Lower cost of leather helps Natuzzi ‘navigate difficult times’
The CEO of Italian furniture brand Natuzzi has said high interest rates are affecting the furniture industry globally.
Pasquale Natuzzi said the leather sofa maker will be focusing on its brand-retailer strategy and “cost discipline” to navigate the "challenging phase for the entire industry”.
While the price of leather has dropped, the cost of other raw materials - especially those that are energy-intensive, such as iron components and mechanisms or wood - as well as oil-related products, such us polyurethane, have risen.
He said: “The broader business environment remains uncertain, with geopolitical instability, continued inflation despite the increase in interest rates, and stock market volatility. We remain committed to our long-term plans, looking for business expansion and internal efficiency; at the same time, we are extremely vigilant to ensure a tight cost control and financial discipline to navigate these difficult times.”
The company is accelerating the completion of its multiyear journey to become a brand, rather than just a manufacturer.
It reported a 9% increase in sales to €468.5 million in 2022, which was also 22% higher than pre-pandemic 2019.
However, during the year it paid €2.4 million in employee termination incentives for its Italian operations.
It also added 52 Natuzzi franchise stores, 39 of which are in China. At the end of 2022, Natuzzi operated 703 stores. It plans to open about 100 in 2023.
