Securities and Exchange Commission
Washington, D.C. 20549


Form 6-K


Report of Foreign Issuer
Pursuant To Rule 13a-16 Or 15d-16
Of The
Securities Exchange Act of 1934

For the month of September, 2014

  Commission File Number 1-11854

NATUZZI S.p.A.

(Translation of registrant's name into English)


Via Iazzitiello 47
70029 Santeramo, Italy
(Address of principal office)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ⊠ Form 40-F ⃞

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  Yes ⃞   No ⊠

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):


Natuzzi: Second Quarter and First Half 2014 Consolidated Financial Results

Implementation of Transformation Plan Proceeding

SANTERAMO IN COLLE, Italy--(BUSINESS WIRE)--September 19, 2014--The Board of Directors of Natuzzi S.p.A. (NYSE:NTZ) (“Natuzzi” or the “Company”) has approved its consolidated financial results for the second quarter and first half of 2014.

After the meeting of the Board of Directors, the Chief Executive Officer, Pasquale Natuzzi, commented:

“First semester results deliver two important messages about the progress of the 2014-2016 Transformation Plan: they confirm the validity of our overall marketing and distribution strategy, while highlighting the need to implement certain corrective measures within the Group’s industrial operations which may result in slower implementation of the Plan than originally envisaged.

Notwithstanding encouraging high single-digit growth in year-to-date order flow, the performance of our industrial plants has fallen short of our expectations. Production delays in China and inefficiencies at the Italian plants – together with unfavorable currency movements that have affected our sales by 3.3% - have contributed to a decline in the Company’s turnover to €211.1 million, a decrease of 6.1% compared to the first six months of 2013.

At the same time, we highlight a significant recovery in our sales during the second quarter of 2014. In fact, on a quarterly basis, second quarter turnover was down 1.2% (or up 1.7% at constant exchange rates), a 10% improvement from the 11.2% reduction reported in the first quarter of the year.

All of the above has negatively affected our industrial margin, which declined to 27.1% in the first half of 2014 compared to 29.2% in the first half of 2013.

The strengthening of the Euro against the US dollar, which led to a €1.6 million decline in first half operating results, and the increase in the cost of leather, which led to a €4 million increase in the cost of goods sold, also contributed to an operating loss of €20.4 million for the first half of 2014 (compared to an operating loss of €14.3 million for the first half of 2013). In this regard, we expect the recent weakening of the Euro against the US dollar and the increase in our price list since May to offset the increase in leather cost in the following quarters.

The execution of the other restructuring projects included in the 2014-2016 Transformation Plan is continuing on schedule, and we are further strengthening the Group’s management team, including through two recent appointments within our commercial operations (Americas and Western Europe), and three new managers responsible for HR and Organization, Italian Operations and Quality, respectively.

In light of encouraging order flow, continuing improvements in our operations and the on-time execution of the other projects in the Transformation Plan, I believe we can confirm the long-term goals as reflected in the Plan.

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CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements set forth in this press release constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve risks and uncertainties that could cause Natuzzi’s actual results to differ materially from those stated or implied by such forward-looking statements. More information about the potential factors that could affect the Company’s business and financial results is included in Natuzzi’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 20-F for the year ended December 31, 2013. Natuzzi undertakes no obligation to update any of the forward-looking statements after the date of this press release.

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About Natuzzi S.p.A.

Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. designs, manufactures and sells a broad collection of couches, armchairs, home furniture and home accessories. With consolidated revenues of €449.1 million in 2013, Natuzzi is Italy’s largest furniture house and the player with the greatest global reach in its sector, with eight manufacturing plants, twelve commercial offices and more than 1,200 points of sale worldwide. Ethics and social responsibility, innovation, industrial know-how and integrated management of its value chain represent the points of strength that have made the Natuzzi Group a market leader and established Natuzzi as the most recognized furniture brand in the world among consumers of luxury goods. Natuzzi S.p.A. has been listed on the New York Stock Exchange since May 1993. The Company is ISO 9001 and 14001 certified.

