Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity File Number | 001-11854 |
Entity Registrant Name | NATUZZI S.p.A. |
Entity Incorporation, State or Country Code | L6 |
Entity Central Index Key | 0000900391 |
Current Fiscal Year End Date | --12-31 |
Entity Address, Address Line One | Via Iazzitiello 47 |
Entity Address, Address Line Two | Santeramo in Colle |
Entity Address, Postal Zip Code | 70029 |
Entity Address, City or Town | Bari |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Document Annual Report | true |
Document Transition Report | false |
Document Registration Statement | false |
Entity Address, Country | IT |
Document Shell Company Report | false |
Document Accounting Standard | International Financial Reporting Standards |
ICFR Auditor Attestation Flag | true |
Entity Common Stock, Shares Outstanding | 55,073,045 |
Auditor Name | KPMG S.p.A. |
Auditor Location | Bari, Italy (headquartered in Milan, Italy) |
Auditor Firm ID | 1048 |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Mr. Pietro Direnzo |
Contact Personnel Email Address | pdirenzo@natuzzi.com |
City Area Code | 39 |
Local Phone Number | 080 8820 812 |
Entity Address, Address Line One | Via Iazzitiello 47 |
Entity Address, Address Line Two | Santeramo in Colle |
Entity Address, Postal Zip Code | 70029 |
Entity Address, City or Town | Bari |
Entity Address, Country | IT |
ADR [Member] | |
Document Information [Line Items] | |
Trading Symbol | NTZ |
Security Exchange Name | NYSE |
Title of 12(b) Security | American Depositary Shares, each representing five Ordinary Shares |
Consolidated statements of fina
Consolidated statements of financial position - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Non-current assets | ||
Property, plant and equipment | € 84,431 | € 83,054 |
Right-of-use assets | 42,825 | 50,755 |
Intangible assets and goodwill | 4,254 | 4,146 |
Equity-method investees | 37,696 | 44,522 |
Other non-current receivables | 5,894 | 4,854 |
Other non-current assets | 1,452 | 1,418 |
Deferred tax assets | 1,032 | 886 |
Total non-current assets | 177,584 | 189,635 |
Current assets | ||
Inventories | 70,120 | 80,211 |
Trade receivables | 39,056 | 41,259 |
Other current receivables | 16,279 | 11,018 |
Other current assets | 7,973 | 12,309 |
Current income tax assets | 2,195 | 2,032 |
Gains on derivative financial instruments | 925 | 96 |
Cash and cash equivalents | 54,475 | 53,472 |
Total current assets | 191,023 | 200,397 |
TOTAL ASSETS | 368,607 | 390,032 |
EQUITY | ||
Share capital | 55,073 | 54,853 |
Reserves | 23,292 | 17,449 |
Retained earnings | 9,493 | 10,033 |
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY | 87,858 | 82,335 |
Non-controlling interests | 4,698 | 1,511 |
TOTAL EQUITY | 92,556 | 83,846 |
Non-current liabilities | ||
Long-term borrowings | 11,483 | 13,577 |
Long-term lease liabilities | 41,024 | 46,592 |
Employees’ leaving entitlement | 13,064 | 15,588 |
Non-current contract liabilities | 7,026 | 7,405 |
Provisions | 9,432 | 10,572 |
Deferred income for government grants | 12,242 | 12,754 |
Deferred tax liabilities | 996 | 996 |
Total non-current liabilities | 95,267 | 107,484 |
Current liabilities | ||
Bank overdrafts and short-term borrowings | 29,254 | 36,147 |
Current portion of long-term borrowings | 5,806 | 3,862 |
Current portion of lease liabilities | 10,825 | 10,546 |
Trade payables | 78,399 | 89,215 |
Other payables | 34,322 | 31,453 |
Current contract liabilities | 17,124 | 20,797 |
Provisions | 3,114 | 2,839 |
Other liabilities | 412 | |
Liabilities for current income tax | 1,874 | 2,740 |
Losses on derivative financial instruments | 66 | 691 |
Total current liabilities | 180,784 | 198,702 |
TOTAL LIABILITIES | 276,051 | 306,186 |
TOTAL EQUITY AND LIABILITIES | € 368,607 | € 390,032 |
Consolidated statements of prof
Consolidated statements of profit or loss - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Revenue | € 468,487 | € 427,375 | € 328,343 |
Cost of sales | (304,154) | (273,575) | (225,151) |
Gross Profit | 164,333 | 153,800 | 103,192 |
Other income | 6,524 | 6,414 | 3,882 |
Selling expenses | (124,924) | (121,631) | (84,518) |
Administrative expenses | (35,474) | (33,302) | (29,444) |
Impairment on trade receivables | (331) | (110) | (1,802) |
Other expenses | (1,678) | (289) | (1,915) |
Operating profit/(loss) | 8,450 | 4,882 | (10,605) |
Finance income | 868 | 225 | 317 |
Finance costs | (8,541) | (6,786) | (7,831) |
Net exchange rate gains/(losses) | 2,428 | 1,866 | (3,901) |
Gain from disposal and loss of control of a subsidiary | 5,026 | ||
Net finance income/(costs) | (5,245) | 331 | (11,415) |
Share of profit/(loss) of equity-method investees | 356 | 3,561 | 1,455 |
Profit/(loss) before tax | 3,561 | 8,774 | (20,565) |
Income tax expense | (2,273) | (4,389) | (4,341) |
Profit/(loss) for the year | 1,288 | 4,385 | (24,906) |
Profit/(loss) attributable to: | |||
Owners of the Company | (540) | 3,585 | (24,678) |
Non-controlling interests | € 1,828 | € 800 | € (228) |
Profit/(loss) per share | |||
Basic earnings/(loss) per ordinary share | € (0.01) | € 0.07 | € (0.45) |
Diluted earnings/(loss) per ordinary share | € (0.01) | € 0.07 | € (0.45) |
Consolidated statements of comp
Consolidated statements of comprehensive income - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of comprehensive income [abstract] | |||
Profit/(loss) for the year | € 1,288 | € 4,385 | € (24,906) |
Items that will not be reclassified to profit or loss | |||
Actuarial gains/(losses) on employees’ leaving entitlement | 2,309 | (627) | (212) |
Total | 2,309 | (627) | (212) |
Items that are or may be reclassified subsequently to profit or loss | |||
Exchange rate differences on translation of foreign operations | (260) | 4,037 | (3,948) |
Total | (260) | 4,037 | (3,948) |
Other comprehensive income/(loss) for the year, net of tax | 2,049 | 3,410 | (4,160) |
Total comprehensive income/(loss) for the year | 3,337 | 7,795 | (29,066) |
Total comprehensive income/(loss) attributable to: | |||
Owners of the Company | 1,338 | 6,903 | (28,782) |
Non-controlling interests | € 1,999 | € 892 | € (284) |
Consolidated statements of chan
Consolidated statements of changes in equity - EUR (€) € in Thousands | Total | Share capital [member] | Translation reserve [member] | IAS 19 reserve [member] | Other reserves [member] | Retained earnings [member] | Attributable to Owners of the Company [member] | Attributable to Non-controlling interests [member] |
Equity, beginning balance at Dec. 31, 2019 | € 104,818 | € 54,853 | € 5,846 | € (158) | € 11,459 | € 31,126 | € 103,126 | € 1,692 |
Dividends distribution | (388) | (388) | ||||||
Profit/(loss) for the year | (24,906) | (24,678) | (24,678) | (228) | ||||
Other comprehensive income/(loss) for the year | (4,160) | (3,892) | (212) | (4,104) | (56) | |||
Equity, ending balance at Dec. 31, 2020 | 75,364 | 54,853 | 1,954 | (370) | 11,459 | 6,448 | 74,344 | 1,020 |
Gain on disposal of a Non-controlling interests | 1,232 | 1,088 | 1,088 | 144 | ||||
Dividends distribution | (545) | (545) | ||||||
Profit/(loss) for the year | 4,385 | 3,585 | 3,585 | 800 | ||||
Other comprehensive income/(loss) for the year | 3,410 | 3,945 | (627) | 3,318 | 92 | |||
Equity, ending balance at Dec. 31, 2021 | 83,846 | 54,853 | 5,899 | (997) | 12,547 | 10,033 | 82,335 | 1,511 |
Share capital increase | 1,054 | 220 | 834 | 1,054 | ||||
Gain on disposal of a Non-controlling interests | 4,870 | 3,131 | 3,131 | 1,739 | ||||
Dividends distribution | (551) | (551) | ||||||
Profit/(loss) for the year | 1,288 | (540) | (540) | 1,828 | ||||
Other comprehensive income/(loss) for the year | 2,049 | (431) | 2,309 | 1,878 | 171 | |||
Equity, ending balance at Dec. 31, 2022 | € 92,556 | € 55,073 | € 5,468 | € 1,312 | € 16,512 | € 9,493 | € 87,858 | € 4,698 |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Cash flows from operating activities: | ||||
Profit/(loss) for the year | € 1,288 | € 4,385 | € (24,906) | |
Adjustments for: | ||||
Depreciation | 20,619 | 20,281 | 23,258 | |
Amortization | 1,031 | 1,090 | 907 | |
Impairment of non-financial assets | 890 | 1,188 | 2,450 | |
(Gain)/loss on sale of property, plant and equipment | (39) | (2,084) | 1,049 | |
Deferred income for capital grants | (1,473) | (1,306) | (1,242) | |
Rent concessions | (635) | (1,515) | (1,799) | |
Interest expenses | 6,474 | 4,717 | 5,962 | |
Unrealised foreign exchange (gains)/losses | (1,454) | 454 | (486) | |
(Gain) from loss of control in a former subsidiary | (5,026) | |||
Share of (profit)/loss of equity-method investees | (356) | (3,561) | (1,455) | |
Tax expense | 2,273 | 4,389 | 4,341 | |
Total adjustment | 27,330 | 18,627 | 32,985 | |
Inventories | 10,091 | (16,000) | 4,805 | |
Trade and other receivables | (1,242) | (5,847) | (7,059) | |
Other assets | 4,302 | (2,690) | 1,088 | |
Trade and other payables | (7,758) | 13,055 | 17,761 | |
Contract liabilities | (4,052) | 4,019 | 1,080 | |
Provisions | (865) | (4,608) | (703) | |
One-time termination benefit payments | (42) | (275) | (3,849) | |
Employees’ leaving entitlement | (446) | (940) | (396) | |
Total changes | (12) | (13,286) | 12,727 | |
Cash provided by (used in) operating activities | 28,606 | 9,726 | 20,806 | |
Interest paid | (5,696) | (4,966) | (4,684) | |
Income taxes paid | (4,203) | (4,223) | (3,854) | |
Net cash provided by (used in) operating activities | 18,707 | 537 | 12,268 | |
Cash flows from investing activities: | ||||
Additions | (8,432) | (3,515) | (2,083) | |
Disposals | 624 | 4,511 | 2,888 | |
Intangible assets | (1,174) | (1,476) | (792) | |
Government grants received for PPE | 507 | |||
Dividends from equity-accounted investees | 3,697 | 1,744 | 2,335 | |
Purchase of business, net of cash acquired | (461) | (270) | ||
Disposal of a business, net of cash disposed of | 1,100 | 5,515 | ||
Net cash provided by (used in) investing activities | (4,646) | 7,016 | 2,348 | |
Cash flows from financing activities: | ||||
Proceeds | 4,038 | 5,873 | 875 | |
Repayments | (4,473) | (4,788) | (2,675) | |
Short-term borrowings | (7,424) | 6,210 | 6,518 | |
Payment of lease liabilities | (10,049) | (10,090) | (9,907) | |
Proceeds from increase in share capital | 55 | |||
Dividends distribution to non-controlling interests | (551) | (545) | (388) | |
Capital contribution by non-controlling interests | 4,870 | 1,324 | ||
Net cash provided by (used in) financing activities | (13,534) | (2,016) | (5,577) | |
Increase (decrease) in cash and cash equivalents | 527 | 5,537 | 9,039 | |
Cash and cash equivalents as at January 1 | [1] | 52,249 | 46,076 | 37,825 |
Effect of movements in exchange rates on cash held | (55) | 636 | (788) | |
Cash and cash equivalents as at December 31 | [1] | € 52,721 | € 52,249 | € 46,076 |
[1] As at December 31, 2022, 2021 and 2020 cash and cash equivalents include bank overdrafts of 1,754 , 1,223 and 2,111 , respectively, that are repayable on demand and form an integral part of the Group’s cash management. |
Consolidated statements of ca_2
Consolidated statements of cash flows (Parenthetical) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of cash flows [abstract] | |||
Bank overdrafts repayable on demand | € 1,754 | € 1,223 | € 2,111 |
Introduction
Introduction | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Introduction [Abstract] | |
Introduction | 1 Introduction The consolidated financial statements of the Natuzzi S.p.A. as at December 31, 2022 and 2021 have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”), including interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS. Natuzzi S.p.A., as SEC Registrant, has also presented the consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the year ended December 31, 2020. During 2022, 2021 and 2020 no significant non-recurring events or unusual transactions have occurred other than that described in note 7. All transactions performed by the Group during 2022, 2021 and 2020 are part of the Group’s ordinary business. |
Description of the business and
Description of the business and Group composition | 12 Months Ended |
Dec. 31, 2022 | |
Investments accounted for using equity method [abstract] | |
Description of the business and Group composition | 2 Description of the business and Group composition Natuzzi S.p.A. (“Natuzzi”, the “Company” or the “Parent”) is domiciled in Italy. The Company’s registered office is at via Iazzitello 47, 70029 Santeramo in Colle (Bari, Italy). These consolidated financial statements include the accounts of Natuzzi S.p.A. and of its subsidiaries (together with the Company, the “Group”). The Group’s primary activity is the design, manufacture and marketing of leather and fabric upholstered furniture (see note 6 on operating segment). The financial statements utilized for the consolidation are the financial statements of each Group’s legal entity as at December 31, 2022, 2021 and 2020. The 2022, 2021 and 2020 financial statements have been adopted by the respective Boards of Directors of the relevant entities. The financial statements of subsidiaries are adjusted, where necessary, to conform to Natuzzi’s accounting principles and policies (see note 4), which are consistent with International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS (see note 3(a)). The consolidated financial statements of the Group as at December 31, 2022 have been approved by the Company’s Board of Directors (the Board) on April 13, 2023 and authorised on April 28, 2023. The subsidiaries included in the consolidation as at December 31, 2022 and 2021, together with the related percentages of ownership and other information, are as follows: Name Percentage of Percentage of Share/ Ownership Activity Italsofa Romania S.r.l. 100.00 100.00 RON 109,271,750 Baia Mare, Romania (1) Natuzzi (China) Ltd 100.00 100.00 CNY 106,414,300 Shanghai, China (1) Italsofa Nordeste S/A 100.00 100.00 BRL 159,300,558 Salvador de Bahia, Brazil (1) Natuzzi Quanjiao Limited 100.00 — CNY 10,000,000 Quanjiao County-Anhui province, China (1) Natco S.p.A. 99.99 99.99 EUR 4,420,000 Santeramo in Colle, Italy (2) Nacon S.p.A. 100.00 100.00 EUR 2,800,000 Santeramo in Colle, Italy (3) Lagene S.r.l. 100.00 100.00 EUR 10,000 Santeramo in Colle, Italy (3) Natuzzi Americas Inc. 100.00 100.00 USD 89 High Point, N. Carolina, USA (3) Natuzzi Florida LLC 51.00 51.00 USD 4,955,186 High Point, N. Carolina, USA (3) Natuzzi Iberica S.A. 100.00 100.00 EUR 386,255 Madrid, Spain (3) Natuzzi Switzerland AG 100.00 100.00 CHF 2,000,000 Dietikon, Switzerland (3) Natuzzi Services Limited 100.00 100.00 GBP 25,349,353 London, UK (3) Natuzzi UK Retail Limited 70.00 70.00 GBP 100 Cardiff, UK (3) Natuzzi Germany Gmbh 100.00 100.00 EUR 25,000 Köln, Germany (3) Natuzzi Japan KK 74.40 93.00 JPY 28,000,000 Tokyo, Japan (3) Natuzzi Russia OOO 100.00 100.00 RUB 8,700,000 Moscow, Russia (3) Natmx S.DE.R.L.DE.C.V 100.00 100.00 MXN 68,504,040 Mexico City, Mexico (3) Natuzzi France S.a.s. 100.00 100.00 EUR 600,100 Paris, France (3) Natuzzi Oceania PTI Ltd 74.40 93.00 AUD 320,002 Sydney, Australia (3) Natuzzi Singapore PTE. LTD. 74.40 93.00 USD 7,654,207 Singapore, Republic of Singapore (3) Natuzzi Netherlands Holding 100.00 100.00 EUR 34,605,000 Amsterdam, Holland (4) Natuzzi Trade Service S.r.l. 100.00 100.00 EUR 14,000,000 Santeramo in Colle, Italy (5) (1) Manufacture and distribution (2) Intragroup leather dyeing and finishing (3) Services and distribution (4) Investment holding (5) Dormant As at December 31, 2022, the consolidation area changed due to the following events. In August 2021, the Parent has entered into a “Subscription and Shareholders Agreement” (the “Agreement”) with Truong Thanh Furniture Corporation (“TTF”), a company incorporated under the laws of the Republic of Vietnam and which is engaged in production and distribution of furniture, to form a partnership aimed at strengthening the Group’s operations in the “Asia-Pacific” (APAC) region, excluding Greater China (the “Rest of the APAC Territory”). In March 2022, based on such agreement, TTF acquired a 20 % stake in the Group’s subsidiary Natuzzi Singapore, which is engaged in sales and distribution of furniture and upholstery products under the trademarks of the Group in the Rest of the APAC Territory. In 2022, TTF made the payment of US $ 5,357 (equivalent to 4,885 ) by subscribing shares equal to 20 % of the subsidiary Natuzzi Singapore. Pursuant to this Agreement, the Parent maintains a majority of the board members of Natuzzi Singapore. As a result of this transaction, the Parent's stake in Natuzzi Singapore is 74.4 % whereas the stake of minority shareholders is 25.6 %. Furthermore, no business combinations have occurred in 2022 and 2021. During 2022, Natuzzi Quanjiao Limited, a new production company located in China and controlled 100 % indirectly through Natuzzi China, became operational. The following table summarises the information relating to the only material non-controlling interests (NCI) related to the Group’s subsidiary Natuzzi Florida LLC, before any intra-group eliminations. Summarised statement of financial position of Natuzzi Florida LLC and Non-controlling interests share in equity as at December 31, 2022 and 2021 31/12/22 31/12/21 Current assets 11,684 8,494 Non-current assets 12,337 10,924 Current liabilities ( 9,246 ) ( 8,142 ) Non-current liabilities ( 8,473 ) ( 8,125 ) Net assets 6,302 3,151 Net assets attributable to NCI – 49% 3,088 1,544 Summarised statement of profit or loss of Natuzzi Florida LLC and Non-controlling interests share of loss for the years ended December 31, 2022 and 2021. 2022 2021 Revenue 21,481 16,578 Expenses ( 18,488 ) ( 14,955 ) Profit/(loss) for the year 2,993 1,623 Other comprehensive income/(loss) 195 184 Total comprehensive income/(loss) for the year 3,188 1,807 Profit/(loss) allocated to NCI – 49% 1,467 795 Other comprehensive income/(loss) allocated to NCI 96 90 Cash flow provided by operating activities 1,464 4,160 Cash flow used in investing activities ( 599 ) ( 12 ) Cash flow used in financing activities (dividends to NCI: 589) ( 1,892 ) ( 1,561 ) |
General principles for the prep
General principles for the preparation of the consolidated financial statements | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of General Principles For The Preparation Of The Consolidated Financial Statements [Abstract] | |
General principles for the preparation of the consolidated financial statements | 3 General principles for the preparation of the consolidated financial statements (a) Compliance with IFRS The consolidated financial statements of the Natuzzi Group have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS. The consolidated financial statements comply with IFRS as issued by the International Accounting Standards Board (IASB). Details of Group’s accounting policies are included in note 4. (b) Historical cost convention The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments measured at fair value (see note 29). (c) Basis of preparation The consolidated financial statements consist of the consolidated statement of financial position, the consolidated statement of profit or loss, the consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated statement of cash flows and the notes to the consolidated financial statements. The consolidated statement of financial position has been prepared based on the nature of the transactions, distinguishing: (a) current assets from non-current assets, where current assets are intended as the assets that should be realised, sold or used during the normal operating cycle, or the assets owned with the aim of being sold in the short term (within 12 months); (b) current liabilities from non-current liabilities, where current liabilities are intended as the liabilities that should be paid during the normal operating cycle, or over the 12-month period subsequent to the reporting date. The consolidated statement of profit or loss has been prepared based on the function of the expenses. The consolidated statement of cash flows has been prepared using the indirect method. The consolidated financial statements present all amounts rounded to the nearest thousands of Euro, unless otherwise stated. They also present comparative information in respect to the previous period. (d) Functional and presentation currency These consolidated financial statements are presented in Euro (the Group’s presentation currency), which is the Natuzzi S.p.A.’s functional currency. (e) Use of estimates and judgement In preparing these consolidated financial statements, management has made judgements and estimates that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively. Estimates are based on historical experience and other factors, including expectations about future events that may have a financial impact on the Group and that are believed to be reasonable under the circumstances. (i) Judgements Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements is included in the following notes. — Note 26: reverse factoring, presentation of amounts related to supply chain financing arrangements in the statement of financial position and in the statement of cash flow. — Notes 4(f), 9 and 20: assessment of the lease term of lease liabilities depending on whether the Group is reasonably certain to exercise the extension options. (ii) Assumptions and estimation uncertainties Information about assumptions and estimates as at December 31, 2022 that have an high risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next financial year is included in the following notes. — Notes 4(i), 8 and 9: impairment test of property, plant and equipment and right-of-use assets, for the significant assumptions used by management in estimating the value in use (annual sales growth rates, weighted average cost of capital rates and long-term growth rates). — Notes 4(n)(i), 15 and 30: measurement of the provision for doubtful accounts, for the significant assumptions used by management in estimating the expected credit losses (weighted-average loss rate or default rate, current and future financial situation of debtors for individual receivables that management is aware will be difficult to collect, future general economic conditions). — Notes 4(r) and 23: provision for warranties for the significant assumptions underlying the estimation of the expected warranties. — Notes 4(r), 23 and 41: recognition and measurement of provisions and contingencies for the key assumptions about the likelihood and magnitude of an outflow of resources. — Notes 4(aa) and 38: recognition of deferred tax assets, for the estimation of the available future taxable profits against which deductible temporary differences and tax losses carried forward can be utilised. (f) Going concern assumption The consolidated financial statements have been prepared on a going concern basis, which assumes that the Group will be reasonably able to meet its obligations as they fall due within one year from the date of the approval of these consolidated financial statements. The Directors reasonably expect that the management plans, together with the cash and cash equivalents, other current assets and unused credit facilities as at December 31, 2022, will be sufficient for the Group to meet its obligations. As at December 31, 2022, the Group’s cash and cash equivalents amount to 54,475 ( 53,472 as at December 2021), while its unused portion of credit facilities available to the Group (for further details, see note 25) amounts to 24,307 ( 14,947 as at December 31, 2021). In addition, the Directors confirm that management continues to apply and improve the stricter procedures introduced for some years to manage liquidity and working capital balances, to generate sufficient operating cash flows to meet its obligations as they fall due. The Group aims to maintain the level of its cash and cash equivalents at an amount in excess of expected cash outflows for financial liabilities over the next 60 days. The Group also monitors the level of expected cash inflows from trade and other receivables together with expected cash outflows for trade and other payables. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Summary of significant accounting policies | 4 Summary of significant accounting policies This note presents the significant accounting policies adopted in the preparation of these consolidated financial statements. These policies have been applied consistently by the Group’s entities to all the years presented, unless otherwise indicated. (a) Basis of consolidation (i) Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group. Intragroup transactions, balances and unrealised gains on transactions between the Group’s entities are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the transferred asset. The accounting policies of the subsidiaries have been changed where necessary to ensure consistency with those adopted by the Group. Non-controlling interests (NCI) in the profit or loss and equity of subsidiaries are shown separately in the consolidated statement of financial position, consolidated statement of profit or loss, consolidated statement of comprehensive income and consolidated statement of changes in equity. Non-controlling interests are measured initially at their proportionate share of the fair value of the acquiree’s identifiable net assets at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. (ii) Associates Associates are all entities over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds between 20 % and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting (see (v) below), after initially being recognised at cost. (iii) Joint arrangements Under IFRS 11 “Joint Arrangements”, investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. (iv) Joint ventures Interests in joint ventures are accounted for using the equity method (see (v) below), after initially being recognised at cost in the consolidated statement of financial position. (v) Equity method Under the equity method of accounting, investments are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of variations in other comprehensive income of the investee. Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment. When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. The accounting policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in note 4 (i). (vi) Changes in ownership interests The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a separate reserve within equity attributable to owners of Natuzzi S.p.A.. When the Group ceases to consolidate or equity account for an investment because of a loss of control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. If the ownership interest in a joint venture or an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate. (b) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. (c) Group Companies (i) Foreign operations that have a functional currency different from the presentation currency The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency (Euro) are translated into the presentation currency as follows: (a) assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position; (b) revenue and expenses for each statement of profit or loss and statement of comprehensive income are translated at the average exchange rates of the year (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case revenue and expenses are translated at the dates of the transactions); and (c) all resulting exchange differences are recognised in other comprehensive income. Since January 1, 2017, the Group’s date of transition to IFRSs, such differences are recognised in the translation reserve. When a foreign operation is sold, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale. (ii) Foreign operations that have a functional currency that is the presentation currency As at December 31, 2022 and 2021, there is one foreign subsidiary, Italsofa Romania, considered to be an integral part of Natuzzi S.p.A. due to the primary and secondary indicators reported in IAS 21, paragraphs 9 and 10. Therefore, the functional currency for this foreign subsidiary is the Parent’s functional currency, namely the Euro. As a result, all monetary assets and liabilities are remeasured, at the end of each reporting period, using the Euro and the resulting gain or loss is recognised in profit or loss. For all non-monetary assets and liabilities, share capital, reserves and retained earnings, the historical exchange rates are used. The average exchange rates of the year are used to translate non-Euro denominated revenue and expenses, except for those non-Euro denominated revenue and expenses related to assets and liabilities which are translated at historical exchange rates. The resulting exchange differences are recognised in profit or loss. (d) Foreign currency transactions Transactions in foreign currencies are translated into the functional currency using the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the closing rate. Non-monetary items that are measured based on their historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign currency exchange gains and losses are recognised in profit or loss and presented within net exchange rate gains/(losses). (e) Property, plant and equipment Items of property, plant and equipment (PPE) are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation and any accumulated impairment losses. The cost of certain buildings as at January, 1 2017, the Group’s date of transition to IFRS, was determined with reference to their deemed cost at that date. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on the disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group. Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives, and is recognised in profit or loss. Land is not depreciated. The estimated useful lives of property, plant and equipment (see note 8) for current and comparative periods are as follows: (a) buildings, 10 – 50 years; (b) machinery and equipment, 4 – 10 years; (c) office furniture and equipment, 5 – 10 years; (d) retail gallery and store furnishing, 3 – 4 years; (e) leasehold improvements, 5 – 10 years. Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (f) Leases As at December 31, 2022, the Group acts as lessor in some lease contracts for a not significant amount. As at December 31, 2021 and 2020 the Group did not act as lessor in any lease contracts. (i) Policy applicable from January 1, 2019 as a lessee At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16. At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case, the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, which is generally the case for the Group’s leases, the lessee’s incremental borrowing rate, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. To determine the incremental borrowing rate, the Group: (a) where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received; (b) uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by the Group, which does not have recent third party financing, and (c) makes adjustments specific to the lease to reflect for instance the term of the lease, type of the asset leased, country, currency and security. Lease payments included in the measurement of the lease liability comprise the following: (a) fixed payments, including in-substance fixed payments; (b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; (c) amounts expected to be payable under a residual value guarantee; (d) the exercise price under a purchase option that the Group is reasonably certain to exercise; (e) lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option; and (f) penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group presents right-of-use assets and lease liabilities in specific captions in the consolidated statement of financial position. The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases, including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. (ii) COVID-19-Related Rent Concessions The Group has applied “COVID-19-Related Rent Concessions - Amendment to IFRS 16”. The Group applies the practical expedient allowing it not to assess whether eligible rent concessions that are a direct consequence of the COVID-19 pandemic are lease modifications. The Group applies the practical expedient consistently to contracts with similar characteristics and in similar circumstances. For rent concessions in leases to which the Group chooses not to apply the practical expedient, or that do not qualify for the practical expedient, the Group assesses whether there is a lease modification. (g) Business combinations (i) Acquisitions on or after January 1, 2017 The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group (see note 4 (a)(i)). In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, as a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The Group has the option to apply a “concentration test” that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment (see note 4(i)). Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre‑existing relationships. Such amounts are generally recognised in profit or loss. Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, other contingent consideration is measured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognised in profit or loss. If share‑based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree’s employees (acquiree’s awards), then all or a portion of the amount of the acquirer’s replacement awards is included in measuring the consideration transferred in the business combination. This determination is based on the market‑based measure of the replacement awards compared with the market‑based measure of the acquiree’s awards and the extent to which the replacement awards relate to pre-combination service. (ii) Acquisitions prior to January 1, 2017 As part of its transition to IFRS, the Group elected to restate only those business combinations that occurred on or after January 1, 2017. In respect of acquisitions prior to January 1, 2017, goodwill represents the amount recognised under the Group’s previous accounting framework, Italian GAAP. Such goodwill has been tested for impairment at the transition date January 1, 2017. (h) Intangible assets and goodwill Expenditure on research activities is recognised in profit or loss as incurred. Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses. Other intangible assets, including software, trademarks and patents, that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses. Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. In respect of acquisitions prior to January 1, 2017, goodwill is included on the basis of its deemed cost, which represents the amount recorded under previous GAAP. Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific intangible asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred. Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives, and is recognised in profit or loss. Goodwill is not amortised. The estimated useful lives for current and comparative periods are as follows: software 3 - 5 years, trademarks and patents 3 – 5 years, other 2 – 5 years. Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (i) Impairment of non-financial assets At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash generating units (hereinafter also CGUs). Goodwill arising from a business combination is allocated to the CGU or groups of CGUs that are expected to benefit from the synergies of the combination. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. (j) Interests in equity-accounted investees The Group’s interests in equity-accounted investees comprise interests in associates and joint ventures. Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. Joint ventures are arrangements in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. Interests in associates and joint ventures are accounted for using the equity method. They are initially recognised at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income (OCI) of equity-accounted investees, until the date on which significant influence or joint control ceases. (k) Inventories Raw materials are stated at the lower of cost (determined under the specific cost method for leather hides and under the weighted-average method for other raw materials) and net realisable value. Goods in process and finished goods are valued at the lower of production cost and net realisable value. Production cost includes direct production costs and production overhead costs. The production overhead costs are allocated to inventory based on the manufacturing facility’s normal capacity. Finished goods acquired for reselling (e.g., home furnishings accessories) are stated at the lower of cost, determined under the weighted-average method, and net realisable value. The provision for slow moving and obsolete raw materials and finished goods is based on the estimated realisable value net of the costs of disposal. (l) Trade and other receivables Trade receivables and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less allowance for doubtful accounts. In particular, trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 90 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method. Details about the Group’s impairment policies and the calculation of the loss allowance are provided in note 4(n)(i). The Group derecognises trade receivables when the contractual rights to the cash flows from such financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of such financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of such financial asset. (m) Cash and cash equivalents Cash and cash equivalents are recorded at their nominal amount as it substantially coincides with the fair value. For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents includes cash on hand, on-demand deposits with financial institutions, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within bank overdrafts and short-term borrowings in current liabilities in the statement of financial position. (n) Impairment of financial assets The Group has the following types of financial assets that are subject to the expected credit loss model: (i) trade receivables for sales of goods and services; (ii) other receivables; (iii) cash and cash equivalents. (i) Trade receivables The Group applies the IFRS 9 simplified approach to measure expected credit losses which uses a lifetime expected loss allowance for all trade receivables. In particular, for the credit losses on trade receivables determined on a collective basis, the Group adopted the practical expedient to use a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. To measure the expected credit losses, trade receivables are grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of sales over a period of five years before December 31, 2022 or January 1, 2022, respectively, and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Group recognised the expected credit losses for individual receivables which are known to be difficult to collect based on the financial difficulties of the debtor, the probability that the debtor will enter bankruptcy or financial reorganisation and default or late payments. The Group records the expected credit losses on trade receivables determined on a collective and individual basis through the provision for doubtful accounts (see note 15). Trade receivables for which an impairment allowance is recognised are written off when there is no reasonable expectation of recovering additional cash. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group and a failure to make contractual payments for a period of greater than 180 days past due. Impairment losses on trade receivables are presented as net impairment losses within operating profit/(loss). Subsequent recoveries of amounts previously written off are credited against the same line item. (ii) Other receivables Other receivables are considered to have low credit risk and the impairment loss is measured on a 12–month expected credit loss basis. Management considers other receivables to have a low credit risk if they have a low risk of default and the Group’s counterparties are able to meet its contractual cash flow obligations in the short-term. (iii) Cash and cash equivalents The Group considers its cash and cash equivalents to have “low credit risk” based on the external credit ratings of the financial institutions. Indeed, the Group’s cash and cash equivalents are held with financial institutions which have external credit risk ratings that are “investment grade”. Impairment of cash and cash equivalents is measured on a 12-month expected credit loss basis and reflects the short-term nature of the exposures. (o) Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to year-end which are unpaid. The amounts are unsecured and are usually paid within 90 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method. The Group derecognises trade and other payables when its contractual obligations are discharged or cancelled or expired. (p) Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a borrowing that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as finance income or finance costs. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Further, general and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. Other borrowing costs are expensed in the period in which they are incurred. (q) Employee benefits Information about employee benefits accouting policies is reported below. (i) Share-based payment arrangements The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognised as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as a expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that th |
