Italian upholstered furniture manufacturer Natuzzi has reported a sixth consecutive quarterly revenue growth in a row.
According to its latest trading update, Q2 sales rose 7.8% to €116.9m from €108.4m and 26.8% from €92.2m in the pre-pandemic second quarter 2019.
North America sales declined 11% to €31.3m but Greater China sales surged 24.1% to €13.3m. The US division was impacted by the closure of its Shanghai factory for the first two months in the quarter. West & South Europe revenues increased 27.4% to €40.6m.
Net loss in the period increased to €0.6m from €0.1m. Natuzzi said it struggled with long manufacturing lead times, Covid lockdowns in China and inflation pressures during the period.
Pasquale Natuzzi, Chairman of the Group commented: “We have been able to deliver sales above 2021 in the first part of the year, notwithstanding the closure of our Chinese factory which impacted negatively the second quarter. Since April, the business environment has been more challenging because of multiple external factors, such as the high level of inflation globally, the war in Europe, the continuing presence of COVID-19.
“This market context encourages us to accelerate the transformation of our Group, that is on the way, to become more agile and cost effective. We are onboarding the key management team that will support the CEO in the transformation of the Group.”
Within its divisions, Natuzzi Italia sales rose 34.2% to €53.6m, Natuzzi Editions sales, including sales from Divani&Divani by Natuzzi, declined 12.2% to €45.1 million, while unbranded business sales fell 5.9% to €13.3m. Wholesale sales also declined 17.5% to €43.4m.