Natuzzi (NTZ) investor relations material

Executive summary

• First quarter 2026 results were disappointing, with revenue at €59.5 million, down 23.8% year-over-year, due to weak consumer demand, geopolitical instability, U.S. tariffs, and a soft housing market.

• Gross margin declined to 32.9% from 34.1%, and operating loss widened to €2.0 million, with a net loss of €4.7 million.

• The transfer of Natuzzi Editions production for the U.S. market from China to Italy negatively affected margins, highlighting the need for structural changes.

• A restructuring plan was launched, including reducing Italian plants, relocating production to Romania, and a voluntary exit program with 120 employees expressing interest.

• Received a binding offer for the sale of an industrial asset, potentially transferring up to 40 employees.

Financial highlights

• Total net sales fell to €59.5 million from €78.1 million year-over-year, with gross profit at €19.6 million, down 26.5%.

• Operating expenses decreased to €21.6 million (36.3% of revenue), and net finance costs remained stable at €2.9 million.

• Cash position at March 31, 2026 was €13.8 million, down from €20.3 million at year-end 2025.

• Net cash used in operating activities was -€13.0 million; investing activities provided €7.8 million, mainly from asset sale.

• Net financial position before lease liabilities: -€28.3 million, improved from -€32.2 million at year-end 2025.

Outlook and guidance

• Management expects restructuring actions, including production relocation and workforce reduction, to improve margins and operational flexibility, with financial impacts expected in the second half of the year and into 2027.

• Ongoing restructuring aims to support long-term sustainability and margin improvement.

• Commercial transformation initiatives are expected to support sustainable and profitable growth despite ongoing market challenges.

• Store traffic and written orders remain below expectations, with continued market headwinds anticipated.