Natuzzi S.p.A(US:NTZ)2025-12-17 16:02Financial Data and Key Metrics Changes - The company improved its gross margin this quarter, surpassing levels recorded in the first two quarters of the year, attributed to a more favorable sales mix [4][5] - Sales of Natuzzi Italia grew by 18% compared to the third quarter of the previous year, while sales of unbranded products decreased by 20% [5] Business Line Data and Key Metrics Changes - The company is focusing on supporting branded sales that offer higher margins, as indicated by the growth in Natuzzi Italia sales [5] - The closure of the Shanghai factory last year resulted in cost savings on industrial operations in China, although labor costs in Italy remain a challenge [5][6] Market Data and Key Metrics Changes - Consumer confidence remains weak, impacting foot traffic in stores, particularly in the United States and Europe, despite marketing investments [4][15] - The company is actively participating in international trade events to enhance brand visibility and customer engagement [6][20] Company Strategy and Development Direction - The company plans to rationalize its factory operations in Italy, reducing the number of factories from six to three, which requires government and union agreements [9][11] - The management is committed to reducing fixed costs while supporting sales, and is in discussions with the Italian government for aid to improve production efficiency [6][9] Management Comments on Operating Environment and Future Outlook - The management acknowledges the challenging business environment and the impact of geopolitical situations on consumer confidence [4][15] - There is a focus on achieving profitability and positive cash flow through cost reduction and improved margins, with a target of EUR 28-29 million in monthly turnover [13][15] Other Important Information - The company is treating its contract trade division as a startup, with a conservative forecast for 2026 revenue between EUR 5 million and EUR 10 million [22] - The CEO selection process is ongoing, with interviews being conducted over weekends to expedite the decision [23] Q&A Session Summary Question: What are the expectations from the upcoming meeting with the government? - The management is working on a restructuring plan that includes rationalizing factory operations and negotiating workforce adjustments with the government and unions [9][11] Question: Will the company be profitable with the current revenue levels? - The target is to achieve profitability with a monthly turnover of EUR 28-29 million, focusing on cost reduction and margin improvement [13][15] Question: What is the progress in the commercial division? - The company is making significant investments in the trade contract business, with ongoing projects in Dubai and Jerusalem, and is optimistic about future opportunities [19][20] Question: What is the timeframe for the CEO selection? - The decision will be made soon, with ongoing interviews being conducted during weekends to find the right candidate [23]