 
 
Natuzzi S.p.A. and Subsidiaries
Unaudited Consolidated Profit & Loss for the second quarter of 2014 & 2013 on the basis of Italian GAAP
(expressed in millions Euro, except per share amounts)
             
Three months ended on Change Percentage of Sales
    30-Jun-14   30-Jun-13   %       30-Jun-14   30-Jun-13
 
Upholstery net sales 100.3 102.7 -2.4% 89.0% 90.1%
Other sales   12.4   11.3   9.2%       11.0%   9.9%
Total Net Sales   112.7   114.1   -1.2%       100.0%   100.0%
 
Consumption (*) (52.0) (53.7) -3.1% -46.2% -47.1%
Labor (24.9) (20.3) 22.8% -22.1% -17.8%
Industrial Costs (6.6) (6.6) 1.3% -5.9% -5.8%
of which: Depreciation, Amortization   (2.0)   (2.3)   -12.6%       -1.8%   -2.0%
Cost of Sales   (83.6)   (80.5)   3.8%       -74.2%   -70.6%
                         
Industrial Margin   29.1   33.5   -13.2%       25.8%   29.4%
 
Selling Expenses (16.6) (16.1) 2.8% -14.7% -14.1%
Transportation (11.0) (11.4) -3.7% -9.8% -10.0%
Commissions (2.2) (2.3) -6.4% -1.9% -2.0%
Advertising (3.4) (2.4) 43.4% -3.0% -2.1%
 
Other Selling and G&A (23.5) (24.8) -5.1% -20.9% -21.7%
of which: Depreciation, Amortization   (0.9)   (1.8)   -49.1%       -0.8%   -1.6%
EBITDA   (8.0)   (3.3)           -7.1%   -2.9%
                         
EBIT   (11.0)   (7.4)           -9.7%   -6.5%
 
Interest Income/(Costs), Net (0.2) (0.1)
Foreign Exchange, Net 0.3 (2.7)
Other Income/(Cost), Net   (3.6)   (1.8)                
Earning before Income Taxes   (14.5)   (11.9)           -12.8%   -10.5%
 
Current taxes (0.3) (2.1) -0.3% -1.8%
                         
Net Result   (14.8)   (14.0)           -13.1%   -12.3%
 
Minority interest (0.0) (0.2)
                         
Net Group Result   (14.8)   (14.2)           -13.1%   -12.4%
                         
Net Group Result per Share   (0.27)   (0.26)                
 
                         
Key Figures in U.S. dollars Three months ended on Change Percentage of Sales
(millions)   30-Jun-14   30-Jun-13   %       30-Jun-14   30-Jun-13
 
Total Net Sales 154.5 156.4 -1.2% 100.0% 100.0%
Industrial Margin 39.9 46.0 -13.2% 25.8% 29.4%
EBIT (15.1) (10.1) -9.7% -6.5%
Net Group Result (20.2) (19.5) -13.1% -12.4%
Net Group Result per Share (0.37) (0.35)
 
Average exchange rate (U.S.$ per 1€) 1.3715
                         
 
(*) Purchases plus beginning stock minus final stock and leather processing
 
UPHOLSTERY NET SALES BREAKDOWN
GEOGRAPHIC BREAKDOWN
 
  NET SALES (in €, million)       NET SALES (in seats sold)
Three months ended on Three months ended on
               
AREA 30-Jun-14   % 30-Jun-13   % delta 30-Jun-14   % 30-Jun-13   % delta
Americas 39.7   39.6% 44.7   43.5% -11.1% 196,369   48.1% 221,111   51.1% -11.2%
Natuzzi 24.9 24.8% 27.6 26.9% -9.9% 97,814 24.0% 119,074 27.5% -17.9%
Private label 14.9   14.8% 17.1   16.6% -13.0% 98,555   24.1% 102,037   23.6% -3.4%
 
EMEA 48.3   48.2% 45.8   44.6% 5.4% 168,780   41.3% 166,543   38.5% 1.3%
Natuzzi 38.5 38.4% 36.5 35.6% 5.4% 105,668 25.9% 109,359 25.3% -3.4%
Private label 9.8   9.8% 9.3   9.1% 5.4% 63,113   15.5% 57,185   13.2% 10.4%
 
Asia-Pacific 12.3   12.2% 12.2   11.9% 0.5% 43,213   10.6% 45,143   10.4% -4.3%
Natuzzi 11.7 11.6% 10.8 10.5% 8.0% 38,535 9.4% 35,356 8.2% 9.0%
Private label 0.6   0.6% 1.4   1.4% -57.0% 4,678   1.1% 9,787   2.3% -52.2%
                             
TOTAL 100.3   100.0% 102.7   100.0% -2.4% 408,361   100.0% 432,796   100.0% -5.6%
 
 
BREAKDOWN BY BRAND
NET SALES (in €, million) NET SALES (in seats sold)
Three months ended on Three months ended on
 
BRAND 30-Jun-14   % 30-Jun-13   % delta 30-Jun-14   % 30-Jun-13   % delta
Natuzzi 75.0 74.8% 74.9 72.9% 0.1% 242,016 59.3% 263,788 60.9% -8.3%
Private label 25.3   25.2% 27.8   27.1% -9.1% 166,345   40.7% 169,009   39.1% -1.6%
TOTAL 100.3   100.0% 102.7   100.0% -2.4% 408,361   100.0% 432,796   100.0% -5.6%
 
"Natuzzi" includes the Group's three lines of product: Natuzzi Italia, Natuzzi Editions and Natuzi Re-Vive
 
Natuzzi S.p.A. and Subsidiaries
Unaudited Consolidated Profit & Loss for the first half 2014 & 2013 on the basis of Italian GAAP
(expressed in millions Euro, except per share amounts)
             
Six months ended on Change Percentage of Sales
    30-Jun-14   30-Jun-13   %       30-Jun-14   30-Jun-13
 
Upholstery net sales 188.2 201.7 -6.7% 89.2% 89.7%
Other sales   22.9   23.1   -1.0%       10.8%   10.3%
Total Net Sales   211.1   224.8   -6.1%       100.0%   100.0%
 
Consumption (*) (96.5) (104.0) -7.2% -45.7% -46.3%
Labor (44.0) (41.3) 6.4% -20.8% -18.4%
Industrial Costs (13.4) (13.8) -2.9% -6.4% -6.1%
of which: Depreciation, Amortization   (4.5)   (4.7)   -3.5%       -2.1%   -2.1%
Cost of Sales   (153.9)   (159.2)   -3.3%       -72.9%   -70.8%
                         
Industrial Margin   57.1   65.6   -13.0%       27.1%   29.2%
 
Selling Expenses (32.5) (33.3) -2.2% -15.4% -14.8%
Transportation (21.2) (22.7) -6.3% -10.1% -10.1%
Commissions (4.4) (4.8) -6.7% -2.1% -2.1%
Advertising (6.9) (5.8) 17.5% -3.2% -2.6%
 
Other Selling and G&A (45.0) (46.6) -3.5% -21.3% -20.7%
of which: Depreciation, Amortization   (2.0)   (3.4)   -40.6%       -0.9%   -1.5%
EBITDA   (13.9)   (6.2)           -6.6%   -2.8%
                         
EBIT   (20.4)   (14.3)           -9.7%   -6.3%
 
Interest Income/(Costs), Net (0.5) (0.2)
Foreign Exchange, Net 1.1 (1.2)
Other Income/(Cost), Net   (3.9)   (1.3)                
Earning before Income Taxes   (23.7)   (16.9)           -11.2%   -7.5%
 
Current taxes (0.8) (3.1) -0.4% -1.4%
                         
Net Result   (24.5)   (20.0)           -11.6%   -8.9%
 
Minority interest (0.0) (0.2)
                         
