This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Natuzzi S.p.A. First Nine Months And Third Quarter 2013 Consolidated Financial Results

The Board of Directors of Natuzzi S.p.A. (NYSE:NTZ) (“Natuzzi” or “the Company”), a leading company in the furnishings industry, today approved its consolidated financial results for the first nine months and third quarter of 2013.

FIRST NINE MONTHS OF 2013

  • Total Net Sales equal to €328.1 mln, compared to €342.3 mln in 2012;
  • Total upholstery Net Sales equal to €294.2 mln, (+0.8% in terms of unit sold), according to the following brand and geographical breakdown:
                               
Brand       2013       %
Natuzzi Italia       93.4       31.7%
Natuzzi Editions 117.4 39.9%
Private Label (Softaly)       83.4       28.4%
Total (€ mln)       294.2       100.0%
 
                               
Area       2013       %
Americas       116.8       39.7%
EMEA 135.3 46.0%
Asia Pacific 35.8 12.2%
Brasile       6.3       2.1%
Total (€ mln)       294.2       100.0%
 
  • Industrial margin at 29.3%, versus 33.6% reported one year ago. The industrial margin was affected by a different sales-mix, higher price in raw materials and raising labour costs in China and Romania.
  • Selling expenses decreased, passing from €53.9 mln in 2012 to €49.4 mln.
  • The remaining Selling, General and Administrative expenses were down by €1.6 mln, at €69.8 mln.
  • Negative EBIT of €23.1 mln (which includes a negative currency effect of €3.8 mln) compared to a negative EBIT of €10.3 mln in last year; negative EBITDA of €10.8 mln, versus a positive EBITDA of €2.6 mln in 2012;
  • Extraordinary items totaling €15.0 mln, following a further accrual related to the restructuring Plan;
  • Positive Net Financial Position as at September 30, 2013 at €27.0 mln; stable in the third quarter thanks to a positive cash flow from operation.

THIRD QUARTER 2013

  • Total Nets Sales equal to €103.3 mln, versus €111.7 mln in 2012;
  • Total Upholstery Net Sales equal to €92.5 mln, down by 2.1% in terms of seats sold, according to the following brand and geographical breakdown:
                               
Brand       2013       %
Natuzzi Italia       28.9       31.3%
Natuzzi Editions 36.4 39.4%
Private Label (Softaly)       27.1       29.3%
Total (€ mln)       92.5       100.0%
 
                               
Area       2013       %
Americas       36.9       39.9%
EMEA 40.1 43.4%
Asia Pacific 13.8 14.9%
Brasile       1.7       1.8%
Total (€ mln)       92.5       100.0%
 
  • The Industrial margin was equal to 29.6% of total net sales, versus a 35.3% margin reported one year ago. The performance was affected by the different sales-mix, rising labour cost in the Chinese and Romanian plants, increasing raw materials.
  • Selling expenses decreased, from €19.1 mln in 2012 to €16.2 mln.
  • The other Selling, General and Administrative expenses were equal to €23.2 mln and were affected by higher costs linked to the preparation of the Business Plan, as well as costs arising from the opening of new stores in Asia.
  • Negative EBIT of €8.8 mln (which includes a negative currency effect of €2.4 mln), versus a negative EBIT of €2.3 mln of last year; negative EBITDA of €4.5 mln versus a positive EBITDA of €1.8 mln in 2012.

Comments by the CEO

After the Board of Directors, Pasquale Natuzzi, President and CEO, stated: “ Group’s results are still affected by different factors that do not let us benefit from our huge efforts we have made in the creation of solid basis for the Group’s future.

New market opportunities have been identified, and, through the development of new Natuzzi Italia branded collections, we have captured the consumers’ needs in terms of price and style. Such collections were already available within all points of sales since September and are bringing positive results, especially in those Western Europe markets that are particularly hit by the current crisis in consumption.

In October, during the High Point furnishings market, one of the most important fair events in the USA, we officially launched our new armchair, Re-vive. It is a product with highly innovative contents, both in terms of design, style and materials used, as well as able to offer high performances in terms of comfort. Our intention is, through the introduction of Re-vive, to penetrate the strategic recliners market – which just in the United States is worth about 4 billion dollars - and then, create and become the leader of a new market segment: the “performance recliner”.

The success we obtained at the High Point market was confirmed also during the fairs held in November in Brussels and Paris, where Re-vive was given the “Throphée de l’Innovation 2013” prize.

I invite you to have a look at the video on the Natuzzi Group YouTube channel available at the following link: http://youtu.be/uyFB4dAK1lY

During the High Point market we also launched the new Natuzzi Italia, Natuzzi Editions and Private Label (Softaly) collections, which have been highly welcomed by the trade.

In October and November four new Natuzzi Italia stores were opened, among which the seventh Australian point of sales located in Sidney, the first in Cote d’Ivoire, located in Abidjian, another store in Vietnam (located in Hanoi, after the one opened in Ho Chi Min city), the second Asian Country with the highest growth rates after China.

Furthermore, we highlight the opening of the flagship Natuzzi Italia store in the center of Rome, after those opened in Milan and Como.

In Italy, during October, the new Divani & Divany by Natuzzi collection supported by a new advertising campaign has led to an increase in the order flow of +48.9% compared to the same month of 2012.

We highlight the Agreement signed on October the 10 th together with the Italian Unions to start with the restructuring of the Italian operations.

The Italian industrial plan has already started, through gradual layoffs of redundant workers, the closure of an industrial plant located in Ginosa (Italy), and through the rationalization of activities within the remaining Italian plants. These measures are bringing the first positive results in terms of productivity.

We continue to invest in product and process innovation. The tests we carried out show us that the new industrial Moving Line approach will allow us to get important savings on COGS. All the models that have been introduced during the recent fairs were designed and developed according to the new industrial process.

We will concentrate our efforts during the last weeks of the year on the finalization of the five-year business plan that, starting form a new brand and distribution strategy, will put the Group in conditions to recover profitability.

We believe that – concluded Pasquale Natuzzi – we have taken the right decisions for the future of our Company and created the conditions for a turnaround starting from next year.

The Company will host a conference call on Tuesday November 26 th , 2013 at 10:00 a.m. U.S. Eastern Time (4.00 p.m. Italian time, or 3.00 p.m. UK time) to discuss third quarter and first nine months 2013 financial results.

The dial-in phone numbers for the live conference call will be 1-888-438-5519 (toll-free) for persons calling from the U.S. or Canada, and 1-719-325-2429 for those calling from other countries.

Stock quotes in this article: NTZ 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs