023. In particular, the difference in cash is determined as follows:

Net cash provided by operating activities equal to €1.7 million, which includes the impact of (€10.7) million used to reduce workforce;

Net cash used in investing activities (€4.3) million;

Net cash used in financing activities (€12.8) million;

Effect of movements exchange rates on cash +€0.8 million;

Difference in bank-overdraft repayable on demand +€1.3 million.

4Q 2024: Highlights

Total net sales amounted to €74.9 million, down 10.9% from €84.1 million in 4Q 2023, also as a consequence of the planned changes implemented on the industrial front that took place during the last quarter. This included the closure of the Shanghai plant whose production for the local market has been transferred to the new facility in Quanjiao; the Shanghai plant was no longer strategic for Natuzzi Editions production for the US market. In 4Q 2024 we also relocated Natuzzi Editions production for the North American market to our European sites. These changes anticipated the introduction of new US import duties and are now proving coherent with the evolving trade framework.

As of December 31, 2024, the order backlog increased by €6.4 million compared to September 30, 2024, due to the aforementioned changes on the industrial front.

In 4Q 2024, gross margin was 38.1%, compared to 30.1% in 4Q 2023 and 31.9% in 4Q 2019. Excluding (€0.4) million of one-off severance costs, gross margin would have been 38.6%. This compares to 36.2% in 4Q 2023 and 34.6% in 4Q 2019.

In 4Q 2024, we had an operating loss of (€2.6) million, compared to a loss of (€7.3) million in 4Q 2023 and a loss of (€3.0) million in 4Q 2019.

Net finance costs were (€1.4) million, compared to net finance costs of (€2.8) million in 4Q 2023 and (€2.2) million in 4Q 2019.

During 4Q 2024, we invested €1.7 million, primarily to upgrade our Italian factories and for the DOS located in the U.S. and Italy.

For comments by Executive Chairman, Pasquale Natuzzi and CEO Antonio Achille and to see the rest of the results, visit the article on Businesswire.