Net Group Result   (24.5)   (20.2)           -11.6%   -9.0%
                         
Net Group Result per Share   (0.45)   (0.37)                
 
                         
Key Figures in U.S. dollars Six months ended on Change Percentage of Sales
(millions)   30-Jun-14   30-Jun-13   %       30-Jun-14   30-Jun-13
 
Total Net Sales 289.3 308.2 -6.1% 100.0% 100.0%
Industrial Margin 78.3 90.0 -13.0% 27.1% 29.2%
EBIT (28.0) (19.6) -9.7% -6.3%
Net Group Result (33.6) (27.7) -11.6% -9.0%
Net Group Result per Share (0.61) (0.50)
 
Average exchange rate (U.S.$ per 1€) 1.3709
                         
 
(*) Purchases plus beginning stock minus final stock and leather processing

 

 

UPHOLSTERY NET SALES BREAKDOWN
GEOGRAPHIC BREAKDOWN
                   
NET SALES (in €, million) NET SALES (in seats sold)
Six months ended on Six months ended on
   
AREA 30-Jun-14   % 30-Jun-13   %

 

delta 30-Jun-14   % 30-Jun-13   % delta
Americas 73.0   38.8% 84.5   41.9% -13.6% 368,559   47.2% 415,814   49.1% -11.4%
Natuzzi 43.1 22.9% 52.4 26.0% -17.8% 173,501 22.2% 222,542 26.3% -22.0%
Private label 29.9   15.9% 32.1   15.9% -6.7% 195,058   25.0% 193,272   22.8% 0.9%
 
EMEA 92.6   49.2% 95.2   47.2% -2.7% 330,599   42.3% 352,382   41.6% -6.2%
Natuzzi 73.9 39.3% 74.2 36.8% -0.3% 211,892 27.1% 223,866 26.5% -5.3%
Private label 18.7   9.9% 21.0   10.4% -11.2% 118,707   15.2% 128,516   15.2% -7.6%
 
Asia-Pacific 22.6   12.0% 22.1   10.9% 2.5% 81,530   10.4% 78,023   9.2% 4.5%
Natuzzi 21.3 11.3% 19.9 9.9% 7.1% 71,793 9.2% 62,678 7.4% 14.5%
Private label 1.3   0.7% 2.2   1.1% -40.0% 9,737   1.2% 15,346   1.8% -36.5%
                             
TOTAL 188.2   100.0% 201.7   100.0% -6.7% 780,688   100.0% 846,219   100.0% -7.7%
 
 
BREAKDOWN BY BRAND
NET SALES (in €, million) NET SALES (in seats sold)
Six months ended on Six months ended on
 
BRAND 30-Jun-14   % 30-Jun-13   % delta 30-Jun-14   % 30-Jun-13   % delta
Natuzzi 138.3 73.5% 146.5 72.6% -5.6% 457,186 58.6% 509,085 60.2% -10.2%
Private label 49.9   26.5% 55.2   27.4% -9.7% 323,502   41.4% 337,134   39.8% -4.0%
TOTAL 188.2   100.0% 201.7   100.0% -6.7% 780,688   100.0% 846,219   100.0% -7.7%
 
"Natuzzi" includes the Group's three lines of product: Natuzzi Italia, Natuzzi Editions and Natuzi Re-Vive
 
Natuzzi S.p.A. and Subsidiaries
Unaudited Consolidated Balance Sheets on the basis of Italian GAAP
(Expressed in millions of Euro)
   
ASSETS   30-Jun-14   31-Dec-13
 
Current assets:
Cash and cash equivalents 41.9 61.0
Marketable debt securities 0.0 0.0
Trade receivables, net 82.6 78.9
Other receivables 35.3 48.5
Inventories 85.1 79.0
Unrealized foreign exchange gains 0.2 0.6
Prepaid expenses and accrued income 1.9 1.9
Deferred income taxes   0.3   0.3
Total current assets   247.4   270.2
 