Changes in significant accounti
Changes in significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Changes In Significant Accounting Policies [Abstract] | |
Changes in significant accounting policies | 5 Changes in significant accounting policies Changes in significant accounting policies for the years ended December 31, 2022 and 2021 are reported below. (A) COVID-19 Related Rent Concessions In response to the COVID-19 coronavirus pandemic, in May 2020, the IASB issued an amendment to IFRS 16 “Leases” to provide practical relief for lessees in accounting for rent concessions. Under the practical expedient, lessees are not required to assess whether eligible rent concessions are lease modifications, and instead are permitted to account for them as if they were not lease modifications. Rent concessions are eligible for the practical expedient if they occur as a direct consequence of the COVID-19 pandemic and if all of the following criteria are met: (i) the change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change; (ii) any reduction in lease payments affects only payments originally due on or before June 30, 2021; and (iii) there is no substantive change to the other terms and conditions of the lease. Such amendment is effective for annual periods beginning on or after June 1, 2020. Earlier application is permitted. The Group has adopted this amendment early and applied the practical expedient consistently to eligible rent concessions. The Group has applied this amendment retrospectively. This amendment had no impact on retained earnings as at January 1, 2020. Furthermore, in March 2021, the IASB issued an additional amendment that allows a one-year extension (i.e., June 30, 2022) to the above practical expedient for “COVID-19 related rent concessions” under IFRS 16 “Leases”. Such amendment is effective for annual periods beginning on or after April 1, 2021. Earlier application is permitted. The Group has adopted this amendment early and applied the above practical expedient consistently to eligible rent concessions. The Group has applied this amendment retrospectively. This amendment had no impact on retained earnings as at January 1, 2021. Due to the adoption of such amendments, the Group recognized lease incentives of 635 and 1,515 in the consolidated statement of profit or loss for the year ended December 31, 2022 and 2021(see note 34), respectively. (B) Other standards A number of other new standards are also effective from January 1, 2021 and 2022 but they did not have a material effect on the Group’s consolidated financial statements. Specifically, the adoption by the Group of “Definition of a Business” (Amendments to IFRS 3), “Interest Rate Benchmark Reform” (amendments to IFRS 9, IAS 39 and IFRS 7), “Interest Rate Benchmark Reform” – Phase 2 (amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16), "Onerous contracts - Cost of Fulfilling a Contract" (amendments to IAS 37), "Subsidiary that becomes a first time adopter of IFRS after its parent (amendments to IFRS 1), "Accounting for sale proceeds and related production costs of items produced in the process of making item of PPE available for its intended use (amendments to IAS 16), "Annual improvements to IFRS standards 2018-2020", "Update a reference in IFRS 3" (amendments to IFRS 3) did not impact its consolidated financial statements. |
Operating segment
Operating segment | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of operating segments [abstract] | |
Operating segment | 6 Operating segment The Group operates in two operating segments, “Natuzzi brand” and “Private label”. The Natuzzi brand segment includes net sales from the “Natuzzi ltalia”, “Natuzzi Editions” and “Divani&Divani by Natuzzi” product lines. Segment disclosure is rendered by aggregating the operating segments into one reporting segment, that is the design, manufacture and marketing of leather and fabric upholstered sofas, beds and home furnishings accessories. It offers a wide range of upholstered furniture for sale, manufactured in production facilities located in Italy and abroad (Romania, China and Brazil). Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The two operating segments have been aggregated into a single reporting segment as the two segments have similar characteristics, and are similar in each of the following respects: (a) the nature of the products; (b) the nature of the production processes; (c) the type of customer for their products; (d) the methods used to distribute their products. Reference should be made to note 31 “Revenue” for details on revenue streams and disaggregation of revenue from contracts with customers by types of goods, geographical markets, geographical location of customers, distribution channels, brands and timing of revenue recognition. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Dec. 31, 2022 | |
Assets Held For Sale [Abstract] | |
Assets Held for Sale | 7 Assets held for sale Following the preliminary agreement reached in September 2020, on January 8, 2021, the Company signed a “Share Sell and Purchase Agreement” (the “Agreement”) with Vita Group, the largest European manufacturer of flexible polyurethane foams, for the sale of its entire interest in the subsidiary IMPE S.p.A. which contains the foam operations. The consideration agreed for this sale was 8,200 and the transaction was finalised on March 1, 2021, providing for the last tranche of 1,100 in March 2022. The collection of this last tranche was received regularly, at the agreed upon date. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | 8 Property, plant and equipment Changes in the carrying amount of property, plant and equipment for the years ended December 31, 2022 and 2021 are analysed in the following tables. Land Machinery Office Retail Leasehold Constr. in Total Cost as at December 31, 2020 153,205 108,223 14,334 13,081 19,412 360 308,615 Additions 1,064 4,573 363 316 615 110 7,041 Disposals ( 1,023 ) ( 1,121 ) ( 1,086 ) ( 6,744 ) ( 1,085 ) — ( 11,059 ) Reclassifications from constr. in progress — 108 169 32 — ( 309 ) — Effect of translation adj. 1,836 341 233 669 1,365 ( 2 ) 4,442 Cost as at December 31, 2021 155,082 112,124 14,013 7,354 20,307 159 309,039 Additions 1,167 5,125 429 60 1,614 1,099 9,494 Disposals ( 331 ) ( 2,757 ) ( 542 ) ( 144 ) ( 77 ) ( 237 ) ( 4,088 ) Impairment loss — ( 37 ) ( 6 ) — — — ( 43 ) Reclassifications from constr. in progress — 14 10 — — ( 24 ) — Effect of translation adj. 1,883 510 81 68 275 15 2,832 Cost as at December 31, 2022 157,801 114,979 13,985 7,338 22,119 1,012 317,234 Land Machinery Office Retail Leasehold Constr. in Total Accumulated depreciation as at ( 86,163 ) ( 97,716 ) ( 13,772 ) ( 12,700 ) ( 12,958 ) — ( 223,309 ) Depreciation ( 3,590 ) ( 2,697 ) ( 320 ) ( 337 ) ( 1,631 ) — ( 8,575 ) Disposals 125 770 1,032 6,746 1,081 — 9,754 Effect of translation adj. ( 1,794 ) ( 330 ) ( 174 ) ( 627 ) ( 930 ) — ( 3,855 ) Accumulated depreciation as at ( 91,422 ) ( 99,973 ) ( 13,234 ) ( 6,918 ) ( 14,438 ) — ( 225,985 ) Depreciation ( 3,611 ) ( 2,990 ) ( 298 ) ( 244 ) ( 1,642 ) — ( 8,785 ) Disposals 168 2,732 541 60 2 — 3,503 Effect of translation adj. ( 1,228 ) ( 339 ) ( 60 ) 67 24 — ( 1,536 ) Accumulated depreciation as at ( 96,093 ) ( 100,570 ) ( 13,051 ) ( 7,035 ) ( 16,054 ) — ( 232,803 ) Net book value as at December 31, 2020 67,042 10,507 562 381 6,454 360 85,306 Net book value as at December 31, 2021 63,660 12,151 779 436 5,869 159 83,054 Net book value as at December 31, 2022 61,708 14,409 934 303 6,065 1,012 84,431 Annual rate of depreciation for 2022 and 2021 0 %- 10 % 10 %- 25 % 10 %- 20 % 25 %- 35 % 10 %- 20 % — In March, May and September 2021, the Parent sold to third parties two idle industrial real estate complexes located in the city of Altamura (Bari), just a few miles away from its headquarters (see note 7) and a site located in High Point (North Caroline, USA), for a total cash consideration of 4,254 . Following such disposals, the Parent recognised a gain of 1,748 . As at December 31, 2022 and 2021, the carrying amount of property, plant and equipment temporarily idle is of 5,215 and 3,240 , respectively. As at December 31, 2022, properties with a carrying amount of 35,839 ( 37,210 as at December 31, 2021) are subject to registered mortgages to guarantee the long-term borrowings (see note 19). The following tables show a breakdown of property, plant and equipment by country. 31/12/22 31/12/21 Italy 46,610 45,470 Romania 17,952 18,502 United States of America 14,807 13,884 Brazil 3,092 2,753 Europe 957 1,253 China 695 810 Other countries 318 382 Total 84,431 83,054 The following tables show a breakdown of property, plant and equipment based on the cash generating units in which they are included. 31/12/22 31/12/21 Italian upholstered furniture plant 33,087 34,704 Romanian upholstered furniture plant 19,338 19,627 Brazilian upholstered furniture plant 3,350 2,978 Chinese upholstered furniture plant 2,223 2,215 Others 26,433 23,530 Total 84,431 83,054 As at December 31, 2022, the Group performed the impairment assessment of property, plant and equipment and right-of-use assets included in several cash generating units (CGUs), such as the Italian upholstered furniture plant CGU and certain directly operated retail stores CGUs that presented indicators of impairment. The Group performed the impairment assessment in accordance with its accounting policy discussed in note 4(i). In particular, an impairment loss is recognised if the carrying amount of a CGU exceeds its recoverable amount. The recoverable amount of a CGU is the higher of its value in use, determined using a discounted cash flow method, and its fair value less costs to sell. Further, the significant assumptions used by the Group in estimating the value in use were the annual sales growth rates used to estimate the forecasted revenue for the years 2023-2027, the weighted average cost of capital rates and the long-term growth rates, all of which were determined at CGU level, including the effects of the duration of the current economic uncertainty. Such significant assumptions involved a high degree of subjectivity by management and reasonably possible changes to these assumptions had a significant effect on the value in use. Specifically, such assumptions were based on the Group’s future business performances and other forward-looking assumptions that entail significant judgments by management and were heavily impacted by several external events. Finally, budget 2023 and cash flow projections for the years 2024-2027 have been approved by the Board of Directors and forecasts have been developed taking into consideration the track records of actual results reported by the Group. The significant assumptions that were used in performing the 2022 impairment test for the Italian upholstered furniture plant CGU and certain directly operated retail stores CGUs are as follows: — Italian upholstered furniture plant: weighted average cost of capital rate 10.82 %, long-term growth rate 1.73 %, annual sales growth rate for 2023 equal to - 20.80 % and annual sales growth rate (average of 2024-2027 period) equal to + 5.00 %. — Directly operated retail stores CGUs located in US: weighted average cost of capital rate 7.50 %, long-term growth rate 2.72 %, annual sales growth rate for 2023 equal to - 5.77 % and annual sales growth rate (average of 2024-2027 period) equal to + 5.00 %. — Directly operated retail stores CGUs located in Italy: weighted average cost of capital rate 10.82 %, long-term growth rate 1.73 %, annual sales growth rate for 2023 equal to + 4.38 % and annual sales growth rate (average of 2024-2027 period) equal to + 3.75 %. — Directly operated retail stores CGUs located in Spain: weighted average cost of capital rate 9.85 %, long-term growth rate 1.83 %, annual sales growth rate for 2023 equal to + 9.85 % and annual sales growth rate (average of 2024-2027 period) equal to + 4.00 %. — Directly operated retail stores CGUs located in UK: weighted average cost of capital rate 8.32 %, long-term growth rate 2.54 %, annual sales growth rate for 2023 equal to - 5.81 % and annual sales growth rate (average of 2024-2027 period) equal to + 5.00 %. For property, plant and equipment temporarily idle, the fair value less costs to sell was estimated through independent third-party appraisals, which assessed the fair value of land and buildings using the comparable market method and assessed the fair value of machinery and equipment using the depreciated replacement cost method, adjusted for an obsolescence rate and a marketability rate. As a result of the 2022 and 2021 impairment assessment performed by the Group, impairment losses of 43 and nil , respectively, have emerged for property, plant and equipment. |
Right-of-use-assets
Right-of-use-assets | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Right-of-use-assets | 9 Right-of-use-assets Changes in the carrying amount of right-of-use assets for the years ended December 31, 2022 and 2021, are reported in the following tables. Buildings Vehicles Total Cost as at December 31, 2020 67,710 1,023 68,733 Additions 3,194 — 3,194 Disposals ( 1,267 ) — ( 1,267 ) Adjustments due to remeasurements 9,084 — 9,084 Adjustments due to modifications 42 ( 1 ) 41 Effect of translation adjustments 3,021 13 3,034 Cost as at December 31, 2021 81,784 1,035 82,819 Additions 6,541 — 6,541 Disposals ( 5,371 ) — ( 5,371 ) Adjustments due to remeasurements ( 227 ) — ( 227 ) Adjustments due to modifications ( 167 ) — ( 167 ) Effect of translation adjustments 1,037 11 1,048 Cost as at December 31, 2022 83,597 1,046 84,643 Accumulated depreciation and impairment loss as at Dec. 31, 2020 ( 19,117 ) ( 603 ) ( 19,720 ) Depreciation ( 11,457 ) ( 249 ) ( 11,706 ) Disposals 1,209 — 1,209 Impairment loss ( 1,188 ) — ( 1,188 ) Adjustments due to remeasurements — — — Adjustments due to modifications — — — Effect of translation adjustments ( 648 ) ( 11 ) ( 659 ) Accumulated depreciation and impairment loss as at Dec. 31, 2021 ( 31,201 ) ( 863 ) ( 32,064 ) Depreciation ( 11,699 ) ( 135 ) ( 11,834 ) Disposals 3,060 — 3,060 Impairment loss ( 848 ) — ( 848 ) Adjustments due to remeasurements ( 51 ) — ( 51 ) Adjustments due to modifications — — — Effect of translation adjustments ( 72 ) ( 9 ) ( 81 ) Accumulated depreciation and impairment loss as at Dec. 31, 2022 ( 40,811 ) ( 1,007 ) ( 41,818 ) Net book value as at December 31, 2020 48,593 420 49,013 Net book value as at December 31, 2021 50,583 172 50,755 Net book value as at December 31, 2022 42,786 39 42,825 The Group leases buildings for its retail stores, warehouses and factory facilities. These leases typically run for a period of five to ten years . Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term. Some of such leases provide for additional rent payments that are based on changes in local price indices. For certain of these leases, the Group is restricted from entering into any sub-lease arrangements. A significant portion of retail stores, warehouse and factory facilities leases were entered into several years ago. The Group leases vehicles under a number of leases. The contract lease term of such leases run for a period of two to four years . The Group leases also IT and office equipment with contract terms of one to three years . These leases are short-term and/or leases of low-value items. The Group has elected not to recognise right-of-use assets and lease liabilities for these leases. The following tables show a breakdown of right-of-use assets based on geographical location of the cash generating units (mainly directly operated retail stores) in which they are included. 31/12/22 31/12/21 United States of America 18,938 15,853 Italy 9,249 11,977 Spain 3,473 4,809 United Kingdom 4,985 7,625 China 2,493 4,076 Others 3,687 6,415 Total 42,825 50,755 As at December 31, 2022, the Group performed the impairment assessment of property, plant and equipment and right-of-use assets included in several cash generating units (CGUs), such as the Italian upholstered furniture plant CGU and certain directly operated retail stores CGUs that presented indicators of impairment. For additional information on the impairment assessment, reference should be made to note 8. As result of the 2022, 2021 and 2020 impairment assessment performed by the Group, impairment losses of 890 , 1,188 , and 584 have emerged for right-of-use assets, respectively. Other information about leases for which the Group is a lessee is presented below. The following tables show the amounts recognized in profit or loss under IFRS 16 for the years ended December 31, 2022, 2021 and 2020. 2022 2021 2020 Depreciation charge of right-of-use assets 11,834 11,706 13,376 Interest on lease liabilities 2,877 2,584 2,613 Expenses relating to short-term leases 1,465 1,187 719 Expenses relating to leases of low-value assets, excluding short-term leases 125 169 122 Covid-19 rent concessions ( 635 ) ( 1,515 ) ( 1,799 ) Total 15,666 14,131 15,031 Lease payments recognised in statement of cash flows for the years ended December 31, 2022, 2021 and 2020 amount to 12,926 , 12,693 and 12,496 , respectively, and include interests paid for 2,877 , 2,603 and 2,589 , respectively (see note 20). |
Intangibles assets and goodwill
Intangibles assets and goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | |
Intangibles assets and goodwill | 10 Intangible assets and goodwill Changes in the carrying amount of intangible assets and goodwill for the years ended December 31, 2022 and 2021 are analysed in the following tables. Trademarks, Software Goodwill Total Cost as at December 31, 2020 14,022 30,990 1,921 46,933 Additions 100 1,376 — 1,476 Impairment loss — — — — Disposals ( 22 ) ( 168 ) — ( 190 ) Effect of translation adjustments 16 38 — 54 Cost as at December 31, 2021 14,116 32,236 1,921 48,273 Additions 164 1,010 — 1,174 Impairment loss — — — — Disposals — ( 120 ) — ( 120 ) Impairment reversal — 1 — 1 Effect of translation adjustments ( 3 ) 40 — 37 Cost as at December 31, 2022 14,277 33,167 1,921 49,365 Accumulated amortisation as at December 31, 2020 ( 13,605 ) ( 29,571 ) — ( 43,176 ) Amortisation ( 140 ) ( 950 ) — ( 1,090 ) Disposals 22 166 — 188 Effect of translation adjustments ( 12 ) ( 37 ) — ( 49 ) Accumulated amortisation as at December 31, 2021 ( 13,735 ) ( 30,392 ) — ( 44,127 ) Amortisation ( 164 ) ( 867 ) — ( 1,031 ) Disposals 2 84 — 86 Effect of translation adjustments — ( 39 ) — ( 39 ) Accumulated amortisation as at December 31, 2022 ( 13,897 ) ( 31,214 ) — ( 45,111 ) Net book value as at December 31, 2020 417 1,419 1,921 3,757 Net book value as at December 31, 2021 381 1,844 1,921 4,146 Net book value as at December 31, 2022 380 1,953 1,921 4,254 As at December 31, 2022 and 2021, goodwill of 1,921 only relates to the “Italy – retail stores” CGU. It arose on the 2017 acquisition by the Parent of three “ Divani&Divani by Natuzzi ” stores located in the North East of Italy. This acquisition was performed with a related party at arm’s length conditions. As result of such impairment tests in 2022, no impairment losses have emerged on goodwill. With reference to goodwill, since it is allocated to specific DOS, the Group has carried out an impairment test on property, plant and equipment, right-of-use assets as well as the goodwill for each cash-generating unit (CGU) of directly managed retail stores. Further, the cash flows included specific estimates for five years and a long-term growth rate thereafter. Cash flows projections have been approved by the Board of Directors. For additional information on the impairment assessment, reference should be made to note 8. Impairment tests have been performed on goodwill in 2022, 2021 and 2020. Research and development costs recognised as an expense for the years ended December 31, 2022, 2021 and 2020 amount to 3,521 , 3,270 and 3,137 , respectively. |
Equity-method investees
Equity-method investees | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Equity Method Investees [Abstract] | |
Equity-method investees | 11 Equity-method investees Changes in the carrying amount of equity-method investees for the years ended December 31, 2022 and 2021 are analysed as follows. Natuzzi Nars Natuzzi Natuzzi Foundation "Made in Italy circolare e sostenibile" Salena Total Balance as at December 31, 2020 39,991 98 — — — — 40,089 Acquisition of non-controlling interests — — 270 18 — — 288 Share of profit for the year 3,409 152 — — — — 3,561 Share of other comprehensive income 2,320 8 — — — — 2,328 Dividends received ( 1,490 ) ( 254 ) — — — — ( 1,744 ) Balance as at December 31, 2021 44,230 4 270 18 — — 44,522 Acquisition of non-controlling interests — — 453 — 8 — 461 Share of profit for the year 436 431 ( 547 ) 36 — — 356 Share of other comprehensive income ( 784 ) — — — — — ( 784 ) Dividends received ( 3,697 ) — — — — — ( 3,697 ) Share capital reduction ( 3,156 ) — — — — — ( 3,156 ) Effect of translation adjustments — ( 4 ) — ( 2 ) — — ( 6 ) Balance as at December 31, 2022 37,029 431 176 52 8 — 37,696 As at December 31, 2022 and 2021 equity-method investees include: (a) the 49 % stake in the joint venture Natuzzi Trading Shanghai; (b) the 49 % stake in the associate Nars Miami LLC; (c) the 51 % stake in the joint venture Natuzzi Texas LLC; (d) the 30 % stake in the associate Natuzzi Store (UK) ltd; (e) the 49 % interest in the associate Salena S.r.l., whose carrying value was totally impaired in 2014 in consideration of some legal disputes among shareholders. All such investments are accounted for using the equity method. (i) Disclosures on Natuzzi Trading (Shanghai) Co. Ltd., joint venture The following table shows the reconciliation of the carrying amount of the retained interest in Natuzzi Trading Shanghai as at December 31, 2020 with the carrying amount as at December 31, 2021 included in the consolidated statement of financial position. Carrying amount as at December 31, 2020 39,991 Dividends distribution ( 1,490 ) Group’s share of profit for the year 4,065 Elimination of amortisation of Natuzzi’s trademarks 367 Elimination of intercompany profit on inventories ( 634 ) Amortisation of intangibles assets ( 519 ) Reversal of deferred tax liabilities 130 Group’s share of profit for the year, net of equity method adjustments 3,409 3,409 Group’s share of other comprehensive income 2,320 Carrying amount as at December 31, 2021 44,230 The following table shows the reconciliation of the carrying amount of the retained interest in Natuzzi Trading Shanghai as at December 31, 2021 with the carrying amount as at December 31, 2022 included in the consolidated statement of financial position. Carrying amount as at December 31, 2021 44,230 Dividends distribution ( 3,697 ) Share capital reduction ( 3,156 ) Group’s share of profit for the year 3,020 Elimination of amortisation of Natuzzi’s trademarks 367 Elimination of intercompany profit on inventories ( 2,562 ) Amortisation of intangibles assets ( 519 ) Reversal of deferred tax liabilities 130 Group’s share of profit for the year, net of equity method adjustments 436 436 Group’s share of other comprehensive income ( 784 ) Carrying amount as at December 31, 2022 37,029 Summarised financial information of the joint venture Natuzzi Trading Shanghai, based on its IFRS financial statements, and reconciliation with the carrying amount of the Group’s share in net assets and in profit or loss as reported in the consolidated financial statements are set out below. Summarised statement of financial position of Natuzzi Trading Shanghai and Group’s share in net assets as at December 31, 2022 and 2021 31/12/22 31/12/21 Current assets 64,298 79,527 Non-current assets 19,833 21,619 Current liabilities ( 42,049 ) ( 50,092 ) Non-current liabilities ( 1,794 ) ( 1,344 ) Net Assets 40,288 49,710 Group’s share in net assets – 49 % of net assets 19,742 24,358 Intangible assets 2,312 2,832 Goodwill 26,140 26,140 Elimination of intercompany profit from licensing Natuzzi’s trademarks ( 5,727 ) ( 6,095 ) Elimination of intercompany profit on inventories ( 4,860 ) ( 2,298 ) Deferred tax liabilities ( 578 ) ( 707 ) Group’s carrying amount of interest 37,029 44,230 As at December 31, 2022 and 2021 cash and cash equivalents, bank overdrafts and borrowings, lease liabilities current and non-current are set out below. 31/12/22 31/12/21 Cash and cash equivalents 32,844 61,944 Bank overdrafts and borrowings — — Lease liabilities current ( 2,648 ) ( 2,616 ) Lease liabilities non-current ( 1,794 ) ( 1,344 ) Total, net 28,402 57,984 Summarised statement of profit or loss of Natuzzi Trading Shanghai and Group’s share of profit for the year ended December 31, 2022, 2021 and 2020 2022 2021 2020 Revenue 98,483 96,272 62,023 Cost of sales ( 60,481 ) ( 57,120 ) ( 37,414 ) Other income and expenses, net ( 91 ) ( 39 ) ( 413 ) Selling expenses ( 24,473 ) ( 23,937 ) ( 17,685 ) Administrative expenses ( 5,665 ) ( 4,983 ) ( 2,185 ) Net finance income 1,037 1,213 864 Profit before tax 8,810 11,406 5,190 Income tax expense ( 2,646 ) ( 3,111 ) ( 1,368 ) Profit for the period 6,164 8,295 3,822 Other comprehensive profit/(loss) ( 1,600 ) 4,734 ( 744 ) Total comprehensive profit for the period 4,564 13,029 3,078 Group’s share of profit for the period – 49 % 3,020 4,065 1,873 Elimination of amortisation of Natuzzi’s trademarks 367 367 367 Elimination of intercompany profit on inventories ( 2,562 ) ( 634 ) ( 396 ) Amortisation of intangible assets ( 519 ) ( 519 ) ( 519 ) Deferred tax liabilities 130 130 130 Group’s share of profit/(loss), net of equity method adj. 436 3,409 1,455 Group’s share of other comprehensive income/(loss) for the period ( 784 ) 2,320 ( 365 ) Group’s share of total comprehensive income/(loss) for the period ( 348 ) 5,729 1,090 Dividends received by the Group 3,697 1,490 2,335 For the years ended December 31, 2022, 2021 and 2020, depreciation and amortisation, interest income, interest expense and income tax expense are set below. 2022 2021 2020 Depreciation and amortisation 1,945 4,507 4,106 Interest income 1,729 1,529 1,256 Interest expense 692 316 392 Income tax expense 2,646 3,111 1,368 (ii) Disclosures on Nars Miami LLC, associate Nars Miami LLC, an immaterial associate, is engaged in the sale of the Group’s upholstery furniture and home furnishings accessories to end customers, under a franchisee agreement. The principal place of business of such associate is in Miami, Florida (USA). (iii) Disclosures on Natuzzi Texas LLC, joint venture Natuzzi Texas LLC is an immaterial joint venture, set up in 2021, which is engaged in the sale of the Group’s Natuzzi upholstery furniture and home furnishings accessories to end consumers through directly-operated single-brand stores (Natuzzi Italia stores). The company opened its first store in February 2022. (iv) Disclosures on Natuzzi Stores (UK) Ltd, associate Natuzzi Stores (UK) Ltd is an immaterial associate, in which the Group acquired a 30 % stake in early 2021. Natuzzi Stores (UK) Ltd is engaged in the sale of upholstered furniture and home furnishings accessories to end consumers through directly-operated Natuzzi Italia mono-brand stores. |
Other non-current receivables
Other non-current receivables | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other non-current receivables [abstract] | |
Other non-current receivables | 12 Other non-current receivables Other non-current receivables consist of the following: 31/12/22 31/12/21 Security deposits for lease contracts 5,776 4,557 Receivable from disposal of assets 118 297 Total 5,894 4,854 The receivable from disposal of assets is the long-term portion of receivables derived from the sale of the security and doorkeeping services branch to a third-party which occurred in 2014. |
Other assets (non-current and c
Other assets (non-current and current) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets Current And Noncurrent [Abstract] | |
Other assets (non-current and current) | 13 Other assets (non-current and current) Other assets are analysed as follows: 31/12/22 31/12/21 Advances to suppliers 4,697 5,842 Deferred delivery and commission costs related to finished goods 1,655 4,831 Deferred costs for Natuzzi Display System 1,579 1,676 Deferred costs for slotting fees 725 868 Deferred costs for Service-Type Warranty 209 205 Other prepaid expenses and accrued income 560 305 Total other assets 9,425 13,727 Less current portion ( 7,973 ) ( 12,309 ) Non-current portion 1,452 1,418 “Advances to suppliers” represent advance payments for raw materials, services and other expenses. “Deferred delivery and commission costs related to finished goods” are related to the deferral of shipping and handling costs and commission expenses for finished goods that had not been delivered at year-end. “Deferred costs for Natuzzi Display System” refer to the deferred costs incurred by the Company to purchase store fittings, which are then sold to retailers and used to set up their stores (“Natuzzi Display System” – NDS). Such costs are recognised over the life of the distribution contract signed with the retailer (usually five years). “Deferred costs for slotting fees” refer to contributions made by the Company to retailers to prepare the retailer’s system to accept and sell the Group’s products. Such fees are recognised over the life of the contract signed with the retailers (usually five years). “Deferred costs for Service-Type Warranty” refer to the deferral of costs incurred by the Company for the sale of a service-type warranty to end customers, considering that this insurance is provided by a third-party. Such costs are recognised over the life of the contractual insurance period, which is five years . |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Classes of current inventories [abstract] | |
Inventories | 14 Inventories Inventories are analysed as follows: 31/12/22 31/12/21 Leather and other raw materials 27,003 27,006 Goods in process 10,464 14,090 Finished goods 32,653 39,115 Total 70,120 80,211 The following tables summarise the changes to the provision for slow moving and obsolete raw materials and finished goods included in inventories for the years ended December 31, 2022 and 2021. 31/12/22 31/12/21 Balance at beginning of year 15,568 13,059 Additions 1,819 3,413 Reductions ( 981 ) ( 904 ) Balance at end of year 16,406 15,568 The additions and reductions are included in “cost of sales”. For the years ended December 31, 2022, 2021 and 2020, inventories of 190,023 , 168,492 and 126,580 , respectively, were recognised as an expense and included in “cost of sales” (see note 32). There are no pledged inventories that c ould be limited in their availability. |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other receivables [abstract] | |
Trade receivables | 15 Trade receivables Trade receivables are due primarily from distributors and retailers who sell directly to end customers. Trade receivables disaggregated by nature of the relationship with the customers are as follows: 31/12/22 31/12/21 Third parties 37,203 38,556 Related parties 7,457 8,028 Gross trade receivables 44,660 46,584 Allowance for doubtful accounts ( 5,604 ) ( 5,325 ) Total trade receivables 39,056 41,259 Transactions with related parties are conducted at arm’s length (see note 42). Trade receivables by geographic region are analysed as follows: 31/12/22 31/12/21 Italian customers 10,124 10,678 Other European customers 10,761 12,252 North American customers 8,233 7,232 Chinese customers 5,589 7,059 South American customers 5,047 4,956 Other foreign customers 4,906 4,407 Gross trade receivables 44,660 46,584 Provision for doubtful accounts ( 5,604 ) ( 5,325 ) Total trade receivables 39,056 41,259 The following tables provide the movements in the provision for doubtful accounts for the years ended December 31, 2022 and 2021. 31/12/22 31/12/21 Balance at beginning of year 5,325 7,881 Charges – bad debt expense 330 76 Reductions – write off of uncollectible amounts ( 95 ) ( 2,015 ) Foreign exchange effect 44 — Reductions – reversal to profit and loss — ( 617 ) Balance at end of year 5,604 5,325 The Parent sold trade receivables to a financial institution for cash advances (for further details, see note 30(C)(iii)). These trade receivables have not been derecognized from the statement of financial position, because the Parent retains substantially all of the risks and rewards – primarily credit risk. The amount received on their transfer has been recognised as a secured bank borrowing (see note 25). The arrangement with the financial institution is such that the customers remit cash directly to the Parent and the Parent transfers the collected amounts to the financial institution. The receivables are considered to be held within a held‑to‑collect business model consistent with the Group’s continuing recognition of the receivables. The following information shows the reporting-date carrying amount of trade receivables that have been transferred but have not been derecognised and the associated liabilities. 31/12/22 31/12/21 Carrying amount of trade receivables transferred 18,670 29,778 Carrying amount of associated liabilities ( 17,307 ) ( 26,341 ) Total, net 1,363 3,437 Information about the Group’s exposure to credit risk and impairment losses for trade receivables is included in note 30(C)(ii-a). |
Other current receivables
Other current receivables | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other current receivables [abstract] | |
Other current receivables | 16 Other current receivables Other current receivables are analysed as follows: 31/12/22 31/12/21 VAT 3,051 3,588 Receivables from National Institute for Social Security 3,823 3,187 Receivables from VITA Group — 1,374 Receivables for share capital reduction 3,337 — Other 6,068 2,869 Total 16,279 11,018 The “VAT” receivables include value added taxes and related interest reimbursable to the various companies of the Group. While currently due at the reporting date, the collection of the VAT receivable may extend over a maximum period of up to two years . The “Receivables from National Institute for Social Security” represent the amounts anticipated by the Company on behalf the governmental institute related to salaries and wages for those workers and employees subject to temporary work force reduction. The “Receivables from VITA Group” is related to the disposal of the subsidiary IMPE S.p.A.. For further details on such receivable and disposal, reference should be made to note 7. The "Receivables for share capital reduction" derives from the reduction of the share capital which was approved by the shareholders of the joint venture Natuzzi Trading Shanghai Co, Ltd. in October 2022 and collected in January 2023. The “Other” caption primarily includes certain receivables related to green incentives for photovoltaic investment. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 17 Cash and cash equivalents Cash and cash equivalents are analysed as follows: 31/12/22 31/12/21 Cash on hand 89 201 Bank accounts 54,386 53,271 Total 54,475 53,472 The following tables show the Group’s cash and cash equivalents broken-down by region. 31/12/22 31/12/21 Europe 32,779 36,550 China 15,355 9,938 North America 4,482 5,924 South America 1,498 786 Other 361 274 Total 54,475 53,472 For the purpose of the statement of cash flows, cash and cash equivalents comprise the following: 31/12/22 31/12/21 31/12/20 Cash and cash equivalents in the statement of financial position 54,475 53,472 48,187 Bank overdrafts repayable on demand ( 1,754 ) ( 1,223 ) ( 2,111 ) Cash and cash equivalents in the statement of cash flows 52,721 52,249 46,076 Bank overdrafts repayable on demand form an integral part of the Group’s cash management (see note 25). |
Share capital, reserves and ret
Share capital, reserves and retained earnings | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Share Capital Reserves And Retained Earnings [Abstract] | |
