Natuzzi S.p.A. reported its unaudited financial results for the second quarter ended June 30 2025, showing consolidated revenue of €78.3 million, a 7.2 % decline from €84.4 million in the same period last year. Gross margin fell to 34.0 % of revenue, down from 38.1 % in Q2 2024, while the company recorded an operating loss of €2.7 million versus an operating loss of €0.4 million in the prior year. Net finance costs rose to €3.2 million from €2.0 million, largely due to unfavorable currency movements, and cash on hand increased to €22.8 million, up from €20.3 million at the end of 2024.
The revenue decline was driven by lower sales in the high‑margin Natuzzi Italia line and directly operated stores, coupled with a planned shift of Natuzzi Editions production for the North American market from China to Italy. The shift increased manufacturing costs and reduced volume, contributing to the overall revenue contraction.
Gross margin compression stemmed from higher raw‑material costs, unfavorable currency movements, and the production shift, which raised manufacturing expenses and eroded pricing power. The company’s cost structure remained largely fixed, so the margin squeeze translated directly into a larger operating loss.
Management highlighted a challenging operating environment, citing geopolitical instability, a weak U.S. real‑estate market, a strengthening euro, and persistently high interest rates. The company is pursuing a restructuring plan that includes divesting non‑strategic assets, optimizing cost structure, and focusing on its Trade & Contract division as a growth engine. A new CEO is being sought to lead the turnaround.
Cash liquidity improved to €22.8 million, providing a buffer for the restructuring and short‑term needs. A €15 million credit facility has been committed by the majority shareholder to support the company’s financial stability.
Natuzzi will hold a conference call on November 20 to discuss the results and outlook. Management will provide guidance for the remainder of 2025, though specific figures were not disclosed in the release.
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