Improved results for Natuzzi
9 June 2010Total net sales for Italy based leather furniture group, Natuzzi for the first quarter 2010 were €126.4 million with an improvement of 13.6%. Upholstery net sales were €111.3 million with an increase of 14.9% compared to the same period of 2009. The contribution by geographic area was the following: Europe (excluding Italy) 42.4%, Americas 32.3%, Italy 14.1% and rest of the world 11.2%.
Natuzzi said in statement released on May 28 that the significant improvement of the industrial margin is due to a better product-mix sold, and to a constant cost control activity, as well as to a positive euro/dollars exchange rate that affected positively the cost of raw material purchases.
Transportation costs were negatively influenced by a significant increase of the freight fares recorded in some transportation routes since January 2010. As a result of these figures, the Natuzzi had an operating income of €0.5 million versus an operating loss of €16.6 million in the first quarter of 2009, an improvement with respect to the same period last year.Net group result shows a reduced loss of €1.3 million, with respect to a loss of €10.4 million recorded in the same period of 2009, mainly due to some production efficiency savings. The net financial position as of March 31, 2010 remains positive for €54.9 million compared to a decrease in December 31, 2009 results.
Pasquale Natuzzi, chairman and chief executive officer of Natuzzi, commented: ‘In the first quarter of 2010 we finally recorded a net sales improvement. However, the economic crisis and the worsening market conditions are not yet over and the group order flows for the first months of 2010 with respect to the last months of 2009 confirm a slow down as compared to the previous positive trend, even if with diversified trends among the various brands and geographic areas. We promptly reacted, from a price point of view, introducing a Natuzzi brand new ‘entry price’ product range that could stimulate consumer demand coherently with the brand positioning. The Italsofa and Editions brands are confirming the success achieved during the Colone, Milan and High Point (USA) fairs and the enormous potential of this new offer .Along with these commercial initiatives, we have in progress an internal restructuring plan that aims at simplifying the management of company activities, at achieving further cost reductions and innovation in order to improve the quality of products and customer service.We are confident that the strength of our brands and business model, based on integration between production and distribution, could help us face the adverse market situation. Furthermore, thanks to the perseverance, enthusiasm, ethic values, and commitment of all people working within our group, we will be able to achieve our goals in terms of service, quality, competitiveness and profitability.’
