THIRD QUARTER 2015
- POSITIVE EBITDA OF EURO 1.5 MILLION
COMPARED TO EBITDA LOSS OF EURO 3.7 MILLION IN Q3 2014;
- CONSOLIDATED REVENUES OF EURO 115.2
MILLION, UP 3.1% ON 2014;
- GROSS MARGIN OF 32.7%, SIGNIFICANTLY
IMPROVING ON 27.3% IN 2014.
The Board of Directors of Natuzzi S.p.A. (NYSE:NTZ) discussed Q3
2015 and 9M 2015 consolidated results (unaudited).
Following the Board meeting, the Chairman and CEO Pasquale
Natuzzi stated:
“The positive results posted for the preceding six quarters have
once again been replicated in the third quarter of 2015.
The improved sales mix and quality - together with favorable
currency movements – led to a 3.1% revenue increase (+10.6% for the
first nine months) and a significant margin boost.
In Q3 2015, the Natuzzi brand represented 70.5% of upholstery
sales, with the remaining 29,5% from Private Labels. The regional
breakdown highlights the strong performances of the Americas
(+10.5%) and Asia Pacific (+9.0%) - in particular China and South
Korea.In the EMEA region, it is worth to highlight a double digit
growth in UK that become the second largest market for Natuzzi
after the United States.
Under the retail strategy, since the beginning of the year 90
new Galleries have been opened and 15 new sales points – among
which Hong Kong, Beijing, Rio de Janeiro and Naples (USA).
Together with the improved performance of the 56 DOS currently
operational worldwide, the Group completed the chain restructuring
with the closure of 9 unprofitable sales points in Italy, Spain and
China.
Significant Private Label sales growth was reported in the EMEA
region (+56.4%).
The cost of sales as a percentage of net sales reduced 4.8%
(-3.7% in the nine months) thanks to the efficiency measures
introduced at the Chinese plant and greater productivity at the
Italian plant, the stabilization of the workforce and the
discontinuation of worker rotation from May 2015 as per the Trade
Union Agreement of March 3, 2015.
These factors contributed to the posting of an EBITDA of Euro
1.5 million for the quarter compared to an EBITDA loss of Euro 3.7
million in Q3 2014. (loss of Euro 0.8 million in 9M 2015).
The continuous improvement of the key indicators over the last
six quarters is highlighted below:
1Q 2014 2Q 2014 3Q 2014 4Q 2014
1Q 2015 2Q 2015 3Q2015 Total Net Sales*
-11.2% -1.2% +8.2% +12.6% +24.6%
+5,7% +3.1% COGS** -71.5% -74.2% -72.1%
-71.2% -70.6% -69.0% -67.3% Other
SG&A** -21.8% -20.9% -18.2% -17.7%
-17.3% -18% -17.3% EBITDA** -6.0%
-7.1% -3.3% -3.7% -1.2% -0.8%
+1.3%
* change in quarterly sales on corresponding quarters of the
previous years
** percentage of net sales
Further product innovations stemming from the adoption of the
new Moving Line manufacturing process: in the third quarter of
2015, the Matera facility - which is implementing on an industrial
scale the innovations tested at the Experimental Laboratory - saw a
significant lowering of industrial costs in comparison to the
general average for the Italian facilities.
About Natuzzi S.p.A.
Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. designs,
manufactures and sells a broad collection of couches, armchairs,
home furniture and home accessories. With consolidated revenues of
€461.4 million in 2014, Natuzzi is Italy’s largest furniture house
and the player with the greatest global reach in its sector, with
eight manufacturing plants, twelve commercial offices and more than
1,100 points of sale worldwide. Ethics and social responsibility,
innovation, industrial know-how and integrated management of its
value chain represent the points of strength that have made the
Natuzzi Group a market leader and established Natuzzi as the most
recognized furniture brand in the world among consumers of luxury
goods. Natuzzi S.p.A. has been listed on the New York Stock
Exchange since May 1993. The Company is ISO 9001 and 14001
certified.