Share capital, reserves and retained earnings | 18 Share capital, reserves and retained earnings As at December 31, 2022, 2021 and 2020 the equity attributable to owners of the Company is analysed as follows: 31/12/22 31/12/21 31/12/20 Share capital 55,073 54,853 54,853 Reserves 23,292 17,449 13,043 Retained earnings 9,493 10,033 6,448 Total 87,858 82,335 74,344 As at December 31, 2022, the Company’s share capital, which is totally authorized and issued, is composed of 55,073,045 ordinary shares with par value of Euro 1 each, for a total of 55,073 . The share capital increase derives from the subscription of 220,000 shares by one of the beneficiaries of the stock option plan approved by the Company in July 2022. For further information regarding the stock option plan, see note 21. Ordinary shareholders have the right to receive dividends, as approved by shareholders’ meetings, and to express one vote per each share owned. Share capital is owned, as at December 31, 2022, 2021 and 2020, as follows: 31/12/22 31/12/21 31/12/20 Mr. Pasquale Natuzzi 56.2 % 56.5 % 56.5 % Mrs. Anna Maria Natuzzi 2.6 % 2.6 % 2.6 % Mrs. Annunziata Natuzzi 2.5 % 2.5 % 2.5 % Other investors 38.7 % 38.4 % 38.4 % Total 100.0 % 100.0 % 100.0 % An analysis of “Reserves” is as follows: 31/12/22 31/12/21 31/12/20 Legal reserve 10,971 10,971 10,971 Majority shareholder capital contribution 488 488 488 Shareholders: unpaid share capital ( 165 ) — — Share premium reserve 175 — — Stock option reserve 824 — — Reserve for gain on disposal of Non-controlling interests 4,219 1,088 — Foreign operations translation reserve 5,468 5,899 1,954 Remeasurement of defined benefit plan 1,312 ( 997 ) ( 370 ) Total 23,292 17,449 13,043 The “Legal reserve” is connected to the requirements of the Italian law, which provide that 5 % of net income of the Parent Company is retained as a legal reserve, until such reserve is 20 % of the issued share capital. The legal reserve may be utilized to offset losses; any portion which exceeds 20 % of the issued share capital is distributable as dividends. The legal reserve totaled 10,971 as at December 31, 2022, 2021 and 2020. The “Majority shareholder capital contribution” is one of the Parent Company’s reserves, which is restricted for capital grants received. The "Shareholders: unpaid share capital" reserve is related to the part of the share capital subscribed by the beneficiary of the stock options and not yet paid. The "Share premium reserve" refers to the value of the service provided by the beneficiary who subscribed to the stock option, for the portion accrued in 2022. The "Stock option reserve" represents the value of the services provided as at 31 December 2022 by the beneficiaries of stock option plan and includes both the part accrued but not yet exercised and the part relating to the tranche not yet expired. The “Reserve for gain on disposal of Non-controlling interests” was increased in 2022 by the recognition, for the share pertaining to the Group, of the contribution by the new shareholder Troung Thanh Furniture (TTF) who carried out the relevant payment in March 2022 for the acquisition of 20 % stake in Natuzzi Singapore PTE LTD. For further details on this transaction, reference should be made to note 2. The “Foreign operations translation reserve” relates to the translation of foreign subsidiaries’ financial statements for those subsidiaries which have assessed their functional currency being different from Euro. The “Remeasurement of defined benefit plan” refers to the calculation of the present value of the employees’ leaving entitlement at each reporting date, in compliance with applicable regulations and adjusted to take into account actuarial gains or losses. In particular, such actuarial gains or losses are reported in OCI (see note 4 (q)). OCI accumulated in reserves, net of tax, is reported in the following tables. 31/12/22 31/12/21 31/12/20 Foreign operation translation 5,468 5,899 1,954 Remeasurement of defined benefit plan 1,312 ( 997 ) ( 370 ) Owners of the Company 6,780 4,902 1,584 Non-controlling interests 144 ( 27 ) ( 119 ) Total OCI 6,924 4,875 1,465 The disaggregation of changes of OCI by each type of reserve in equity is shown in the tables below. Year ended December 31, 2022 Foreign Remeasurement Total Exchange difference on translation of foreign operations 524 — 524 Share of OCI of equity-method investees ( 784 ) — ( 784 ) Actuarial gains/(losses) on employees’ leaving entitlement — 2,309 2,309 Total ( 260 ) 2,309 2,049 Year ended December 31, 2021 Foreign Remeasurement Total Exchange difference on translation of foreign operations 1,709 — 1,709 Share of OCI of equity-method investees 2,328 — 2,328 Actuarial gains/(losses) on employees’ leaving entitlement — ( 627 ) ( 627 ) Total 4,037 ( 627 ) 3,410 Year ended December 31, 2020 Foreign Remeasurement Total Exchange difference on translation of foreign operations ( 3,575 ) — ( 3,575 ) Share of OCI of equity-method investees ( 373 ) — ( 373 ) Actuarial gains/(losses) on employees’ leaving entitlement — ( 212 ) ( 212 ) Total ( 3,948 ) ( 212 ) ( 4,160 ) The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital. The Group monitors capital using a ratio of “net debt” to “equity”. Net debt is calculated as total liabilities (as shown in the consolidated statement of financial position) less cash and cash equivalents. Equity comprises all components of equity. As at December 31, 2022, the Group’s policy is to keep the ratio below 3.20 . The Group’s net debt to equity ratio as at December 31, 2022 and 2021 is as follows: 31/12/22 31/12/21 Total liabilities 276,051 306,186 Less cash and cash equivalents ( 54,475 ) ( 53,472 ) Net debt (a) 221,576 252,714 Total equity (b) 92,556 83,846 Net debt to equity ratio (a/b) 2.39 3.01 |
Long-term borrowings
Long-term borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about borrowings [abstract] | |
Long-term borrowings | 19 Long-term borrowings Long-term borrowings (debts) as at December 31, 2022 and 2021 consist of the following: 31/12/22 31/12/21 Three-month Euribor (360) plus a 2.2 % spread long-term debt with final payment August 2022 — 139 Six-month Euribor (360) plus a 2.75 % spread long-term debt with final payment December 2022 — 92 Three-month Euribor (360) plus a 1.9 % spread long-term debt with final payment June 2023 — 621 Six-month Euribor (360) plus a 2.5 % spread long-term debt with final payment August 2023 2,344 2,946 11.76 % fixed long-term debt with final payment October 2023 116 216 Six-month Euribor (360) plus a 2.75 % spread long-term debt with final payment March 2025 3,215 4,646 2.3 % fixed long-term debt with final payment January 2026 3,451 4,518 No interest rate long-term debt with final payment September 2027 345 395 0.21 % fixed long-term debt with final payment December 2030 2,916 2,963 80 % of six-month Euribor (360) plus a 0.95 % spread long-term debt with final January 2035 864 903 Three-month Euribor (360) plus a 2.00 % spread long-term debt with final payment December 2027 4,000 — 0.055 % fixed long-term debt with final payment December 2025 38 — Total long-term borrowings 17,289 17,439 Less current installments ( 5,806 ) ( 3,862 ) Long-term borrowings, excluding current installments 11,483 13,577 While in 2021 both the three-month and six-month Euribor (360) were negative, during 2022 they were positive as a result of increased inflation. Therefore, during 2022 actual range of rates are from 0.68 % and 4.48 %. In March 2021, the Parent Company, following the sale of its former subsidiary IMPE S.p.A., assumed the residual debt of the loan received by IMPE S.p.A. in 2017 for a nominal amount of 1,000 to be repaid in monthly installments up to August 2022 . This loan was paid off regularly in early January 2022. In 2018, the Romanian subsidiary obtained a long-term debt from a financial institution, amounting to 206 . Such loan has installments repayable on a monthly basis starting from October 2020 and ending in December 2022. This loan was paid off regularly in December 2022. In November 2017, the Company incurred long-term debt for a 2,000 nominal amount with installments payable on a monthly basis and with final payment due June 2023. This long-term debt provides for variable interest installments determined based on the three-month Euribor (360) plus a 1.9 % spread. The loan has a residual amount as at 31 December 2022 equal to zero since it was repaid early in January 2022. A loan of nominal 10,000 was incurred in 2015 by the Romanian subsidiary. The loan was payable on a monthly basis starting from August 2015. In August 2017 and July 2019, the subsidiary negotiated a rescheduling of the loan’s repayment with the bank. In particular, the loan, remaining at year-end in the amount of 2,344 is due by August 2023 , and the new amortisation schedule provides for monthly installments and a lump sum repayment of 1,944 , due on maturity. The variable interest rate is six-month Euribor (360) plus a 2.5 % spread. The loan is guaranteed by a mortgage on the Romanian plant for an amount of 16,628 , and is subject to the following covenants: (a) cash receipts >= 60 % turnover; (b) earnings before interest, taxes, depreciation and amortisation (EBITDA) >= 4.5 %; (c) net debt/EBITDA <= 3 ; (d) debt service cover ratio >= 1.35 . The Romanian subsidiary was in compliance with the covenants required. In May 2020, the Brazilian subsidiary obtained a long-term loan from a financial institution, amounting to 314 . This loan has been obtained as part of the COVID-19 measures to support business approved by the Brazilian government. Such loan has installments repayable on a monthly basis starting from 2020, after the six-month interest-only period, and ending in October 2023. This long-term debt, of which 116 remains at year-end, provides for variable installments determined based on 11.76 % interest rate. In March 2021, the Romanian subsidiary obtained a long-term loan of 5,000 which provides for variable interest installments determined based on the six-month Euribor (360) plus a 2.75 % spread. This loan, of which 3,215 remains at year-end, is backed by a 90 % state-guarantee and ends in March 2025. The first installment, after the five-month interest only period, was paid on October 2021. In July 2017, the Company incurred long-term debt for a 7,000 nominal amount with installments payable on a monthly basis, fixed interest rate of 2.3 % and with final payment due January 2026 . This long-term fixed-rate debt, of which 3,451 remains at year-end, is assisted by a mortgage on the properties located in Matera (Italy) for an amount of 14,000 . In March 2020, the Swiss sub sidiary obtained a long-term loan from a financial institution, amounting to 378 . This loan has been obtained as part of the COVID-19 measures to support business approved by the Swiss government. Such loan has installments repayable on a six-month basis starting from 2022 and ending in September 2027. This long-term debt, of which 345 remains at year-end, has no interest rate. In December 2019, the Company incurred long-term debt for a 4,181 nominal amount with installments payable on semi-annual basis, fixed interest rate of 0.21 % and with final payment due December 2030 . This long-term debt, of which 2,916 remains at year-end, is guaranteed by a mortgage on the properties located in Ginosa, Laterza and Santeramo in Colle (Italy) for a total amount of 13,936 . In December 2019, one of the Italian subsidiaries incurred long-term debt for a 435 nominal amount with installments payable on semi-annual basis and with final payment due January 2035 . This long-term debt, of which 863 remains at year-end following a further disbursement obtained in 2021, provides for variable interest installments determined based on the 80 % of six-month Euribor (360) plus 0.95 % spread. Such loan is guaranteed by a mortgage on the properties located in Pozzuolo del Friuli (Italy) for a total amount of 3,000 . In January 2022, the Parent obtained a long-term loan from a financial institution, amounting to 4,000 . This loan, which is guaranteed by an Italian governmental authority, has been made available by the Italian government as part of the COVID-19 measures to support businesses. Such loan has installments repayable on a quarterly basis starting from January 2023, after the 12-month interest-only period, and ending in December 2027 . This long-term debt provides for variable interest installments determined based on the three-month Euribor (360) plus a 2.00 % spread. In March 2022, the Parent obtained a long-term loan from a financial institution, amounting to 38 . This loan, which is guaranteed by an Italian governmental authority, has been made available as part of the measures to support the participation by the Group to furniture fairs. Such loan has installments repayable on a semi-annual basis starting from June 2023, after the 12-month interest-only period, and ending in December 2025 . This long-term debt provides for a 0.055 % subsidized fixed interest installments. During 2022 and 2021, the Company made all installment payments related to the aforementioned long-term borrowings. Interest expense related to long-term borrowings for the years ended December 31, 2022, 2021 and 2020 is 423 , 405 and 405 , respectively. Interest due is paid with the related installment. |
Lease liabilities (non-current
Lease liabilities (non-current and current) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Non Current And Current Portion Of The Lease Liabilities [Abstract] | |
Lease liabilities (non-current and current) | 20 Lease liabilities (non-current and current) The non-current and current portion of the lease liabilities as at December 31, 2022 and 2021 is as follows: 31/12/22 31/12/21 Non-current portion of the lease liabilities 41,024 46,592 Current portion of the lease liabilities 10,825 10,546 Total 51,849 57,138 Changes in the carrying amount of the lease liabilities for the year ended December 31, 2022 and 2021 are reported in the following tables. 31/12/22 31/12/21 Balance at beginning of year 57,138 53,593 Additions for new leases 7,909 3,194 Interest expenses 2,877 2,603 Lease payments ( 12,926 ) ( 12,693 ) Disposal of leases ( 2,568 ) ( 58 ) Adjustments due to remeasurements ( 227 ) 9,084 Adjustments due to modifications ( 167 ) 41 Covid-19 rent concessions ( 635 ) ( 1,515 ) Effect of translation adjustments 448 2,889 Balance at end of year 51,849 57,138 As at December 31, 2022, the incremental borrowing rate is within the range of 3 % and 12 % (the same range as at December 31, 2021). The maturity analysis of the contractual undiscounted cash flows of the lease liabilities as at December 31, 2022 and 2021 are reported in the tables below. 31/12/22 31/12/21 Less than one year 13,404 13,130 One to five years 35,116 38,419 More than five years 12,820 14,305 Total undiscounted lease liabilities 61,340 65,854 Some property leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable contract period. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Group and not by the lessors. The Group assesses at lease commencement date whether it is reasonably certain to exercise the extension options. The Group reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant changes in circumstances within its control. The Group has estimated that the potential future lease payments, should it exercise the extension option, would result in an increase in lease liability of 26,254 ( 22,015 as at December 31, 2021). The Group negotiated rent concessions with its landlords for some of its retail store leases as a result of the severe impact of the COVID-19 pandemic during the year. The Group applied the practical expedient for COVID-19-related rent concessions consistently to eligible rent concessions relating to its retail store leases. The amount recognised in profit or loss for the years ended December 31, 2022 and 2021 to reflect changes in lease payments arising from rent concessions to which the Group has applied the practical expedient for COVID-19-related rent concessions is 635 and 1,515 , respectively. |
Employees' leaving entitlement
Employees' leaving entitlement | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of information about defined benefit plans [abstract] | |
Employees' leaving entitlement | 21 Employees’ leaving entitlement Changes to employees’ leaving entitlement occurring during 2022 and 2021 are analysed as follows: 31/12/22 31/12/21 Balance at beginning of year 15,588 15,747 Current service cost 80 103 Interest expense 151 51 Benefits paid ( 446 ) ( 940 ) Actuarial losses/(gains) ( 2,309 ) 627 Balance at end of year 13,064 15,588 The employees’ leaving entitlement refers to a defined benefit plan provided for by the Italian legislation due and payable upon termination of employment, assuming immediate separation (see note 4(q)). The principal assumptions used in determining the present value of such defined benefit obligation (“DBO”) related to the employee benefit obligation are reported as follows: 31/12/22 31/12/21 Annual discount rate 3.63 % 0.98 % Annual future salary increase rate 2.30 % 1.75 % Annual inflation rate 2.30 % 1.75 % Annual DBO increase rate 3.23 % 2.81 % Mortality RG48 mortality tables published by the General State Accounting Inability National Institute for Social Security tables, by age and sex Retirement 100% upon achievement of AGO requisites Annual frequency of turnover 2.00 % 2.00 % Annual frequency of DBO advances 2.00 % 2.00 % A quantitative sensitivity analysis for significant assumptions impacting the DBO as at December 31, 2022 and 2021 is reported as follows: 31/12/22 31/12/21 +1% on turnover rate 70 ( 118 ) -1% on turnover rate ( 76 ) 130 +0.25% on annual inflation rate 175 232 -0.25% on annual inflation rate ( 172 ) ( 227 ) +0.25% on annual discount rate ( 268 ) ( 362 ) -0.25% on annual discount rate 276 375 The sensitivity analysis above has been determined based on a method that extrapolates the impact on the defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis is based on a change in a significant assumption, keeping all other assumptions constant. Such analysis may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation from one another. The following are the expected payments of the employees’ leaving entitlement in future years: 31/12/22 31/12/21 Within 1 year 1,027 769 Between 2 and 5 years 2,857 3,223 The average duration of the defined benefit plan as at December 31, 2022 and 2021 are 9.5 and 10.5 years, respectively. Employee benefits Share-based payment arrangements The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognised as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant-date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes. A. Description of share-based payment arrangement In 2022, the Group adopted a stock option plan. In particular, on July 1, 2022, the extraordinary shareholders’ meeting of Natuzzi S.p.A. approved the “Natuzzi 2022-2026” Stock Option Plan for the Natuzzi Group’s key employees and directors (the “SOP”) and granted the Company’s Board of Directors the right to carry out an increase in the share capital of Natuzzi S.p.A., in one or more tranches, with the exclusion of preemptive rights that will be necessary to issue ordinary shares of the Company to the beneficiaries under the SOP. On July 15, 2022, Natuzzi S.p.A. entered into an award agreement with each of three key officers of the Natuzzi Group having strategic functions. The award agreements have the following characteristics: • The beneficiaries of the awards have the right to exercise a predetermined number of options to purchase ordinary shares of Natuzzi S.p.A.; • The right to exercise options by each beneficiary is subject to the continuation of the relevant working relationship as specified in the individual award agreements; • If the continuation of the relevant working relationship requirement is met, then the beneficiary of the award will be entitled to exercise the options on the dates specified in the relevant individual award agreement; • The award agreement also regulates specific events such as termination of continuous service status, disability, death, change in control and delisting of Natuzzi S.p.A. The ordinary shares of Natuzzi S.p.A. are listed on the New York Stock Exchange (“NYSE”) in the form of American Depositary Shares (“ADSs”), issued by a U.S. depositary bank. Each ADS represents 5 ordinary shares of Natuzzi S.p.A. To determine the fair value of an option, it is necessary to compare the price of the underlying ADS of the Company with the strike price relating to each tranche subject to evaluation, the latter multiplied by 5 , since each ADS represents 5 ordinary shares of Natuzzi S.p.A. The terms and conditions of the award agreements entered into as at 31 December 2022 are set forth below . Grant date/beneficiaries Number of equity-based instruments Vesting conditions Contractual life of the options Three key officers having strategic functions – July 15, 2022 562,512 ADSs equivalent to 2,812,560 ordinary shares Continuous service status until the vesting date From 1 to 6 years In particular, the number of ordinary shares of Natuzzi S.p.A. that each of the three beneficiaries can subscribe for pursuant to the relevant award agreements is broken down below and shown in terms of ADS equivalent. Vesting Date Beneficiary 1 Beneficiary 2 Beneficiary 3 Total 15/Aug/22 36,533 6,583 44,000 87,116 31/May/23 54,800 9,874 33,000 97,674 31/May/24 54,800 9,874 38,338 103,012 31/May/25 73,067 13,165 5,338 91,570 31/May/26 73,067 13,165 5,338 91,570 31/May/27 73,067 13,165 5,338 91,570 Total 365,334 65,826 131,352 562,512 The date by which the options can be exercised is December 31, 2027 for beneficiaries 1 and 2 and December 31 of each vesting year up to December 31, 2027 for beneficiary 3. In particular, beneficiary 3 has been granted two sets of stock options with different exercise prices: the first set vesting through December 31, 2024 and granting such beneficiary the right to subscribe for up to 550,000 ordinary shares of Natuzzi S.p.A. (equivalent to 110,000 ADSs) and the second set vesting through December 31, 2027 and granting such beneficiary the right to subscribe for up to 106,760 ordinary shares of Natuzzi S.p.A. (equivalent to 21,352 ADSs) . B. Measurement of fair values The fair value of the stock options granted to each of the three beneficiaries has been measured based on the binomial tree model by Cox, Ross e Rubinstein (binomial tree lattice model). Service and non-market performance conditions attached to the arrangements were not taken into account in measuring fair value. The inputs used in the measurement of the fair values at grant date of the stock options were as follows : Input data Beneficiary 1 Beneficiary 2 Beneficiary 3 Beneficiary 3 Fair value of the ADS option at grant date $ 4.3900 $ 4.3000 $ 4.5300 $ 3.3700 EURUSD exchange rate at grant date n.a. n.a. 1.0059 n.a. Closing price of the ADS at grant date $ 8.8700 $ 8.8700 $ 8.8700 $ 8.8700 Currency of the exercise price U.S. dollar U.S. dollar Euro U.S. dollar Exercise price $ 14.5950 $ 15.3450 $ 5.0295 $ 15.6000 Expected volatility of the stock price (weighted-average) 67.73 % 67.73 % 67.73 % 67.73 % Expected volatility of the EURUSD exchange rate n.a. n.a. 7.27 % n.a. Expected life (weighted-average) * 2.72 years 2.72 years 0.51 years 0.59 years Expected dividends — — — — Risk-free interest rate (based on government bonds) 2.80 % 2.80 % 2.80 % 2.80 % (*) average of the different vesting dates. Expected volatility has been based on an evaluation of the historical volatility of both the price of the underlying ADSs of Natuzzi S.p.A. and EURUSD exchange rate, in particular by considering the relevant time series of the preceding 260 business days. The total fair value of the SOP as at July 15, 2022, as determined by the abovementioned financial method, was equal to $ 2,458,542 . C. Reconciliation of outstanding share options The number and weighted-average exercise prices of the stock options granted in 2022 are the following : Number of options (ADS) Weighted-average exercise price (ADS) Outstanding as at January 1, 2022 — — Granted during the year 562,512 $ 12.85 Forfeited during the year — — Exercised during the year 44,000 $ 5.03 Outstanding as at December 31, 2022 518,512 $ 13.51 Exercisable as at December 31, 2022 43,116 $ 14.71 There are no further options granted during the year in addition to those granted on 15 July 2022. Furthermore, since the Group did not have a stock option plan in 2021 and 2020, no comparative information has been provided . As at December 31, 2022, only one beneficiary exercised the vested portion of its options (August 15, 2022 being the vesting date), by subscribing for 220,000 ordinary shares (equivalent to 44,000 ADSs) at the exercise price of € 1.00 per ordinary share (equal to € 5.00 per ADS), and paying 25% of the applicable purchase price equal to 55,000 . At the same time, upon the capital increase of 220,000 , Natuzzi S.p.A. recognized a receivable from the same beneficiary for the unpaid portion of the purchase price equal to 165,000 . |
Contract liabilities (non-curre
Contract liabilities (non-current and current) | 12 Months Ended |
Dec. 31, 2022 | |
Contract liabilities [abstract] | |
Contract liabilities (non-current and current) | 22 Contract liabilities (non-current and current) Contract liabilities as at December 31, 2022 and 2021 consist of the following: 31/12/22 31/12/21 Advance payments from customers 15,735 19,206 Deferred income from licensing of Natuzzi’s trademarks 5,960 6,343 Deferred revenue for Natuzzi Display System 2,049 2,178 Deferred revenue for Service-Type Warranty 406 475 Total contract liabilities 24,150 28,202 Less current portion ( 17,124 ) ( 20,797 ) Non-current portion 7,026 7,405 “Advance payments from customers” are related to considerations received by the Group upon sale of the Group’s products, and before their delivery to end customers. “Deferred income from licensing Natuzzi’s trademarks” refers to the deferral of revenue deriving from licensing Natuzzi’s Trademarks, to the former subsidiary Natuzzi Trading Shanghai. Such revenue, in the amount of 5,960 (net of the elimination of intercompany profit on the transaction), has been deferred over the useful life ( 20 years ) of the licensed trademarks. “Deferred revenue for Natuzzi Display System” refers to the deferral of revenue deriving from the sale of store fittings to retailers, which are used to set up their stores (“Natuzzi Display System” – NDS). Such revenue is recognised over time based on the length of the distribution contract signed with the retailer (usually five years ). “Deferred revenue for Service-Type Warranty” refers to the deferral of revenue deriving from the sale of a service-type warranty to end customers, which is recognised over time based on the contractual length of the insurance period ( five years ). The amount of revenue recognised for the years ended December 31, 2022, 2021 and 2020 that was included in the opening contract liabilities balance amounts to 20,797 , 16,150 and 14,014 , respectively. |
Provisions (non-current and cur
Provisions (non-current and current) | 12 Months Ended |
Dec. 31, 2022 | |
Provisions [abstract] | |
Provisions (non-current and current) | 23 Provisions (non-current and current) Provisions as at December 31, 2022 and 2021 consist of the following: 31/12/22 31/12/21 Provision for legal claims 8,626 9,403 Provision for tax claims 64 229 Provision for warranties 3,114 2,839 Termination indemnities for sales agents 742 940 Total provisions 12,546 13,411 Less current portion ( 3,114 ) ( 2,839 ) Non-current portion 9,432 10,572 The provision for legal claims includes the amounts accrued by the Group for the probable contingent liability related to legal procedures initiated by several third parties as result of past events. The provision for tax claims refers to the amounts accrued by the Group for the probable liability that will be paid to settle some tax claims. The provision for warranties includes the estimated liabilities for the Group’s obligation to repair or replace faulty products under the assurance warranty terms (see notes 4(r) and 4(t)). The warranty claims for the finished products sold are estimated based on past experience of the level of repairs, faulty products and disputes with customers. The Company expects that these costs will be incurred mainly in the next financial year. Significant assumptions used to calculate the provision for such assurance type warranty are the warranty period for all products sold, current sales levels and historical information available about repairs, faulty products and dispute with customers. The termination indemnities for sales agents refer to termination indemnities, provided for by Italian law, due to the Group’s agents upon termination of their agreement with the Company or relevant subsidiary. Changes in the above provisions for the years ended December 31, 2022 and 2021 are analysed as follows: Provision Provision Provision Termination Total Balance as at December 31, 2020 12,865 360 3,745 1,049 18,019 Provisions made during the year 1,110 — 455 237 1,802 Provisions used during the year ( 4,572 ) ( 105 ) ( 1,339 ) ( 346 ) ( 6,362 ) Provisions reversed during the year — ( 26 ) ( 22 ) — ( 48 ) Balance as at December 31, 2021 9,403 229 2,839 940 13,411 Provisions made during the year 4,785 — 1,774 75 6,634 Provisions used during the year ( 4,888 ) ( 165 ) ( 1,499 ) ( 273 ) ( 6,825 ) Provisions reversed during the year ( 674 ) — — — ( 674 ) Balance as at December 31, 2022 8,626 64 3,114 742 12,546 As at December 31, 2022, the provision for legal claims refers for 7,163 ( 8,608 as at December 31, 2021) to the probable contingent legal liability related to legal procedures initiated by 147 workers against the Company for the misapplication of the social security procedure “CIGS— Cassa Integrazione Guadagni Straordinaria ”. According to the “CIGS” procedure, the Company pays a reduced salary to the worker for a certain period of time based on formal agreements signed with the Trade Unions and other Public Social parties. In particular, these 147 workers are claiming in the legal procedures that the Company applied the “CIGS” during the period from 2004 to 2016 without foreseeing any time rotation. In May 2017, the Company received from the Italian Supreme Court of Justice (“ Corte di Cassazione ”) an adverse verdict for the above litigation related only to two workers. Based on this unfavorable verdict, the Company, with the support of its legal counsel, has assessed that the liability for legal procedures initiated by all the 147 workers is 7,163 . |
Deferred income for government
Deferred income for government grants | 12 Months Ended |
Dec. 31, 2022 | |
Accruals And Deferred Income 1 [Abstract] | |
Deferred income for government grants | 24 Deferred income for government grants Changes in the carrying amount of deferred income for government grants for the years ended December 31, 2022 and 2021 are analysed as follows: 31/12/22 31/12/21 Balance at beginning of year 12,754 12,458 Additions 1,204 1,725 Credit to profit or loss ( 1,716 ) ( 1,429 ) Balance at end of year 12,242 12,754 Government grants are related to benefits the Group obtained in 2022 and previous years from the Italian government as part of the incentive programs for under-industrialised regions in Southern Italy. They have been received to compensate the Group for the purchase of certain items of property, plant and equipment and for certain expenses mainly related to research projects. Deferred income for grants related to property, plant and equipment are credited to profit or loss on a straight-line basis over the expected lives of the related assets. Deferred income for grants related to expenses are credited to profit or loss in the periods in which the costs are recognised. There are no unfulfilled conditions or contingencies attached to these grants, except for that in accordance with the terms of some grants, the Group is prohibited from selling certain items of property, plant and equipment for a period of five years from the date on which the related grant was finally approved by the Italian governmental agency. As at December 31, 2022 the carrying amount of those property, plant and equipment that were actually realized in 2022 amounted to 4,665 . |
Bank overdrafts and short-term
Bank overdrafts and short-term borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Bank Overdrafts And Short Term Borrowings [Abstract] | |
Bank overdrafts and short-term borrowings | 25 Bank overdrafts and short-term borrowings Bank overdrafts and short-term borrowings as at December 31, 2022 and 2021 are analysed as follows: 31/12/22 31/12/21 Bank overdrafts 1,754 1,223 Borrowings related to a recourse factoring agreement 17,307 26,341 Borrowings secured with trade receivables not part of factoring agreement 9,703 8,327 Borrowings unsecured 490 256 Total 29,254 36,147 The weighted average interest rates on the bank overdrafts and short-term borrowings for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 Bank overdrafts 5.12 % 5.53 % Borrowings 3.30 % 3.92 % As at December 31, 2022, the unused portion of credit facilities available to the Group, for which no commitment fees are due, amount to 24,307 ( 14,947 as at December 31, 2021). Such unused portion is related to a recourse factoring agreement for export-related trade receivables ( 21,330 ), borrowings to be secured with trade receivables ( 728 ) and bank overdrafts ( 2,249 ). |
Trade payables
Trade payables | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other current payables [abstract] | |
Trade payables | 26 Trade payables Trade payables as at December 31, 2022 and 2021 are analysed as follows: 31/12/22 31/12/21 Invoices received - supplier not part of factoring facility 42,609 52,110 Invoices received - supplier factoring facility 14,294 13,581 Accruals for invoices to be received 21,496 23,524 Total 78,399 89,215 Trade payables mainly represent amounts payable for purchases of goods and services in Italy and abroad. Trade payables include amounts due to related parties amounting to 59 and nil as at December 31, 2022 and 2021, respectively (see note 42). The Parent participates in a supply chain finance programme (SCF) under which certain of its suppliers may elect to receive early payment of their invoices from a bank by factoring their receivables from the Parent. Under the arrangement, a bank agrees to pay amounts to a participating supplier in respect of invoices owed by the Parent and receives settlement from the Parent at a later date. The principal purpose of this programme is to facilitate efficient payment processing and enable the willing suppliers to sell their receivables due from the Parent to a bank before their due date. The Parent has not derecognised the original liabilities to which the arrangement applies because neither a legal release was obtained nor was the original liability substantially modified on entering into the arrangement. From the Parent’s perspective, the arrangement does not significantly extend payment terms beyond the normal terms agreed with other suppliers that have not elected to participate in the program. The Parent, therefore, presents the amounts factored by these suppliers as trade payables because the nature and function of the financial liability remain the same as those of other trade payables but discloses disaggregated amounts in this note. All payables under the SCF program are classified as current as at December 31, 2022 and 2021. The payments to the bank are included within operating cash flows because they continue to be part of the Group’s normal operating cycle and their principal nature remains operating – i.e., payments for the purchase of goods and services. |
Other payables
Other payables | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other current payables [abstract] | |
Other payables | 27 Other payables Other payables as at December 31, 2022 and 2021 are analysed as follows: 31/12/22 31/12/21 Salaries and wages 9,503 7,991 Social security contributions 6,179 5,898 Vacation accrual 4,342 4,397 Withholding taxes on payroll and on others 1,886 2,000 Advance payment from the Parent’s majority shareholder 2,500 2,500 Other accounts payable 9,912 8,667 Total 34,322 31,453 As at December 31, 2022, the amount of 2,500 refers to the payment received from the Parent’s majority shareholder and to be reimbursed in September 2023, as the Board of Directors of the Company did not call a shareholders' meeting to resolve upon the increase in share capital. Specifically, in light of the extraordinary challenges imposed by COVID-19 on the Group, on February 28, 2020, the Parent’s majority shareholder entered into an agreement with it setting forth its undertaking, should the Parent so request, to make advance payments of up to 15,000 to satisfy the subscription price of a future rights issue. On February 28, 2020, the Parent requested an initial payment of 2,500 which it received on March 2, 2020. Therefore, as at December 31, 2022, the amount of 2,500 to be paid back to the majority shareholder has been included in the caption “Other payables” of the statement of financial position. |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Current Liabilities [Abstract] | |
Other liabilities | 28 Other liabilities Other liabilities as at December 31, 2022 and 2021 are analysed as follows: 31/12/22 31/12/21 Advance payments for government grants — 412 Total — 412 As at December 31, 2022 and 2021, advance payments for government grants are related to considerations received by the Parent for government grants obtained for next years’ purchases of some property, plant and equipment and next years’ expenses related to research projects. In 2022, the Parent Company fully spent the advance payments received. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Financial Instruments [Abstract] | |
