Natuzzi S.p.A. Reports Financial Information for Third Quarter

December 17, 2025  by Karen Parrish in Business Strategy, Industry   

3Q 2025: Highlights

—Total net sales amounted to €74.4 million, down 0.8% from €75.0 million in 3Q 2024.

—Gross margin at 36.0% of revenue, compared to 31.8% in 3Q 2024 which included a 3.9% impact from severance-related costs.

—Operating loss of (€1.7) million, compared to an operating loss of (€3.8) million in 3Q 2024.

—Net finance costs were (€2.4) million, compared to net finance costs of (€3.3) million in 3Q 2024.

—Loss for the period of (€5.1) million, compared to a loss of (€7.4) million in 3Q 2024.

—Call of a shareholders’ meeting to adopt appropriate measures pursuant to art. 2446 of the Italian civil code, “Nominal reduction of share capital due to losses”.

—As of September 30, 2025, the company held €18.1 million in cash, down from €20.3 million as of December 31, 2024. Cash availability includes €9.9 million of proceeds from the disposal of two non-strategic assets, namely the sale of a plot of land in Romania, in addition to the sale of the building in High Point.

—The Company continues to actively seek a CEO to lead the restructuring efforts.

—Store traffic and written orders remain below expectations, due to a persisting and generalized weakness in consumer confidence in addition to trade duties by the U.S. administration. This may continue to adversely affect our results of operations.

Message from Pasquale Natuzzi, Chairman and Chief Executive Officer ad interim of the Group:

“The business environment remains highly challenging, marked by persistent geopolitical uncertainty and macroeconomic headwinds that continued to discourage consumer demand and, consequently, sales.

On the other hand, I should emphasize the improvement of 4.1% in the gross margin, exceeding the levels recorded in the first two quarters of the year, mainly due to a sales mix with better margins and savings from the rightsizing of our Chinese operations. Gross margin expansion, however, remains limited by higher industrial labor costs.

However, the current level of gross result does not allow for an efficient absorption of selling and administrative expenses. While salaries and transportation costs overall decreased in the period, we are aware that they are still too high compared to the size of revenue. Consequently, the management’s challenge is to increase sales and optimize the costs structure at Group level.

Fully aware of these challenges, management is advancing its discussions with the Company’s Board of Directors and Italian governmental institutions to address Company-specific issues and aimed at restoring efficiency and profitability across the Group. We are currently defining the details of a restructuring plan, whose preliminary guidelines include a significant reduction in fixed costs, a more flexible production capacity, the divesting of certain non-strategic Italian assets, and the outsourcing of selected low value-added activities. In this regard, management has recently received a binding offer for the sale of one of its non-strategic assets.

In parallel, we continue to invest in product innovation, design and marketing to enhance customer experience and drive new business opportunities, including through the Trade & Contract Division. The Company remains firmly committed to developing new projects and collections and engaging in promotional events—including international trade fairs and design shows, Natuzzi Congresses and targeted initiatives with real estate developers and designers—to consolidate the Natuzzi brand’s positioning and support commercial performance.

Finally, the search for a new CEO is progressing. We are carefully assessing a shortlist of candidates capable of leading the Company through its restructuring phase with the objective of working towards long-term sustainability. We will inform the market in a timely manner should any material developments arise.”

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CALL OF A SHAREHOLDERS’ MEETING TO ADOPT APPROPRIATE MEASURES PURSUANT TO ART. 2446 OF THE ITALIAN CIVIL CODE.

Following the approval of the Company’s unaudited financial statements for the first nine months and third quarter ended September 30, 2025, the Board of Directors has verified that the Company recorded a loss for the quarter of €5.1 million, resulting in a reduction of the share capital by more than one-third, thereby triggering the obligations provided under Article 2446 of the Italian Civil Code.

Article 2446 of the Italian Civil Code - applicable to Italian joint-stock companies (società per azioni) - provides for the nominal reduction of the share capital to reflect the recorded losses and requires the Board of Directors to promptly convene a Shareholders’ Meeting to adopt appropriate measures.

Such a share capital reduction is essentially an accounting adjustment that aligns the nominal value of the share capital with its actual current value. As of the date of this press release, the Company remains compliant with all listing requirements. The Company continues to operate normally and the reduction in share capital is not expected to prevent the Company from continuing to strive to achieve the Company’s goals as well as to pursue the implementation of its restructuring plan.

In compliance with these provisions, the Board of Directors resolved to convene the Ordinary Shareholders’ Meeting of the Company in order to consider and vote upon the measures pursuant to Article 2446, paragraph 1, of the Italian Civil Code and any related and consequent resolutions.

The documentation required by law, including the Board’s report on the Company’s financial position and the observations of the Board of Statutory Auditors, will be made available at the Company’s registered office at least eight days prior to the meeting, in accordance with applicable provisions.