Other Selling, General & Administrative expenses decreased both in Euro terms (a reduction of €12.4 million, at €95.4 million in 2012, from €107.8 million reported in 2011), and as percentage on total net sales (at 20.4% in 2012 down from 22.2% in 2011).
For the twelve month period ended December 31, 2012, the Group reported a negative EBITDA of €0.3 million (versus a negative EBITDA of €8.3 million reported for 2011) and a negative EBIT equal to 17.3 million, improving from a negative EBIT of €27.3 million reported in 2011.
Group’s Net Losses for 2012 were €26.1 million.
BALANCE SHEETThe Group’s Net Financial Position as of December 31, 2012 was positive and equal to €40.0 million. ----------------------------------------------------------- Pasquale Natuzzi, Chairman and CEO of the Natuzzi Group commented: “ In 2012 the world economy has grown at a modest pace, being affected by the slowdown of emerging markets as well as the persisting crisis in advanced economies. Although some encouraging results in the final part of 2012, perspectives for a global recovery still remain uncertain, depending on the development of the crisis in some important Countries within the Euro-area and on the fiscal consolidation process in the USA. The overall Group performance in 2012 was strongly affected by the persisting poor trend in sales from Europe, suffering from a weak condition of private consumptions, further burdened by austerity-driven policies in place in some Countries, but also by the extension of the slowdown in some emerging economies. In the Americas, on the contrary, thanks to a slight recovery in consumption but also to the effectiveness of our commercial strategy, the group has strengthened its performance. The general recession climate we’ve been experiencing, especially in those markets that are important for us, such as Europe, does affect the disposable income and, so, contributes to a change in the consumers’ needs, since nowadays they tend to prefer products within the medium to low-end of the market. We are not yet pleased with the performance of the Group. However, the improvement in EBIT with respect to the prior year confirms that the management is on the right path towards profitability. Also in 2013, the management will be committed to being focused on reorganization activities in order to get a more competitive operating structure. Specifically, the Group will continue to invest in product and process innovation according to the “Lean” perspective; furthermore, the commercial organization is being reviewed in order to be more effectively close to the markets, with particular attention to fast growing ones; we will continue to implement further overheads cost-saving measures; we will continue to develop our business relations with important customers by leveraging our capability of offering a quality service and more competitive products. Today the Group is very different as compared to what it was some years ago. Over the years, we have made considerable investments to become a real global Company, having manufacturing sites in three different continents, to better serve specific geographical areas, with a state-of-the-art information system that allows us a real time monitoring of the commercial and operating performance. Then, the investment efforts resulted in a high awareness among consumers of the “Natuzzi Italia ” brand. But we realize all that is not enough and, hence, we have to insist with even more strength in the direction already undertaken of innovation, a careful brand portfolio management and cost control to return to profitability, to keep a positive net financial position so to create value to our shareholders. ------------------------------------------------------ The Company will host a conference call on Thursday March 28 th , 2013 at 11:00 a.m. U.S. Eastern time (4.00 p.m. Italian time, or 3.00 p.m. UK time) to discuss financial results. The dial-in phone numbers for the live conference call will be 1-888-389-5988 (toll-free) for persons calling from the U.S. or Canada, and 1-719-457-2083 for those calling from other countries.