Non-current assets:
Net property, plant and equipment 140.6 143.6
Other assets   8.1   8.1
Total non-current assets   148.7   151.7
 
TOTAL ASSETS   396.1   421.9
 
LIABILITIES AND SHAREHOLDERS' EQUITY        
 
Current liabilities:
Short-term borrowings 21.1 25.0
Current portion of long-term debt 3.4 3.3
Accounts payable-trade 72.0 67.4
Accounts payable-other 23.2 25.8
Unrealized foreign exchange losses 0.9 0.2
Income taxes 1.3 7.1
Deferred income taxes 1.0 1.0
Salaries, wages and related liabilities   17.8   8.3
Total current liabilities   140.6   138.2
 
Long-term liabilities:
Employees' leaving entitlement 24.9 24.8
Long-term debt 2.2 4.2
Deferred income taxes - -
Deferred income for capital grants 8.4 8.6
Other liabilities   33.7   34.4
Total long-term liabilities   69.2   72.1
         
Minority interest   2.7   2.7
 
Shareholders' equity:
Share capital 54.9 54.9
Reserves 42.8 42.8
Additional paid-in capital 8.4 8.4
Retained earnings   77.5   102.8
Total shareholders' equity   183.6   208.9
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   396.1   421.9
 
Natuzzi S.p.A. and Subsidiaries
Consolidated Statements of Cash Flows   Six months ended on
(Expressed in million of Euro)   30-Jun-14   30-Jun-13
Cash flows from operating activities:  
Net earnings (loss) (24.5) (20.2)
 
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 6.5 8.0
Impairment of long lived assets 2.2 -
Deferred income taxes (0.1) (0.2)
Minority interest 0.0 0.2
(Gain) loss on disposal of assets (0.0) 0.2
Unrealized foreign exchange losses (gains) 1.1 0.5
Extraordinary items, net 1.0 0.7
Deferred income for capital grants   (0.2)   (0.2)
Non monetary operating items   10.5   9.2
 
Change in assets and liabilities:
Receivables, net (3.8) 4.7
Inventories (6.1) (2.2)
Prepaid expenses and accrued income 0.0 0.4
Accounts payable 4.9 (10.4)
Income taxes (5.8) 1.8
Salaries, wages and related liabilities 8.6 1.2
Other assets/liabilities, net 9.4 4.0
Employees' leaving entitlement   -   -
Net working capital   7.2   (0.4)
         
Net cash generated/(used) by operating activities   (6.8)   (11.4)
 
Cash flows from investing/restructuring activities:
Property, plant and equipment:
Additions (5.0) (3.3)
Disposals 0.1 0.0
Goverment grants received 0.5 -
One time termination benefits (1.1) -
Lay-off/Rent penalty dos closure   (0.2)   -
Net cash generated/(used) by investing/restructuring activities   (5.7)   (3.2)
 
Cash flows from financing activities:
Long-term debt:
Proceeds - -
Repayments (1.9) (2.3)
Short-term borrowings (4.0) 5.0
Dividends paid to minority interests   -   (0.2)
Net cash generated/(used) by financing activities   (5.9)   2.5
         
Effect of translation adjustments on cash   (0.7)   1.5
         
Increase (decrease) in cash and cash equivalents   (19.2)   (10.6)
         
Cash and cash equivalents, beginning of the year   61.0   77.7
         
Cash and cash equivalents, end of the period   41.9   67.1
 

CONTACT:
NATUZZI INVESTOR RELATIONS
Piero Direnzo; tel. +39.080.8820.812
pdirenzo@natuzzi.com
or
NATUZZI CORPORATE COMMUNICATION
Vito Basile (Press Office); tel. +39.080.8820.676
vbasile@natuzzi.com


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

NATUZZI S.p.A.

 
(Registrant)

 

 

 

Date:

September 19, 2014

By:

/s/ Pasquale Natuzzi

Pasquale Natuzzi