Natuzzi announces Q1 results
Italian leather-upholstered furniture manufacturer Natuzzi has approved its financial results for the first quarter of 2011.
The firm’s total net sales were EUR121 million, down 4.3% as compared to first quarter 2010. Industrial Margin was EUR42.8 million as compared to EUR48.7 million in first quarter 2010
Total Net Sales (including raw materials and semi-finished products sold to third parties) were EUR121 million, decreasing by 4.3% with respect to 2010. Total upholstery sales totalled EUR105.4 million with a decline of 5.3% over the same period in 2010.
The break-down of upholstery net sales by geographic area was as follows: Europe (excluding Italy) 49.5%, the Americas 26.1%, Italy 14.1% and Rest of the World 10.3%.
The best commercial performances were reported in the Rest of the World area with an encouraging increase of 16.1%. In particular evidence, China has nearly tripled its sales of Natuzzi branded products. A return to a positive performance in Europe with 3.6% was noted. In particular, a recovery of sales of the Natuzzi branded products in Germany (+11%) and in the UK (+12%) was recorded.
Industrial margin, 35.4% of sales compared to 38.5% in the first quarter of 2010, mainly reflects the considerable increase in the prices of raw materials.
Pasquale Natuzzi, CEO of Natuzzi, said: “In the first quarter of 2011 we recorded a slight decrease in sales as a consequence of the US market, which suffered from the decline in production in China due to the shift of production facilities.
“In recent weeks the level of production capacity has already been fully restored, which is necessary in order to ensure an adequate level of service which is fundamental in a market like the US, already characterised by weak demand for home decor products.
“We are aware of the difficulties we are still facing, given the uncertain economic situation, and for this reason we continue to work on simplification and integration of brands, markets, distribution channels and facilities to better serve customers that represent a core value for our company.
“The strong financial position enables us to give continuity to the specific investments in terms of product and process innovation and development of the brand, expansion within the emerging markets like India, China and Brazil, while maintaining our presence in our historical markets.”
