Natuzzi Reports Q4 2023 Sales Decline

TL;DR

Natuzzi's Q4 2023 sales dropped to €84.1M.

AI Summary

Natuzzi S.p.A. reported fourth quarter 2023 invoiced sales of €84.1 million, a decrease compared to the previous year. The company is a foreign issuer filing a Form 6-K with the SEC for the month of April 2024, providing highlights for the fourth quarter of 2023.

Why It Matters

This filing indicates a sales downturn for Natuzzi in the fourth quarter of 2023, which could impact investor sentiment and future performance expectations.

Risk Assessment

Risk Level: medium — The filing reports a decrease in invoiced sales, suggesting potential financial headwinds for the company.

Key Numbers

• €84.1 million — 4Q 2023 Invoiced Sales (Represents the total sales for the fourth quarter of 2023.)

Key Players & Entities

• Natuzzi S.p.A. (company) — Registrant
• €84.1 million (dollar_amount) — Fourth quarter 2023 invoiced sales

FAQ

Filing Documents

• ntz_4q_2023.htm (6-K) — 451KB
• img94532470_0.jpg (GRAPHIC) — 5KB
• 0000950170-24-042292.txt ( ) — 459KB

From the Filing

6-K Securities and Exchange Commission Washington, D.C. 20549 Form 6-K Report of Foreign Issuer Pursuant To Rule 13a-16 Or 15d-16 Of The Securities Exchange Act of 1934 For the month of APRIL 2024 Commission File Number 1-11854 NATUZZI S.p.A. (Translation of registrant’s name into English) Via Iazzitiello 47 70029 Santeramo, Italy (Address of principal office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F ⊠ Form 40-F □ Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes □ No ⊠ If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): FOURTH QUARTER 2023 HIGHLIGHTS ▪ 4Q 2023 INVOICED SALES AMOUNTED TO €84.1 MILLION, REFLECTING A DECREASE OF 27.8% COMPARED TO A STRONG 4Q 2022, WHICH BENEFITTED FROM A €16.9 MILLION REDUCTION IN BACKLOG. NET OF THE BACKLOG EFFECT, THE DECREASE WOULD HAVE BEEN OF 15.5%. ▪ DESPITE THE CHALLENGING MARKET CONDITIONS, WE CONTINUED INVESTING TO STRENGTHEN OUR BRANDED BUSINESS AND TO ACCELERATE THE RESTRUCTURING OF OUR OPERATIONS. ▪ IN 4Q 2023, BRANDED SALES REPRESENTED 92.2% OF TOTAL SALES, CONFIRMING THE TRANSITION TO A LIFESTYLE BRAND, WHICH IS THE RESULT OF MORE THAN A DECADE OF INVESTMENTS. SALES FROM RETAIL WERE 61.7% OF THE TOTAL. THESE PERCENTAGES WERE RESPECTIVELY 85.3% AND 52.2% AT THE BEGINNING OF 2021. ▪ IN 4Q 2023 WE COMPLETED THE ORGANIZATIONAL AND IT INTERVENTIONS TO ENSURE A MODERN MANAGEMENT OF OUR RETAIL AND COMMERCIAL OPERATIONS, WHICH SPREAD ACROSS 678 STORES AND 100 COUNTRIES. ▪ IN 4Q 2023 WE ACCELERATED THE RESTRUCTURING, BOTH WITHIN FACTORIES AND HQ, AS A PART OF OUR LONG-TERM TRANSFORMATION PROCESS TO INCREASE COMPETITIVENESS AND ENHANCE MARGIN GENERATION. IN PARTICULAR, IN 4Q 2023, WE SUSTAINED €5.9 MILLION OF ONE-OFF RESTRUCTURING COSTS. ▪ 4Q 2023 GROSS MARGIN, NET OF ONE-OFF RESTRUCTURING COSTS, IS OF 36.2%, COMPARED TO 38.8% IN 4Q 2022 AND 34.6% IN 4Q 2019. ▪ NET OF ONE-OFF RESTRUCTURING COSTS, 4Q 2023 REPORTS AN OPERATING LOSS OF (€1.4) MILLION. ▪ NET FINANCE COSTS OF (€2.8) MILLION, COMPARED TO NET FINANCE COSTS OF (€4.8) MILLION IN 4Q 2022. FULL YEAR 2023 HIGHLIGHTS ▪ 2023 INVOICED SALES AMOUNTED TO € 328.6 MILLION, REFLECTING A DECREASE OF 29.9 % COMPARED TO 2022, WHICH BENEFITTED FROM A € 58.4 MILLION REDUCTION IN BACKLOG. NET OF THE BACKLOG EFFECT THE DECREASE WOULD HAVE BEEN OF 19.9% VS 2022. 2023 Fourth Quarter and Full Year Results 1 ▪ IN 2023, WE ACCELERATED OUR RESTRUCTURING, WITH €7.4 MILLION OF ONE-OFF COSTS TO REDUCE THE WORKFORCE BY 514 PEOPLE. THIS RESULTED IN A TOTAL REDUCTION OF 759 PEOPLE FROM 2021 TO 2023. THIS REPRESENTS A REDUCTION OF 17.5%, LEADING TO €22.6 MILLION IN ANNUAL SAVINGS COMPARED TO 2021 LABOUR COST. ▪ 2023 GROSS MARGIN, NET OF RESTRUCTURING COSTS, IS OF 36.3%, COMPARED TO 35.6% IN 2022 AND 31.0% IN 2019. ▪ 2023 REPORTS AN OPERATING LOSS OF (€2.1) MILLION, EXCLUDING THE IMPACT OF RESTRUCTURING COSTS. ▪ NET FINANCE COSTS OF (€8.5) MILLION, COMPARED TO NET FINANCE COSTS OF (€5.2) MILLION IN 2022, MAINLY DUE TO PERSISTING RISING INTEREST RATES. ▪ IN 2023 WE INVESTED €1 1 . 8 MILLION, OF WHICH € 4.6 MILLION IN RETAIL EXPANSION AND € 7.2 MILLION TO UPGRADE PRODUCTION FACILITIES , IN ADDITION TO THE ABOVE-MENTIONED RESTRUCTURING ONE-OFF COSTS. ▪ AS OF DECEMBER 31, 2023, WE HELD €33.6 MILLION IN CASH, COMPARED TO €37.1 MILLION OF CASH AS OF SEPTEMBER 30, 2023. *** Santeramo in Colle (BA), April 5, 2024 – Natuzzi S.p.A. (NYSE: NTZ) (“we”, “Natuzzi” or the “Company” and, together with its subsidiaries, the “Group”), one of the most renowned brands in the production and distribution of design and luxury furniture, today reported its unaudited financial information for the fourth quarter and full year ended December 31, 2023. Pasquale Natuzzi, Chairman of the Group, commented: “ Market conditions for the furniture industry have remained challenging during 2023. It's evident that the furniture industry faced extraordinary conditions in 2023, with major markets experiencing a significant slowdown in demand, following two consecutive strong years post-COVID. In this context, we continued investing to complete the transition to a lifestyle brand, with direct access to consumers through retail. This is a process I initiated about 20 years ago, which represented a profound transformation of the Group I founded 65 years ago as a man

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View this 6-K filing on SEC EDGAR