Derivative financial instruments | 29 Derivative financial instruments A significant portion of the Group’s revenue and costs are denominated in currencies other than the Euro. Consequently, a significant portion of its revenue and costs is exposed to fluctuations in the exchange rates between the Euro and other currencies. The Group uses forward exchange contracts (known in Italy as domestic currency swaps) to reduce its exposure to the risks of short-term decrease in the value of its foreign currency denominated revenue. The Group uses such derivative instruments to protect the value of its foreign currency denominated revenue, and not for speculative or trading purposes. Despite being entered into such domestic currency swaps with the intent to reduce the foreign currency exposure risk for trade receivables and expected sales, the Group’s derivative financial instruments do not qualify for being accounted for as hedging instruments according to IAS 39. Therefore, the Company reflects the positive or negative changes in the fair value of those derivatives through profit or loss in the caption “Net exchange rate gains/(losses)”. The tables below summarise in euro equivalent the contractual amounts of forward exchange contracts used to hedge principally future cash flows from trade receivables and sale orders as at December 31, 2022 and 2021. 31/12/22 31/12/21 British pounds 13,753 14,723 U.S. dollars 11,598 20,532 Euro 9,720 12,192 Chinese renminbi 7,428 — Australian dollars 1,624 1,826 Japanese yen 861 1,152 Canadian dollars — 812 Swedish kroner — 99 Total 44,984 51,336 The following tables present information regarding the contract amount in euro equivalent amount and the estimated fair value of all of the Group’s forward exchange contracts. Contracts with net unrealized gains are presented as “assets” and contracts with net unrealized losses are presented as “liabilities”. 2022 2021 Contract Unrealised Contract Unrealised Assets 38,474 925 18,159 96 Liabilities 6,510 ( 66 ) 33,177 ( 691 ) Total 44,984 859 51,336 ( 595 ) As at December 31, 2022 and 2021, the forward exchange contracts have a net unrealized income 859 and expense of 595 , respectively. These amounts are recorded in net exchange rate gains/(losses) in the consolidated statements of profit or loss (see note 37). |
Financial Instruments - Fair va
Financial Instruments - Fair values and risk management | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments - Fair values and risk management | 90 days Total
Trade receivables subject to collective valuation 2,332 68 84 30 2,514
Trade receivables subject to specific valuation 42,146
Total gross carrying amount 44,660
Default rate 0.53 % 5.46 % 17.08 % 43.47 %
Expected credit loss 12 4 14 13 43 December 31, 2021
Days past due
<30 days 30-60 days 61-90 days > 90 days Total
Trade receivables subject to collective valuation 15,783 266 6 — 16,055
Trade receivables subject to specific valuation 30,529
Total gross carrying amount 46,584
Default rate 0.54 % 5.55 % 12.71 % 28.86 %
Expected credit loss 85 15 1 — 101 (ii-b) Other receivables As at December 31, 2022 and 2021 other receivables current and non-current amount to 22,173 and 15,872 , respectively. Such receivables are considered to have a low credit risk and the impairment loss has been measured on a 12-months expected credit loss basis. Management considers its other receivables to have a low credit risk as they have a low risk of default and their counterparties are able to meet their contractual cash flow obligations in the short-term. As at December 31, 2022 and 2021 the identified impairment loss of other receivables is immaterial. (ii-c) Cash and cash equivalents As at December 31, 2022 and 2021 the Group has cash and cash equivalents of 54,475 and 53,472 , respectively. Indeed, the Group considers its cash and cash equivalents to have a low credit risk based on the external credit ratings of the financial institutions. Indeed, the Group’s cash and cash equivalents are held with financial institutions, which have external credit risk ratings that are equivalent to the understood definition of “investment grade”. Impairment of cash and cash equivalents has been measured on a 12-months expected credit loss basis and reflects the short-term nature of the exposures. As at December 31, 2022 and 2021 the identified impairment loss of cash and cash equivalents is immaterial. (ii-d) Derivative financial instruments Domestic currency swaps (see note 29) are entered into with financial institutions that have outstanding external credit ratings (“investment grade”). As at December 31, 2022 and 2021 the identified impairment loss of the favourable domestic currency swaps is immaterial. (iii) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group aims to maintain the level of its cash and cash equivalents at an amount in excess of expected cash outflows on financial liabilities over the next 60 days. The Group also monitors the level of expected cash inflows on trade and other receivables together with expected cash outflows on trade and other payables. As at December 31, 2022, the expected cash flows from trade and other receivables maturing within two months were in excess of the expected cash outflows for trade and other payables due within two months. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted. As described in note 26, the Group also participates in a supply chain financing arrangement (SCF) with the principal purpose of facilitating efficient payment processing of supplier invoices. The SCF allows the Group to centralise payments of trade payables to the bank rather than paying each supplier individually. While the SCF does not significantly extend payment terms beyond the normal terms agreed with other suppliers that have not participated, the arrangement assists in making cash outflows more predictable. Therefore, the Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, short-term borrowings and long-term borrowings. The steps taken by the Group in 2020, 2021 and 2022 to respond to possible future liquidity constraints, arising from the COVID-19 pandemic and from the effects of inflation and increased interest rates, together with the impact of those steps on the consolidated financial statements include the following. — In July 2020, the Parent signed the renewal for an additional five-year period of a factoring agreement with a major Italian financial institution. Under this agreement, the Parent assigns certain trade receivables to such financial institution in exchange for short-term borrowings for a maximum amount of 40,000 . Trade receivables sold under such agreement are not derecognised from the statement of financial position, because the Parent retains substantially all of the risk and rewards – primarily credit risk (see note 15). The amount received on their transfer is recognised as a secured bank borrowing (see note 25). — Following the “Share Sell and Purchase agreement” (the “Agreement”) signed with Vita Group on January 8, 2021, on March 1, 2021, the Parent sold its entire interest in the subsidiary IMPE S.p.A. for a consideration of 8,202 , of which the last tranche was collected in March 2022 (see note 7). — In March 2021, the Romanian subsidiary obtained a long-term loan from a financial institution, amounting to 5,000 . This loan, which is guaranteed by a Romanian governmental authority, has been made available by the Romanian government as part of the COVID-19 measures to support businesses. Such loan has instalments repayable on a monthly basis starting from October 2021, after the six-month interest-only period, and ending in March 2025. This long-term debt provides for variable interest installments determined based on the six-month Euribor (360) plus a 2.75 % spread (see note 19). — In January 2022, the Parent obtained a long-term loan from a financial institution, amounting to 4,000 . This loan, which is guaranteed by an Italian governmental authority, has been made available by the Italian government as part of the COVID-19 measures to support businesses. Such loan has installments repayable on a quarterly basis starting from January 2023, after the 12-month interest-only period, and ending in December 2027. This long-term debt provides for variable interest installments determined based on the three-month Euribor (360) plus a 2.00 % spread (see note 19). — In March 2022, the capital increase of Natuzzi Singapore took place, fully subscribed by a new shareholder who acquired a 20 % stake for a consideration of 4,885 (see note 2). The tables below summarize the remaining contractual maturities of financial liabilities as at December 31, 2022 and 2021. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements. December 31, 2022
Less than 2 to 12 1 to 2 2 to 5 More than Total
Long-term borrowings 577 6,015 4,124 5,534 2,273 18,523
Lease liabilities 1,895 11,509 10,190 24,926 12,820 61,340
Bank overdrafts and short-term borrowings 29,254 — — — — 29,254
Trade and other payables 34,322 78,399 — — — 112,721
Losses on derivative financial instruments 66 — — — — 66
Total financial liabilities 66,114 95,923 14,314 30,460 15,093 221,904 December 31, 2021
Less than 2 to 12 1 to 2 2 to 5 More than Total
Long-term borrowings 774 3,981 5,935 6,006 2,807 19,503
Lease liabilities 1,889 11,241 12,760 25,659 14,305 65,854
Bank overdrafts and short-term borrowings 36,147 — — — — 36,147
Trade and other payables 31,453 89,215 — — — 120,668
Losses on derivative financial instruments 691 — — — — 691
Total financial liabilities 70,954 104,437 18,695 31,665 17,112 242,863 As disclosed in note 19, the Group has secured bank loans that contain covenants. A future breach of covenants may require the Group to repay the loan earlier than indicated in the above table. Under the agreement, the covenants are monitored on a regular basis by the treasury department and regularly reported to management to ensure compliance with the agreement. The interest payments on variable interest rate loans in the tables above reflect market forward interest rates at the reporting date and these amounts may change as market interest rates change. Except for these financial liabilities, it is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. In addition, the following is to be considered: (a) as at December 31, 2022, the Group has unused credit lines of 24,307 (see note 25); (b) the Company can use the credit facilities of its subsidiaries adhering to the cash pooling contract in place; from time to time, the Company evaluates the adequacy of such credit facilities, requesting additional facilities as needed; (c) the Group holds cash at foreign subsidiaries, that can be withdrawn by the Company subject to the approval of a dividend distribution; some of these dividends are subject to withholding taxes; (d) the Company can apply for long-term borrowings to sustain long-term investments; (e) there are no significant liquidity risk concentrations, both on financial assets and on financial liabilities. (iv) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (e.g., interest rates, foreign exchange rates). Market risk, mainly, depends on the trend of the demand for furniture and other finished products, the trend in prices of raw materials and the fluctuation of interest rates and foreign currencies. The market demand risk is managed by way of a constant monitoring of markets, performed by the commercial division of the Group, market diversification in the different geographical locations of customers and a product diversification in the different brands and models. In order to manage the prices of raw materials risk, the Group constantly monitors procurement policies and attempts to diversify suppliers while respecting the quality standards expected by the market. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term borrowings obligations with floating interest rates. The Group manages its interest rate risk by having a portfolio of fixed and variable rate borrowings. As at December 31, 2022, approximately 39.7 % of the Group’s borrowings were at a fixed rate of interest (2021: 46.4 %). No derivative financial instruments were entered into by the Group to manage the cash flow risk on floating interest-rate borrowings. The following tables demonstrate the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Group’s profit before tax is affected through the impact on floating rate borrowings as follows:
Increase/decrease Effect on profit
December 31, 2022 +45 ( 52 )
December 31, 2022 -45 52
December 31, 2021 +45 ( 43 )
December 31, 2021 -45 43
December 31, 2020 +45 ( 38 )
December 31, 2020 -45 38 Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities (when revenue or expense is denominated in a foreign currency) and the Group’s net investments in foreign subsidiaries. In particular, a significant portion of the Group’s revenue and costs are denominated in currencies other than the Euro. Consequently, a significant portion of its revenue and costs is exposed to fluctuations in the exchange rates between the Euro and other currencies. The Group uses forward exchange contracts (known in Italy as domestic currency swaps) to reduce its exposure to the risks of short-term decreases in the value of its foreign currency denominated revenue. For further details, see note 29. When a derivative is entered into for the purpose of being a hedge, the Group negotiates the terms of the derivative to match the terms of the hedged exposure. For hedges of forecast transactions, the derivative covers the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable that is denominated in the foreign currency. The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rates, with all other variables held constant. The Group’s profit before tax is affected through the change in foreign in exchange rates as follows:
Change in foreign Effect on profit
December 31, 2022 + 5 % 4,287
December 31, 2022 - 5 % ( 4,798 )
December 31, 2021 + 5 % 5,381
December 31, 2021 - 5 % ( 5,113 )
December 31, 2020 + 5 % 2,161
December 31, 2020 - 5 % ( 2,447 ) As at December 31, 2022 and 2021 the Group’s financial assets and financial liabilities denominated in foreign currency are as follows:
Financial assets 31/12/22 31/12/21
Trade receivables 25,055 29,434
Cash and cash equivalents 45,820 48,014
Total financial assets 70,875 77,448
Financial liabilities 31/12/22 31/12/21
Long-term borrowings 461 611
Lease liabilities 35,602 37,643
Bank overdraft and short-term borrowings 14,668 24,783
Trade payables 27,169 35,524
Total financial liabilities 77,900 98,561 As at December 31, 2022 and 2021, the summary quantitative data about Group’s exposure to currency risk as reported to the management of the Group is as follows: December 31, 2022
Financial Financial Net Exposure
U.S. dollars 35,160 41,618 ( 6,458 )
Chinese Yuan 14,681 8,206 6,475
British pounds 9,499 10,089 ( 590 )
Brazilian Reais 4,457 2,371 2,086
Canadian dollars 397 427 ( 30 )
Romanian Leu 2,723 8,732 ( 6,009 )
Mexican pesos 1,713 1,850 ( 137 )
Other 2,245 4,607 ( 2,362 )
Total 70,875 77,900 ( 7,025 ) December 31, 2021
Financial Financial Net Exposure
U.S. dollars 29,658 46,930 ( 17,272 )
Chinese Yuan 18,927 14,192 4,735
British pounds 15,027 16,664 ( 1,637 )
Brazilian Reais 4,334 2,435 1,899
Canadian dollars 2,263 1,290 973
Mexican pesos 1,395 1,883 ( 488 )
Romanian Leu 666 7,934 ( 7,268 )
Other 5,178 7,233 ( 2,055 )
Total 77,448 98,561 ( 21,113 ) (v) Reconciliation of movements of liabilities to cash flows arising from financing activities The following tables show the reconciliation of movements of financial liabilities to cash flows arising from financing activities for the three years ended December 31, 2022, 2021 and 2020. December 31, 2022
Jan. 1, 2022 Cash outflows Cash inflows Changes in Other Dec. 31, 2022
Long-term borrowings 17,439 ( 4,473 ) 4,038 — 286 17,290
Lease liabilities 57,138 ( 10,049 ) — — 4,760 51,849
Short-term borrowings 34,924 ( 7,424 ) — — — 27,500
Bank overdrafts 1,223 — 531 — — 1,754
Non-controlling interests 1,511 ( 551 ) 1,739 — 1,999 4,698
Total liabilities from financing activities 112,235 ( 22,497 ) 6,308 — 7,045 103,091 Bank overdrafts are used only for cash management purposes. December 31, 2021
Jan. 1, 2021 Cash outflows Cash inflows Changes in Other Dec. 31, 2021
Long-term borrowings 16,426 ( 4,788 ) 5,873 — ( 72 ) 17,439
Lease liabilities 53,593 ( 10,090 ) — — 13,635 57,138
Short-term borrowings 28,701 — 6,210 — 13 34,924
Bank overdrafts 2,111 ( 888 ) — — — 1,223
Non-controlling interests 1,020 ( 545 ) 144 — 892 1,511
Total liabilities from financing activities 101,851 ( 16,311 ) 12,227 — 14,468 112,235 Bank overdrafts are used only for cash management purposes. December 31, 2020
Jan. 1, 2020 Cash outflows Cash inflows Changes in Other Dec. 31, 2020
Long-term borrowings 18,412 ( 2,675 ) 875 — ( 186 ) 16,426
Lease liabilities 57,367 ( 9,907 ) — — 6,133 53,593
Short-term borrowings 22,196 — 6,518 — ( 13 ) 28,701
Bank overdrafts 1,974 — 137 — — 2,111
Non-controlling interests 1,692 ( 388 ) — — ( 284 ) 1,020
Total liabilities from financing activities 101,641 ( 12,970 ) 7,530 — 5,650 101,851 Bank overdrafts are used only for cash management purposes." id="sjs-B4">30 Financial Instruments – Fair values and risk management IFRS 9 “Financial Instruments” sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. This standard replaced IAS 39 “Financial Instruments: Recognition and Measurement”. The Group has applied this new standard from January 1, 2018 (date of initial application), but has elected not to apply the new requirements for hedge accounting. IFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit and loss (FVTPL). The classification of financial assets under IFRS 9 is generally based on the business model within which a financial asset is managed and its contractual cash flow characteristics. The Group’s principal financial assets, other than derivatives, include cash and cash equivalents, trade and other receivables that derive directly from operations. The Group’s principal financial liabilities, other than derivatives, comprise of long-term borrowings, lease liabilities, bank overdrafts and short-term borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Group’s operations. The Group also enters into derivative transactions, namely forward exchange contracts, to protect the value of its foreign currency denominated revenue, not for speculative or trading purposes (see note 29). For an explanation of how the Group classifies and measures financial instruments and accounts for related gains and losses under IFRS 9, see notes 4(l), 4(m), 4(n), 4(o), 4(p) and 4(s). A. Accounting classification of financial assets and financial liabilities The following tables show the classification and carrying amounts of Group’s financial assets and financial liabilities as at December 31, 2022 and 2021. Financial assets 31/12/22 31/12/21 Financial assets measured at amortised cost Other non-current receivables 5,894 4,854 Trade receivables 39,056 41,259 Other current receivables 16,279 11,018 Cash and cash equivalents 54,475 53,472 Total (a) 115,704 110,603 Financial assets measured at fair value Forward exchange contracts 925 96 Total (b) 925 96 Total financial assets (a+b) 116,629 110,699 Financial assets measured at amortised cost include trade receivables, other receivables (non-current and current) and cash and cash equivalents. Financial assets at fair value reflect the positive change in fair value of forward exchange contracts that are not designated as hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk for future cash flows from accounts receivables and sale orders. For further details on “Trade receivables”, “Other receivables”, “Cash and cash equivalents” and “Forward exchange contracts” reference should be made to notes 15, 12-16, 17 and 29, respectively. Financial liabilities 31/12/22 31/12/21 Financial liabilities measured at amortised cost Long-term borrowings 17,289 17,439 Lease liabilities 51,849 57,138 Bank overdrafts and short-term borrowings 29,254 36,147 Trade payables 78,399 89,215 Other payables 34,322 31,453 Total (a) 211,113 231,392 Financial liabilities measured at fair value Forward exchange contracts 66 691 Total (b) 66 691 Total financial liabilities (a+b) 211,179 232,083 Financial liabilities measured at amortised cost include long-term borrowings (non-current and current portion), lease liabilities (non-current and current portion), bank overdrafts and short-term borrowings, trade payables and other payables. Financial liabilities measured at fair value reflect the negative change in fair value of forward exchange contracts that are not designated as hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk for expected future cash flows from trade receivables and sale orders. For further details on “Long-term borrowings”, “Lease liabilities”, “Bank overdrafts and short-term borrowings”, “Trade payables”, “Other payables” and “Forward exchange contracts” reference should be made to notes 19, 20, 25, 26, 27 and 29, respectively. B. Fair value and measurement of fair values of financial assets and financial liabilities Management has assessed that the fair values of cash and cash equivalents, trade and other receivables, trade and other payables, bank overdrafts and short-term borrowings approximate their carrying amounts largely due to the short-term maturities of these instruments. The following tables show the carrying amount and fair value of Group’s financial assets and financial liabilities as at December 31, 2022 and 2021, other than those with carrying amount that are reasonable approximation of fair value. 31/12/22 31/12/21 Carrying Fair Carrying Fair Financial assets Forward exchange contracts 925 925 96 96 Financial liabilities Floating-rate borrowings 10,423 10,540 9,347 9,552 Fixed rate borrowings 6,866 7,925 8,092 9,308 Total long-term borrowings 17,289 18,465 17,439 18,860 Forward exchange contracts 66 66 691 691 As at December 31, 2022 and 2021, the fair value measurement hierarchy of the forward exchange contracts and long-term borrowings is “significant observable inputs” (level 2). There were no transfers between level 1 (quoted prices in active markets) and level 2 during 2 0 22 and 2021. There were no level 3 (significant unobservable inputs) fair values estimated as at December 31, 2 0 22 and 2021. The following methods and assumptions are used to estimate the fair values. Forward exchange contracts are valued using valuation techniques, which employ the use of market observable inputs. The most frequently applied valuation techniques include forward pricing using present value calculations. The models incorporate various inputs, including the credit quality of counterparties, foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. The fair values of the Group’s interest-bearing borrowings are determined using the discounted cash flow method. The discount rate used reflects the issuer’s borrowing rate as at the end of the reporting period. The own non-performance risk as at December 31, 2022 and 2021 is determined to be insignificant. C. Financial risk management The Group has exposure to the following risks arising from financial instruments: — credit risk; — liquidity risk and — market risk. (i) Risk management framework The management of the Group’s risks arising from financial instruments is performed on the basis of guidelines set by the Company’s Board of Directors. The main purpose of these guidelines is to balance the Group’s liabilities and assets, in order to ensure an adequate capital viability. The main financial sources of the Group are represented by a mix of equity and financial liabilities, including long-term borrowings used to finance investments, bank overdrafts and short-term borrowings used to finance the Group’s working capital. (ii) Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from customers. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in this note. Impairment losses on financial assets recognised in profit or loss for the years ended December 31, 2022, 2021 and 2020 are related mainly to trade receivables and are as follows: 2022 2021 2020 Impairment loss on trade receivables 331 110 1,802 For the year ended December 31, 2022, the Group accrued an impairment loss on trade receivables of 331 . (ii-a) Trade receivables The Group’s customers are distributors, retailers and end consumers. The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate. Details of concentration of revenue are included in note 31. Customer credit risk is managed on the basis of the Group’s established policies, procedures and controls relating to customer credit risk management. In particular, the Group has established a credit policy under which each customer is analysed individually for creditworthiness before the Group’s standard payment and delivery terms and conditions are offered. The Group’s review includes external ratings, if they are available, financial statements, credit agency information, industry information and in some cases bank references. After such review, sale limits are established for each customer and reviewed periodically. Any sales exceeding those limits require approval from senior management. Furthermore, the Group limits its exposure to credit risk from trade receivables by establishing a maximum payment period in the range of 30 - 90 days for individual customers. During 2022, the Group extended the credit terms to up to 120 days for certain customers who placed orders concerning the fitting out of the point of sale (so-called "sampling" orders). All extensions were granted within current sales limits after careful consideration of the creditworthiness of the customer and each customer that was granted an extension is closely monitored for credit deterioration. In order to mitigate credit risk, sales to distributors or retailers for which no payment extensions are granted due to an uncertain creditworthiness assessment, are required to be settled in cash (“cash against documents”, “cash on delivery”, “payment in advance”). Furthermore, sales to the end consumers are also required to be settled in cash or using major credit cards, thus mitigating the credit risk. More than 80 % of the Group’s distributors and retailers have been transacting with the Group for at least five years , and none of these customers’ balances have been written off or are credit‑impaired at the reporting date. In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether they are a distributor or retailer, their geographic location, industry, trading history with the Group and the existence of previous financial difficulties. The Group does not require collateral to be given for trade receivables. The Group does not have trade receivables for which no loss allowance is recognised because of collateral provided. Management closely monitors the outstanding trade receivables to prevent losses. Finally, in order to significantly reduce its exposure to credit risk, the Group insures the non-collection risk related to a significant portion of its trade receivables with a third party insurer and, in the case of customer insolvency, the insurance company refunds about 85 % of the uncollected outstanding balances. Accordingly, the credit risk is entirely borne by the Group for non-insured trade receivables while it is only exposed to approximately 15 % for insured trade receivables. The Group evaluates the concentration of risk with respect to trade receivables and revenue as low, as its customers are located in several jurisdictions and operate in largely independent markets (see notes 1 5 and 31). Furthermore, as at December 31, 2022, 2021 and 2020, the Group had one customer , the joint venture Natuzzi Trading Shanghai, whose purchases exceeded 5 % of revenue and trade receivables (see note 42). 31/12/22 31/12/21 31/12/20 Revenue 59,838 48,457 38,401 Trade receivables 5,314 6,953 5,961 As at December 31, 2022 and 2021, insured and non-insured trade receivables are as follows: 31/12/22 31/12/21 Insured trade receivables 25,624 26,459 Non-insured trade receivables 19,036 20,125 Gross trade receivables 44,660 46,584 Provision for doubtful accounts ( 5,604 ) ( 5,325 ) Net trade receivables 39,056 41,259 As at December 31, 2022 and 2021 the ageing of trade receivables is as follows: 31/12/22 31/12/21 Current (not past due) 29,111 30,146 From 1 to 29 days past due 7,158 7,854 From 30 to 60 days past due 1,355 1,030 From 61 to 90 days past due 563 355 More than 90 days past due 6,473 7,199 Gross trade receivables 44,660 46,584 Provision for doubtful accounts ( 5,604 ) ( 5,325 ) Net trade receivables 39,056 41,259 The movements in the provision for doubtful accounts in respect of trade receivables for the years ended December 31, 2022 and 2021 are reported in note 15. The provision for doubtful accounts is estimated by the Group based on the insurance in place, the credit worthiness of its customers, historical trends, as well as current and future general economic conditions. Specifically, for receivables subject to collective valuation an impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The impairment allowance rates (default rates) are based on days past due for groupings of various customer segments with similar loss patterns (i.e., by customer type and rating, and coverage by credit insurance). The calculation reflects the probability-weighted outcome based on reasonable and supportable information available at the reporting date about past events, current conditions and forecasts of future economic conditions. Instead, for individual receivables which are known to be difficult to collect an impairment analysis is performed at each reporting date to measure expected credit losses. The impairment allowance is estimated by the Group based on the financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and default or late payments. Set out below is the information about the credit risk exposure on the Group’s trade receivables using a provision matrix as at December 31, 2022 and 2021, further to the adoption of IFRS 9. December 31, 2022 Days past due <30 days 30-60 days 61-90 days > 90 days Total Trade receivables subject to collective valuation 2,332 68 84 30 2,514 Trade receivables subject to specific valuation 42,146 Total gross carrying amount 44,660 Default rate 0.53 % 5.46 % 17.08 % 43.47 % Expected credit loss 12 4 14 13 43 December 31, 2021 Days past due <30 days 30-60 days 61-90 days > 90 days Total Trade receivables subject to collective valuation 15,783 266 6 — 16,055 Trade receivables subject to specific valuation 30,529 Total gross carrying amount 46,584 Default rate 0.54 % 5.55 % 12.71 % 28.86 % Expected credit loss 85 15 1 — 101 (ii-b) Other receivables As at December 31, 2022 and 2021 other receivables current and non-current amount to 22,173 and 15,872 , respectively. Such receivables are considered to have a low credit risk and the impairment loss has been measured on a 12-months expected credit loss basis. Management considers its other receivables to have a low credit risk as they have a low risk of default and their counterparties are able to meet their contractual cash flow obligations in the short-term. As at December 31, 2022 and 2021 the identified impairment loss of other receivables is immaterial. (ii-c) Cash and cash equivalents As at December 31, 2022 and 2021 the Group has cash and cash equivalents of 54,475 and 53,472 , respectively. Indeed, the Group considers its cash and cash equivalents to have a low credit risk based on the external credit ratings of the financial institutions. Indeed, the Group’s cash and cash equivalents are held with financial institutions, which have external credit risk ratings that are equivalent to the understood definition of “investment grade”. Impairment of cash and cash equivalents has been measured on a 12-months expected credit loss basis and reflects the short-term nature of the exposures. As at December 31, 2022 and 2021 the identified impairment loss of cash and cash equivalents is immaterial. (ii-d) Derivative financial instruments Domestic currency swaps (see note 29) are entered into with financial institutions that have outstanding external credit ratings (“investment grade”). As at December 31, 2022 and 2021 the identified impairment loss of the favourable domestic currency swaps is immaterial. (iii) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group aims to maintain the level of its cash and cash equivalents at an amount in excess of expected cash outflows on financial liabilities over the next 60 days. The Group also monitors the level of expected cash inflows on trade and other receivables together with expected cash outflows on trade and other payables. As at December 31, 2022, the expected cash flows from trade and other receivables maturing within two months were in excess of the expected cash outflows for trade and other payables due within two months. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted. As described in note 26, the Group also participates in a supply chain financing arrangement (SCF) with the principal purpose of facilitating efficient payment processing of supplier invoices. The SCF allows the Group to centralise payments of trade payables to the bank rather than paying each supplier individually. While the SCF does not significantly extend payment terms beyond the normal terms agreed with other suppliers that have not participated, the arrangement assists in making cash outflows more predictable. Therefore, the Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, short-term borrowings and long-term borrowings. The steps taken by the Group in 2020, 2021 and 2022 to respond to possible future liquidity constraints, arising from the COVID-19 pandemic and from the effects of inflation and increased interest rates, together with the impact of those steps on the consolidated financial statements include the following. — In July 2020, the Parent signed the renewal for an additional five-year period of a factoring agreement with a major Italian financial institution. Under this agreement, the Parent assigns certain trade receivables to such financial institution in exchange for short-term borrowings for a maximum amount of 40,000 . Trade receivables sold under such agreement are not derecognised from the statement of financial position, because the Parent retains substantially all of the risk and rewards – primarily credit risk (see note 15). The amount received on their transfer is recognised as a secured bank borrowing (see note 25). — Following the “Share Sell and Purchase agreement” (the “Agreement”) signed with Vita Group on January 8, 2021, on March 1, 2021, the Parent sold its entire interest in the subsidiary IMPE S.p.A. for a consideration of 8,202 , of which the last tranche was collected in March 2022 (see note 7). — In March 2021, the Romanian subsidiary obtained a long-term loan from a financial institution, amounting to 5,000 . This loan, which is guaranteed by a Romanian governmental authority, has been made available by the Romanian government as part of the COVID-19 measures to support businesses. Such loan has instalments repayable on a monthly basis starting from October 2021, after the six-month interest-only period, and ending in March 2025. This long-term debt provides for variable interest installments determined based on the six-month Euribor (360) plus a 2.75 % spread (see note 19). — In January 2022, the Parent obtained a long-term loan from a financial institution, amounting to 4,000 . This loan, which is guaranteed by an Italian governmental authority, has been made available by the Italian government as part of the COVID-19 measures to support businesses. Such loan has installments repayable on a quarterly basis starting from January 2023, after the 12-month interest-only period, and ending in December 2027. This long-term debt provides for variable interest installments determined based on the three-month Euribor (360) plus a 2.00 % spread (see note 19). — In March 2022, the capital increase of Natuzzi Singapore took place, fully subscribed by a new shareholder who acquired a 20 % stake for a consideration of 4,885 (see note 2). The tables below summarize the remaining contractual maturities of financial liabilities as at December 31, 2022 and 2021. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements. December 31, 2022 Less than 2 to 12 1 to 2 2 to 5 More than Total Long-term borrowings 577 6,015 4,124 5,534 2,273 18,523 Lease liabilities 1,895 11,509 10,190 24,926 12,820 61,340 Bank overdrafts and short-term borrowings 29,254 — — — — 29,254 Trade and other payables 34,322 78,399 — — — 112,721 Losses on derivative financial instruments 66 — — — — 66 Total financial liabilities 66,114 95,923 14,314 30,460 15,093 221,904 December 31, 2021 Less than 2 to 12 1 to 2 2 to 5 More than Total Long-term borrowings 774 3,981 5,935 6,006 2,807 19,503 Lease liabilities 1,889 11,241 12,760 25,659 14,305 65,854 Bank overdrafts and short-term borrowings 36,147 — — — — 36,147 Trade and other payables 31,453 89,215 — — — 120,668 Losses on derivative financial instruments 691 — — — — 691 Total financial liabilities 70,954 104,437 18,695 31,665 17,112 242,863 As disclosed in note 19, the Group has secured bank loans that contain covenants. A future breach of covenants may require the Group to repay the loan earlier than indicated in the above table. Under the agreement, the covenants are monitored on a regular basis by the treasury department and regularly reported to management to ensure compliance with the agreement. The interest payments on variable interest rate loans in the tables above reflect market forward interest rates at the reporting date and these amounts may change as market interest rates change. Except for these financial liabilities, it is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. In addition, the following is to be considered: (a) as at December 31, 2022, the Group has unused credit lines of 24,307 (see note 25); (b) the Company can use the credit facilities of its subsidiaries adhering to the cash pooling contract in place; from time to time, the Company evaluates the adequacy of such credit facilities, requesting additional facilities as needed; (c) the Group holds cash at foreign subsidiaries, that can be withdrawn by the Company subject to the approval of a dividend distribution; some of these dividends are subject to withholding taxes; (d) the Company can apply for long-term borrowings to sustain long-term investments; (e) there are no significant liquidity risk concentrations, both on financial assets and on financial liabilities. (iv) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (e.g., interest rates, foreign exchange rates). Market risk, mainly, depends on the trend of the demand for furniture and other finished products, the trend in prices of raw materials and the fluctuation of interest rates and foreign currencies. The market demand risk is managed by way of a constant monitoring of markets, performed by the commercial division of the Group, market diversification in the different geographical locations of customers and a product diversification in the different brands and models. In order to manage the prices of raw materials risk, the Group constantly monitors procurement policies and attempts to diversify suppliers while respecting the quality standards expected by the market. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term borrowings obligations with floating interest rates. The Group manages its interest rate risk by having a portfolio of fixed and variable rate borrowings. As at December 31, 2022, approximately 39.7 % of the Group’s borrowings were at a fixed rate of interest (2021: 46.4 %). No derivative financial instruments were entered into by the Group to manage the cash flow risk on floating interest-rate borrowings. The following tables demonstrate the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Group’s profit before tax is affected through the impact on floating rate borrowings as follows: Increase/decrease Effect on profit December 31, 2022 +45 ( 52 ) December 31, 2022 -45 52 December 31, 2021 +45 ( 43 ) December 31, 2021 -45 43 December 31, 2020 +45 ( 38 ) December 31, 2020 -45 38 Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities (when revenue or expense is denominated in a foreign currency) and the Group’s net investments in foreign subsidiaries. In particular, a significant portion of the Group’s revenue and costs are denominated in currencies other than the Euro. Consequently, a significant portion of its revenue and costs is exposed to fluctuations in the exchange rates between the Euro and other currencies. The Group uses forward exchange contracts (known in Italy as domestic currency swaps) to reduce its exposure to the risks of short-term decreases in the value of its foreign currency denominated revenue. For further details, see note 29. When a derivative is entered into for the purpose of being a hedge, the Group negotiates the terms of the derivative to match the terms of the hedged exposure. For hedges of forecast transactions, the derivative covers the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable that is denominated in the foreign currency. The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rates, with all other variables held constant. The Group’s profit before tax is affected through the change in foreign in exchange rates as follows: Change in foreign Effect on profit December 31, 2022 + 5 % 4,287 December 31, 2022 - 5 % ( 4,798 ) December 31, 2021 + 5 % 5,381 December 31, 2021 - 5 % ( 5,113 ) December 31, 2020 + 5 % 2,161 December 31, 2020 - 5 % ( 2,447 ) As at December 31, 2022 and 2021 the Group’s financial assets and financial liabilities denominated in foreign currency are as follows: Financial assets 31/12/22 31/12/21 Trade receivables 25,055 29,434 Cash and cash equivalents 45,820 48,014 Total financial assets 70,875 77,448 Financial liabilities 31/12/22 31/12/21 Long-term borrowings 461 611 Lease liabilities 35,602 37,643 Bank overdraft and short-term borrowings 14,668 24,783 Trade payables 27,169 35,524 Total financial liabilities 77,900 98,561 As at December 31, 2022 and 2021, the summary quantitative data about Group’s exposure to currency risk as reported to the management of the Group is as follows: December 31, 2022 Financial Financial Net Exposure U.S. dollars 35,160 41,618 ( 6,458 ) Chinese Yuan 14,681 8,206 6,475 British pounds 9,499 10,089 ( 590 ) Brazilian Reais 4,457 2,371 2,086 Canadian dollars 397 427 ( 30 ) Romanian Leu 2,723 8,732 ( 6,009 ) Mexican pesos 1,713 1,850 ( 137 ) Other 2,245 4,607 ( 2,362 ) Total 70,875 77,900 ( 7,025 ) December 31, 2021 Financial Financial Net Exposure U.S. dollars 29,658 46,930 ( 17,272 ) Chinese Yuan 18,927 14,192 4,735 British pounds 15,027 16,664 ( 1,637 ) Brazilian Reais 4,334 2,435 1,899 Canadian dollars 2,263 1,290 973 Mexican pesos 1,395 1,883 ( 488 ) Romanian Leu 666 7,934 ( 7,268 ) Other 5,178 7,233 ( 2,055 ) Total 77,448 98,561 ( 21,113 ) (v) Reconciliation of movements of liabilities to cash flows arising from financing activities The following tables show the reconciliation of movements of financial liabilities to cash flows arising from financing activities for the three years ended December 31, 2022, 2021 and 2020. December 31, 2022 Jan. 1, 2022 Cash outflows Cash inflows Changes in Other Dec. 31, 2022 Long-term borrowings 17,439 ( 4,473 ) 4,038 — 286 17,290 Lease liabilities 57,138 ( 10,049 ) — — 4,760 51,849 Short-term borrowings 34,924 ( 7,424 ) — — — 27,500 Bank overdrafts 1,223 — 531 — — 1,754 Non-controlling interests 1,511 ( 551 ) 1,739 — 1,999 4,698 Total liabilities from financing activities 112,235 ( 22,497 ) 6,308 — 7,045 103,091 Bank overdrafts are used only for cash management purposes. December 31, 2021 Jan. 1, 2021 Cash outflows Cash inflows Changes in Other Dec. 31, 2021 Long-term borrowings 16,426 ( 4,788 ) 5,873 — ( 72 ) 17,439 Lease liabilities 53,593 ( 10,090 ) — — 13,635 57,138 Short-term borrowings 28,701 — 6,210 — 13 34,924 Bank overdrafts 2,111 ( 888 ) — — — 1,223 Non-controlling interests 1,020 ( 545 ) 144 — 892 1,511 Total liabilities from financing activities 101,851 ( 16,311 ) 12,227 — 14,468 112,235 Bank overdrafts are used only for cash management purposes. December 31, 2020 Jan. 1, 2020 Cash outflows Cash inflows Changes in Other Dec. 31, 2020 Long-term borrowings 18,412 ( 2,675 ) 875 — ( 186 ) 16,426 Lease liabilities 57,367 ( 9,907 ) — — 6,133 53,593 Short-term borrowings 22,196 — 6,518 — ( 13 ) 28,701 Bank overdrafts 1,974 — 137 — — 2,111 Non-controlling interests 1,692 ( 388 ) — — ( 284 ) 1,020 Total liabilities from financing activities 101,641 ( 12,970 ) 7,530 — 5,650 101,851 Bank overdrafts are used only for cash management purposes. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [abstract] | |
