Consolidated net sales for Natuzzi, during the 3rd quarter of 2020, were of 84.4 million euro, or 4.2% less than the 88.1 million of 2019’s third quarter. “Uncertainty is still predominant in our industry – states Pasquale Natuzzi in a note shown while presenting the quarterly result -. For this reason, the execution of our strategic plan will be guided by caution and a rigorous management of cashflow”.
Natuzzi’s third quarter
The group’s factories in Brazil have gone back to work: they had to stop the first 2 weeks of July. But the comeback of Covid-19-caused restrictions in Europe is cause for concern and is forcing stores to close down once more.
In Italy, Spain, UK, Switzerland, Romania, China, Brazil and USA, companies have laid people off for the time being, and in Italy the same social security measure will also be implemented for the first few months of 2021.
“Even with the positive amount of orders coming in, we are cautious with regards to the entrepreneurial context in the short-term – say the quarterly results -, most of all considering the restrictions already adopted by many countries”.
Between the end of the 2nd quarter and start of the 3rd, with the re-opening of stores, there was also a recovery of demand. “Orders from June to today have recorded a strong increment (+21.5%), above our expectations – explains the quarterly note -. Such influx even went beyond our production capacity, so much that some suppliers had difficulties in fulfilling our growing demand.
This situation caused our product portfolio to increase by 70%, compared to the start of the year”.
It usually takes about 3 months to manufacture and deliver a sofa, which the reason why only a small portion of the additional orders have been attributed to the 3rd quarter. An encouraging sign is that of the +4% revenue made by Natuzzi-branded products”.
Consolidated net sales in the first 9 months of the year were 228.4 million euro (-20.2%). Considering only Natuzzi’s core business, net sales were of 218.1 million euro (-20.1%), due to the 13.4% decrease of the Natuzzi division and the -44.9% of the brand’s private label business. EBITDA for the first 9 months was of 31.4% compared to the 29% of 2019’s first 9 months.
From January to September, the group recorded operating losses of 13 million euro, against the 19.5 million of last year.
Pasquale Natuzzi trusts that orders will begin flowing again from the American market, so that 2020 may close as best as it can be. He also believes that suppliers will be able to get back to their usual and organized state, after a period of difficulties.
Other objectives, according to Mr. Natuzzi, it’s also necessary to increase production in the Vietnam-based plant, which has partnered with another plant in Eastern Europe to serve the EMEAI marketplace.
Image taken from natuzzi.it