Natuzzi S.p.A. and Subsidiaries Unaudited Consolidated
Profit & Loss for the third quarter 2015 & 2014 on the
basis of Italian GAAP (expressed in millions Euro)
Three months ended on Change
Percentage of Sales 30-Sep-15
30-Sep-14 % 30-Sep-15
30-Sep-14 Upholstery net sales 104,4 100,1
4,4% 90,7% 89,6% Other sales 10,7 11,6 -7,9%
9,3% 10,4%
Total Net Sales 115,1
111,7 3,1% 100,0%
100,0% Consumption (*) (53,5) (52,6) 1,7% -46,5%
-47,1% Labor (16,7) (20,4) -18,0% -14,5% -18,3% Industrial Costs
(7,3) (7,5) -3,0% -6,3% -6,7% of which: Depreciation, Amortization
(2,5) (2,9) -16,1% -2,1% -2,6%
Cost of Sales (77,5) (80,6)
-3,8% -67,3% -72,1%
Industrial Margin 37,6
31,1 20,8% 32,7%
27,9% Selling Expenses (19,6)
(18,6) 5,5% -17,0% -16,7%
Transportation (12,5) (12,5) 0,5% -10,9% -11,2% Commissions (2,2)
(2,2) -0,9% -1,9% -2,0% Advertising (4,9) (3,9) 25,5% -4,3% -3,5%
Other Selling and G&A (19,9) (20,4)
-2,4% -17,3% -18,2% of which: Depreciation,
Amortization (1,0) (1,2) -22,4% -0,8%
-1,1%
EBITDA 1,5 (3,7)
1,3% -3,3%
EBIT (1,9) (7,8)
-1,7% -7,0% Interest
Income/(Costs), Net (1,2) (0,5) Foreign Exchange, Net (1,0) (1,5)
Other Income/(Cost), Net (0,2) 0,9
Earning before Income Taxes
(4,3) (9,0)
-3,7% -8,1% Current taxes (0,8) (0,4)
-0,7% -0,4%
Net Result (5,1)
(9,4) -4,4% -8,4%
Minority interest 0,0 (0,0)
Net Group
Result (5,1) (9,4)
-4,4% -8,4% (*) Purchases plus
beginning stock minus final stock and leather processing
UPHOLSTERY NET SALES BREAKDOWN GEOGRAPHIC BREAKDOWN
NET SALES (in €, million) NET SALES (in seats sold)
AREA 3Q 2015 %
3Q 2014 % delta 3Q 2015
% 3Q 2014 %
delta Americas 45,2 43,3%
43,4 43,4% 4,1% 182.177
48,5% 207.517 52,4%
-12,2% Natuzzi 28,8 27,6% 26,0 26,0% 10,5% 96.546,1
25,7% 100.201,6 25,3% -3,6% Private label 16,4
15,7% 17,4 17,3% -5,5% 85.631,0 22,8%
107.315,5 27,1% -20,2%
EMEA
41,8 40,1% 42,1
42,1% -0,6% 147.397 39,2%
143.703 36,3% 2,6% Natuzzi 29,3
28,1% 34,1 34,1% -13,9% 80.532,1 21,4% 96.495,4 24,3% -16,5%
Private label 12,5 12,0% 8,0 8,0% 56,4%
66.864,6 17,8% 47.207,5 11,9% 41,6%
Asia-Pacific 17,4 16,7%
14,6 14,6% 19,4% 46.033
12,3% 45.161 11,4%
1,9% Natuzzi 15,5 14,8% 14,2 14,2% 9,0% 35.215,0 9,4%
42.626,8 10,8% -17,4% Private label 1,9 1,8%
0,4 0,4% 422,1% 10.818,0 2,9% 2.534,0
0,6% 326,9%
TOTAL 104,4
100,0% 100,1 100,0% 4,4%
375.607 100,0% 396.381
100,0% -5,2% BREAKDOWN BY
BRAND NET SALES (in €, million) NET SALES (in seats
sold) BRAND 3Q 2015
% 3Q 2014 % delta 3Q
2015 % 3Q 2014 %
delta Natuzzi 73,6 70,5% 74,3 74,3% -1,0% 212.293
56,5% 239.324 60,4% -11,3% Private label 30,8 29,5%
25,7 25,7% 19,8% 163.314 43,5% 157.057
39,6% 4,0%
TOTAL 104,4
100,0% 100,1 100,0% 4,4%
375.607 100,0% 396.381
100,0% -5,2% The "
Natuzzi" brand
includes the Group's three lines of product: Natuzzi Italia,
Natuzzi Editions and Natuzi Re-Vive
Natuzzi S.p.A. and
Subsidiaries Unaudited Consolidated Profit & Loss for
the nine months of 2015 & 2014 on the basis of Italian GAAP
(expressed in millions Euro)
Nine months ended
on Change Percentage of Sales
30-Sep-15 30-Sep-14
%
30-Sep-15
30-Sep-14 Upholstery net sales 320,6
288,3 11,2% 89,9% 89,3% Other sales 36,2 34,5