Revenue | 31 Revenue (i) Revenue streams The Group generates revenue primarily from the sale of leather and fabric upholstered furniture and home furnishing accessories to its customers. Other sources of revenue include sale of polyurethane foam, sale of leather-by products, sale of Natuzzi Display System and sale of Service Type Warranty. Therefore, all the Group’s revenue is related to revenue from contracts with customers. (ii) Disaggregation of revenue from contracts with customers In the following tables, revenue from contracts with customers are disaggregated by types of goods, primary geographical markets, geographical location of customers, distribution channels, brands and timing of revenue recognition. Types of goods 2022 2021 2020 Sale of upholstery furniture 398,768 373,936 280,210 Sale of home furnishing accessories 54,478 39,803 33,325 Sale of polyurethane foam 5,208 7,660 6,848 Sale of other goods 10,033 5,976 7,960 Total 468,487 427,375 328,343 The sale of upholstery furniture includes the following categories: stationary furniture (sofas, loveseats and armchairs), sectional furniture, motion furniture, sofa beds and occasional chairs, including recliners and massage chairs. Geographical markets 2022 2021 2020 Europe, Middle East and Africa 215,596 197,584 165,025 Americas 165,453 157,373 99,383 Asia-Pacific 87,438 72,418 63,935 Total 468,487 427,375 328,343 Geographical location of customers 2022 2021 2020 United States of America 119,749 117,012 73,676 Italy 61,284 53,157 46,269 China 59,358 48,857 38,339 United Kingdom 55,300 45,864 36,463 Spain 16,037 15,864 13,039 Brazil 15,544 14,166 8,641 Canada 15,033 13,127 9,233 Mexico 10,594 7,509 4,829 Australia 9,864 6,335 6,867 Belgium 8,084 9,250 7,281 South Korea 6,150 7,574 7,151 Israel 5,804 5,236 3,997 Other countries (none greater than 5%) 85,686 83,424 67,238 Total 468,487 427,375 328,343 Distribution channels 2022 2021 2020 Wholesale (distributors and retailers) 386,421 359,021 274,070 Directly operated stores (end consumers) 82,066 68,354 54,273 Total 468,487 427,375 328,343 Brands 2022 2021 2020 Natuzzi Editions 213,481 203,849 152,452 Natuzzi Italia 191,624 156,977 115,155 Private label 48,141 52,922 45,928 Other 15,241 13,627 14,808 Total 468,487 427,375 328,343 Timing of revenue recognition 2022 2021 2020 Goods transferred at a point in time 467,255 426,200 326,705 Goods and services transferred over time 1,232 1,175 1,638 Total 468,487 427,375 328,343 (iii) Contract balances The following table provides information about receivables and contract liabilities from contracts with customers. 31/12/22 31/12/21 Trade receivables 39,056 41,259 Contract liabilities 24,150 28,202 Reference should be made to note 15 “Trade receivables” and note 22 “Contract liabilities (non-current and current)” for details about such contract balances. (iv) Performance obligations and revenue recognition policies Revenue is measured based on the consideration specified in the customer contract. The Group recognises revenue when it transfers control over a good or service to a customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for goods or services. The Group has generally concluded that it is the principal in its revenue arrangements, because it controls the goods or services before transferring them to the customer. In determining the transaction price for its contracts with customers, the Group considers the effects of variable consideration and the existence of significant financing components. The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. The allocation of the transaction price to the Group’s performance obligations is performed using the relative stand-alone selling price method. For detailed information about the nature and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms and related revenue recognition policies, see note 4(t). The transaction price allocated to the remaining performance obligations (partially unsatisfied) as at December 31, 2022 and 2021 is as follows: 31/12/22 31/12/21 Sale of the license for Natuzzi trademarks Within a year 383 383 More than a year 5,577 5,960 Total 5,960 6,343 Sale of Natuzzi Display System Within a year 849 1,009 More than a year 1,200 1,169 Total 2,049 2,178 Sale of Service-Type Warranties Within a year 157 199 More than a year 249 276 Total 406 475 (v) Variable considerations If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Some contracts for the sale of furniture provide customers with volume discounts, which give rise to variable consideration. In particular, the Group provides retrospective volume discounts to certain customers once the quantity of products purchased during the period exceeds a threshold specified in the contract. Discounts are offset against amounts payable by the customer. Accumulated experience is used to estimate and provide for the discounts, using the expected value method. A refund liability is recognised for expected volume discounts payable to customers in relation to sales made until the end of the reporting period. (vi) Financing components For information about financing components, reference should be made to note 4(t)(vi). (vii) Warranty obligations The Group typically provides warranties for general repairs of defects that existed at the time of sale, as required by law. Customers who purchase the Group’s upholstered furniture and home furnishings accessories may require a service-type warranty. As disclosed in note 4(t)(v), the Group allocates a portion of the consideration received to the service-type warranty, based on the relative stand-alone selling price. The amount allocated to the service-type warranty is deferred, and is recognised as revenue over the time based on the validity period of such warranty. These warranties are accounted for under IAS 37. Refer to the accounting policy on warranty provision in note 4(r). (viii) Cost to obtain a contract The Group pays sales commission to its agents for each contract that they obtain. For information about the accounting policy elected by the Group on sales commissions, reference should be made to note 4(x). (ix) Fulfillment costs The Group accounts for shipping and handling costs related to activities before the customer obtains control of the finished goods as fulfillment costs under the caption “Other assets” of the consolidated statement of financial position. For information about the accounting policy applied by the Group for shipping and handling costs, reference should be made to note 4(v). |
Cost of sales
Cost of sales | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Cost Of Sales [Abstract] | |
Cost of sales | 32 Cost of sales Cost of sales is analysed as follows: 2022 2021 2020 Opening inventories 80,211 63,909 69,685 Purchases of raw materials 152,181 161,625 105,643 Purchases of finished products 27,751 23,169 15,161 Labour costs 86,352 80,346 71,937 Depreciation and amortisation 8,356 7,895 10,144 Third party manufacturers costs 1,587 2,172 2,829 Other manufacturing costs 19,250 15,922 14,853 Government grants related to PPE ( 1,414 ) ( 1,252 ) ( 1,192 ) Closing inventories ( 70,120 ) ( 80,211 ) ( 63,909 ) Total 304,154 273,575 225,151 The line item “Depreciation and amortisation” includes the depreciation expenses of property plant and equipment and right-of-use assets used in the production of finished goods. |
Other income and other expenses
Other income and other expenses | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Other Income And Expenses [Abstract] | |
Other income and other expenses | 33 Other income and other expenses Other income is analysed as follows: 2022 2021 2020 Gain on disposal of certain items of property 157 2,105 — VAT relief 1,573 1,395 755 Reimbursements 1,289 580 498 Release of provisions for contingent liabilities — — 100 Other 3,505 2,334 2,529 Total 6,524 6,414 3,882 The Romanian subsidiary sold some assets recognizing the capital gain of 151 and the remaining capital gain derives from minor disposals. In 2021, the capital gains on disposals made by the Group were 2,105 . During 2022, 2021 and 2020 the Brazilian subsidiary obtained a VAT relief of 1,573 , 1,395 and 755 , respectively, connected to local tax rules on VAT payments. During 2022, 2021 and 2020, the Company recorded reimbursements of 1,289 , 580 and 498 , respectively, related to the positive outcome of litigation started in previous years. The item "Other" includes the revenues deriving from active leases obtained by an American subsidiary for 620 , as well as contributions from the sale of photovoltaic energy and other minor items. Other expenses amounted to 1,678 in 2022 and mainly concern a legal dispute in Brazil for 979 , in addition to some minor costs incurred by the Group and not related to cost of sales, selling and administrative expenses. |
Selling expenses
Selling expenses | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Selling Expenses [Abstract] | |
Selling expenses | 34 Selling expenses Selling expenses are analysed as follows: 2022 2021 2020 Shipping and handling costs 55,912 54,672 28,749 Labour costs 24,615 24,241 20,077 Depreciation and amortisation 11,832 11,819 12,441 Customs duties 7,929 10,614 6,958 Commissions to sales representatives 7,318 7,503 5,403 Advertising expenses 6,193 5,576 4,837 Utilities 3,675 2,668 2,149 Fairs 1,050 807 591 Other insurance costs 1,034 946 843 Impairment of non-financial assets 890 1,188 2,450 Leases 785 607 483 Promotions 661 655 409 Advisory services 611 546 284 Insurance costs on trade receivables 567 347 578 Samples 546 687 582 COVID-19 government grants — ( 299 ) ( 1,534 ) COVID-19 rent concessions ( 635 ) ( 1,515 ) ( 1,799 ) Other 1,941 569 1,017 Total 124,924 121,631 84,518 Due to the adoption of “COVID-19-Related Rent Concessions - Amendment to IFRS 16” issued on 28 May 2020 (see note 5(A)), the Group recognised lease incentives of 635 , 1,515 and 1,799 as a reduction of the selling expenses for the year ended December 31, 2022, 2021 and 2020, respectively. |
Administrative expenses
Administrative expenses | 12 Months Ended |
Dec. 31, 2022 | |
Selling, general and administrative expense [abstract] | |
Administrative expenses | 35 Administrative expenses Administrative expenses are analysed as follows: 2022 2021 2020 Labour costs 19,447 17,342 15,578 Professional services costs 3,151 3,690 4,409 Indirect taxes 2,177 3,617 2,354 Directors and audit committee fees 1,895 1,868 736 Office and software maintainance 2,138 1,784 1,502 Depreciation and amortisation 1,462 1,657 1,580 Travel expenses 2,689 1,388 868 Mail and Phone 550 519 523 Printing and Stationery 570 354 278 Car costs 467 257 195 Government grants related to PPE ( 59 ) ( 54 ) ( 49 ) Other 987 880 1,470 Total 35,474 33,302 29,444 |
Finance income and costs
Finance income and costs | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Finance Income [Abstract] | |
Finance income and costs | 36 Finance income and costs Finance income is analysed as follows: 2022 2021 2020 Interest income from financial institutions 29 39 171 Other interest income 839 186 146 Total 868 225 317 Finance costs are analysed as follows: 2022 2021 2020 Interest expenses due to financial institutions 2,564 1,857 1,803 Interests expenses related to lease liabilities 2,877 2,584 2,613 Other interest expenses 1,033 276 1,546 Financial institution commissions 2,067 2,069 1,869 Total 8,541 6,786 7,831 |
Net exchange rate gains_(losses
Net exchange rate gains/(losses) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Net Exchange Rate Gains Losses [Abstract] | |
Net exchange rate gains (losses) | 37 Net exchange rate gains/(losses) Net exchange rate gains/(losses) are analysed as follows: 2022 2021 2020 Net realised gains/(losses) on derivative instruments ( 1,663 ) ( 1,428 ) 317 Net realised gains/(losses) on trade receivables and payables 530 4,612 ( 2,793 ) Total net realised gains/(losses) (a) ( 1,133 ) 3,184 ( 2,476 ) Net unrealised gains/(losses) on derivative instruments 1,454 ( 454 ) 486 Net unrealised gains/(losses) on trade receivables and payables 2,286 ( 144 ) ( 1,507 ) Net unrealised gains/(losses) on non-monetary assets ( 179 ) ( 720 ) ( 404 ) Total net unrealised gains/(losses) (b) 3,561 ( 1,318 ) ( 1,425 ) Total realised and unrealised exchange rate gains/(losses) (a+b) 2,428 1,866 ( 3,901 ) “Net unrealised gains/(losses) on non-monetary assets” refers to the remeasurement of non-monetary assets of the subsidiary Italsofa Romania , since such entity has the same functional currency as the Parent, namely the Euro (see note 4(c)(ii)). |
Income tax expense
Income tax expense | 12 Months Ended |
Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | |
Income tax expense | 38 Income tax expense Italian companies are subject to two enacted income taxes at the following rates: 2022 2021 2020 IRES (state tax) 24.00 % 24.00 % 24.00 % IRAP (regional tax) 4.82 % 4.82 % 4.82 % IRES is a state tax and is calculated on the taxable income determined on the income before taxes modified to reflect all temporary and permanent differences regulated by the tax law. IRAP is a regional tax and each Italian region has the power to increase the current rate of 3.90 % by a maximum of 0.92 %. In general, the taxable base of IRAP is a form of gross profit determined as the difference between gross revenues (excluding interest and dividend income) and direct production costs (excluding interest expense and other financial costs). The enacted IRAP tax rate due in Puglia region for 2022, 2021 and 2020 is 4.82 % ( 3.90 % plus 0.92 %). Total income taxes for the years ended December 31, 2022, 2021 and 2020 are allocated as follows: 2022 2021 2020 Current: - Domestic ( 838 ) ( 2,116 ) ( 2,221 ) - Foreign ( 1,582 ) ( 3,170 ) ( 1,545 ) Total (a) ( 2,420 ) ( 5,286 ) ( 3,766 ) Deferred: - Domestic — — 430 - Foreign 147 897 ( 1,005 ) Total (b) 147 897 ( 575 ) Total (a + b) ( 2,273 ) ( 4,389 ) ( 4,341 ) Consolidated profit/(loss) before income taxes and Non-controlling interests of the consolidated statement of profit or loss for the years ended December 31, 2022, 2021 and 2020, is analysed as follows: 2022 2021 2020 Domestic ( 7,448 ) ( 1,551 ) ( 17,049 ) Foreign 11,009 10,325 ( 3,516 ) Total 3,561 8,774 ( 20,565 ) The effective income taxes differ from the expected income tax expense (computed by applying the IRES state tax, which is 24 % for 2022, 2021 and 2020, to profit before income taxes and non-controlling interests) as follows: 2022 2021 2020 Expected tax benefit (expense) at statutory tax rates ( 855 ) ( 2,106 ) 4,936 Effect of: - Tax exempt income 2,618 2,320 4,806 - Aggregate effect of different tax rates in foreign jurisdictions ( 79 ) 191 322 - Italian regional tax ( 28 ) ( 78 ) ( 24 ) - Non-deductible expenses ( 1,635 ) ( 5,152 ) ( 5,575 ) - Tax effect on unremitted earnings ( 755 ) ( 515 ) ( 1,024 ) - Non taxable gain from disposal of a subsidiary — 1,057 — - Chinese withholding tax on income not recoverable — ( 699 ) ( 1,396 ) - Effect of net change in deferred tax assets unrecognised ( 1,539 ) 593 ( 6,386 ) Actual tax charge ( 2,273 ) ( 4,389 ) ( 4,341 ) In 2022, the Group reported a profit before tax of 3,561 and income tax expense of 2,273 (for a tax rate of 63.8 %), compared to a profit before tax of 8,774 and income tax expense of 4,389 in 2021, and a loss before tax of 20,565 and income tax expense of 4,341 in 2020. The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as at December 31, 2022 and 2021 are presented below: Deferred tax assets 31/12/22 31/12/21 Inventories obsolescence 745 633 Provision for contingent liabilities 492 466 Other temporary differences 22 174 Intercompany profit on inventories 706 22 Total deferred tax assets 1,965 1,295 Deferred tax liabilities 31/12/22 31/12/21 Withholding tax on unremitted earnings of subsidiaries ( 516 ) ( 516 ) Withholding tax on liquidation of subsidiaries ( 480 ) ( 482 ) IAS 19 adjustment - employees’ leaving entitlement ( 302 ) — Unrealised net gains on foreign exchange rate ( 479 ) ( 258 ) Other temporary differences ( 152 ) ( 149 ) Total deferred tax liabilities ( 1,929 ) ( 1,405 ) Movements in deferred tax balances occurred during 2020, 2021 and 2022 are analysed as follows: Def. tax Def. tax Total Balance as at December 31, 2019 1,974 ( 1,891 ) 83 Recognised in profit or loss 49 ( 624 ) ( 575 ) Recognised in OCI — — — Recognised directly in equity — — — Balance as at December 31, 2020 2,023 ( 2,515 ) ( 492 ) Recognised in profit or loss ( 728 ) 1,110 382 Recognised in OCI — — — Recognised directly in equity — — — Balance as at December 31, 2021 1,295 ( 1,405 ) ( 110 ) Recognised in profit or loss 670 ( 524 ) 146 Recognised in OCI — — — Recognised directly in equity — — — Balance as at December 31, 2022 1,965 ( 1,929 ) 36 The following tables show the reconciliation of deferred tax assets and deferred tax liabilities with the balances included in the consolidated statements of financial position as at December 31, 2022 and 2021. 31/12/22 31/12/21 Deferred tax assets 1,965 1,295 Deferred tax liabilities compensated ( 933 ) ( 409 ) Net deferred tax assets 1,032 886 Deferred tax liabilities ( 996 ) ( 996 ) As at December 31, 2022, deferred tax assets recognised are mainly related to inventories obsolescence and provisions for contingent liabilities both of them recorded by some subsidiaries. In assessing the reliability of deferred tax assets, management considers whether it is probable that some portion or all of the deferred tax assets will not be realised. The ultimate realisation of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible and the tax loss carry-forwards are utilised. Given the cumulative loss position of the domestic companies and of some of foreign subsidiaries as at December 31, 2022 and 2021, management has considered the scheduled reversal of deferred tax liabilities and tax planning strategies, in making their assessment. After an analysis as at December 31, 2022 and 2021, management has not identified any relevant tax planning strategies prudent and feasible available to recognise the deferred tax assets. Therefore, as at December 31, 2022 and 2021 the realisation of the deferred tax assets is primarily based on the scheduled reversal of deferred tax liabilities, except in certain historically profitable jurisdictions. Based upon this analysis, management believes that the Natuzzi Group will realise the deferred tax assets of 1,965 as at December 31, 2022 ( 1,295 as at December 31, 2021). As at December 31, 2022 and 2021 deferred tax assets have not been recognised in respect of the following items, because it is not probable that future taxable profit will be available against which the Group can use the benefits therefrom. Unrecognised deferred tax assets 31/12/22 31/12/21 Gross Amount Tax effect Gross Amount Tax effect Tax loss carry-forwards 366,175 90,713 368,779 88,328 Provision for contingent liabilities 7,673 2,207 12,231 2,888 Inventory obsolescence 8,266 2,327 11,985 2,560 Allowance for doubtful accounts 5,125 1,230 6,810 1,540 Intercompany profit on inventories 4,716 1,359 5,676 1,614 Provision for warranties 3,375 973 3,117 898 Impairment of non-financial assets 3,284 870 3,989 1,018 IAS 19 adjustment - employees’ leaving entitlement — — 1,807 434 Other temporary differences 10,868 1,925 9,734 1,455 Total unrecognised deferred tax assets 409,482 101,604 424,128 100,735 As at December 31, 2022 and 2021, taxes that will be due on the distribution of the portion of shareholders’ equity equal to unremitted earnings of some subsidiaries are 1,129 and 1,051 , respecti vely. Of these deferred taxes, the Group recognized in both 2022 and 2021 the amount of 576 on the share of the aforementioned retained earnings, as it is likely they will be distributed as dividends by the subsidiaries in the coming years. As at December 31, 2022 and 2021 the tax losses carried-forward of the Group expire as follows: 2022 Expire date 2021 Expire date Expire in five years 5,132 2023-2027 6,207 2022-2026 Expire after five years 347 > 2027 3,257 > 2026 Never expire 360,696 — 359,316 — Total 366,175 368,780 In Italy all tax losses carried-forward no longer expire, with the only limitation being that such tax losses carried-forward can be utilised to off-set a maximum of 80 % of the taxable income in each following year. The income tax payable recorded as at December 31, 2022 and 2021 is 1,874 and 2,740 , respectively. Whereas, the current income tax receivable recorded as at December 31, 2022 and 2021 is 2,195 and 2,032 , respectively. Of the Group’s income tax payable, 300 (2021: 300 ) relates to management’s estimation of the amount for the ongoing tax review of the Parent, which the Italian tax authority commenced in October 2020. The uncertain tax treatment relates to the interpretation of how the tax legislation applies to the Group’s transfer pricing arrangements. Due to the uncertainty involved, there is a possibility that the outcome of such tax review may be significantly different to the amount currently recognised. Although management has used a single best estimate of the tax amount expected to be paid, it is anticipated that the reasonably possible outcome of current tax liabilities sits within a range between 200 and 400 . The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. The Company operates in many foreign jurisdictions. With no material exceptions, the Company and its major subsidiaries located in Romania and China are no longer subject to examination by tax authorities for years prior to 2018. |
Earnings_(loss) per share
Earnings/(loss) per share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Earnings/(loss) per share | 39 Earnings/(loss) per share Basi c and diluted earnings/(loss) per share is analysed as follows: 2022 2021 2020 Weighted average number of ordinary shares 54,899,456 54,853,045 54,853,045 Basic earnings/(losses) per share ( 0.01 ) 0.07 ( 0.45 ) Diluted earnings/(losses) per share ( 0.01 ) 0.07 ( 0.45 ) Basic earnings/(loss) per share is calculated by dividing earnings/(loss) for the year, attributable to ordinary equity holders of the Parent Company, by the weighted average number of ordinary shares outstanding. The weighted average number of ordinary shares outstanding as at December 31, 2022, was affected by the subscription of 220,000 shares by one of the beneficiaries of the stock option who exercised the vested option on October 15, 2022. Diluted earnings/(loss) per share as at December 31, 2022, 2021 and 2020 equals the basic earnings/(loss) per share. Diluted earnings/(losses) per share equals basic earnings/(losses) per share because all options are antidilutive. Since the value of 1 ADR as at December 31, 2022 is lower than the exercise price set in the stock option plan, it is unlikely that, with reference to the shares vested and not exercised at December 31, 2022, the beneficiaries will exercise the rights vested and therefore the consequent dilution. On February 8, 2019 the Company announced a change in the ratio of its American Depositary Receipts (ADRs) to ordinary shares, from 1 ADR repres enting 1 share to 1 ADR representing 5 shares. The effective date of the ratio change was February 21, 2019. No new shares have been issued in connection with the ratio change. |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Expenses By Nature [Abstract] | |
Expenses by nature | 40 Expenses by nature The following tables show the expenses by nature for the years ended December 31, 2022, 2021 and 2020 as required by IAS 1.104. 2022 2021 2020 Changes in inventories 10,091 ( 16,302 ) 5,776 Purchases of raw materials 152,181 161,625 105,643 Purchases of finished products 27,751 23,169 15,161 Services costs 110,773 100,656 68,613 Employee benefits expenses 130,414 121,929 107,592 Depreciation and amortisation, net of government grants 20,177 20,065 22,924 Other 13,165 17,366 13,404 Total cost of sales, selling and administrative expenses 464,552 428,508 339,113 The following tables show in which caption is included the depreciation and amortisation, net of government grants. 2022 2021 2020 Included in cost of sales Depreciation of property, plant and equipment 6,234 5,970 6,846 Depreciation of right-of-use assets 2,120 1,923 3,290 Amortisation of intangible assets 2 2 8 Government grants ( 1,414 ) ( 1,252 ) ( 1,192 ) Total (a) 6,942 6,643 8,952 Included in selling expenses Depreciation of property, plant and equipment 2,253 2,285 2,665 Depreciation of right-of-use assets 9,579 9,534 9,776 Amortisation of intangible assets — — — Total (b) 11,832 11,819 12,441 Included in administrative expenses Depreciation of property, plant and equipment 298 320 371 Depreciation of right-of-use assets 135 249 310 Amortisation of intangible assets 1,029 1,088 899 Government grants ( 59 ) ( 54 ) ( 49 ) Total (c) 1,403 1,603 1,531 Total depreciation and amortisation (a+b+c) 20,177 20,065 22,924 The following tables show in which caption is included the employee benefits expenses. 2022 2021 2020 Included in cost of sales Salaries and wages 58,913 58,552 48,514 Social security contributions 17,788 14,696 12,138 Employees’ leaving entitlement 4,598 3,493 4,915 Other costs 5,053 3,605 6,370 Total (a) 86,352 80,346 71,937 Included in selling expenses Salaries and wages 19,218 19,359 15,912 Social security contributions 3,507 3,512 3,059 Employees’ leaving entitlement 513 492 542 Other costs 1,377 878 564 Total (b) 24,615 24,241 20,077 Included in administrative expenses Salaries and wages 14,345 12,666 11,272 Social security contributions 3,026 3,012 2,717 Employees’ leaving entitlement 657 619 605 Other costs 1,419 1,045 984 Total (c) 19,447 17,342 15,578 Total employee benefits expenses (a+b+c) 130,414 121,929 107,592 During 2020 and 2021, the Group benefitted from the salary and wage subsidy programme introduced by the governments of Italy and other countries as part of support measures extended to manufacturers in response to the COVID-19 pandemic for the loss of revenue. Such governmental measure allowed the Group to pay temporarily laid off workers and employees a reduced salary or wage for a certain period. In 2022, the Italian Government did not renew such COVID-19 related measures. Therefore, such benefits received by the Group for the years ended December 31, 2022, 2021 and 2020 amount to nil , 6,980 and 13,600 , respectively, and they were recorded as a reduction in the labour costs included in the cost of sales, selling expenses and administrative expenses. |
Commitments and contingent liab
Commitments and contingent liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Commitments And Contingent Liabilities [Abstract] | |
Commitments and contingent liabilities | 41 Commitments and contingent liabilities As at December 31, 2022, the Group is not committed to investing in significant property, plant and equipment, intangibles assets and other capital expenditure. Certain fina ncial institutions have provided guarantees as at December 31, 2022 to secure payments to third parties amounting to 4,424 , ( 4,988 as at December 31, 2021). These guarantees are unsecured and have various maturities extending through April 30, 2026. The Group is involved in a number of claims (including tax claims) and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters, after the provisions accrued, will not have a material adverse effect on the Group’s consolidated financial position or results of operations (see note 23). |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Related Parties [Abstract] | |
Related parties | 42 Related parties Related parties of the Group include mainly associates and joint ventures of the Group and the Group’s key management personnel. The following tables provide the total amount of transactions that have been entered into with related parties for the relevant financial year. (i) Compensation of key management personnel of the Group The compensation of key management personnel of the Group is analysed as follows: 2022 2021 2020 Directors’ fee 854 511 412 Short-term employee benefits 1,851 1,934 2,026 Social security contributions and defined contribution plans 685 692 634 Employee benefit obligations 125 132 137 Expenses for stock options 998 — — Total 4,513 3,269 3,209 The amounts disclosed in the tables are the amounts recognised as an expense during the reporting period related to key management personnel. No loans and/or guarantees have been provided for or agreed to with key management personnel. (ii) Transactions with directors of the Group The aggregate value of transactions and outstanding balances related to directors were as follows. 2022 2021 2020 Cost Amounts Cost Amounts Cost Amounts Legal services 33 — 86 — 392 — Total 33 — 86 — 392 — The Parent used the legal services of BonelliErede law firm, of which one of the Parent’s director is a partner, for assistance with management advisory, for a total fee amounting to 33 , 86 and 392 for the years ended December 31, 2022, 2021 and 2020, respectively. Amounts were billed based on market rates for such services and were due and payable under normal payment terms. For the advance of 2,500 for the future capital increase received from the Parent’s majority shareholder and Chairman, see note 27. In January 2021, the Parent sold 7 % of Natuzzi Singapore PTE. LTD. to a related party. This transaction was executed through a 1,300 capital injection by the related party into this subsidiary, increasing its share capital, in exchange for the 7 % interest. As a result of the entry of TTF in March 2022, the related party's investment was diluted to 5.6 % (see note 2). From time to time, Directors of the Group, or their related entities, may buy goods from the Group. These purchases are made on the same terms and conditions as those entered into by the Group’s other employees or customers. (iii) Transactions with associates, joint ventures and other related parties The following tables provide the total amount of transactions that have been entered into with such related parties for the relevant financial year. Such transactions have been conducted at arm’s length. December 31, 2022 Sales Expenses Dividends Amounts Amounts Natuzzi Trading Shanghai Co, Ltd. (joint venture) 59,838 — 3,697 5,314 — Nars Miami LLCC (associate) 1,484 16 — 231 59 Natuzzi Texas LLC (joint venture) 992 — — 1,193 — Natuzzi Stores (UK) LTD (associate) 7,110 — — 14 — Natuzzi Design S.a.s. 2,550 — — 426 — Natuzzi Arredamenti S.r.l. 1,734 26 — 231 — Natuzzi Sofa S.r.l. 399 — — 48 — Total 74,107 42 3,697 7,457 59 December 31, 2021 Sales Expenses Dividends Amounts Amounts Natuzzi Trading Shanghai Co, Ltd. (joint venture) 48,457 — 1,490 6,953 — Nars Miami LLCC (associate) 806 — 254 123 — Natuzzi Texas LLC (joint venture) — — — — — Natuzzi Stores (UK) LTD (associate) — — — — — Natuzzi Design S.a.s. 1,820 — — 710 — Natuzzi Arredamenti S.r.l. 989 — — 191 — Natuzzi Sofa S.r.l. 232 — — 51 — Total 52,304 — 1,744 8,028 — December 31, 2020 Sales Expenses Dividends Amounts Amounts Natuzzi Trading Shanghai Co, Ltd. (joint venture) 38,401 9 2,335 5,961 — Nars Miami LLCC (associate) 406 — — 27 — Natuzzi Design S.a.s. 1,734 — — 888 — Natuzzi Arredamenti S.r.l. 827 — — 279 — Natuzzi Sofa S.r.l. 238 — — 47 — Total 41,606 9 2,335 7,202 — All outstanding balances with these related parties are priced on an arm’s length basis and are to be settled in cash within three months of the reporting date. None of the balances are secured. No guarantees have been given or received. To support the activities of such joint ventures and associates, the Group and the other investors in these entities have agreed to make additional contributions in proportion to their interests to make up any losses, if required. There are no borrowings received from or given to the above joint ventures, associates and other related parties, for the years ended December 31, 2022, 2021 and 2020. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Subsequent events | 43 Subsequent events The following events have occurred in the period between the reporting date and the date of authorisation of these consolidated financial statements. In 2019 the INVITALIA, the Italian Agency for Inward Investment and Economic Development, owned by the Italian Ministry of Economy, approved the Natuzzi S.p.A. development contract which provided for an investment program against which public support was recognized to the extent of 71.2 %, both as contributions and as subsidized financing. At the end of 2020, as a consequence of the COVID pandemic and the related impacts on the production plan, the Parent Company requested an extension of the terms and subsequently, during 2022, a variation of the investment projects. In March 2023, the INVITALIA agency communicated the approval of the changes requested by the Parent Company and quantified the eligible expenses at 31,316 for which the contribution amounts to 8,766 and the subsidized loan at 13,572 , equal to a total support of 71.3 % of the eligible investments and set the deadline for carrying out the envisaged investments at 31 December 2023. There is no impact on the financial statements as a consequence of the approval of the changes requested by the Parent Company. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Basis of consolidation | (a) Basis of consolidation (i) Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group. Intragroup transactions, balances and unrealised gains on transactions between the Group’s entities are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the transferred asset. The accounting policies of the subsidiaries have been changed where necessary to ensure consistency with those adopted by the Group. Non-controlling interests (NCI) in the profit or loss and equity of subsidiaries are shown separately in the consolidated statement of financial position, consolidated statement of profit or loss, consolidated statement of comprehensive income and consolidated statement of changes in equity. Non-controlling interests are measured initially at their proportionate share of the fair value of the acquiree’s identifiable net assets at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. (ii) Associates Associates are all entities over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds between 20 % and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting (see (v) below), after initially being recognised at cost. (iii) Joint arrangements Under IFRS 11 “Joint Arrangements”, investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. (iv) Joint ventures Interests in joint ventures are accounted for using the equity method (see (v) below), after initially being recognised at cost in the consolidated statement of financial position. (v) Equity method Under the equity method of accounting, investments are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of variations in other comprehensive income of the investee. Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment. When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. The accounting policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in note 4 (i). (vi) Changes in ownership interests The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a separate reserve within equity attributable to owners of Natuzzi S.p.A.. When the Group ceases to consolidate or equity account for an investment because of a loss of control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. If the ownership interest in a joint venture or an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate. |
