Numbers highlight weakness in European markets. Outside of Europe, company sales increased 23% over 2009.
The Board of Directors of Natuzzi S.p.A., Italy’s largest furniture manufacturer and a leading manufacturer of leather-upholstered furniture, announced its financial results for the fourth quarter and full year of 2010.
FULL YEAR 2010
- Total Net Sales were €518.6 million, up 0.6% as compared to FY 2009
- Industrial Margin was €197.1 million as compared to €185.6 million in FY 2009
- Positive EBIT of €0.4 million vs. a negative EBIT of €10.6 million in FY 2009
- Net Group Loss of €11.1 million vs. a Net Group Loss of €17.7 million in FY 2009
FOURTH QUARTER 2010
- Total Net Sales were €132.0 million ($185 million), down 13.3% as compared to fourth quarter 2009
- Industrial Margin was €51.3 million ($7.2 million) as compared to €59.3 million in fourth quarter 2009
- Positive EBIT of €0.2 million ($.28 million), vs. a positive EBIT of 2.1million in fourth quarter 2009
- Net Group Loss of €1.4 million vs. a Net Group Loss of €2.5 million in fourth quarter 2009
- Positive Net Financial Position of €45.6 million
FULL YEAR 2010 CONSOLIDATED RESULTS
During 2010 Total Net Sales (including raw materials and semi-finished products sold to third parties) were €518.6 million, increasing by 0,6% with respect to 2009.
Upholstery net sales were at €460.5, up by 2.2% as compared to full year 2009.
The break-down of upholstery net sales by geographic area was as follows: Europe (excluding Italy) 40.5%, the Americas 35.7%, Italy 11.2% and Rest of the World 12.6%.
The best commercial performances were reported in the Rest of the World area with an increase of 23.8% over 2009 (in particular, Australia up by 25.1% and China up by 51.9%), and in the Americas where we recorded a 17.5% increase. In Europe, even if we recorded an overall negative performance of minus 11.4%, we point out the positive performance of 13.5% from Great Britain.
Industrial Margin improved in 2010 reaching a 38.0% on sales versus a 36.0% in full year 2009, thanks to important industrial rationalization activities started in 2009.
The incidence of Selling Expenses on sales passed from 29.0% in full year 2009 to 29.8% in full year 2010 due to a remarkable increase of shipping costs and commissions, partially balanced by a reduction both in advertising costs, commercial labour costs and other commercial costs.
The incidence of General & Administrative Expenses on sales, on the contrary, improved in 2010, passing from 9.0% in 2009 to 8.2% in full year 2010, thanks to the rationalisation and reorganisation actions carried out by the Group, that allowed a total saving of €4.1 million.
EBITDA improved from positive €16.2 million in 2009 to positive €23.8 million for the full year 2010.
The full year 2010 EBIT highlighted a return to a positive margin of €0.4 million vs. a negative EBIT of €10.6 million for the full year 2009.
The full year 2010 Net Group Result recorded, despite the greater incidence of extraordinary costs and a lower contribution from forex, a loss of €11.1 million improving from the €17.7 million loss reported for the full year 2009.
FOURTH QUARTER 2010 CONSOLIDATED RESULTS
Total Net Sales (including raw materials and semi-finished products sold to third parties) were at €132.0 million.
Upholstery net sales were at €115.8 million, down by 13.5% from €133.9 million reported in the same period of 2009.
The break-down of upholstery net sales by geographic area was as follows: Europe (excluding Italy) 43.3%, the Americas 31.8%, Italy 11.3% and Rest of the World 13.6%.
Industrial Margin was at €51,3 million, with an incidence on sales equal to 38,9% (in line with the 39.0% reported in the last quarter of 2009).
EBITDA was at €5,4 million as compared to €8,1 million in the fourth quarter of 2009.
EBIT went from positive €2,1 million in fourth quarter 2009 to positive €0,2 million in the fourth quarter of 2010.
During the fourth quarter of 2010 the Group reported a Net loss of €1,4 million as compared to a net loss of €2,5 million in the same period of last year.
CONSOLIDATE BALANCE SHEET
Net Financial Position as of December 31st, 2010 remained positive at €45.6 million although the reduction of €13.0 million versus December 31st, 2009, mainly due to industrial investments in fixed assets of €17.7 million.
Pasquale Natuzzi, Chairman and CEO of Natuzzi S.p.A., stated: ”Despite steady total sales in 2010, we finally reached a positive operating result after three years of negative EBIT.
Financial figures are encouraging and confirm the good quality of the work so far undertaken. We believe these results are below our growth potential, that we expect to reach in the following years considering the investments made in factories requalification, development and awareness of the brands, as well as in the expansion of foreign commercial branches to improve our market presence.
Our Group maintains and strengthens its credibility and leadership within historical markets such as Europe and the United States, as well as in emerging markets such as India, China and Brazil.
The re-launch of a company with strong Italian roots like Natuzzi, goes along with product innovation as well as production processes improvement.
We have done a good job on brands portfolio and made investments to give a particular identity to the three brands, “Natuzzi”, “Italsofa” and “Editons”; each of them addressing different clients.
We are working to integrate brands , markets, distribution channels and factories to support the three brands. We have to further strengthen the Sales organization to increase the presence in the markets and will continue to leverage on our high-quality brand by relying on our management skills and experience”.
Natuzzi S.p.A.: Il Gruppo Natuzzi, fondato nel 1959 da Pasquale Natuzzi, disegna, produce e vende una vasta collezione di poltrone, divani e complementi d’arredo. Con un fatturato nel 2010 di 518.6 milioni di euro, Natuzzi è il più grande produttore italiano nel settore dell’arredamento ed è leader mondiale nel settore dei divani in pelle. Il Gruppo esporta divani e poltrone innovativi e di elevata qualità in 130 mercati nei 5 continenti. Design, superiorità artigianale italiana, innovazione ed un’avanzata struttura verticalmente integrata rappresentano le caratteristiche che hanno fatto del Gruppo Natuzzi il leader di mercato. Natuzzi S.p.A. è quotata al New York Stock Exchange dal 13 Maggio 1993. Il Gruppo Natuzzi è certificato ISO 9001 e 14001.
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