Natuzzi (NTZ, Financial) reported a decrease in total net sales for the fourth quarter of 2024, reaching EUR 74.9 million, which represents a 10.9% drop from the EUR 84.1 million reported in the same period the previous year. This decline is attributed to strategic shifts in their industrial operations, including the closure of their Shanghai plant. Production for the local market has been transferred to a new facility in Quanjiao, aligning with the company's long-term strategic goals and adapting to new U.S. import duties.
The Shanghai plant, which no longer played a critical role for Natuzzi Editions' U.S. market production, was part of a broader reallocation strategy. The company has also shifted its North American market production to European sites. These strategic moves are seen as a proactive step in response to the changing trade environment.
Despite the drop in net sales, the company experienced a notable improvement in its gross margin, which rose to 38.1% in the fourth quarter of 2024, compared to 30.1% in the previous year and 31.9% back in 2019. When accounting for one-off severance costs amounting to EUR 0.4 million, the gross margin would have been slightly higher at 38.6%, marking a positive trend compared to 36.2% in 4Q 2023 and 34.6% in 4Q 2019.
Ending the year on December 31, 2024, Natuzzi's order backlog experienced an increase of EUR 6.4 million from September 30, 2024, reflecting the impact of the industrial adjustments.