Segment reporting | (b) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. |
Group Companies | (c) Group Companies (i) Foreign operations that have a functional currency different from the presentation currency The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency (Euro) are translated into the presentation currency as follows: (a) assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position; (b) revenue and expenses for each statement of profit or loss and statement of comprehensive income are translated at the average exchange rates of the year (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case revenue and expenses are translated at the dates of the transactions); and (c) all resulting exchange differences are recognised in other comprehensive income. Since January 1, 2017, the Group’s date of transition to IFRSs, such differences are recognised in the translation reserve. When a foreign operation is sold, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale. (ii) Foreign operations that have a functional currency that is the presentation currency As at December 31, 2022 and 2021, there is one foreign subsidiary, Italsofa Romania, considered to be an integral part of Natuzzi S.p.A. due to the primary and secondary indicators reported in IAS 21, paragraphs 9 and 10. Therefore, the functional currency for this foreign subsidiary is the Parent’s functional currency, namely the Euro. As a result, all monetary assets and liabilities are remeasured, at the end of each reporting period, using the Euro and the resulting gain or loss is recognised in profit or loss. For all non-monetary assets and liabilities, share capital, reserves and retained earnings, the historical exchange rates are used. The average exchange rates of the year are used to translate non-Euro denominated revenue and expenses, except for those non-Euro denominated revenue and expenses related to assets and liabilities which are translated at historical exchange rates. The resulting exchange differences are recognised in profit or loss. |
Foreign currency transactions | (d) Foreign currency transactions Transactions in foreign currencies are translated into the functional currency using the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the closing rate. Non-monetary items that are measured based on their historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign currency exchange gains and losses are recognised in profit or loss and presented within net exchange rate gains/(losses). |
Property, plant and equipment | (e) Property, plant and equipment Items of property, plant and equipment (PPE) are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation and any accumulated impairment losses. The cost of certain buildings as at January, 1 2017, the Group’s date of transition to IFRS, was determined with reference to their deemed cost at that date. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on the disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group. Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives, and is recognised in profit or loss. Land is not depreciated. The estimated useful lives of property, plant and equipment (see note 8) for current and comparative periods are as follows: (a) buildings, 10 – 50 years; (b) machinery and equipment, 4 – 10 years; (c) office furniture and equipment, 5 – 10 years; (d) retail gallery and store furnishing, 3 – 4 years; (e) leasehold improvements, 5 – 10 years. Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. |
Leases | (f) Leases As at December 31, 2022, the Group acts as lessor in some lease contracts for a not significant amount. As at December 31, 2021 and 2020 the Group did not act as lessor in any lease contracts. (i) Policy applicable from January 1, 2019 as a lessee At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16. At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case, the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, which is generally the case for the Group’s leases, the lessee’s incremental borrowing rate, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. To determine the incremental borrowing rate, the Group: (a) where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received; (b) uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by the Group, which does not have recent third party financing, and (c) makes adjustments specific to the lease to reflect for instance the term of the lease, type of the asset leased, country, currency and security. Lease payments included in the measurement of the lease liability comprise the following: (a) fixed payments, including in-substance fixed payments; (b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; (c) amounts expected to be payable under a residual value guarantee; (d) the exercise price under a purchase option that the Group is reasonably certain to exercise; (e) lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option; and (f) penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group presents right-of-use assets and lease liabilities in specific captions in the consolidated statement of financial position. The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases, including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. (ii) COVID-19-Related Rent Concessions The Group has applied “COVID-19-Related Rent Concessions - Amendment to IFRS 16”. The Group applies the practical expedient allowing it not to assess whether eligible rent concessions that are a direct consequence of the COVID-19 pandemic are lease modifications. The Group applies the practical expedient consistently to contracts with similar characteristics and in similar circumstances. For rent concessions in leases to which the Group chooses not to apply the practical expedient, or that do not qualify for the practical expedient, the Group assesses whether there is a lease modification. |
Business combinations | (g) Business combinations (i) Acquisitions on or after January 1, 2017 The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group (see note 4 (a)(i)). In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, as a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The Group has the option to apply a “concentration test” that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment (see note 4(i)). Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre‑existing relationships. Such amounts are generally recognised in profit or loss. Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, other contingent consideration is measured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognised in profit or loss. If share‑based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree’s employees (acquiree’s awards), then all or a portion of the amount of the acquirer’s replacement awards is included in measuring the consideration transferred in the business combination. This determination is based on the market‑based measure of the replacement awards compared with the market‑based measure of the acquiree’s awards and the extent to which the replacement awards relate to pre-combination service. (ii) Acquisitions prior to January 1, 2017 As part of its transition to IFRS, the Group elected to restate only those business combinations that occurred on or after January 1, 2017. In respect of acquisitions prior to January 1, 2017, goodwill represents the amount recognised under the Group’s previous accounting framework, Italian GAAP. Such goodwill has been tested for impairment at the transition date January 1, 2017. |
Intangible assets and goodwill | (h) Intangible assets and goodwill Expenditure on research activities is recognised in profit or loss as incurred. Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses. Other intangible assets, including software, trademarks and patents, that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses. Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. In respect of acquisitions prior to January 1, 2017, goodwill is included on the basis of its deemed cost, which represents the amount recorded under previous GAAP. Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific intangible asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred. Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives, and is recognised in profit or loss. Goodwill is not amortised. The estimated useful lives for current and comparative periods are as follows: software 3 - 5 years, trademarks and patents 3 – 5 years, other 2 – 5 years. Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. |
Impairment of non-financial assets | (i) Impairment of non-financial assets At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash generating units (hereinafter also CGUs). Goodwill arising from a business combination is allocated to the CGU or groups of CGUs that are expected to benefit from the synergies of the combination. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. |
Interests in equity-accounted investees | (j) Interests in equity-accounted investees The Group’s interests in equity-accounted investees comprise interests in associates and joint ventures. Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. Joint ventures are arrangements in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. Interests in associates and joint ventures are accounted for using the equity method. They are initially recognised at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income (OCI) of equity-accounted investees, until the date on which significant influence or joint control ceases. |
Inventories | (k) Inventories Raw materials are stated at the lower of cost (determined under the specific cost method for leather hides and under the weighted-average method for other raw materials) and net realisable value. Goods in process and finished goods are valued at the lower of production cost and net realisable value. Production cost includes direct production costs and production overhead costs. The production overhead costs are allocated to inventory based on the manufacturing facility’s normal capacity. Finished goods acquired for reselling (e.g., home furnishings accessories) are stated at the lower of cost, determined under the weighted-average method, and net realisable value. The provision for slow moving and obsolete raw materials and finished goods is based on the estimated realisable value net of the costs of disposal. |
Trade and other receivables | (l) Trade and other receivables Trade receivables and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less allowance for doubtful accounts. In particular, trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 90 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method. Details about the Group’s impairment policies and the calculation of the loss allowance are provided in note 4(n)(i). The Group derecognises trade receivables when the contractual rights to the cash flows from such financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of such financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of such financial asset. |
Cash and cash equivalents | (m) Cash and cash equivalents Cash and cash equivalents are recorded at their nominal amount as it substantially coincides with the fair value. For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents includes cash on hand, on-demand deposits with financial institutions, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within bank overdrafts and short-term borrowings in current liabilities in the statement of financial position. |
Impairment of financial assets | (n) Impairment of financial assets The Group has the following types of financial assets that are subject to the expected credit loss model: (i) trade receivables for sales of goods and services; (ii) other receivables; (iii) cash and cash equivalents. (i) Trade receivables The Group applies the IFRS 9 simplified approach to measure expected credit losses which uses a lifetime expected loss allowance for all trade receivables. In particular, for the credit losses on trade receivables determined on a collective basis, the Group adopted the practical expedient to use a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. To measure the expected credit losses, trade receivables are grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of sales over a period of five years before December 31, 2022 or January 1, 2022, respectively, and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Group recognised the expected credit losses for individual receivables which are known to be difficult to collect based on the financial difficulties of the debtor, the probability that the debtor will enter bankruptcy or financial reorganisation and default or late payments. The Group records the expected credit losses on trade receivables determined on a collective and individual basis through the provision for doubtful accounts (see note 15). Trade receivables for which an impairment allowance is recognised are written off when there is no reasonable expectation of recovering additional cash. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group and a failure to make contractual payments for a period of greater than 180 days past due. Impairment losses on trade receivables are presented as net impairment losses within operating profit/(loss). Subsequent recoveries of amounts previously written off are credited against the same line item. (ii) Other receivables Other receivables are considered to have low credit risk and the impairment loss is measured on a 12–month expected credit loss basis. Management considers other receivables to have a low credit risk if they have a low risk of default and the Group’s counterparties are able to meet its contractual cash flow obligations in the short-term. (iii) Cash and cash equivalents The Group considers its cash and cash equivalents to have “low credit risk” based on the external credit ratings of the financial institutions. Indeed, the Group’s cash and cash equivalents are held with financial institutions which have external credit risk ratings that are “investment grade”. Impairment of cash and cash equivalents is measured on a 12-month expected credit loss basis and reflects the short-term nature of the exposures. |
Trade and other payables | (o) Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to year-end which are unpaid. The amounts are unsecured and are usually paid within 90 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method. The Group derecognises trade and other payables when its contractual obligations are discharged or cancelled or expired. |
Borrowings | (p) Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a borrowing that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as finance income or finance costs. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Further, general and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. Other borrowing costs are expensed in the period in which they are incurred. |
Employees Benefits | (q) Employee benefits Information about employee benefits accouting policies is reported below. (i) Share-based payment arrangements The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognised as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as a expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant-date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes. The fair value of the amount payable to employees in respect of SARs, which are settled in cash, is recognised as an expense with a corresponding increase in liabilities, over the period during which the employees become unconditionally entitled to payment. The liability is remeasured at each reporting date and at settlement date based on the fair value of the SARs. Any changes in the liability are recognised in profit or loss. (ii) Employees' leaving entitlement The Group provides its Italian employees with benefits on the termination of their employment. The benefits fall under the definition of defined benefit plans whose existence and amount is certain but whose date is not. The liability is calculated as the present value of the obligation at the reporting date, in compliance with applicable regulations and adjusted to take into account actuarial gains or losses. The amount of the obligation is remeasured annually based on the “projected unit credit” method. Actuarial gains or losses are recorded in full during the relevant period. Actuarial gains/(losses) are stated under “Other comprehensive income” (OCI) in accordance with IAS 19. |
Provisions | (r) Provisions Provisions for legal claims, service warranties and one-time termination benefits for certain employees are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations is small. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense. |
Derivative financial instruments and hedging activities | (s) Derivative financial instruments and hedging activities Derivatives financial instruments are accounted for in accordance with IFRS 9, except for hedging activities that are treated in accordance with IAS 39. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives as hedges of a particular risk associated with the cash flows of recognised assets (trade receivables) and highly probable forecast transactions (sales orders) (cash flow hedges). At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items (trade receivables and/or sales orders). The Group documents its risk management objective and strategy for undertaking its hedge transactions. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. (i) Cash flow hedges that qualify for hedge accounting The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in the hedging reserve within equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, within net exchange rate gains/(losses). When forward contracts are used to hedge forecast transactions, the Group generally designates only the change in fair value of the forward contract related to the spot component as the hedging instrument. Gains or losses relating to the effective portion of the change in the spot component of the forward contracts are recognised in the hedging reserve within equity. The change in the forward element of the contract that relates to the hedged item (“aligned forward element”) is recognised within OCI in the costs of the hedging reserve within equity. In some cases, the Group may designate the full change in fair value of the forward contract (including forward points) as the hedging instrument. In such cases, the gains or losses relating to the effective portion of the change in fair value of the entire forward contract are recognised in the hedging reserve within equity. Amounts accumulated in equity are reclassified in the periods when the hedged item affects profit or loss. When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remain in equity until the forecast transaction occurs, resulting in the recognition of a non-financial asset such as inventory. When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in equity are immediately reclassified to profit or loss. (ii) Derivatives that do not qualify for hedge accounting Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognised immediately in profit or loss and are included in net exchange rate gains/(losses). The fair value of derivative instruments is disclosed in note 30. |
Revenues from contracts with customers | (t) Revenue from contracts with customers The Group has adopted IFRS 15 “Revenue from Contracts with Customers”, effective for reporting periods starting from January 1, 2018, using the full retrospective approach, without any of the practical expedients indicated by IFRS 15 C5. (i) Sale of upholstered furniture and home furnishings accessories – wholesale (distributors and retailers) The Group sells a wide range of upholstered furniture (upholstered sofas and beds) and home furnishing accessories (for instance coffee tables, lamps, rugs and wall units) in the wholesale market to distributors and retailers. The upholstered furniture is manufactured in the plants located in Italy, Romania, China and Brazil. Sales are recognised when control of the products has been transferred, i.e., when the products are delivered to the wholesaler, the wholesaler has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the wholesaler’s acceptance of the products. Delivery occurs when the products have been dispatched from the Group’s warehouse or shipped to the location specified by the wholesaler, the risks of obsolescence and loss have been transferred to the wholesaler, and the Group has objective evidence that all criteria for acceptance have been satisfied. The goods are often sold with retrospective volume discounts based on aggregate sales over a 12-month period. As part of variable considerations, revenue from these sales is recognised based on the price specified in the contract, net of the estimated volume discounts. Accumulated historical experience is used to estimate and provide for the discounts, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. A refund liability is recognised for expected volume discounts payable to wholesalers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made with a credit term of 30-90 days, which is consistent with market practice. The Group’s obligation to repair or replace faulty products under the standard assurance warranty terms is recognised as a provision (see note 23). A trade receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. It is the Group’s policy not to sell its products to the wholesaler with a right of return. (ii) Sale of upholstered furniture and home furnishings accessories—retail (end consumers) The Group operates a chain of retail stores (Natuzzi Italia stores, Natuzzi Editions stores and Divani&Divani by Natuzzi stores) selling to end consumers a wide range of upholstered furniture (upholstered sofas and beds) and home furnishing accessories (for instance coffee tables, lamps, rugs and wall units). The upholstered furniture is manufactured in the plants located in Italy, Romania, China and Brazil. Revenue from the sale of the goods is recognised when the products are delivered and have been accepted by the customer in store or at its premise. Payment of the transaction price is due immediately when the product is delivered to the customer. The Group’s obligation to repair or replace faulty products under the standard assurance warranty terms is recognised as a provision (see note 23). It is the Group’s policy not to sell its products to the end consumer with a right of return. (iii) Sale of polyurethane foam and leather processing by-products – wholesale The Group sells polyurethane foam and leather processing by-products in the wholesale market. Such sales are recognised when control of the products has been transferred, i.e., when the products are delivered to the wholesaler, the wholesaler has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the wholesaler’s acceptance of the products. Delivery occurs when the products have been dispatched from the Group’s warehouse or shipped to the location specified by the wholesaler, the risks of obsolescence and loss have been transferred to the wholesaler, and either the wholesaler has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied. Revenue from these sales is recognised based on the price specified in the contract. No element of financing is deemed present as the sales are made with a credit term of 30-90 days, which is consistent with market practice. The Group’s obligation to repair or replace faulty products under the standard assurance warranty terms is recognised as a provision (see note 23). A trade receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. It is the Group’s policy not to sell these products to the wholesaler with a right of return. (iv) Sale of Natuzzi Display System and related slotting fees The Group sells the Natuzzi Display System (NDS) to retailers, used to set up their stores. Revenue from such sales is recognised over time based on the length of the distribution contract signed with the retailer. Revenue is accounted for based on the price specified in the contract. No element of financing is deemed present as the sales are made with a credit term of 30-90 days, which is consistent with market practice. The deferred revenue for the sales of Natuzzi Display System is included under the caption “Contract liabilities” of the statement of financial position. The Group pays retailers slotting fees as contributions to prepare the retailer’s system to accept and sell the Group’s products. Slotting fees are recognised over time based on the length of the contract signed with the retailers and are treated as a reduction of revenue. Deferred slotting fees are included under the caption “Other assets” of the statement of financial position. (v) Service-type warranty Customers who purchase the Group’s products may require a service-type warranty. The Group allocates a portion of the consideration received to the service-type warranty. This allocation is based on the relative stand-alone selling price. The amount allocated to the service-type warranty is deferred, and is recognised as revenue over time based on the validity period of such warranty. The deferred revenue is included in the caption “Contract liabilities” of the statement of financial position. (vi) Financing components The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money. |
Cost of sales, selling expenses and administrative expenses | (u) Cost of sales, selling expenses and administrative expenses Cost of sales consist of the following expenses: change in opening and closing inventories, purchases of raw materials, purchases of finished goods for reselling, labour costs (included one-time termination benefit accruals), third party manufacturing costs, depreciation expense of property, plant and equipment and right-of-use-assets used in the production of finished goods, impairment of property, plant and equipment and right-of-use-assets, energy and water expenses (for instance light and power expenses), expenses for maintenance and repairs of production facilities, distribution network costs (including inbound freight charges, warehousing costs, internal transfer costs and other logistic costs involved in the production cycle), security costs for production facilities, small-tools replacement costs, insurance costs and other minor expenses. Selling expenses consist of the following expenses: shipping and handling costs incurred for transporting finished products to customers, advertising costs, labour costs for sales personnel, expenses related to leases (e.g., short-term and low-value leases), customs duties, commissions to sales representatives and related costs, depreciation expense of property, plant and equipment and right-of-use-assets used in the selling activities, amortisation of intangible assets that, based on their usage, are allocated to selling expenses, impairment of property, plant and equipment and right-of-use-assets, impairment of intangible assets and goodwill, energy and water expenses for trade buildings (for instance, light and heating expenses), sales catalogue and related expenses, exhibition and trade-fair costs, advisory fees for sales and marketing of finished products, expenses for maintenance of stores and other trade buildings, insurance costs for trade receivables and other miscellaneous expenses. Administrative expenses consist of the following expenses: labour costs for administrative personnel, advisory fees for accounting and information-technology services, non-income tax expenses, traveling expenses for management and other personnel, depreciation expense related to property, plant and equipment and right-of-use-assets used in the administrative activities, amortisation of intangible assets that, based on their usage, are allocated to administrative expenses, impairment of property, plant and equipment and right-of-use-assets, impairment of intangible assets, postage and telephone costs, stationery and other office supplies costs, expenses for maintenance of administrative facilities and softwares, directors’ fees, audit committee and external auditors’ fees, energy and water expenses for administrative buildings (for instance, light and heating expenses) and other miscellaneous expenses. As noted above, the costs of the Group’s distributions network, which include inbound freight charges, warehousing costs, internal transfer costs and other logistic costs involved in the production cycle, are classified under the “Cost of sales” line item. |
Shipping and handling costs | (v) Shipping and handling costs Shipping and handling costs incurred to transport products to customers are expensed in the periods incurred and are included in selling expenses. Under IFRS 15, shipping and handling costs related to activities before the customer obtains control of the finished goods, are accounted for as fulfillment costs under the caption “Other assets” of the statement of financial position. Such costs are recognised in profit or loss consistent with the pattern of transfer of the finished goods. Shipping and handling expenses recorded for the years ended December 31, 2022, 2021 and 2020, come to 55,912 , 54,672 and 28,749 , respectively (see note 34). |
Advertising costs | (w) Advertising costs Advertising costs are expensed in the periods incurred and are included in selling expenses. Advertising expenses recorded for the years ended December 31, 2022, 2021 and 2020 amount to 6,193 , 5,576 and 4,837 , respectively (see note 34). |
Commission expense | (x) Commission expense Commissions payable to sales representatives and the related expenses are recorded at the time revenue from sale of products is recognised and are included in selling expenses. Commissions are not paid until payment for the related sale’s invoice is remitted to the Group by the customer. Under IFRS 15, sale commissions are considered costs of obtaining a contract and the Group has elected to apply the practical expedient under which such costs are expensed in profit or loss, as the amortisation period is less than one year. Commissions expenses recorded in profit or loss for the years ended December 31, 2022, 2021 and 2020 amount to 7,318 , 7,503 and 5,403 , respectively (see note 34). |
Government grants | (y) Government grants Grants from the government are recognised at their fair value when there is reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with the costs that they are intended to compensate. Government grants relating to the purchase of property, plant and equipment are deferred and credited to profit or loss on a straight-line basis over the expected lives of the related assets. Amortisation of the deferred grant is recognised in profit or loss as a reduction in the cost of sales, selling expenses or administrative expenses. |
Net finance income/(costs) | (z) Net finance income/(costs) The Group’s net finance income/(costs) include: interest income, interest expense, commission expense, gain or loss on derivative financial instruments, exchange rate gain or loss on financial assets and financial liabilities, and hedge ineffectiveness recognised in profit or loss. Interest income or expense is recognised using the “effective interest rate”. The “effective interest rate” is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to the gross carrying amount of the financial asset or the amortised cost of the financial liability. In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit-impaired) or to the amortised cost of the liability. However, for financial assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the amortised cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest income reverts to the gross basis. |
Income tax | (aa) Income tax Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income. The Group has determined that interest and penalties related to income taxes, including uncertain tax treatments, meet the definition of income taxes, and therefore accounted for them under IAS 12 “Income Taxes”. (i) Current tax Current tax comprises the expected tax payable or receivable on the taxable profit or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax assets and tax liabilities are offset when the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. (ii) Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for: (a) temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; (b) temporary differences related to investments in subsidiaries, associates and joint arrangements (mainly unremitted earnings and withholding taxes) to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and (c) taxable temporary differences arising on the initial recognition of goodwill. Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered, based on the business plans for individual subsidiaries in the Group. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves. Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. |
Operating profit/(loss) | (ab) Operating profit/(loss) Operating profit/(loss) is the result generated from the continuing principal revenue-producing activities of the Group as well as other income and expenses related to operating activities. Operating profit/(loss) excludes net finance income/(costs), share of profit/(loss) of equity-accounted investees and income tax expense. |
Fair value measurement | (ac) Fair value measurement “Fair value” is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Group has access at that date. The fair value of a liability reflects its non-performance risk. A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. When available, the Group measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as “active” if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. If there is no quoted price in an active market, then the Group uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction. If an asset or a liability measured at fair value has a bid price and an ask price, then the Group measures assets and long positions at a bid price and liabilities and short positions at an ask price. The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price – i.e., the fair value of the consideration given or received. If the Group determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique for which any unobservable inputs are judged to be insignificant in relation to the measurement, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out. |
Earnings/(loss) per share | (ad) Earnings/(loss) per share (i) Basic earnings/(loss) per share Basic earnings/(loss) per share are calculated by dividing the profit/(loss) attributable to the owners of the Parent, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the year, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares. (ii) Diluted earnings/(loss) per share Diluted earnings/(loss) per share adjust the figures used in the determination of basic earnings/(loss) per share to take into account the post-income/(loss) tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. |
