Natuzzi S.p.A. Reports Financial Results for Third Quarter 2023

November 26, 2023  by HFBusiness Staff in Business Strategy, Designer Weekly, Industry   

3Q 2023 branded invoiced sales, while being below 3Q 2022, are up 4.3% vs 3Q 2019. In 3Q 2023, branded sales represented 93.9% of total branded and unbranded sales, compared to 90.9% in 3q 2022 and 78.6% in 3Q 2019.

From week 29 to date, written orders surpassed results from the same period in 2022, terminating a 15-month sequence of negative comparison. US market is leading this trajectory change.

3Q 2023 gross margin of 35.4% is above the last 3 years avg, as a result of enhanced pricing discipline and improved cost management despite the negative impact from lower delivered sales.

3Q 2023 operating loss of (€1.3) million compares to an operating profit of €4.1 million in 3Q 2022 when we reported €116.6 million of revenue, and an operating loss of (€8.7) million in 3Q 2019 when we reported €88.1 million of revenue.

3Q 2023 operating activities generated €2.3 million in cash, which compares with (€4.2) million of operating cash used in 3Q 2022. In 3Q 2023 we invested €2.9 million of which €1.8 million in retail and €1.1 million to upgrade our Italian factories.

As of Sept 30, we held €37.1 million in cash, compared to €44.5 million of cash as of June 30, 2023.

In the current market landscape, prioritizing cost and capital efficiency is key. We continue to focus on reducing fixed costs and enhancing working capital as well exploring options to sell non-strategic assets.

We expect ongoing challenges in both the overall economy and the furnishings sector throughout the remainder of 2023 and into the early part of the following year, which may have a potential adverse impact on our business. Nevertheless, we maintain confidence in the strength of our brands and the company's long-term growth strategy.