Natuzzi S.p.A. released its unaudited financial results for the first nine months of 2024, reflecting a mixed performance amidst ongoing global economic challenges. Total net sales amounted to €243.9 million, maintaining a slight decline of -0.3% compared to the same period in 2023. Branded sales contributed €221.2 million, marking a modest 0.3% increase from the previous year and a 3.1% rise compared to 2019. Branded sales now account for 93% of total sales, up from 92.6% in 2023 and significantly higher than the 78.5% recorded in 2019.
Photo: Natuzzi.
'This reflects a dual-speed reality,' said Pasquale Natuzzi, the company's executive chairman. 'While we continue to face the challenges of a persistent economic crisis, we are witnessing growing proof of the strength of our long-term brand/retail project, which is gaining momentum and setting the stage to unlock the full potential of our brand.'
In 2024, Natuzzi marked a significant milestone with the launch of Natuzzi Harmony Residences, a 110,000-square-foot building in Dubai featuring 50 apartments. For the first time, Natuzzi took the lead in both architectural and interior design for a project of this scale.
At the October High Point Market, Natuzzi introduced its "Reimagined Gallery" concept, a strategic initiative now implemented across 678 stores and 628 galleries. 'These results confirm that Natuzzi is one of the few global design and high-end furniture brands,' Natuzzi stated. 'Our strategic initiatives are increasingly offsetting market headwinds, positioning us for a brighter future.'
Antonio Achille, CEO, further emphasized the challenges stemming from the broader business cycle and industry difficulties. 'Our sales for the first nine months of 2024 remained consistent with the previous year, despite the ongoing disruptions that have affected the furnishings sector and other durable goods industries,' Achille said. He noted that the soft performance in the third quarter, particularly in August and September, had a significant impact on deliveries.
Looking at Natuzzi Italia's performance, Achille highlighted that merchandising and retail initiatives launched during Milan Design Week in April only began delivering results in late September. Consequently, sales for Natuzzi Italia were 0.9% lower compared to 2023 in the first nine months. However, there has been improvement in the latter part of the year, closing the gap. Moving forward, Natuzzi Italia will continue to prioritise markets such as the U.S., China, the UK, Spain, and Italy, as the company pursues the consistent rollout of its brand/retail/marketing strategy.
The financial report outlined several key strategies aimed at driving significant growth. These include improved distribution channels to accelerate the brand journey, tapping into new trade and contract market opportunities, enhancing margins, simplifying production processes, and executing a restructuring program that shifts Natuzzi from a volume-driven to a value-driven organization. Additionally, the company plans to divest non-strategic assets, such as properties in High Point and Romania.
In summary, Natuzzi's Q3 results underscore a dual-speed reality, with the brand showing resilience amidst external challenges while continuing to strengthen its long-term strategic initiatives.
Source: www.designerstoday.com