- Natuzzi S.p.A. (NTZ, Financial) reported a 3% decline in total net sales for 2024 compared to 2023, amounting to €318.8 million.
- The company experienced a significant improvement in gross margin, rising to 36.3% from 34.3% in 2023.
- Operating loss reduced to (€6.3) million in 2024 from (€9.5) million in 2023, with net finance costs slightly increasing to (€8.8) million.
Natuzzi S.p.A. (NTZ), a prominent figure in luxury furniture production and distribution, disclosed its financial results for the year 2024, reporting total net sales of €318.8 million, marking a 3% decline from the €328.6 million recorded in 2023. A pivotal aspect of Natuzzi's performance in 2024 was the enhanced gross margin, which improved to 36.3%, a growth of 2 percentage points compared to the previous year.
Branded sales, a critical component of the company’s revenue, witnessed a slight dip, generating €287.9 million against €295.9 million in 2023. Despite this, Dos sales in the U.S. saw a notable increase of 14.6%, bolstered by the opening of a new store in Denver, contributing to a 4.1% growth compared to the prior year.
In terms of financial restructuring, Natuzzi undertook significant measures, notably closing several non-performing stores across Europe as part of its transformational strategy. This restructuring included one-off severance costs amounting to (€5.3) million, impacting the profit and loss results with 638 personnel exiting the group.
The company’s operating loss for the year stood at (€6.3) million, an improvement from the loss of (€9.5) million in the previous year. When excluding the one-off severance costs, the operating loss would have been reduced to (€1.0) million, suggesting underlying operational improvements. However, net finance costs increased slightly to (€8.8) million, influenced by higher interest expenses on lease liabilities.
Notably, Natuzzi reported a decrease in cash holdings, with €20.3 million in cash at the end of 2024, down from €33.6 million the previous year. The reduction was attributed to various operational and strategic adjustments, including a substantial €10.7 million expense in workforce reduction efforts.
With ongoing efforts to bolster its retail and operational efficiency, Natuzzi remains proactive in navigating evolving market dynamics, enhancing customer engagement, and investing in its global manufacturing platform to mitigate impacts from trade shifts and tariffs, particularly those affecting the North American market.
