Italian furniture manufacturer Natuzzi has reported a growth in full year sales although a decline in profit.
According to its 2022 results, total sales rose 9.6% to €468.5m year-on-year, with a gross margin of 35.1%, down from 36% in 2021. Profit resulted at €1.3m, down from €4.4m, which included €5m from an asset disposal.
During 2022, the company added 52 Natuzzi franchise stores to its network, of which 39 located in China, one Natuzzi Editions DOS located in the US as well as two Natuzzi Editions DOS opened in the US in joint venture with a local partner.
Therefore, as of the end of 2022, the total number of Natuzzi stores was 703, including 52 DOS directly managed by the Group, 24 stores directly managed by its JV in China and the two above mentioned DOS in JV in the US. Of these 703 points of sales, 379 are overall located in China.
Antonio Achille, CEO of the Group, said: “The network expansion will progress also in 2023. In term of DOS openings, we are focusing on U.S., which represents one of our largest retail opportunities, while we continue ensuring the retail expansion in the remaining geographies with franchises. In 2023 we will open six DOS in the U.S., of which five Natuzzi Italia, namely in San Diego, Atlanta, Denver, Houston and Manhasset, and one Natuzzi Editions in Frisco. We plan to open about 100 Natuzzi franchise stores worldwide in 2023.”
Pasquale Natuzzi, Chairman of the Group, added: “We continue reporting an operating profit as a result of the execution of our Brand-Retailer strategy and of the work done by our team to streamline costs. We are focusing on these two elements, execution of our Brand-Retailer strategy and cost discipline, to ensure our Group gets through a challenging phase for the entire industry. High interest rates have caused a freezing of the house market and negatively impacted the purchases of durables.
“These trends are negatively affecting the furniture industry globally. Also, the broader business environment remains uncertain, with perduring geopolitical instability, continued inflation despite the increase in interest rates, high 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 high financial discipline to navigate these difficult times.”