SANTERAMO IN COLLE, BARI, Italy (BUSINESS WIRE) — Natuzzi said total net revenues for the second quarter increased to $246 million, up 18.1% from $208.5 reported for the same quarter last year.
During the same period units sold were up 18.1%. Considering the first six months of 2013, the company’s total net revenues were up by 15.6% to $472.4 million, while the number of units sold rose 12%.
The double-digit growth of the turnover reported in the first half 2013 was mainly attributable to the soft comparison base of last year as well as the higher utilization of the order backlog existing at the end of 2012. In first half 2013 the total order amount expressed in units was up mid-single digit versus the same period of last year.
In the second quarter 2013, upholstery net sales were up 21.9%, or $222.2 million, from $182.6 million, reported in the same comparable period of last year. Other sales (principally living-room accessories and raw materials produced by the company and sold to third parties) decreased by 8.3% to $23.8 million.
During the quarter ended on June 30, 2013, upholstery net sales increased, quarter-over-quarter, in the Americas by 9.4% to $79.2 million, in Europe by 31% to $129.2 million, and in the rest of the world by 22.2% to $13.8 million.
During the three months ended on June 30, 2013 total net sales for the company’s chain of Divani & Divani by Natuzzi Stores and Natuzzi Stores were $48.5 million, up 43% as compared to $34 million reported one year ago.
In the same quarter six new stores were opened (1 each in Portugal, United Kingdom, Germany, Russia, Check Republic and China), whereas seven stores were closed (5 in Italy and 2 in Switzerland), thus bringing the total number of stores at 279 as at June 30, 2013. At the same date there were 548 galleries, 46 less than three months earlier.
Leather-upholstered furniture sales in the second quarter 2013 were $193.4 million, up 27.4% from last year’s second quarter, whereas over the same period fabric-upholstered furniture sales decreased by 5.8%, at $28.8 million.
In the second quarter 2013, net sales for the Natuzzi branded products increased by 17.6% over the same quarter of 2012 at EUR 114.4 million, thus representing 64.7% of total upholstery net sales, and sales for the Italsofa products increased by 30.6% at EUR 62.3 million.
GROSS PROFIT & OPERATING INCOME
During the second quarter 2013 gross profit was at $88.9 million, increasing by 36.8% with respect to $65.1 million, reported in the second quarter 2012. As percentage of sales, gross margin improved at 36.1% from 31.2% in second quarter 2012, thanks to the fact that the fixed costs were absorbed by the higher level of units sold.
Over the same period, the company reported an operating income of $15.2 million, versus an operating loss of $10.3 million, in second quarter 2012.
CEO Ernesto Greco of the Natuzzi Group, said: “We are pleased with first half 2013 results even though the turnover’s growth was mainly sustained by the existing backlog that has decreased materially over the past few months. As a consequence, the trend in net sales for the remaining part of 2013 could be affected.
“The persisting of unfavorable factors like a soft business environment, the strength of the Euro especially against the US dollar, high energy costs and a strong price competitive pressure, confirms that the Group took the right decision in launching the promotional line, Italsofa, and that we need to continue to invest in the repositioning of the Natuzzi brand, as well as be focused on the current operational restructuring program, both fundamental to regain the competitiveness of our Group.”
