Natuzzi S.p.A. reported third‑quarter 2025 results that showed consolidated revenue of €74.4 million, a 0.8 % year‑over‑year decline from €75.0 million in Q3 2024. The decline was driven by weaker demand in the company’s unbranded product line, while sales of higher‑margin Natuzzi Italia and Natuzzi Editions products helped offset the drop.
Gross margin expanded to 36.0 % from 31.8 % in the prior year. The lift was largely due to a shift toward the higher‑margin product mix and cost savings from the rightsizing of operations in China. The improvement also reflects the absence of the 3.9 % severance‑related cost impact that weighed on Q3 2024 margins.
Operating income fell to a loss of €1.7 million, compared with a €3.8 million loss in Q3 2024. The narrower loss was offset by a €5.1 million net loss for the period, which includes one‑time restructuring charges. Operating expenses—including selling and administrative costs—rose to €28.5 million from €27.6 million, reflecting ongoing restructuring and investment in the Trade & Contract division.
Net finance costs eased to €2.4 million from €3.3 million, largely due to favorable currency movements on trade receivables and payables. Cash and cash equivalents stood at €18.1 million, down from €20.3 million at the end of 2024, underscoring the company’s need for liquidity as it pursues its restructuring plan and asset divestitures.
Management emphasized that the quarter’s results are a step toward restoring profitability. CEO‑in‑interim Pasquale Natuzzi highlighted the company’s focus on fixed‑cost reductions, flexible production capacity, and divestiture of non‑strategic assets. The firm is also searching for a new CEO with restructuring expertise and has sold non‑strategic assets, including a property in High Point, NC, to generate cash.
The results illustrate that while Natuzzi is making progress on margin improvement and cost control, it remains in a loss‑making position. The company’s liquidity is under pressure, and the ongoing restructuring and CEO search signal that management is actively working to change the company’s long‑term trajectory. Investors will watch how the restructuring plan unfolds and whether the company can convert margin gains into profitability in the coming quarters.
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