5,0% 10,1% 10,7%
Total Net Sales
356,8 322,8 10,6%
100,0% 100,0% Consumption (*) (166,9)
(149,2) 11,9% -46,8% -46,2% Labor (56,7) (64,4) -12,0% -15,9%
-20,0% Industrial Costs (22,8) (20,9) 8,7% -6,4% -6,5% of which:
Depreciation, Amortization (7,5) (7,4) 0,9%
-2,1% -2,3%
Cost of Sales
(246,3) (234,5) 5,0%
-69,0% -72,7%
Industrial
Margin 110,5 88,3
25,2% 31,0% 27,3%
Selling Expenses (59,2) (51,1) 15,8%
-16,6% -15,8% Transportation (39,1) (33,7) 16,1%
-11,0% -10,4% Commissions (7,2) (6,7) 8,7% -2,0% -2,1% Advertising
(12,8) (10,8) 19,2% -3,6% -3,3%
Other Selling and
G&A (62,6) (65,4) -4,2% -17,5%
-20,3% of which: Depreciation, Amortization (2,9)
(3,2) -9,1% -0,8% -1,0%
EBITDA
(0,8) (17,6)
-0,2% -5,5%
EBIT
(11,3) (28,3)
-3,2% -8,8% Interest Income/(Costs),
Net (2,3) (1,0) Foreign Exchange, Net (3,0) (0,4) Other
Income/(Cost), Net (0,7) (3,0)
Earning before Income Taxes
(17,2) (32,7)
-4,8% -10,1% Current taxes (1,1) (1,2) -0,3%
-0,4%
Net result (18,3)
(33,9) -5,1%
-10,5% Minority interest (0,0) (0,0)
Net Group Result
(18,3) (33,9)
-5,1% -10,5% (*) Purchases plus
beginning stock minus final stock and leather processing
UPHOLSTERY NET SALES BREAKDOWN GEOGRAPHIC BREAKDOWN
NET SALES (in €, million) NET SALES (in seats
sold) Nine months ended on Nine months ended on
AREA
30-Sep-15 % 30-Sep-14
% delta 30-Sep-15
% 30-Sep-14 %
delta Americas 133,5
41,70% 116,4 40,40%
14,70% 529.440 46,70%
576.076 48,90% -8,10% Natuzzi
80,6 25,10% 69,1 24,00% 16,50% 262.240 23,10% 273.703 23,30% -4,20%
Private label 53 16,50% 47,3 16,40%
12,10% 267.201 23,50% 302.373 25,70%
-11,60%
EMEA 141,8
44,20% 134,6 46,70%
5,30% 491.709 43,30%
474.302 40,30% 3,70% Natuzzi
101,9 31,80% 108 37,50% -5,60% 276.231 24,30% 308.387 26,20%
-10,40% Private label 39,9 12,40% 26,7
9,20% 49,70% 215.479 19,00% 165.915
14,10% 29,90%
Asia-Pacific 45,2
14,10% 37,2 12,90%
21,60% 113.467 10,00%
126.691 10,80% -10,40% Natuzzi
41,6 13,00% 35,5 12,30% 17,10% 93.894 8,30% 114.420 9,70% -17,90%
Private label 3,6 1,10% 1,7 0,60%
117,60% 19.573 1,70% 12.271 1,00%
59,50%
TOTAL 320,6
100,00% 288,3 100,00%
11,20% 1.134.617 100,00%
1.177.069 100,00% -3,60%
BREAKDOWN BY BRAND NET SALES (in €, million)
NET SALES (in seats sold) Nine months ended on
Nine months ended on BRAND
30-Sep-15 % 30-Sep-14
% delta 30-Sep-15 %
30-Sep-14 % Delta Natuzzi
224,1 69,90% 212,7 73,80% 5,40% 632.364 55,70% 696.510 59,20%
-9,20% Private label 96,5 30,10% 75,6
26,20% 27,70% 502.252 44,30% 480.559
40,80% 4,50%
TOTAL 320,6
100,00% 288,3 100,00%
11,20% 1.134.617 100,00%
1.177.069 100,00% -3,60%
The "
Natuzzi" brand includes the Group's three lines of
product: Natuzzi Italia, Natuzzi Editions and Natuzi Re-Vive
Natuzzi S.p.A. and Subsidiaries Unaudited Consolidated
Balance Sheets at September 30, 2015 on the basis of Italian
GAAP (Expressed in millions of Euro)
ASSETS
30-Sep-15 31-Dec-14 Current assets:
Cash and cash equivalents 40,6 32,8 Marketable debt
securities 0,0 0,0 Trade receivables, net 61,9 96,0 Other
receivables 23,0 18,1 Inventories 88,6 90,2 Unrealized foreign
exchange gains 0,7 0,3 Prepaid expenses and accrued income 1,3 1,3
