The Board of directors of Natuzzi S.p.A., a leading manufacturer of leather-upholstered furniture, announced the financial results for the third quarter and first nine months of 2009.
Third Quarter 2009 Summary:
- Net Sales were €118.3 million as compared to €142.3 million in 3Q 2008;
- Gross profit was € 47.5 million, an increase of 29.5% as compared to €36.7 million for the same quarter last year;
- Operating income was €2.8 million, compared to an operating loss of €12,3 million in 3Q 2008; and
- Net group loss was €0.9 million as compared to a loss of €16.2 million for the same period of 2008.
Third Quarter Results
Natuzzi Group net sales during the third quarter of 2009 totaled €118.3 million and decreased by 16.8% as compared to the same quarter of last year. This decrease in sales was primarily due to the world-wide economic recession that had a negative impact on the consumer sector. Upholstery net sales were €102.9 million or 87.0% of total net sales, compared to €125.1 million or 87.9% of total net sales in the third quarter of 2008. The contribution to upholstery net sales by geographic area was as follows: Europe 54.5%; Americas 32.6% and rest of the world 12.9%.
Gross profit totaled €47.5 million or 40.1% of net sales versus 25.8% in the same period of 2008. The significant improvement was the result of internal restructuring processes and a reduction in raw materials costs.
Pasquale Natuzzi, Chairman and CEO, commented: “Third quarter results represent the second consecutive quarter during which we achieved positive operating income, despite the unfavorable economic environment. The restructuring and rationalization process continue to benefit our results. During this time we set up various initiatives and processes such as product standardization and innovation, improvement of the raw material procurement and reduction in lead times”.
Mr. Natuzzi concluded, “I am confident that all of these activities will continue to generate positive results.”
Nine months Results 2009
For the first nine months of 2009, net sales were €363.2 million, a decrease of 24.9% as compared to €483.9 million in the first nine months of 2008. Upholstery sales were €316.7 million (a decrease of 25.8%) as compared to €426.6 million in the first nine months of 2008. The contribution of nine months upholstery net sales by geographic area was as follows: Europe 59.2%; Americas 30.3% and rest of the world 10.5%.
In the first nine months of 2009 the Group reported a gross profit of €126.3 million or 34.8% on total net sales versus 26.6% in the same period of 2008. Operating loss was €12.6 million as compared to a loss of € 29.5 million for the same period of 2008.
Net Group result for the first nine months 2009 shows a loss of €15.2 million as compared to a loss of €42.1 million in the same period of 2008.
Balance Sheet Highlights
The Natuzzi Group ended the third quarter of 2009 with cash of €70,4 million. The increase of €23.1 million in net cash as compared to December, 31 2008 was mainly due to a reduction in working capital. Long term debt totaled €6.0 million. Shareholder’s equity was €326.4 million at the end of the third quarter.
About Natuzzi
Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. designs and manufactures a broad collection of residential upholstered furniture. With 2008 consolidated revenues of EUR 666,0 million on, Natuzzi is Italy's largest furniture manufacturer. The Natuzzi group exports its innovative high-quality sofas and armchairs to 123 markets on five continents under two brands, Natuzzi and Italsofa.
Cutting-edge design, superior Italian craftsmanship, and advanced, vertically integrated manufacturing operations underpin the Company's market leadership.
Natuzzi S.p.A. has been listed on the New York Stock Exchange since May 1993. The Company is ISO 9001 and 14001 certified.