In 2020 first quarter, Natuzzi Group have been going through a predictable though remarkable downturn in consolidated net sales. Covid-19 has not spared anyone then. Sales carried out by the upholstery furniture multinational corporation, headquartered in Apulia, decreased by 22.4% on annual basis.
Talking about figures, from January to March 2020 net sales amounted to 82.5 million euros, therefore dropping considerably compared to 2019 first quarter when revenues from net sales had reached 106.2 million euros. Earnings have gone down by 15.9%: in what geographical areas more specifically? In the Americas, they dropped by 22.8%, whereas in the EMEAI market loss was more limited, -12.2%, as much as in the Asian markets, -11.2%.
Natuzzi performance in the first quarter
In the first quarter of 2020, Natuzzi revenues decreased by 7.8 million euros. Yet, on the other hand, the consolidated gross margin enjoyed a 34.2% positive trend, therefore increasing by 30.1%, thanks to, among other factors, a fair trend as to raw materials price. In Santeramo in Colle Pasquale Natuzzi has emphasized the way he had to manage, like in a Tetris, the closure of his manufacturing plants (and selling stores as well) because of the pandemic, as much as the strictly related organization of production flows.
“On the one hand, Chinese economy has been the first to recover from the health emergency – pointed out Pasquale Natuzzi in a press release –; yet, on the other hand, such crisis is still going on in other areas, such as the Americas. As regards Europe, they started lifting restrictions, locally implemented by several governments to control and restrain the virus outbreak, only at the beginning of May”.
To rise and start again
Although Coronavirus storm is not behind us yet, Natuzzi have already started again by presenting, in the Shanghai flagship store, in June, The circle of harmony collection, promoted by Pasquale Natuzzi junior, chief creative & marketing officer.
The group, which currently hires over five thousand employees in 123 countries, needs to make investments in new design projects. Nevertheless, for the time being, they are still facing a rather delicate situation, with regard to multiple aspects.
Pasquale Natuzzi, who may well rely on an over-fifty-year-old experience, is fully aware of that: he now aims at most reducing discretionary expenses and limiting money going out of the company. On top of that, they are focusing their efforts on a sensible management of the group’s work force.
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