Deferred income taxes 0,5 0,5
Total current
assets 216,7 239,3 Non-current
assets: Net property, plant and equipment 122,5 130,8 Other
assets 8,1 10,0
Total non-current assets
130,6 140,8 TOTAL ASSETS
347,3 380,1 LIABILITIES AND SHAREHOLDERS'
EQUITY Current liabilities:
Short-term borrowings 16,7 20,7 Current portion of long-term debt
2,2 3,1 Accounts payable-trade 58,3 75,2 Accounts payable-other
26,8 29,7 Accounts payable-shareholders for dividends 0,0 0,0
Unrealized foreign exchange losses 0,1 0,6 Income taxes 0,9 1,1
Deferred income taxes 1,9 1,0 Salaries, wages and related
liabilities 16,6 18,3
Total current
liabilities 123,5 149,7
Long-term liabilities: Employees' leaving entitlement 20,9
20,9 Long-term debt 13,3 6,2 Deferred income taxes - long term 0,0
0,0 Deferred income for capital grants 7,7 8,1 Other liabilities
19,5 21,2
Total long-term liabilities
61,4 56,3 Minority interest
3,2 3,0 Shareholders' equity: Share
capital 54,9 54,9 Reserves 4,3 40,9 Additional paid-in capital 0,0
8,4 Retained earnings 100,1 66,8
Total
shareholders' equity 159,3 171,0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
347,3 380,1 Natuzzi S.p.A. and
Subsidiaries Consolidated Statements of Cash
Flows 30-Sep-15
30-Sep-14 Cash flows from operating activities:
Net earnings (loss) -18.333 -33.942
Adjustments to reconcile net income to net cash provided
by operating activities: Depreciation and amortization 10.425
10.655 (Gain) loss on disposal of assets 15 84 Unrealized foreign
exchange losses (gains) -880 882 Deferred income for capital grants
-422 -346
Non monetary operating items
9.106 14.979 Change in assets and
liabilities: Receivables, net 34.080 -12.780 Inventories 1.580
-15.420 Prepaid expenses and accrued income -4 553 Other assets
-3.959 19.094 Accounts payable -17.317 -6.255 Income taxes -197
-6.165 Salaries, wages and related liabilities -91 7.240 Other
liabilities 867 2.990
Net working capital
14.960 -10.744 Net cash
generated/(used) by operating activities 5.732
-29.707 Cash flows from investing/restructuring
activities: Property, plant and equipment: Additions -1.798
-6.843 Disposals 3.392 6.866 One time termination benefits
-2.890 -2.563
Net cash generated/(used) by in investing
activities -1.296 -2.834 Cash
flows from financing activities: Long-term debt: Proceeds 9.003
5.000 Repayments -2.853 -2.620 Short-term borrowings -4.015 -1.712
Dividends paid to minority interests
Net cash generated/(used) by financing activities
2.135 668 Effect of translation adjustments
on cash 1.197 4.252 Increase
(decrease) in cash and cash equivalents 7.769
-27.620 Cash and cash equivalents, beginning of
the year 32.852 61.037 Cash and
cash equivalents, end of the period 40.622
33.418
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version on businesswire.com: http://www.businesswire.com/news/home/20151127005341/en/
NATUZZI INVESTOR RELATIONSFrancesca Cocco; tel.
+39.080.8820.676fcocco@natuzzi.comorNATUZZI CORPORATE
COMMUNICATIONVito Basile (Press Office); tel.
+39.080.8820.676vbasile@natuzzi.com
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