With Q4, FY 2023 sales down, Natuzzi keeps focus on branded business, restructuring operations

SANTERAMO IN COLLE, Bari, Italy — With sales down by near to 30% for the fourth quarter and fiscal yr finished Dec. 31, 2023, luxurious furniture brand Natuzzi said it is continuing to invest in strengthening its branded business enterprise — which include Natuzzi Italia and Natuzzi Editions — and restructuring its operations.

For the fourth quarter, invoiced profits were down 27.8% to €84.1 million, compared with a strong Q4 2022, which benefitted from a €16.9 million reduction in backlog. The company mentioned without having the backlog outcome the reduce would have been 15.5%. For the yr, invoiced revenue were being documented at €328.6 million, a minimize of 29.9% from the preceding 12 months.

In the fourth quarter, Natuzzi accomplished its organizational and IT interventions to make sure “modern administration of its retail and commercial functions, which unfold across 678 merchants and 100 countries.”

It also accelerated the restructuring within factories and headquarters, and in Q4 sustaing €5.9 million of one particular-off restructuring fees.

For the year, invoiced revenue were being claimed at €328.6 million, a minimize of 29.9% from the former 12 months.

“2023 has clearly been a hard 12 months for the general business,” said Antonio Achille, CEO. “In the key marketplaces of our operations, North The usa, China and Europe, the serious estate, which is a main supply of new demand, has been stagnant, due to the fact of the damaging economic condition and high curiosity rates. People remained pretty prudent when it arrives to investing in resilient goods. This has been reflected in our organization, with a minimize in product sales.

“In this context, we continue on doing work and investing in the two fundamentals pillars for our transformation: completing the changeover to a model-lifetime fashion and restructuring our operations.”

Achille pointed out that Natuzzi has concluded the changeover to a brand/retail group, with 92.2% of profits from branded and 61.7% from retail. He said the business has “invested significantly” in its worldwide retail and industrial functions, resulting in two initiatives:

  • To strengthen retail effectiveness, Natuzzi has established the World-wide Retail Division, which will be led by Diego Babbo.
  • On the wholesale entrance, the firm has introduced the Natuzzi Business Excellence Software, to assign certain targets for each and every account and drive business priorities.

“As a result of these investments and actions taken about the earlier 12 months, the manage on our retail and wholesale business is now appreciably stronger, and we are self-assured that this will permit us to accelerate natural growth,” Achille said.

With 678 retailers about the globe and 665 branded galleries, Achille mentioned Natuzzi has discovered three regions to prioritize upcoming investment decision: U.S., China and Europe, with a emphasis on the Uk and Italy.

See also:

  • Natuzzi adds context to its setting up sale, affirms wholesale business enterprise still essential
  • Natuzzi cites ‘persistent challenges’ in 3rd-quarter earnings launch

The write-up With Q4, FY 2023 revenue down, Natuzzi keeps emphasis on branded small business, restructuring operations appeared initial on Home furniture Currently.