New standards, amendments and interpretations issued but not yet effective | (ae) New standards, amendments and interpretations issued but not yet effective The standards, amendments and interpretations issued by the International Accounting Standards Board (“IASB”) that will have mandatory application in 2023 or subsequent years are listed below. In May 2017 the IASB issued IFRS 17 “Insurance Contracts” which establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued as well as guidance relating to reinsurance contracts held and investment contracts with discretionary participation features issued. IFRS 17 is effective on or after January 1, 2023 with early adoption allowed if IFRS 15 “Revenue from Contracts with Customers” and IFRS 9 “Financial Instruments” are also applied. The IASB issued certain amendments to such standard in June 2020. Natuzzi’s management does not expect any material impact from the adoption of such standard. In January 2020 the IASB issued amendments to IAS 1 “Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current” to clarify how to classify debt and other liabilities as current or non-current, and in particular how to classify liabilities with an uncertain settlement date and liabilities that may be settled by converting to equity. These amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments. In July and May 2020, the IASB issued amendments to IAS 1 “Presentation of Financial Statements”. These amendments clarify the following in relation to the classification of liabilities as current or non-current: (i) the right to defer settlement for at least 12 months after the reporting period must have substance and exist at the reporting date – i.e. the requirement for the right to be “unconditional” has been removed; (ii) the classification of liabilities is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and (iii) settlement of a liability includes transferring an entity’s own equity instruments to the counterparty. If a liability has any conversion options that involve a transfer of an entity’s own equity instruments, then these generally affect the liability’s classification as current or non-current, unless these conversion options are recognised as equity under IAS 32. The amendments are effective for annual periods beginning on or after January 1, 2024. Earlier application is permitted. The Group does not expect any material impact from the application of these amendments. In February 2021, the IASB issued amendments to IAS 1 “Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies” which require companies to disclose their material accounting policy information rather than their significant accounting policies and provide guidance on how to apply the concept of materiality to accounting policy disclosures. These amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments. In February 2021, the IASB issued amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates” which clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. These amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments. In May 2021, the IASB issued amendments to IAS 12 “Income taxes”. These amendments narrow the scope of the initial recognition exemption to exclude transactions that give rise to equal and offsetting temporary differences – e.g., leases and decommissioning liabilities. For leases and decommissioning liabilities, the associated deferred tax asset and liabilities will need to be recognised from the beginning of the earliest comparative period presented, with any cumulative effect recognised as an adjustment to retained earnings or other components of equity at that date. For all other transactions, the amendments apply to transactions that occur after the beginning of the earliest comparative period presented. Such amendments apply for annual reporting periods beginning on or after January 1, 2023. Early adoption is permitted. The Group does not expect any material impact from the application of these amendments. In December 2021, the IASB published an amendment to IFRS 17 “Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information”. This amendment adds a new transition option to IFRS 17 (the “classification overlay”) to alleviate operational complexities and one-time accounting mismatches in comparative information between insurance contract liabilities and related financial assets on the initial application of IFRS 17. It allows presentation of comparative information about financial assets to be presented in a manner that is more consistent with IFRS 9 “Financial Instruments”. The amendment is effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments. In September 2022, the IASB issued amendments to IFRS 16 “Leases: Liability in a Sale and Leaseback” to improve the requirements for sale and leaseback transactions, which specify the measurement of the liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. These amendments are effective on or after January 1, 2024. The Group does not expect any material impact from the adoption of these amendments. In October 2022, the IASB issued amendments to IAS 1 “Presentation of Financial Statements: Non-current Liabilities with Covenants”, that clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. These amendments are effective on or after January 1, 2024. The Group does not expect any material impact from the adoption of these amendments. |
Description of the business a_2
Description of the business and Group composition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments accounted for using equity method [abstract] | |
Summary of Subsidiaries Included in Consolidation Together with Related Percentages of Ownership and Other Information | The subsidiaries included in the consolidation as at December 31, 2022 and 2021, together with the related percentages of ownership and other information, are as follows: Name Percentage of Percentage of Share/ Ownership Activity Italsofa Romania S.r.l. 100.00 100.00 RON 109,271,750 Baia Mare, Romania (1) Natuzzi (China) Ltd 100.00 100.00 CNY 106,414,300 Shanghai, China (1) Italsofa Nordeste S/A 100.00 100.00 BRL 159,300,558 Salvador de Bahia, Brazil (1) Natuzzi Quanjiao Limited 100.00 — CNY 10,000,000 Quanjiao County-Anhui province, China (1) Natco S.p.A. 99.99 99.99 EUR 4,420,000 Santeramo in Colle, Italy (2) Nacon S.p.A. 100.00 100.00 EUR 2,800,000 Santeramo in Colle, Italy (3) Lagene S.r.l. 100.00 100.00 EUR 10,000 Santeramo in Colle, Italy (3) Natuzzi Americas Inc. 100.00 100.00 USD 89 High Point, N. Carolina, USA (3) Natuzzi Florida LLC 51.00 51.00 USD 4,955,186 High Point, N. Carolina, USA (3) Natuzzi Iberica S.A. 100.00 100.00 EUR 386,255 Madrid, Spain (3) Natuzzi Switzerland AG 100.00 100.00 CHF 2,000,000 Dietikon, Switzerland (3) Natuzzi Services Limited 100.00 100.00 GBP 25,349,353 London, UK (3) Natuzzi UK Retail Limited 70.00 70.00 GBP 100 Cardiff, UK (3) Natuzzi Germany Gmbh 100.00 100.00 EUR 25,000 Köln, Germany (3) Natuzzi Japan KK 74.40 93.00 JPY 28,000,000 Tokyo, Japan (3) Natuzzi Russia OOO 100.00 100.00 RUB 8,700,000 Moscow, Russia (3) Natmx S.DE.R.L.DE.C.V 100.00 100.00 MXN 68,504,040 Mexico City, Mexico (3) Natuzzi France S.a.s. 100.00 100.00 EUR 600,100 Paris, France (3) Natuzzi Oceania PTI Ltd 74.40 93.00 AUD 320,002 Sydney, Australia (3) Natuzzi Singapore PTE. LTD. 74.40 93.00 USD 7,654,207 Singapore, Republic of Singapore (3) Natuzzi Netherlands Holding 100.00 100.00 EUR 34,605,000 Amsterdam, Holland (4) Natuzzi Trade Service S.r.l. 100.00 100.00 EUR 14,000,000 Santeramo in Colle, Italy (5) (1) Manufacture and distribution (2) Intragroup leather dyeing and finishing (3) Services and distribution (4) Investment holding (5) Dormant |
Summary of detailed information about material non-controlling interests | Summarised statement of financial position of Natuzzi Florida LLC and Non-controlling interests share in equity as at December 31, 2022 and 2021 31/12/22 31/12/21 Current assets 11,684 8,494 Non-current assets 12,337 10,924 Current liabilities ( 9,246 ) ( 8,142 ) Non-current liabilities ( 8,473 ) ( 8,125 ) Net assets 6,302 3,151 Net assets attributable to NCI – 49% 3,088 1,544 Summarised statement of profit or loss of Natuzzi Florida LLC and Non-controlling interests share of loss for the years ended December 31, 2022 and 2021. 2022 2021 Revenue 21,481 16,578 Expenses ( 18,488 ) ( 14,955 ) Profit/(loss) for the year 2,993 1,623 Other comprehensive income/(loss) 195 184 Total comprehensive income/(loss) for the year 3,188 1,807 Profit/(loss) allocated to NCI – 49% 1,467 795 Other comprehensive income/(loss) allocated to NCI 96 90 Cash flow provided by operating activities 1,464 4,160 Cash flow used in investing activities ( 599 ) ( 12 ) Cash flow used in financing activities (dividends to NCI: 589) ( 1,892 ) ( 1,561 ) |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Summary of Property, Plant and Equipment | Changes in the carrying amount of property, plant and equipment for the years ended December 31, 2022 and 2021 are analysed in the following tables. Land Machinery Office Retail Leasehold Constr. in Total Cost as at December 31, 2020 153,205 108,223 14,334 13,081 19,412 360 308,615 Additions 1,064 4,573 363 316 615 110 7,041 Disposals ( 1,023 ) ( 1,121 ) ( 1,086 ) ( 6,744 ) ( 1,085 ) — ( 11,059 ) Reclassifications from constr. in progress — 108 169 32 — ( 309 ) — Effect of translation adj. 1,836 341 233 669 1,365 ( 2 ) 4,442 Cost as at December 31, 2021 155,082 112,124 14,013 7,354 20,307 159 309,039 Additions 1,167 5,125 429 60 1,614 1,099 9,494 Disposals ( 331 ) ( 2,757 ) ( 542 ) ( 144 ) ( 77 ) ( 237 ) ( 4,088 ) Impairment loss — ( 37 ) ( 6 ) — — — ( 43 ) Reclassifications from constr. in progress — 14 10 — — ( 24 ) — Effect of translation adj. 1,883 510 81 68 275 15 2,832 Cost as at December 31, 2022 157,801 114,979 13,985 7,338 22,119 1,012 317,234 Land Machinery Office Retail Leasehold Constr. in Total Accumulated depreciation as at ( 86,163 ) ( 97,716 ) ( 13,772 ) ( 12,700 ) ( 12,958 ) — ( 223,309 ) Depreciation ( 3,590 ) ( 2,697 ) ( 320 ) ( 337 ) ( 1,631 ) — ( 8,575 ) Disposals 125 770 1,032 6,746 1,081 — 9,754 Effect of translation adj. ( 1,794 ) ( 330 ) ( 174 ) ( 627 ) ( 930 ) — ( 3,855 ) Accumulated depreciation as at ( 91,422 ) ( 99,973 ) ( 13,234 ) ( 6,918 ) ( 14,438 ) — ( 225,985 ) Depreciation ( 3,611 ) ( 2,990 ) ( 298 ) ( 244 ) ( 1,642 ) — ( 8,785 ) Disposals 168 2,732 541 60 2 — 3,503 Effect of translation adj. ( 1,228 ) ( 339 ) ( 60 ) 67 24 — ( 1,536 ) Accumulated depreciation as at ( 96,093 ) ( 100,570 ) ( 13,051 ) ( 7,035 ) ( 16,054 ) — ( 232,803 ) Net book value as at December 31, 2020 67,042 10,507 562 381 6,454 360 85,306 Net book value as at December 31, 2021 63,660 12,151 779 436 5,869 159 83,054 Net book value as at December 31, 2022 61,708 14,409 934 303 6,065 1,012 84,431 Annual rate of depreciation for 2022 and 2021 0 %- 10 % 10 %- 25 % 10 %- 20 % 25 %- 35 % 10 %- 20 % — |
Summary of Breakdown of Property, Plant and Equipment by Country | The following tables show a breakdown of property, plant and equipment by country. 31/12/22 31/12/21 Italy 46,610 45,470 Romania 17,952 18,502 United States of America 14,807 13,884 Brazil 3,092 2,753 Europe 957 1,253 China 695 810 Other countries 318 382 Total 84,431 83,054 |
Summary of Breakdown of Property, Plant and Equipment Based on Cash Generating Units | The following tables show a breakdown of property, plant and equipment based on the cash generating units in which they are included. 31/12/22 31/12/21 Italian upholstered furniture plant 33,087 34,704 Romanian upholstered furniture plant 19,338 19,627 Brazilian upholstered furniture plant 3,350 2,978 Chinese upholstered furniture plant 2,223 2,215 Others 26,433 23,530 Total 84,431 83,054 |
Right-of-use-assets (Tables)
Right-of-use-assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Summary of Changes in Carrying Amount of Right-of-use Assets | Changes in the carrying amount of right-of-use assets for the years ended December 31, 2022 and 2021, are reported in the following tables. Buildings Vehicles Total Cost as at December 31, 2020 67,710 1,023 68,733 Additions 3,194 — 3,194 Disposals ( 1,267 ) — ( 1,267 ) Adjustments due to remeasurements 9,084 — 9,084 Adjustments due to modifications 42 ( 1 ) 41 Effect of translation adjustments 3,021 13 3,034 Cost as at December 31, 2021 81,784 1,035 82,819 Additions 6,541 — 6,541 Disposals ( 5,371 ) — ( 5,371 ) Adjustments due to remeasurements ( 227 ) — ( 227 ) Adjustments due to modifications ( 167 ) — ( 167 ) Effect of translation adjustments 1,037 11 1,048 Cost as at December 31, 2022 83,597 1,046 84,643 Accumulated depreciation and impairment loss as at Dec. 31, 2020 ( 19,117 ) ( 603 ) ( 19,720 ) Depreciation ( 11,457 ) ( 249 ) ( 11,706 ) Disposals 1,209 — 1,209 Impairment loss ( 1,188 ) — ( 1,188 ) Adjustments due to remeasurements — — — Adjustments due to modifications — — — Effect of translation adjustments ( 648 ) ( 11 ) ( 659 ) Accumulated depreciation and impairment loss as at Dec. 31, 2021 ( 31,201 ) ( 863 ) ( 32,064 ) Depreciation ( 11,699 ) ( 135 ) ( 11,834 ) Disposals 3,060 — 3,060 Impairment loss ( 848 ) — ( 848 ) Adjustments due to remeasurements ( 51 ) — ( 51 ) Adjustments due to modifications — — — Effect of translation adjustments ( 72 ) ( 9 ) ( 81 ) Accumulated depreciation and impairment loss as at Dec. 31, 2022 ( 40,811 ) ( 1,007 ) ( 41,818 ) Net book value as at December 31, 2020 48,593 420 49,013 Net book value as at December 31, 2021 50,583 172 50,755 Net book value as at December 31, 2022 42,786 39 42,825 |
Summary of Breakdown of Right-of-use Assets Based on Geographical Location | The following tables show a breakdown of right-of-use assets based on geographical location of the cash generating units (mainly directly operated retail stores) in which they are included. 31/12/22 31/12/21 United States of America 18,938 15,853 Italy 9,249 11,977 Spain 3,473 4,809 United Kingdom 4,985 7,625 China 2,493 4,076 Others 3,687 6,415 Total 42,825 50,755 |
Summary of amounts recognized in statement of net income loss | The following tables show the amounts recognized in profit or loss under IFRS 16 for the years ended December 31, 2022, 2021 and 2020. 2022 2021 2020 Depreciation charge of right-of-use assets 11,834 11,706 13,376 Interest on lease liabilities 2,877 2,584 2,613 Expenses relating to short-term leases 1,465 1,187 719 Expenses relating to leases of low-value assets, excluding short-term leases 125 169 122 Covid-19 rent concessions ( 635 ) ( 1,515 ) ( 1,799 ) Total 15,666 14,131 15,031 |
Intangibles assets and goodwi_2
Intangibles assets and goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | |
Summary of Carrying Amount of Intangible Assets and Goodwill | Changes in the carrying amount of intangible assets and goodwill for the years ended December 31, 2022 and 2021 are analysed in the following tables. Trademarks, Software Goodwill Total Cost as at December 31, 2020 14,022 30,990 1,921 46,933 Additions 100 1,376 — 1,476 Impairment loss — — — — Disposals ( 22 ) ( 168 ) — ( 190 ) Effect of translation adjustments 16 38 — 54 Cost as at December 31, 2021 14,116 32,236 1,921 48,273 Additions 164 1,010 — 1,174 Impairment loss — — — — Disposals — ( 120 ) — ( 120 ) Impairment reversal — 1 — 1 Effect of translation adjustments ( 3 ) 40 — 37 Cost as at December 31, 2022 14,277 33,167 1,921 49,365 Accumulated amortisation as at December 31, 2020 ( 13,605 ) ( 29,571 ) — ( 43,176 ) Amortisation ( 140 ) ( 950 ) — ( 1,090 ) Disposals 22 166 — 188 Effect of translation adjustments ( 12 ) ( 37 ) — ( 49 ) Accumulated amortisation as at December 31, 2021 ( 13,735 ) ( 30,392 ) — ( 44,127 ) Amortisation ( 164 ) ( 867 ) — ( 1,031 ) Disposals 2 84 — 86 Effect of translation adjustments — ( 39 ) — ( 39 ) Accumulated amortisation as at December 31, 2022 ( 13,897 ) ( 31,214 ) — ( 45,111 ) Net book value as at December 31, 2020 417 1,419 1,921 3,757 Net book value as at December 31, 2021 381 1,844 1,921 4,146 Net book value as at December 31, 2022 380 1,953 1,921 4,254 |
Equity-method investees (Tables
Equity-method investees (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Equity Method Investees [Abstract] | |
Summary of Changes in Carrying Amount of Equity-method investees | Changes in the carrying amount of equity-method investees for the years ended December 31, 2022 and 2021 are analysed as follows. Natuzzi Nars Natuzzi Natuzzi Foundation "Made in Italy circolare e sostenibile" Salena Total Balance as at December 31, 2020 39,991 98 — — — — 40,089 Acquisition of non-controlling interests — — 270 18 — — 288 Share of profit for the year 3,409 152 — — — — 3,561 Share of other comprehensive income 2,320 8 — — — — 2,328 Dividends received ( 1,490 ) ( 254 ) — — — — ( 1,744 ) Balance as at December 31, 2021 44,230 4 270 18 — — 44,522 Acquisition of non-controlling interests — — 453 — 8 — 461 Share of profit for the year 436 431 ( 547 ) 36 — — 356 Share of other comprehensive income ( 784 ) — — — — — ( 784 ) Dividends received ( 3,697 ) — — — — — ( 3,697 ) Share capital reduction ( 3,156 ) — — — — — ( 3,156 ) Effect of translation adjustments — ( 4 ) — ( 2 ) — — ( 6 ) Balance as at December 31, 2022 37,029 431 176 52 8 — 37,696 |
Summary of Reconciliation of Fair Value of Retained Interest at the date of loss of control with carrying amount in Consolidated Statement of Financial Position | The following table shows the reconciliation of the carrying amount of the retained interest in Natuzzi Trading Shanghai as at December 31, 2020 with the carrying amount as at December 31, 2021 included in the consolidated statement of financial position. Carrying amount as at December 31, 2020 39,991 Dividends distribution ( 1,490 ) Group’s share of profit for the year 4,065 Elimination of amortisation of Natuzzi’s trademarks 367 Elimination of intercompany profit on inventories ( 634 ) Amortisation of intangibles assets ( 519 ) Reversal of deferred tax liabilities 130 Group’s share of profit for the year, net of equity method adjustments 3,409 3,409 Group’s share of other comprehensive income 2,320 Carrying amount as at December 31, 2021 44,230 The following table shows the reconciliation of the carrying amount of the retained interest in Natuzzi Trading Shanghai as at December 31, 2021 with the carrying amount as at December 31, 2022 included in the consolidated statement of financial position. Carrying amount as at December 31, 2021 44,230 Dividends distribution ( 3,697 ) Share capital reduction ( 3,156 ) Group’s share of profit for the year 3,020 Elimination of amortisation of Natuzzi’s trademarks 367 Elimination of intercompany profit on inventories ( 2,562 ) Amortisation of intangibles assets ( 519 ) Reversal of deferred tax liabilities 130 Group’s share of profit for the year, net of equity method adjustments 436 436 Group’s share of other comprehensive income ( 784 ) Carrying amount as at December 31, 2022 37,029 |
Summarized Statement of Financial Position and Profit or Loss of Joint Venture | Summarised statement of financial position of Natuzzi Trading Shanghai and Group’s share in net assets as at December 31, 2022 and 2021 31/12/22 31/12/21 Current assets 64,298 79,527 Non-current assets 19,833 21,619 Current liabilities ( 42,049 ) ( 50,092 ) Non-current liabilities ( 1,794 ) ( 1,344 ) Net Assets 40,288 49,710 Group’s share in net assets – 49 % of net assets 19,742 24,358 Intangible assets 2,312 2,832 Goodwill 26,140 26,140 Elimination of intercompany profit from licensing Natuzzi’s trademarks ( 5,727 ) ( 6,095 ) Elimination of intercompany profit on inventories ( 4,860 ) ( 2,298 ) Deferred tax liabilities ( 578 ) ( 707 ) Group’s carrying amount of interest 37,029 44,230 Summarised statement of profit or loss of Natuzzi Trading Shanghai and Group’s share of profit for the year ended December 31, 2022, 2021 and 2020 2022 2021 2020 Revenue 98,483 96,272 62,023 Cost of sales ( 60,481 ) ( 57,120 ) ( 37,414 ) Other income and expenses, net ( 91 ) ( 39 ) ( 413 ) Selling expenses ( 24,473 ) ( 23,937 ) ( 17,685 ) Administrative expenses ( 5,665 ) ( 4,983 ) ( 2,185 ) Net finance income 1,037 1,213 864 Profit before tax 8,810 11,406 5,190 Income tax expense ( 2,646 ) ( 3,111 ) ( 1,368 ) Profit for the period 6,164 8,295 3,822 Other comprehensive profit/(loss) ( 1,600 ) 4,734 ( 744 ) Total comprehensive profit for the period 4,564 13,029 3,078 Group’s share of profit for the period – 49 % 3,020 4,065 1,873 Elimination of amortisation of Natuzzi’s trademarks 367 367 367 Elimination of intercompany profit on inventories ( 2,562 ) ( 634 ) ( 396 ) Amortisation of intangible assets ( 519 ) ( 519 ) ( 519 ) Deferred tax liabilities 130 130 130 Group’s share of profit/(loss), net of equity method adj. 436 3,409 1,455 Group’s share of other comprehensive income/(loss) for the period ( 784 ) 2,320 ( 365 ) Group’s share of total comprehensive income/(loss) for the period ( 348 ) 5,729 1,090 Dividends received by the Group 3,697 1,490 2,335 |
Schedule of Cash and Cash Equivalents, Bank Overdrafts and Borrowings | As at December 31, 2022 and 2021 cash and cash equivalents, bank overdrafts and borrowings, lease liabilities current and non-current are set out below. 31/12/22 31/12/21 Cash and cash equivalents 32,844 61,944 Bank overdrafts and borrowings — — Lease liabilities current ( 2,648 ) ( 2,616 ) Lease liabilities non-current ( 1,794 ) ( 1,344 ) Total, net 28,402 57,984 |
Depreciation and Amortization, Interest Income, Interest Expense and Income Tax Expense | For the years ended December 31, 2022, 2021 and 2020, depreciation and amortisation, interest income, interest expense and income tax expense are set below. 2022 2021 2020 Depreciation and amortisation 1,945 4,507 4,106 Interest income 1,729 1,529 1,256 Interest expense 692 316 392 Income tax expense 2,646 3,111 1,368 |
Other non-current receivables (
Other non-current receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other non-current receivables [abstract] | |
Summary of Other Non-Current Receivables | Other non-current receivables consist of the following: 31/12/22 31/12/21 Security deposits for lease contracts 5,776 4,557 Receivable from disposal of assets 118 297 Total 5,894 4,854 |
Other assets (non-current and_2
Other assets (non-current and current) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets Current And Noncurrent [Abstract] | |
Summary of Other Assets | Other assets are analysed as follows: 31/12/22 31/12/21 Advances to suppliers 4,697 5,842 Deferred delivery and commission costs related to finished goods 1,655 4,831 Deferred costs for Natuzzi Display System 1,579 1,676 Deferred costs for slotting fees 725 868 Deferred costs for Service-Type Warranty 209 205 Other prepaid expenses and accrued income 560 305 Total other assets 9,425 13,727 Less current portion ( 7,973 ) ( 12,309 ) Non-current portion 1,452 1,418 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Classes of current inventories [abstract] | |
Summary of Inventories | Inventories are analysed as follows: 31/12/22 31/12/21 Leather and other raw materials 27,003 27,006 Goods in process 10,464 14,090 Finished goods 32,653 39,115 Total 70,120 80,211 |
Summary of Changes in the Provision for Slow Moving and Obsolete Raw Materials and Finished Products | The following tables summarise the changes to the provision for slow moving and obsolete raw materials and finished goods included in inventories for the years ended December 31, 2022 and 2021. 31/12/22 31/12/21 Balance at beginning of year 15,568 13,059 Additions 1,819 3,413 Reductions ( 981 ) ( 904 ) Balance at end of year 16,406 15,568 |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other receivables [abstract] | |
Summary of Trade Receivables | Trade receivables disaggregated by nature of the relationship with the customers are as follows: 31/12/22 31/12/21 Third parties 37,203 38,556 Related parties 7,457 8,028 Gross trade receivables 44,660 46,584 Allowance for doubtful accounts ( 5,604 ) ( 5,325 ) Total trade receivables 39,056 41,259 Transactions with related parties are conducted at arm’s length (see note 42). Trade receivables by geographic region are analysed as follows: 31/12/22 31/12/21 Italian customers 10,124 10,678 Other European customers 10,761 12,252 North American customers 8,233 7,232 Chinese customers 5,589 7,059 South American customers 5,047 4,956 Other foreign customers 4,906 4,407 Gross trade receivables 44,660 46,584 Provision for doubtful accounts ( 5,604 ) ( 5,325 ) Total trade receivables 39,056 41,259 |
Summary of Provision for Doubtful Accounts | The following tables provide the movements in the provision for doubtful accounts for the years ended December 31, 2022 and 2021. 31/12/22 31/12/21 Balance at beginning of year 5,325 7,881 Charges – bad debt expense 330 76 Reductions – write off of uncollectible amounts ( 95 ) ( 2,015 ) Foreign exchange effect 44 — Reductions – reversal to profit and loss — ( 617 ) Balance at end of year 5,604 5,325 |
Summary of Carrying Amount of Trade Receivables that have been Transferred but have not been Derecognized and the Associated Liabilities | The following information shows the reporting-date carrying amount of trade receivables that have been transferred but have not been derecognised and the associated liabilities. 31/12/22 31/12/21 Carrying amount of trade receivables transferred 18,670 29,778 Carrying amount of associated liabilities ( 17,307 ) ( 26,341 ) Total, net 1,363 3,437 |
Other current receivables (Tabl
Other current receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other current receivables [abstract] | |
Summary of Other Current Receivables | Other current receivables are analysed as follows: 31/12/22 31/12/21 VAT 3,051 3,588 Receivables from National Institute for Social Security 3,823 3,187 Receivables from VITA Group — 1,374 Receivables for share capital reduction 3,337 — Other 6,068 2,869 Total 16,279 11,018 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
Summary of Cash and Cash Equivalents | Cash and cash equivalents are analysed as follows: 31/12/22 31/12/21 Cash on hand 89 201 Bank accounts 54,386 53,271 Total 54,475 53,472 |
Summary of Cash and Cash Equivalents by Geographic Area | The following tables show the Group’s cash and cash equivalents broken-down by region. 31/12/22 31/12/21 Europe 32,779 36,550 China 15,355 9,938 North America 4,482 5,924 South America 1,498 786 Other 361 274 Total 54,475 53,472 |
Summary of Reconciliation Between Amount of Cash and Cash Equivalents | For the purpose of the statement of cash flows, cash and cash equivalents comprise the following: 31/12/22 31/12/21 31/12/20 Cash and cash equivalents in the statement of financial position 54,475 53,472 48,187 Bank overdrafts repayable on demand ( 1,754 ) ( 1,223 ) ( 2,111 ) Cash and cash equivalents in the statement of cash flows 52,721 52,249 46,076 Bank overdrafts repayable on demand form an integral part of the Group’s cash management (see note 25). |
Share Capital, reserves and r_2
Share Capital, reserves and retained earnings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Share Capital Reserves And Retained Earnings [Abstract] | |
Summary of Changes in Equity Interest | As at December 31, 2022, 2021 and 2020 the equity attributable to owners of the Company is analysed as follows: 31/12/22 31/12/21 31/12/20 Share capital 55,073 54,853 54,853 Reserves 23,292 17,449 13,043 Retained earnings 9,493 10,033 6,448 Total 87,858 82,335 74,344 |
Disclosure of Share Capital Owned | Share capital is owned, as at December 31, 2022, 2021 and 2020, as follows: 31/12/22 31/12/21 31/12/20 Mr. Pasquale Natuzzi 56.2 % 56.5 % 56.5 % Mrs. Anna Maria Natuzzi 2.6 % 2.6 % 2.6 % Mrs. Annunziata Natuzzi 2.5 % 2.5 % 2.5 % Other investors 38.7 % 38.4 % 38.4 % Total 100.0 % 100.0 % 100.0 % |
Analysis of Share Capital Reserves | An analysis of “Reserves” is as follows: 31/12/22 31/12/21 31/12/20 Legal reserve 10,971 10,971 10,971 Majority shareholder capital contribution 488 488 488 Shareholders: unpaid share capital ( 165 ) — — Share premium reserve 175 — — Stock option reserve 824 — — Reserve for gain on disposal of Non-controlling interests 4,219 1,088 — Foreign operations translation reserve 5,468 5,899 1,954 Remeasurement of defined benefit plan 1,312 ( 997 ) ( 370 ) Total 23,292 17,449 13,043 |
Summary of OCI Accumulated in Reserves, Net of Tax | OCI accumulated in reserves, net of tax, is reported in the following tables. 31/12/22 31/12/21 31/12/20 Foreign operation translation 5,468 5,899 1,954 Remeasurement of defined benefit plan 1,312 ( 997 ) ( 370 ) Owners of the Company 6,780 4,902 1,584 Non-controlling interests 144 ( 27 ) ( 119 ) Total OCI 6,924 4,875 1,465 |
Analysis of Share Capital Reserves | The disaggregation of changes of OCI by each type of reserve in equity is shown in the tables below. Year ended December 31, 2022 Foreign Remeasurement Total Exchange difference on translation of foreign operations 524 — 524 Share of OCI of equity-method investees ( 784 ) — ( 784 ) Actuarial gains/(losses) on employees’ leaving entitlement — 2,309 2,309 Total ( 260 ) 2,309 2,049 Year ended December 31, 2021 Foreign Remeasurement Total Exchange difference on translation of foreign operations 1,709 — 1,709 Share of OCI of equity-method investees 2,328 — 2,328 Actuarial gains/(losses) on employees’ leaving entitlement — ( 627 ) ( 627 ) Total 4,037 ( 627 ) 3,410 Year ended December 31, 2020 Foreign Remeasurement Total Exchange difference on translation of foreign operations ( 3,575 ) — ( 3,575 ) Share of OCI of equity-method investees ( 373 ) — ( 373 ) Actuarial gains/(losses) on employees’ leaving entitlement — ( 212 ) ( 212 ) Total ( 3,948 ) ( 212 ) ( 4,160 ) |
Disclosure of Net Debt to Equity Ratio | The Group’s net debt to equity ratio as at December 31, 2022 and 2021 is as follows: 31/12/22 31/12/21 Total liabilities 276,051 306,186 Less cash and cash equivalents ( 54,475 ) ( 53,472 ) Net debt (a) 221,576 252,714 Total equity (b) 92,556 83,846 Net debt to equity ratio (a/b) 2.39 3.01 |
Long-term borrowings (Tables)
Long-term borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about borrowings [abstract] | |
Summary of Detailed Information About Loans Outstanding | Long-term borrowings (debts) as at December 31, 2022 and 2021 consist of the following: 31/12/22 31/12/21 Three-month Euribor (360) plus a 2.2 % spread long-term debt with final payment August 2022 — 139 Six-month Euribor (360) plus a 2.75 % spread long-term debt with final payment December 2022 — 92 Three-month Euribor (360) plus a 1.9 % spread long-term debt with final payment June 2023 — 621 Six-month Euribor (360) plus a 2.5 % spread long-term debt with final payment August 2023 2,344 2,946 11.76 % fixed long-term debt with final payment October 2023 116 216 Six-month Euribor (360) plus a 2.75 % spread long-term debt with final payment March 2025 3,215 4,646 2.3 % fixed long-term debt with final payment January 2026 3,451 4,518 No interest rate long-term debt with final payment September 2027 345 395 0.21 % fixed long-term debt with final payment December 2030 2,916 2,963 80 % of six-month Euribor (360) plus a 0.95 % spread long-term debt with final January 2035 864 903 Three-month Euribor (360) plus a 2.00 % spread long-term debt with final payment December 2027 4,000 — 0.055 % fixed long-term debt with final payment December 2025 38 — Total long-term borrowings 17,289 17,439 Less current installments ( 5,806 ) ( 3,862 ) Long-term borrowings, excluding current installments 11,483 13,577 While in 2021 both the three-month and six-month Euribor (360) were negative, during 2022 they were positive as a result of increased inflation. Therefore, during 2022 actual range of rates are from 0.68 % and 4.48 %. |
Lease liabilities (non-curren_2
Lease liabilities (non-current and current) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Non Current And Current Portion Of The Lease Liabilities [Abstract] | |
Summary of non-current and current portion of the lease liabilities | The non-current and current portion of the lease liabilities as at December 31, 2022 and 2021 is as follows: 31/12/22 31/12/21 Non-current portion of the lease liabilities 41,024 46,592 Current portion of the lease liabilities 10,825 10,546 Total 51,849 57,138 |
Summary of Changes in Carrying Amount of Lease Liabilities | Changes in the carrying amount of the lease liabilities for the year ended December 31, 2022 and 2021 are reported in the following tables. 31/12/22 31/12/21 Balance at beginning of year 57,138 53,593 Additions for new leases 7,909 3,194 Interest expenses 2,877 2,603 Lease payments ( 12,926 ) ( 12,693 ) Disposal of leases ( 2,568 ) ( 58 ) Adjustments due to remeasurements ( 227 ) 9,084 Adjustments due to modifications ( 167 ) 41 Covid-19 rent concessions ( 635 ) ( 1,515 ) Effect of translation adjustments 448 2,889 Balance at end of year 51,849 57,138 |
Summary of Maturity Analysis of Contractual Undiscounted Cash Flows of Lease Liabilities | The maturity analysis of the contractual undiscounted cash flows of the lease liabilities as at December 31, 2022 and 2021 are reported in the tables below. 31/12/22 31/12/21 Less than one year 13,404 13,130 One to five years 35,116 38,419 More than five years 12,820 14,305 Total undiscounted lease liabilities 61,340 65,854 |
Employees' leaving entitlement
Employees' leaving entitlement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of information about defined benefit plans [abstract] | |
Summary of Changes to Employees' Leaving Entitlement | Changes to employees’ leaving entitlement occurring during 2022 and 2021 are analysed as follows: 31/12/22 31/12/21 Balance at beginning of year 15,588 15,747 Current service cost 80 103 Interest expense 151 51 Benefits paid ( 446 ) ( 940 ) Actuarial losses/(gains) ( 2,309 ) 627 Balance at end of year 13,064 15,588 |
Summary of Assumptions Used in Determining Present Value of Defined Benefit Obligation Related to Employee Benefit Obligation | The principal assumptions used in determining the present value of such defined benefit obligation (“DBO”) related to the employee benefit obligation are reported as follows: 31/12/22 31/12/21 Annual discount rate 3.63 % 0.98 % Annual future salary increase rate 2.30 % 1.75 % Annual inflation rate 2.30 % 1.75 % Annual DBO increase rate 3.23 % 2.81 % Mortality RG48 mortality tables published by the General State Accounting Inability National Institute for Social Security tables, by age and sex Retirement 100% upon achievement of AGO requisites Annual frequency of turnover 2.00 % 2.00 % Annual frequency of DBO advances 2.00 % 2.00 % |
Summary of Quantitative Sensitivity Analysis for Significant Assumptions | A quantitative sensitivity analysis for significant assumptions impacting the DBO as at December 31, 2022 and 2021 is reported as follows: 31/12/22 31/12/21 +1% on turnover rate 70 ( 118 ) -1% on turnover rate ( 76 ) 130 +0.25% on annual inflation rate 175 232 -0.25% on annual inflation rate ( 172 ) ( 227 ) +0.25% on annual discount rate ( 268 ) ( 362 ) -0.25% on annual discount rate 276 375 |
Schedule of Expected Payments or Contributions to Defined Benefit Plan | The following are the expected payments of the employees’ leaving entitlement in future years: 31/12/22 31/12/21 Within 1 year 1,027 769 Between 2 and 5 years 2,857 3,223 |
Schedule of Options Granted to Key Officer Beneficiaries | . Grant date/beneficiaries Number of equity-based instruments Vesting conditions Contractual life of the options Three key officers having strategic functions – July 15, 2022 562,512 ADSs equivalent to 2,812,560 ordinary shares Continuous service status until the vesting date From 1 to 6 years In particular, the number of ordinary shares of Natuzzi S.p.A. that each of the three beneficiaries can subscribe for pursuant to the relevant award agreements is broken down below and shown in terms of ADS equivalent. Vesting Date Beneficiary 1 Beneficiary 2 Beneficiary 3 Total 15/Aug/22 36,533 6,583 44,000 87,116 31/May/23 54,800 9,874 33,000 97,674 31/May/24 54,800 9,874 38,338 103,012 31/May/25 73,067 13,165 5,338 91,570 31/May/26 73,067 13,165 5,338 91,570 31/May/27 73,067 13,165 5,338 91,570 Total 365,334 65,826 131,352 562,512 The date by which the options can be exercised is December 31, 2027 for beneficiaries 1 and 2 and December 31 of each vesting year up to December 31, 2027 for beneficiary 3. In particular, beneficiary 3 has been granted two sets of stock options with different exercise prices: the first set vesting through December 31, 2024 and granting such beneficiary the right to subscribe for up to 550,000 ordinary shares of Natuzzi S.p.A. (equivalent to 110,000 ADSs) and the second set vesting through December 31, 2027 and granting such beneficiary the right to subscribe for up to 106,760 ordinary shares of Natuzzi S.p.A. (equivalent to 21,352 ADSs) |
Summary of Inputs Used in Measurement of Fair Values at Grant Date of Equity Settled Share-based Payment Plans | : Input data Beneficiary 1 Beneficiary 2 Beneficiary 3 Beneficiary 3 Fair value of the ADS option at grant date $ 4.3900 $ 4.3000 $ 4.5300 $ 3.3700 EURUSD exchange rate at grant date n.a. n.a. 1.0059 n.a. Closing price of the ADS at grant date $ 8.8700 $ 8.8700 $ 8.8700 $ 8.8700 Currency of the exercise price U.S. dollar U.S. dollar Euro U.S. dollar Exercise price $ 14.5950 $ 15.3450 $ 5.0295 $ 15.6000 Expected volatility of the stock price (weighted-average) 67.73 % 67.73 % 67.73 % 67.73 % Expected volatility of the EURUSD exchange rate n.a. n.a. 7.27 % n.a. Expected life (weighted-average) * 2.72 years 2.72 years 0.51 years 0.59 years Expected dividends — — — — Risk-free interest rate (based on government bonds) 2.80 % 2.80 % 2.80 % 2.80 % (*) average of the different vesting dates. |
Schedule of Number and Weighted-Average Exercise Prices of Share Options | : Number of options (ADS) Weighted-average exercise price (ADS) Outstanding as at January 1, 2022 — — Granted during the year 562,512 $ 12.85 Forfeited during the year — — Exercised during the year 44,000 $ 5.03 Outstanding as at December 31, 2022 518,512 $ 13.51 Exercisable as at December 31, 2022 43,116 $ 14.71 There are no further options granted during the year in addition to those granted on 15 July 2022. Furthermore, since the Group did not have a stock option plan in 2021 and 2020, no comparative information has been provided |
Contract liabilities (non-cur_2
Contract liabilities (non-current and current) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Contract liabilities [abstract] | |
Summary of Contract Liabilities | Contract liabilities as at December 31, 2022 and 2021 consist of the following: 31/12/22 31/12/21 Advance payments from customers 15,735 19,206 Deferred income from licensing of Natuzzi’s trademarks 5,960 6,343 Deferred revenue for Natuzzi Display System 2,049 2,178 Deferred revenue for Service-Type Warranty 406 475 Total contract liabilities 24,150 28,202 Less current portion ( 17,124 ) ( 20,797 ) Non-current portion 7,026 7,405 |
Provisions (non-current and c_2
Provisions (non-current and current) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provisions [abstract] | |
Disclosure of Provision Related to Investment | Provisions as at December 31, 2022 and 2021 consist of the following: 31/12/22 31/12/21 Provision for legal claims 8,626 9,403 Provision for tax claims 64 229 Provision for warranties 3,114 2,839 Termination indemnities for sales agents 742 940 Total provisions 12,546 13,411 Less current portion ( 3,114 ) ( 2,839 ) Non-current portion 9,432 10,572 |
Disclosure of Changes in Provision Related to Investment | Changes in the above provisions for the years ended December 31, 2022 and 2021 are analysed as follows: Provision Provision Provision Termination Total Balance as at December 31, 2020 12,865 360 3,745 1,049 18,019 Provisions made during the year 1,110 — 455 237 1,802 Provisions used during the year ( 4,572 ) ( 105 ) ( 1,339 ) ( 346 ) ( 6,362 ) Provisions reversed during the year — ( 26 ) ( 22 ) — ( 48 ) Balance as at December 31, 2021 9,403 229 2,839 940 13,411 Provisions made during the year 4,785 — 1,774 75 6,634 Provisions used during the year ( 4,888 ) ( 165 ) ( 1,499 ) ( 273 ) ( 6,825 ) Provisions reversed during the year ( 674 ) — — — ( 674 ) Balance as at December 31, 2022 8,626 64 3,114 742 12,546 |
Deferred income for governmen_2
Deferred income for government grants (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accruals And Deferred Income 1 [Abstract] | |
Summary of Changes in the Carrying Amount of Deferred income for government grants | Changes in the carrying amount of deferred income for government grants for the years ended December 31, 2022 and 2021 are analysed as follows: 31/12/22 31/12/21 Balance at beginning of year 12,754 12,458 Additions 1,204 1,725 Credit to profit or loss ( 1,716 ) ( 1,429 ) Balance at end of year 12,242 12,754 |
Bank overdrafts and short-ter_2
Bank overdrafts and short-term borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Bank Overdrafts And Short Term Borrowings [Abstract] | |
