Yahoo Finance Natuzzi S.p.A. (NYSE:NTZ) Q3 2023 Earnings Call Transcript
Natuzzi S.p.A. (NYSE:NTZ) Q3 2023 Earnings Call Transcript November 27, 2023
Operator: Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Natuzzi 2023 Third Quarter Financial Results Conference Call. As a reminder interested person can join the conference call by dialing plus +412-717-9633 then Passcode 392-52103#. Once again, to dial in by phone, please dial +1-412-717-9633 and then Passcode 392-52103#, in addition to the link already provided to join the video webcast. At this time, all participants are in a listen-only. Following the introduction, we will conduct a question-and-answer session. Instructions will be given at that time. Joining us today are Mr. Antonio Achille, Natuzzi's Chief Executive Officer; Mr. Carlo Silvestri, Chief Financial Officer of the Natuzzi Group; Mr. Pasquale Natuzzi, Founder and Executive Chairman; and Mr. Jason Camp, Senior Vice President of Retail for the North American market; and Piero Direnzo, Investor Relations.
As a reminder, today's call is being recorded. I'd now like to turn the conference over to Piero. Please go ahead.
Piero Direnzo: Thank you, Kevin, and good day to everyone. Thank you for joining the Natuzzi's conference call for the 2023 third quarter financial results. After a brief introduction, we will give room for a Q&A session. Before proceeding, we would like to advise our listeners that our discussion today could contain certain statements that constitute forward-looking statements under the United States securities laws. Obviously, actual results might differ materially from those in the forward-looking statements because of risks and uncertainties that can affect our results of operations and financial condition. Please refer to our most recent annual report on Form 20-F filing with the SEC for a complete review of those risks. The company assumes no obligation to update or revise any forward-looking matters discussed during today's call. And now I would like to turn the call over to the company's Chief Executive Officer. Please, Antonio.
AlexRoz/Shutterstock.com
Antonio Achille: Thank you, Kevin, and thank you, Piero. Good morning, good afternoon to everyone. I hope our audience from US enjoyed joyful Thanksgiving last week. So let me brief illustrate the development of this year focusing on the third quarter. As you've seen, sales in the third quarter have been significantly below what we reported in the last year same period and 15% below what we reported in 2019 that we keep using as a parameter of comparison given the seasonality of the last cycle. It's still important to detail the difference between 2022 because 2022 benefited for a significant amount equal to EUR28.3 million from previous quarter backlog. As you will remember, due to the unprecedented spike in demand in the aftermath of the COVID, we struggled as all the industry did in fulfilling the demand.
And that resulted in the backlog that during 2022 helped us to keep busy the top-line. So if we compare 2023 third quarter, with, let's say, a normalized third quarter of 2022, the decrease has been up 15%. The component of our business, which has been clearly more affected and I will say that is partially because of some clients leaving us, but is very much consistent with our strategy is the unbranded component of our business. As a reminder for those participants that might not know in depth Natuzzi, Natuzzi is now a branded retail group. But historically, it was also producing unbranded products. So brand is a product which was sold on the floor of large retailer without coming out of the factory with the brand Natuzzi. If we look at the branded company in total, branded and unbranded sales, we closed the third quarter of 2022 at 94% roughly.
See also 30 Best Gifts Under $50 for Her and AARP’s Most Affordable Places to Retire in Recent Years.
To continue reading the Q&A session, please click here.
