Natuzzi Announces Financial Results for the Second Quarter of 2026

Pasquale Natuzzi, Chairman of the Board of Directors, Natuzzi

“The first-half 2026 results reflect a further deterioration of the challenges that had already emerged in 2025, amid an increasingly difficult business environment, an inefficient production allocation, and a fixed-cost structure that remains oversized.”

Pasquale Natuzzi, Chairman of the Board of Directors, Natuzzi

“Significantly lower volumes and the resulting underutilization of our plants, together with the low marginality associated with relocating Natuzzi Editions production for the North American market from China to Italy, and our still-significant overhead base, led to a 4.4 percentage-point decline in industrial margin and an operating loss of €10.0 million in the quarter, adversely affecting our cash generation.”

Pasquale Natuzzi, Chairman of the Board of Directors, Natuzzi

“Our detailed review of these results enabled management to identify the key drivers of the operating loss and shape a comprehensive Restructuring Plan to recover efficiency.”

Pasquale Natuzzi, Chairman of the Board of Directors, Natuzzi

“The Plan includes i) the transfer—completed in July—of Natuzzi Editions production for North America from Italy to Romania, which is expected to contribute to margin improvement; ii) the consolidation of our Italian manufacturing footprint from five plants to two, aimed at reducing fixed costs and inter-site logistics expenses; and iii) a staff rationalization program through a combination of early retirement agreements and incentive measures.”

Pasquale Natuzzi, Chairman of the Board of Directors, Natuzzi

“These initiatives are already underway, and the first meaningful benefits are currently expected to begin emerging in the last part of the year.”

Pasquale Natuzzi, Chairman of the Board of Directors, Natuzzi

“At the end of September, the Company entered into a preliminary agreement for the sale of one of its local manufacturing facilities.”

Pasquale Natuzzi, Chairman of the Board of Directors, Natuzzi

“Furthermore, we continue to review the Group’s store network aimed at optimizing the retail footprint and reducing losses through targeted store disposals and selective early closures, in addition to certain lease renegotiations.”

Pasquale Natuzzi, Chairman of the Board of Directors, Natuzzi

“However, certain differences that emerged during the first half of the year delayed the implementation of specific measures and, consequently, the realization of the related efficiency improvements and cost savings in the period.”

Pasquale Natuzzi, Chairman of the Board of Directors, Natuzzi

“As majority shareholder, in order to support the Company’s near-term funding needs and its ongoing restructuring initiatives, on October 14, 2026 I contributed €3.0 million to the Company as an advance payment toward a future capital increase (versamento in conto futuro aumento di capitale), and I remain available to provide up to an additional €5.0 million in financial support, subject to the applicable corporate and procedural requirements in the framework of the out-of-court restructuring proceeding (Composizione Negoziata della Crisi) currently involving the Company.”

Pasquale Natuzzi, Chairman of the Board of Directors, Natuzzi

“Lastly, I am pleased that the Board of Directors has appointed Aldo Uva as Chief Executive Officer to lead the Company through this critical phase of transformation, effective from October 26, 2026.”

Aldo Uva, Chief Executive Officer, Natuzzi Group

“I take on this responsibility with a clear understanding of the scale and complexity of the challenges ahead.”

Aldo Uva, Chief Executive Officer, Natuzzi Group

“There are no shortcuts: the transformation we envisage is expected to be far-reaching and demanding and may require difficult decisions.”

Aldo Uva, Chief Executive Officer, Natuzzi Group

“Rebuilding a sustainable and successful business will take time, determination and the collective commitment of all stakeholders.”

Aldo Uva, Chief Executive Officer, Natuzzi Group

“Following a rigorous assessment of the business and its opportunities, we expect to share a clear and credible transformation roadmap.”

Aldo Uva, Chief Executive Officer, Natuzzi Group

“While the timing and outcomes of this process will depend on a range of internal and external factors, our objective is to establish a stronger foundation for Natuzzi’s long-term sustainability.”