SANTERAMO IN COLLE, Italy – Antonio Achille will succeed Pasquale Natuzzi as CEO of Italian upholstery company Natuzzi Group, effective June 1.
The news came with Natuzzi’s release of very positive first quarter FY2021 results, with big double-digit gains in several key markets, propelling the company to consolidated sales of $ 101.5 million. euros, an increase of 23.1% compared to the same period of the previous year.
Achilles’ appointment is part of new corporate governance approved by Natuzzi’s board of directors on May 10, which aims to strengthen the company’s competitive position in the luxury furniture market and to gain in efficiency.
Going forward as Executive Chairman, Natuzzi will continue to drive the long-term strategies of the Natuzzi Group, and he will support the completion of the transition to a brand / retail operating model and ensure the continuity of the culture and values. of the company.
Achille joins Natuzzi after leaving McKinsey, where he was a senior partner and global head of the luxury sector. For 25 years, he has advised international groups on strategy, digital and commercial reorganization, supply chain, acceleration of growth and operational improvement.
As CEO, Achille will focus on growing Natuzzi Group and improving its operating margin. He will assume the day-to-day management of the company and coordinate with Pasquale Natuzzi all strategic and commercial decisions.
“I am delighted to welcome Antonio Achille, who I am sure will strengthen the work done by management in recent years and make Natuzzi a successful brand and a world leader in the luxury furniture market,” said said current CEO and chairman Pasquale Natuzzi. a first quarter financial press release. “As Executive Chairman, I will focus on long-term strategies and continue to have a strong commitment to the success of the company which I am sure will express its full potential under the new leadership.”
A solid first quarter
In addition to a strong double-digit sales increase for the quarter ended March 31, Natuzzi reported a net profit of 5.9 million euros compared to a loss of 7.8 million euros in the first quarter of fiscal 2020 and a loss of 4.6 million euros in the first quarter of 2019.
At constant exchange rates, consolidated sales for the first quarter would have increased by 31.3%, mainly due to the appreciation of the euro against the US dollar.
Natuzzi reported strong fiscal momentum in the first quarter of invoiced sales in key markets compared to the prior year period, including a 24.9% gain in North America; a 92% increase in China; and a 5.9% increase in Western and Southern Europe, where major markets were still affected by foreclosure measures during the period.
“Emerging markets” saw a 50.6% tax hike in the first quarter, while “rest of the world” (which includes Central and South America and the Asia-Pacific region excluding China) grew 10%. , 9%.
As the second quarter approaches, April’s global order flow accelerated 16% from the first quarter with the reopening of Europe. In North America, written orders increased 138.7% compared to the first quarter of fiscal 2020 and 27% compared to the same period in 2019. Orders from Greater China in the first quarter of 2021 increased 43% compared to the period of the previous year and 29.8% compared to First quarter of fiscal 2019.
Invoiced revenue of the Natuzzi brand in the first quarter of 2021 of 86 million euros, or 87.6% of the main upholstery business, is up 31.9% compared to the previous year and by 10.9% compared to the first quarter of fiscal 2019. Written orders for the brand activity increased by 59.6% compared to the same period of 2020 and by 15.7% compared to the same period in 2019.
The turnover invoiced in private labels of 12.1 million euros decreased by 8.6% compared to the first quarter of fiscal 2020 (down 48.6% compared to Q1 2019) due to the Natuzzi Group’s strategy to focus on fewer large accounts and serve them with a more efficient approach. market model.
“We are happy to see that the continued effort to get through these difficult times has started to translate into positive results,” said Natuzzi. “We’re also encouraged by the double-digit increase in our first 18 weeks of written orders compared to the same period in 2020 and the single-digit improvement from 2019.”
He added that written sales in the United States and China are now above pre-pandemic levels. In addition, Natuzzi has “carefully raised” retail prices.
“These actions have allowed us to more than offset the increased costs of raw materials and freight, which is impacting the global economy, a trend that we continue to monitor closely,” said Natuzzi. “We have also shown a significant improvement in the cash position, thanks to the growth in turnover combined with strict discipline on costs and a renewed focus on productivity.”
As of March 31, the Natuzzi group had cash and cash equivalents of 54.1 million euros, compared to 29.5 million euros at the same time last year.
Click on here for the full publication of Natuzzi’s results for the first quarter of fiscal 2021.