Natuzzi Announces Financial Results for the Third Quarter of 2025

Core Insights - Natuzzi S.p.A. reported a loss of €5.1 million for the third quarter of 2025, leading to a significant reduction in share capital, triggering obligations under Article 2446 of the Italian Civil Code [7][8][9] Financial Performance - Consolidated revenue for Q3 2025 was €74.4 million, a decrease from €75.0 million in Q3 2024, impacted by macroeconomic and geopolitical challenges [11] - Gross margin improved to 36.0% in Q3 2025 from 31.8% in Q3 2024, primarily due to a better sales mix and cost savings from rightsizing operations in China [20][21] - Operating expenses increased to €28.5 million, or 38.3% of revenue, compared to €27.6 million, or 36.9% of revenue in Q3 2024 [23] Sales Breakdown - Sales from upholstered and other home furnishings products totaled €72.5 million, down 1.2% compared to Q3 2024 [12] - Invoiced sales by brand for Q3 2025: - Natuzzi Italia: €35.2 million (up 18.2%) - Natuzzi Editions: €26.0 million (down 19.5%) - Divani&Divani by Natuzzi: €7.6 million (up 13.3%) - Unbranded: €3.7 million (down 19.6%) [13] - Key market performance for Q3 2025: - North America: €25.2 million (up 4.7%) - Greater China: €4.9 million (down 28.3%) - West & South Europe: €22.7 million (up 2.9%) [15] Cost Structure and Management Actions - Industrial labor costs decreased to €15.4 million, or 20.7% of revenue, from €17.3 million, or 23.0% of revenue in Q3 2024 [22] - Management is working on a restructuring plan aimed at reducing fixed costs, optimizing production capacity, and divesting non-strategic assets [5][6] Cash Flow and Financial Position - As of September 30, 2025, cash holdings were €18.1 million, down from €20.3 million at the end of 2024, with a net financial position of (€32.2) million, deteriorating by €10.5 million [27][29] - Net cash used in operating activities was (€5.8) million, while investing activities provided €3.5 million, including proceeds from asset sales [29]