Schedule of Bank Overdrafts and Short-term Borrowings | Bank overdrafts and short-term borrowings as at December 31, 2022 and 2021 are analysed as follows: 31/12/22 31/12/21 Bank overdrafts 1,754 1,223 Borrowings related to a recourse factoring agreement 17,307 26,341 Borrowings secured with trade receivables not part of factoring agreement 9,703 8,327 Borrowings unsecured 490 256 Total 29,254 36,147 |
Summary of Weighted Average Interest Rates on Bank Overdrafts and Short-Term Borrowings | The weighted average interest rates on the bank overdrafts and short-term borrowings for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 Bank overdrafts 5.12 % 5.53 % Borrowings 3.30 % 3.92 % |
Trade payables (Tables)
Trade payables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other current payables [abstract] | |
Summary of Trade Payables | Trade payables as at December 31, 2022 and 2021 are analysed as follows: 31/12/22 31/12/21 Invoices received - supplier not part of factoring facility 42,609 52,110 Invoices received - supplier factoring facility 14,294 13,581 Accruals for invoices to be received 21,496 23,524 Total 78,399 89,215 |
Other payables (Tables)
Other payables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other current payables [abstract] | |
Schedule Other Payables | Other payables as at December 31, 2022 and 2021 are analysed as follows: 31/12/22 31/12/21 Salaries and wages 9,503 7,991 Social security contributions 6,179 5,898 Vacation accrual 4,342 4,397 Withholding taxes on payroll and on others 1,886 2,000 Advance payment from the Parent’s majority shareholder 2,500 2,500 Other accounts payable 9,912 8,667 Total 34,322 31,453 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Current Liabilities [Abstract] | |
Schedule of Other Liabilities | Other liabilities as at December 31, 2022 and 2021 are analysed as follows: 31/12/22 31/12/21 Advance payments for government grants — 412 Total — 412 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Financial Instruments [Abstract] | |
Summary of Euro Equivalent the Contractual Amounts of forward Exchange Contracts | The tables below summarise in euro equivalent the contractual amounts of forward exchange contracts used to hedge principally future cash flows from trade receivables and sale orders as at December 31, 2022 and 2021. 31/12/22 31/12/21 British pounds 13,753 14,723 U.S. dollars 11,598 20,532 Euro 9,720 12,192 Chinese renminbi 7,428 — Australian dollars 1,624 1,826 Japanese yen 861 1,152 Canadian dollars — 812 Swedish kroner — 99 Total 44,984 51,336 |
Summary of Information Regarding the Contract Amount in Estimated Fair Value of All of the Group's Forward Exchange Contacts | The following tables present information regarding the contract amount in euro equivalent amount and the estimated fair value of all of the Group’s forward exchange contracts. Contracts with net unrealized gains are presented as “assets” and contracts with net unrealized losses are presented as “liabilities”. 2022 2021 Contract Unrealised Contract Unrealised Assets 38,474 925 18,159 96 Liabilities 6,510 ( 66 ) 33,177 ( 691 ) Total 44,984 859 51,336 ( 595 ) |
Financial Instruments - Fair _2
Financial Instruments - Fair values and risk management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of Classification and Carrying Amounts of Group's Financial Assets and Financial Liabilities | The following tables show the classification and carrying amounts of Group’s financial assets and financial liabilities as at December 31, 2022 and 2021. Financial assets 31/12/22 31/12/21 Financial assets measured at amortised cost Other non-current receivables 5,894 4,854 Trade receivables 39,056 41,259 Other current receivables 16,279 11,018 Cash and cash equivalents 54,475 53,472 Total (a) 115,704 110,603 Financial assets measured at fair value Forward exchange contracts 925 96 Total (b) 925 96 Total financial assets (a+b) 116,629 110,699 Financial assets measured at amortised cost include trade receivables, other receivables (non-current and current) and cash and cash equivalents. Financial assets at fair value reflect the positive change in fair value of forward exchange contracts that are not designated as hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk for future cash flows from accounts receivables and sale orders. For further details on “Trade receivables”, “Other receivables”, “Cash and cash equivalents” and “Forward exchange contracts” reference should be made to notes 15, 12-16, 17 and 29, respectively. Financial liabilities 31/12/22 31/12/21 Financial liabilities measured at amortised cost Long-term borrowings 17,289 17,439 Lease liabilities 51,849 57,138 Bank overdrafts and short-term borrowings 29,254 36,147 Trade payables 78,399 89,215 Other payables 34,322 31,453 Total (a) 211,113 231,392 Financial liabilities measured at fair value Forward exchange contracts 66 691 Total (b) 66 691 Total financial liabilities (a+b) 211,179 232,083 |
Summary of Carrying Amount and Fair Value of Financial Assets and Financial Liabilities | The following tables show the carrying amount and fair value of Group’s financial assets and financial liabilities as at December 31, 2022 and 2021, other than those with carrying amount that are reasonable approximation of fair value. 31/12/22 31/12/21 Carrying Fair Carrying Fair Financial assets Forward exchange contracts 925 925 96 96 Financial liabilities Floating-rate borrowings 10,423 10,540 9,347 9,552 Fixed rate borrowings 6,866 7,925 8,092 9,308 Total long-term borrowings 17,289 18,465 17,439 18,860 Forward exchange contracts 66 66 691 691 |
Impairment on Financial Assets Recognised in Profit or Loss | Impairment losses on financial assets recognised in profit or loss for the years ended December 31, 2022, 2021 and 2020 are related mainly to trade receivables and are as follows: 2022 2021 2020 Impairment loss on trade receivables 331 110 1,802 |
Summary of Percentage of Revenue and Trade Receivables | 31/12/22 31/12/21 31/12/20 Revenue 59,838 48,457 38,401 Trade receivables 5,314 6,953 5,961 |
Summary of Insured and Non-insured Trade Receivables | As at December 31, 2022 and 2021, insured and non-insured trade receivables are as follows: 31/12/22 31/12/21 Insured trade receivables 25,624 26,459 Non-insured trade receivables 19,036 20,125 Gross trade receivables 44,660 46,584 Provision for doubtful accounts ( 5,604 ) ( 5,325 ) Net trade receivables 39,056 41,259 |
Summary of Trade Receivables Past Due | As at December 31, 2022 and 2021 the ageing of trade receivables is as follows: 31/12/22 31/12/21 Current (not past due) 29,111 30,146 From 1 to 29 days past due 7,158 7,854 From 30 to 60 days past due 1,355 1,030 From 61 to 90 days past due 563 355 More than 90 days past due 6,473 7,199 Gross trade receivables 44,660 46,584 Provision for doubtful accounts ( 5,604 ) ( 5,325 ) Net trade receivables 39,056 41,259 |
Summary of Information about Credit Risk Exposure on Trade Receivables Using a Provision Matrix | Set out below is the information about the credit risk exposure on the Group’s trade receivables using a provision matrix as at December 31, 2022 and 2021, further to the adoption of IFRS 9. December 31, 2022 Days past due <30 days 30-60 days 61-90 days > 90 days Total Trade receivables subject to collective valuation 2,332 68 84 30 2,514 Trade receivables subject to specific valuation 42,146 Total gross carrying amount 44,660 Default rate 0.53 % 5.46 % 17.08 % 43.47 % Expected credit loss 12 4 14 13 43 December 31, 2021 Days past due <30 days 30-60 days 61-90 days > 90 days Total Trade receivables subject to collective valuation 15,783 266 6 — 16,055 Trade receivables subject to specific valuation 30,529 Total gross carrying amount 46,584 Default rate 0.54 % 5.55 % 12.71 % 28.86 % Expected credit loss 85 15 1 — 101 |
Summary of Maturity Profile of Financial Liabilities Based on Contractual Undiscounted Payments | The tables below summarize the remaining contractual maturities of financial liabilities as at December 31, 2022 and 2021. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements. December 31, 2022 Less than 2 to 12 1 to 2 2 to 5 More than Total Long-term borrowings 577 6,015 4,124 5,534 2,273 18,523 Lease liabilities 1,895 11,509 10,190 24,926 12,820 61,340 Bank overdrafts and short-term borrowings 29,254 — — — — 29,254 Trade and other payables 34,322 78,399 — — — 112,721 Losses on derivative financial instruments 66 — — — — 66 Total financial liabilities 66,114 95,923 14,314 30,460 15,093 221,904 December 31, 2021 Less than 2 to 12 1 to 2 2 to 5 More than Total Long-term borrowings 774 3,981 5,935 6,006 2,807 19,503 Lease liabilities 1,889 11,241 12,760 25,659 14,305 65,854 Bank overdrafts and short-term borrowings 36,147 — — — — 36,147 Trade and other payables 31,453 89,215 — — — 120,668 Losses on derivative financial instruments 691 — — — — 691 Total financial liabilities 70,954 104,437 18,695 31,665 17,112 242,863 |
Summary of Sensitivity to Reasonably Possible Change in Interest Rates on that Portion of Loans and Borrowings Affected | The following tables demonstrate the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Group’s profit before tax is affected through the impact on floating rate borrowings as follows: Increase/decrease Effect on profit December 31, 2022 +45 ( 52 ) December 31, 2022 -45 52 December 31, 2021 +45 ( 43 ) December 31, 2021 -45 43 December 31, 2020 +45 ( 38 ) December 31, 2020 -45 38 |
Summary of Sensitivity to Reasonably Possible Change in Foreign Exchange Rates and Impact on Profit Before Tax | The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rates, with all other variables held constant. The Group’s profit before tax is affected through the change in foreign in exchange rates as follows: Change in foreign Effect on profit December 31, 2022 + 5 % 4,287 December 31, 2022 - 5 % ( 4,798 ) December 31, 2021 + 5 % 5,381 December 31, 2021 - 5 % ( 5,113 ) December 31, 2020 + 5 % 2,161 December 31, 2020 - 5 % ( 2,447 ) |
Summary of Financial Assets and Financial Liabilities Denominated in Foreign Currency | As at December 31, 2022 and 2021 the Group’s financial assets and financial liabilities denominated in foreign currency are as follows: Financial assets 31/12/22 31/12/21 Trade receivables 25,055 29,434 Cash and cash equivalents 45,820 48,014 Total financial assets 70,875 77,448 Financial liabilities 31/12/22 31/12/21 Long-term borrowings 461 611 Lease liabilities 35,602 37,643 Bank overdraft and short-term borrowings 14,668 24,783 Trade payables 27,169 35,524 Total financial liabilities 77,900 98,561 |
Summary of Quantitative Information about Exposure to Currency Risk | As at December 31, 2022 and 2021, the summary quantitative data about Group’s exposure to currency risk as reported to the management of the Group is as follows: December 31, 2022 Financial Financial Net Exposure U.S. dollars 35,160 41,618 ( 6,458 ) Chinese Yuan 14,681 8,206 6,475 British pounds 9,499 10,089 ( 590 ) Brazilian Reais 4,457 2,371 2,086 Canadian dollars 397 427 ( 30 ) Romanian Leu 2,723 8,732 ( 6,009 ) Mexican pesos 1,713 1,850 ( 137 ) Other 2,245 4,607 ( 2,362 ) Total 70,875 77,900 ( 7,025 ) December 31, 2021 Financial Financial Net Exposure U.S. dollars 29,658 46,930 ( 17,272 ) Chinese Yuan 18,927 14,192 4,735 British pounds 15,027 16,664 ( 1,637 ) Brazilian Reais 4,334 2,435 1,899 Canadian dollars 2,263 1,290 973 Mexican pesos 1,395 1,883 ( 488 ) Romanian Leu 666 7,934 ( 7,268 ) Other 5,178 7,233 ( 2,055 ) Total 77,448 98,561 ( 21,113 ) |
Reconciliation of Movements of Liabilities to Cash Flows Arising from Financing Activities | The following tables show the reconciliation of movements of financial liabilities to cash flows arising from financing activities for the three years ended December 31, 2022, 2021 and 2020. December 31, 2022 Jan. 1, 2022 Cash outflows Cash inflows Changes in Other Dec. 31, 2022 Long-term borrowings 17,439 ( 4,473 ) 4,038 — 286 17,290 Lease liabilities 57,138 ( 10,049 ) — — 4,760 51,849 Short-term borrowings 34,924 ( 7,424 ) — — — 27,500 Bank overdrafts 1,223 — 531 — — 1,754 Non-controlling interests 1,511 ( 551 ) 1,739 — 1,999 4,698 Total liabilities from financing activities 112,235 ( 22,497 ) 6,308 — 7,045 103,091 Bank overdrafts are used only for cash management purposes. December 31, 2021 Jan. 1, 2021 Cash outflows Cash inflows Changes in Other Dec. 31, 2021 Long-term borrowings 16,426 ( 4,788 ) 5,873 — ( 72 ) 17,439 Lease liabilities 53,593 ( 10,090 ) — — 13,635 57,138 Short-term borrowings 28,701 — 6,210 — 13 34,924 Bank overdrafts 2,111 ( 888 ) — — — 1,223 Non-controlling interests 1,020 ( 545 ) 144 — 892 1,511 Total liabilities from financing activities 101,851 ( 16,311 ) 12,227 — 14,468 112,235 Bank overdrafts are used only for cash management purposes. December 31, 2020 Jan. 1, 2020 Cash outflows Cash inflows Changes in Other Dec. 31, 2020 Long-term borrowings 18,412 ( 2,675 ) 875 — ( 186 ) 16,426 Lease liabilities 57,367 ( 9,907 ) — — 6,133 53,593 Short-term borrowings 22,196 — 6,518 — ( 13 ) 28,701 Bank overdrafts 1,974 — 137 — — 2,111 Non-controlling interests 1,692 ( 388 ) — — ( 284 ) 1,020 Total liabilities from financing activities 101,641 ( 12,970 ) 7,530 — 5,650 101,851 Bank overdrafts are used only for cash management purposes. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [abstract] | |
Disaggregation of Revenue from Contracts with Customers | In the following tables, revenue from contracts with customers are disaggregated by types of goods, primary geographical markets, geographical location of customers, distribution channels, brands and timing of revenue recognition. Types of goods 2022 2021 2020 Sale of upholstery furniture 398,768 373,936 280,210 Sale of home furnishing accessories 54,478 39,803 33,325 Sale of polyurethane foam 5,208 7,660 6,848 Sale of other goods 10,033 5,976 7,960 Total 468,487 427,375 328,343 The sale of upholstery furniture includes the following categories: stationary furniture (sofas, loveseats and armchairs), sectional furniture, motion furniture, sofa beds and occasional chairs, including recliners and massage chairs. Geographical markets 2022 2021 2020 Europe, Middle East and Africa 215,596 197,584 165,025 Americas 165,453 157,373 99,383 Asia-Pacific 87,438 72,418 63,935 Total 468,487 427,375 328,343 Geographical location of customers 2022 2021 2020 United States of America 119,749 117,012 73,676 Italy 61,284 53,157 46,269 China 59,358 48,857 38,339 United Kingdom 55,300 45,864 36,463 Spain 16,037 15,864 13,039 Brazil 15,544 14,166 8,641 Canada 15,033 13,127 9,233 Mexico 10,594 7,509 4,829 Australia 9,864 6,335 6,867 Belgium 8,084 9,250 7,281 South Korea 6,150 7,574 7,151 Israel 5,804 5,236 3,997 Other countries (none greater than 5%) 85,686 83,424 67,238 Total 468,487 427,375 328,343 Distribution channels 2022 2021 2020 Wholesale (distributors and retailers) 386,421 359,021 274,070 Directly operated stores (end consumers) 82,066 68,354 54,273 Total 468,487 427,375 328,343 Brands 2022 2021 2020 Natuzzi Editions 213,481 203,849 152,452 Natuzzi Italia 191,624 156,977 115,155 Private label 48,141 52,922 45,928 Other 15,241 13,627 14,808 Total 468,487 427,375 328,343 Timing of revenue recognition 2022 2021 2020 Goods transferred at a point in time 467,255 426,200 326,705 Goods and services transferred over time 1,232 1,175 1,638 Total 468,487 427,375 328,343 |
Disclosure Of Information About Receivables And Contract Liabilities From Contracts With Customers Explanatory | The following table provides information about receivables and contract liabilities from contracts with customers. 31/12/22 31/12/21 Trade receivables 39,056 41,259 Contract liabilities 24,150 28,202 |
Summary of Transaction Price Allocated to Remaining Performance Obligations | The transaction price allocated to the remaining performance obligations (partially unsatisfied) as at December 31, 2022 and 2021 is as follows: 31/12/22 31/12/21 Sale of the license for Natuzzi trademarks Within a year 383 383 More than a year 5,577 5,960 Total 5,960 6,343 Sale of Natuzzi Display System Within a year 849 1,009 More than a year 1,200 1,169 Total 2,049 2,178 Sale of Service-Type Warranties Within a year 157 199 More than a year 249 276 Total 406 475 |
Cost of sales (Tables)
Cost of sales (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Cost Of Sales [Abstract] | |
Summary of Cost of Sales | Cost of sales is analysed as follows: 2022 2021 2020 Opening inventories 80,211 63,909 69,685 Purchases of raw materials 152,181 161,625 105,643 Purchases of finished products 27,751 23,169 15,161 Labour costs 86,352 80,346 71,937 Depreciation and amortisation 8,356 7,895 10,144 Third party manufacturers costs 1,587 2,172 2,829 Other manufacturing costs 19,250 15,922 14,853 Government grants related to PPE ( 1,414 ) ( 1,252 ) ( 1,192 ) Closing inventories ( 70,120 ) ( 80,211 ) ( 63,909 ) Total 304,154 273,575 225,151 |
Other income and other expens_2
Other income and other expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Other Income And Expenses [Abstract] | |
Summary of Other Income and Expense | Other income is analysed as follows: 2022 2021 2020 Gain on disposal of certain items of property 157 2,105 — VAT relief 1,573 1,395 755 Reimbursements 1,289 580 498 Release of provisions for contingent liabilities — — 100 Other 3,505 2,334 2,529 Total 6,524 6,414 3,882 |
Selling expenses (Tables)
Selling expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Selling Expenses [Abstract] | |
Summary Of Selling Expenses | Selling expenses are analysed as follows: 2022 2021 2020 Shipping and handling costs 55,912 54,672 28,749 Labour costs 24,615 24,241 20,077 Depreciation and amortisation 11,832 11,819 12,441 Customs duties 7,929 10,614 6,958 Commissions to sales representatives 7,318 7,503 5,403 Advertising expenses 6,193 5,576 4,837 Utilities 3,675 2,668 2,149 Fairs 1,050 807 591 Other insurance costs 1,034 946 843 Impairment of non-financial assets 890 1,188 2,450 Leases 785 607 483 Promotions 661 655 409 Advisory services 611 546 284 Insurance costs on trade receivables 567 347 578 Samples 546 687 582 COVID-19 government grants — ( 299 ) ( 1,534 ) COVID-19 rent concessions ( 635 ) ( 1,515 ) ( 1,799 ) Other 1,941 569 1,017 Total 124,924 121,631 84,518 |
Administrative expenses (Tables
Administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Selling, general and administrative expense [abstract] | |
Summary of Administrative Expenses | Administrative expenses are analysed as follows: 2022 2021 2020 Labour costs 19,447 17,342 15,578 Professional services costs 3,151 3,690 4,409 Indirect taxes 2,177 3,617 2,354 Directors and audit committee fees 1,895 1,868 736 Office and software maintainance 2,138 1,784 1,502 Depreciation and amortisation 1,462 1,657 1,580 Travel expenses 2,689 1,388 868 Mail and Phone 550 519 523 Printing and Stationery 570 354 278 Car costs 467 257 195 Government grants related to PPE ( 59 ) ( 54 ) ( 49 ) Other 987 880 1,470 Total 35,474 33,302 29,444 |
Finance income and costs (Table
Finance income and costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Finance Income [Abstract] | |
Summary of Analysis of Finance Income | Finance income is analysed as follows: 2022 2021 2020 Interest income from financial institutions 29 39 171 Other interest income 839 186 146 Total 868 225 317 |
Summary of Analysis of Finance Costs | Finance costs are analysed as follows: 2022 2021 2020 Interest expenses due to financial institutions 2,564 1,857 1,803 Interests expenses related to lease liabilities 2,877 2,584 2,613 Other interest expenses 1,033 276 1,546 Financial institution commissions 2,067 2,069 1,869 Total 8,541 6,786 7,831 |
Net exchange rate gains_(loss_2
Net exchange rate gains/(losses) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Net Exchange Rate Gains Losses [Abstract] | |
Schedule of Net Exchange Rate Gains (Losses) | Net exchange rate gains/(losses) are analysed as follows: 2022 2021 2020 Net realised gains/(losses) on derivative instruments ( 1,663 ) ( 1,428 ) 317 Net realised gains/(losses) on trade receivables and payables 530 4,612 ( 2,793 ) Total net realised gains/(losses) (a) ( 1,133 ) 3,184 ( 2,476 ) Net unrealised gains/(losses) on derivative instruments 1,454 ( 454 ) 486 Net unrealised gains/(losses) on trade receivables and payables 2,286 ( 144 ) ( 1,507 ) Net unrealised gains/(losses) on non-monetary assets ( 179 ) ( 720 ) ( 404 ) Total net unrealised gains/(losses) (b) 3,561 ( 1,318 ) ( 1,425 ) Total realised and unrealised exchange rate gains/(losses) (a+b) 2,428 1,866 ( 3,901 ) |
Income tax expense (Tables)
Income tax expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | |
Summary of Income Tax Rates | Italian companies are subject to two enacted income taxes at the following rates: 2022 2021 2020 IRES (state tax) 24.00 % 24.00 % 24.00 % IRAP (regional tax) 4.82 % 4.82 % 4.82 % |
Summary of Total Income Taxes | Total income taxes for the years ended December 31, 2022, 2021 and 2020 are allocated as follows: 2022 2021 2020 Current: - Domestic ( 838 ) ( 2,116 ) ( 2,221 ) - Foreign ( 1,582 ) ( 3,170 ) ( 1,545 ) Total (a) ( 2,420 ) ( 5,286 ) ( 3,766 ) Deferred: - Domestic — — 430 - Foreign 147 897 ( 1,005 ) Total (b) 147 897 ( 575 ) Total (a + b) ( 2,273 ) ( 4,389 ) ( 4,341 ) |
Summary of Consolidated Profit (Loss) Before Income Taxes and Non-Controlling Interest | Consolidated profit/(loss) before income taxes and Non-controlling interests of the consolidated statement of profit or loss for the years ended December 31, 2022, 2021 and 2020, is analysed as follows: 2022 2021 2020 Domestic ( 7,448 ) ( 1,551 ) ( 17,049 ) Foreign 11,009 10,325 ( 3,516 ) Total 3,561 8,774 ( 20,565 ) |
Reconciliation of Income Tax Expense | The effective income taxes differ from the expected income tax expense (computed by applying the IRES state tax, which is 24 % for 2022, 2021 and 2020, to profit before income taxes and non-controlling interests) as follows: 2022 2021 2020 Expected tax benefit (expense) at statutory tax rates ( 855 ) ( 2,106 ) 4,936 Effect of: - Tax exempt income 2,618 2,320 4,806 - Aggregate effect of different tax rates in foreign jurisdictions ( 79 ) 191 322 - Italian regional tax ( 28 ) ( 78 ) ( 24 ) - Non-deductible expenses ( 1,635 ) ( 5,152 ) ( 5,575 ) - Tax effect on unremitted earnings ( 755 ) ( 515 ) ( 1,024 ) - Non taxable gain from disposal of a subsidiary — 1,057 — - Chinese withholding tax on income not recoverable — ( 699 ) ( 1,396 ) - Effect of net change in deferred tax assets unrecognised ( 1,539 ) 593 ( 6,386 ) Actual tax charge ( 2,273 ) ( 4,389 ) ( 4,341 ) |
Summary of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as at December 31, 2022 and 2021 are presented below: Deferred tax assets 31/12/22 31/12/21 Inventories obsolescence 745 633 Provision for contingent liabilities 492 466 Other temporary differences 22 174 Intercompany profit on inventories 706 22 Total deferred tax assets 1,965 1,295 Deferred tax liabilities 31/12/22 31/12/21 Withholding tax on unremitted earnings of subsidiaries ( 516 ) ( 516 ) Withholding tax on liquidation of subsidiaries ( 480 ) ( 482 ) IAS 19 adjustment - employees’ leaving entitlement ( 302 ) — Unrealised net gains on foreign exchange rate ( 479 ) ( 258 ) Other temporary differences ( 152 ) ( 149 ) Total deferred tax liabilities ( 1,929 ) ( 1,405 ) |
Summary of Movements in deferred Tax Balances | Movements in deferred tax balances occurred during 2020, 2021 and 2022 are analysed as follows: Def. tax Def. tax Total Balance as at December 31, 2019 1,974 ( 1,891 ) 83 Recognised in profit or loss 49 ( 624 ) ( 575 ) Recognised in OCI — — — Recognised directly in equity — — — Balance as at December 31, 2020 2,023 ( 2,515 ) ( 492 ) Recognised in profit or loss ( 728 ) 1,110 382 Recognised in OCI — — — Recognised directly in equity — — — Balance as at December 31, 2021 1,295 ( 1,405 ) ( 110 ) Recognised in profit or loss 670 ( 524 ) 146 Recognised in OCI — — — Recognised directly in equity — — — Balance as at December 31, 2022 1,965 ( 1,929 ) 36 |
Summary of Reconciliation of Deferred Tax Assets and Liabilities Included in Consolidated Statements of Financial Position | The following tables show the reconciliation of deferred tax assets and deferred tax liabilities with the balances included in the consolidated statements of financial position as at December 31, 2022 and 2021. 31/12/22 31/12/21 Deferred tax assets 1,965 1,295 Deferred tax liabilities compensated ( 933 ) ( 409 ) Net deferred tax assets 1,032 886 Deferred tax liabilities ( 996 ) ( 996 ) |
Summary of Unrecognised Deferred Tax Assets | As at December 31, 2022 and 2021 deferred tax assets have not been recognised in respect of the following items, because it is not probable that future taxable profit will be available against which the Group can use the benefits therefrom. Unrecognised deferred tax assets 31/12/22 31/12/21 Gross Amount Tax effect Gross Amount Tax effect Tax loss carry-forwards 366,175 90,713 368,779 88,328 Provision for contingent liabilities 7,673 2,207 12,231 2,888 Inventory obsolescence 8,266 2,327 11,985 2,560 Allowance for doubtful accounts 5,125 1,230 6,810 1,540 Intercompany profit on inventories 4,716 1,359 5,676 1,614 Provision for warranties 3,375 973 3,117 898 Impairment of non-financial assets 3,284 870 3,989 1,018 IAS 19 adjustment - employees’ leaving entitlement — — 1,807 434 Other temporary differences 10,868 1,925 9,734 1,455 Total unrecognised deferred tax assets 409,482 101,604 424,128 100,735 |
Summary of Tax Loss Carry Forward | As at December 31, 2022 and 2021 the tax losses carried-forward of the Group expire as follows: 2022 Expire date 2021 Expire date Expire in five years 5,132 2023-2027 6,207 2022-2026 Expire after five years 347 > 2027 3,257 > 2026 Never expire 360,696 — 359,316 — Total 366,175 368,780 |
Earnings_(loss) per share (Tabl
Earnings/(loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Summary of Basic and Diluted Earnings (Loss) per Share | Basi c and diluted earnings/(loss) per share is analysed as follows: 2022 2021 2020 Weighted average number of ordinary shares 54,899,456 54,853,045 54,853,045 Basic earnings/(losses) per share ( 0.01 ) 0.07 ( 0.45 ) Diluted earnings/(losses) per share ( 0.01 ) 0.07 ( 0.45 ) |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Expenses By Nature [Abstract] | |
Summary of Expenses by Nature | The following tables show the expenses by nature for the years ended December 31, 2022, 2021 and 2020 as required by IAS 1.104. 2022 2021 2020 Changes in inventories 10,091 ( 16,302 ) 5,776 Purchases of raw materials 152,181 161,625 105,643 Purchases of finished products 27,751 23,169 15,161 Services costs 110,773 100,656 68,613 Employee benefits expenses 130,414 121,929 107,592 Depreciation and amortisation, net of government grants 20,177 20,065 22,924 Other 13,165 17,366 13,404 Total cost of sales, selling and administrative expenses 464,552 428,508 339,113 |
Disclosure Of Depreciation And Amortisation Explanatory | The following tables show in which caption is included the depreciation and amortisation, net of government grants. 2022 2021 2020 Included in cost of sales Depreciation of property, plant and equipment 6,234 5,970 6,846 Depreciation of right-of-use assets 2,120 1,923 3,290 Amortisation of intangible assets 2 2 8 Government grants ( 1,414 ) ( 1,252 ) ( 1,192 ) Total (a) 6,942 6,643 8,952 Included in selling expenses Depreciation of property, plant and equipment 2,253 2,285 2,665 Depreciation of right-of-use assets 9,579 9,534 9,776 Amortisation of intangible assets — — — Total (b) 11,832 11,819 12,441 Included in administrative expenses Depreciation of property, plant and equipment 298 320 371 Depreciation of right-of-use assets 135 249 310 Amortisation of intangible assets 1,029 1,088 899 Government grants ( 59 ) ( 54 ) ( 49 ) Total (c) 1,403 1,603 1,531 Total depreciation and amortisation (a+b+c) 20,177 20,065 22,924 |
Disclosure Of Employee Benefit Expenses Explanatory | The following tables show in which caption is included the employee benefits expenses. 2022 2021 2020 Included in cost of sales Salaries and wages 58,913 58,552 48,514 Social security contributions 17,788 14,696 12,138 Employees’ leaving entitlement 4,598 3,493 4,915 Other costs 5,053 3,605 6,370 Total (a) 86,352 80,346 71,937 Included in selling expenses Salaries and wages 19,218 19,359 15,912 Social security contributions 3,507 3,512 3,059 Employees’ leaving entitlement 513 492 542 Other costs 1,377 878 564 Total (b) 24,615 24,241 20,077 Included in administrative expenses Salaries and wages 14,345 12,666 11,272 Social security contributions 3,026 3,012 2,717 Employees’ leaving entitlement 657 619 605 Other costs 1,419 1,045 984 Total (c) 19,447 17,342 15,578 Total employee benefits expenses (a+b+c) 130,414 121,929 107,592 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Related Parties [Abstract] | |
Schedule of Transactions with Related Parties | The compensation of key management personnel of the Group is analysed as follows: 2022 2021 2020 Directors’ fee 854 511 412 Short-term employee benefits 1,851 1,934 2,026 Social security contributions and defined contribution plans 685 692 634 Employee benefit obligations 125 132 137 Expenses for stock options 998 — — Total 4,513 3,269 3,209 The aggregate value of transactions and outstanding balances related to directors were as follows. 2022 2021 2020 Cost Amounts Cost Amounts Cost Amounts Legal services 33 — 86 — 392 — Total 33 — 86 — 392 — The following tables provide the total amount of transactions that have been entered into with such related parties for the relevant financial year. Such transactions have been conducted at arm’s length. December 31, 2022 Sales Expenses Dividends Amounts Amounts Natuzzi Trading Shanghai Co, Ltd. (joint venture) 59,838 — 3,697 5,314 — Nars Miami LLCC (associate) 1,484 16 — 231 59 Natuzzi Texas LLC (joint venture) 992 — — 1,193 — Natuzzi Stores (UK) LTD (associate) 7,110 — — 14 — Natuzzi Design S.a.s. 2,550 — — 426 — Natuzzi Arredamenti S.r.l. 1,734 26 — 231 — Natuzzi Sofa S.r.l. 399 — — 48 — Total 74,107 42 3,697 7,457 59 December 31, 2021 Sales Expenses Dividends Amounts Amounts Natuzzi Trading Shanghai Co, Ltd. (joint venture) 48,457 — 1,490 6,953 — Nars Miami LLCC (associate) 806 — 254 123 — Natuzzi Texas LLC (joint venture) — — — — — Natuzzi Stores (UK) LTD (associate) — — — — — Natuzzi Design S.a.s. 1,820 — — 710 — Natuzzi Arredamenti S.r.l. 989 — — 191 — Natuzzi Sofa S.r.l. 232 — — 51 — Total 52,304 — 1,744 8,028 — December 31, 2020 Sales Expenses Dividends Amounts Amounts Natuzzi Trading Shanghai Co, Ltd. (joint venture) 38,401 9 2,335 5,961 — Nars Miami LLCC (associate) 406 — — 27 — Natuzzi Design S.a.s. 1,734 — — 888 — Natuzzi Arredamenti S.r.l. 827 — — 279 — Natuzzi Sofa S.r.l. 238 — — 47 — Total 41,606 9 2,335 7,202 — |
Description of the Business a_3
Description of the Business and Group Composition - Summary of Subsidiaries Included in Consolidation Together with Related Percentages of Ownership and Other Information (Detail) ₽ in Thousands, € in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, SFr in Thousands, RON in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | |||||||||||
Dec. 31, 2022 RON | Dec. 31, 2021 | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CHF (SFr) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 JPY (¥) | Dec. 31, 2022 RUB (₽) | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 AUD ($) | |
Italsofa Romania S.r.l. [member] | Manufacturing and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | RON | RON 109,271,750 | |||||||||||
Ownership registered office | Baia Mare, Romania | |||||||||||
Natuzzi (China) Ltd [member] | Manufacturing and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | ¥ | ¥ 106,414,300 | |||||||||||
Ownership registered office | Shanghai, China | |||||||||||
Italsofa Nordeste S/A [member] | Manufacturing and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | R$ | R$ 159300558 | |||||||||||
Ownership registered office | Salvador de Bahia, Brazil | |||||||||||
Natuzzi Quanjiao Limited [Member] | Manufacturing and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | |||||||||||
Share/quota capital | ¥ | ¥ 10,000,000 | |||||||||||
Ownership registered office | Quanjiao County-Anhui province, China | |||||||||||
Natco S.p.A. [member] | Intragroup leather dyeing and finishing [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | ||||||||||
Share/quota capital | € 4,420,000 | |||||||||||
Ownership registered office | Santeramo in Colle, Italy | |||||||||||
Nacon S.p.A. [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | 2,800,000 | |||||||||||
Ownership registered office | Santeramo in Colle, Italy | |||||||||||
Lagene S.r.l. [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | 10,000 | |||||||||||
Ownership registered office | Santeramo in Colle, Italy | |||||||||||
Natuzzi Americas Inc. [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | $ | $ 89 | |||||||||||
Ownership registered office | High Point, N. Carolina, USA | |||||||||||
Natuzzi Florida LLC [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 51% | 51% | ||||||||||
Share/quota capital | $ | 4,955,186 | |||||||||||
Ownership registered office | High Point, N. Carolina, USA | |||||||||||
Natuzzi Iberica S.A. [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | 386,255 | |||||||||||
Ownership registered office | Madrid, Spain | |||||||||||
Natuzzi Switzerland AG [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | SFr | SFr 2,000,000 | |||||||||||
Ownership registered office | Dietikon, Switzerland | |||||||||||
Natuzzi Services Limited [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | £ | £ 25,349,353 | |||||||||||
Ownership registered office | London, UK | |||||||||||
Natuzzi UK Retail Limited [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 70% | 70% | ||||||||||
Share/quota capital | £ | £ 100 | |||||||||||
Ownership registered office | Cardiff, UK | |||||||||||
Natuzzi Germany Gmbh [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | 25,000 | |||||||||||
Ownership registered office | Köln, Germany | |||||||||||
Natuzzi Japan KK [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 74.40% | 93% | ||||||||||
Share/quota capital | ¥ | ¥ 28,000,000 | |||||||||||
Ownership registered office | Tokyo, Japan | |||||||||||
Natuzzi Russia OOO [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | ₽ | ₽ 8,700,000 | |||||||||||
Ownership registered office | Moscow, Russia | |||||||||||
Natmx S.DE.R.L.DE.C.V [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | $ | $ 68,504,040 | |||||||||||
Ownership registered office | Mexico City, Mexico | |||||||||||
Natuzzi France S.a.s. [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | 600,100 | |||||||||||
Ownership registered office | Paris, France | |||||||||||
Natuzzi Oceania PTI Ltd [member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 74.40% | 93% | ||||||||||
Share/quota capital | $ | $ 320,002 | |||||||||||
Ownership registered office | Sydney, Australia | |||||||||||
Natuzzi Singapore PTE. LTD. [Member] | Services and distribution [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 74.40% | 93% | ||||||||||
Share/quota capital | $ | $ 7,654,207 | |||||||||||
Ownership registered office | Singapore, Republic of Singapore | |||||||||||
Natuzzi Netherlands Holding [member] | Investment holding [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | 34,605,000 | |||||||||||
Ownership registered office | Amsterdam, Holland | |||||||||||
Natuzzi Trade Service S.r.l. [member] | Dormant [member] | ||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||||||||
Share/quota capital | € 14,000,000 | |||||||||||
Ownership registered office | Santeramo in Colle, Italy |
Description of the Business a_4
Description of the Business and Group Composition - Additional Information (Details) € in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2022 | Aug. 31, 2021 | Jan. 31, 2021 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 | |
Subscription and Shareholders Agreement [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Proportion of voting rights held by minority shareholders | 25.60% | 25.60% | ||||
Natuzzi Singapore PTE. LTD. [Member] | Services and distribution [member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Proportion of ownership interest in subsidiary | 74.40% | 74.40% | 93% | |||
Natuzzi Singapore PTE. LTD. [Member] | Truong Thanh Furniture Corporation [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Proportion of ownership interest in subsidiary | 74.40% | 74.40% | ||||
Natuzzi Singapore PTE. LTD. [Member] | Truong Thanh Furniture Corporation [Member] | Subscription and Shareholders Agreement [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Proportion of ownership interest in subsidiary | 20% | 20% | 20% | 20% | ||
Payment of cash and cash equivalent | $ 5,357 | € 4,885 | ||||
Natuzzi Quanjiao Limited [Member] | Manufacturing And Distribution [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Related Party [Member] | Natuzzi Singapore PTE. LTD. [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Percentage of interest sold or exchanged | 7% | |||||
Capital injection in subsidiary | € 1,300 |
Description of The Business a_5
Description of The Business and Group Composition - Summary of Detailed Information About Material Non-controlling Interests (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of subsidiaries [line items] | |||
Current assets | € 191,023 | € 200,397 | |
Non-current assets | 177,584 | 189,635 | |
Current liabilities | (180,784) | (198,702) | |
Non-current liabilities | (95,267) | (107,484) | |
Revenue | 468,487 | 427,375 | € 328,343 |
Profit/(loss) for the year | 1,288 | 4,385 | (24,906) |
Other comprehensive income/(loss) | 2,049 | 3,410 | (4,160) |
Total comprehensive income/(loss) for the year | 3,337 | 7,795 | (29,066) |
Profit/(loss) allocated to NCI - 49% | 1,828 | 800 | (228) |
Cash flow provided by operating activities | 28,606 | 9,726 | 20,806 |
Cash flow used in investing activities | (4,646) | 7,016 | 2,348 |
Cash flow used in financing activities (dividends to NCI: nil) | (13,534) | (2,016) | € (5,577) |
Natuzzi Florida LLC [member] | |||
Disclosure of subsidiaries [line items] | |||
Current assets | 11,684 | 8,494 | |
Non-current assets | 12,337 | 10,924 | |
Current liabilities | (9,246) | (8,142) | |
Non-current liabilities | (8,473) | (8,125) | |
Net assets | 6,302 | 3,151 | |
Net assets attributable to NCI – 49% | 3,088 | 1,544 | |
Revenue | 21,481 | 16,578 | |
Expenses | (18,488) | (14,955) | |
Profit/(loss) for the year | (2,993) | 1,623 | |
Other comprehensive income/(loss) | (195) | 184 | |
Total comprehensive income/(loss) for the year | (3,188) | 1,807 | |
Profit/(loss) allocated to NCI - 49% | (1,467) | 795 | |
Other comprehensive income/(loss) allocated to NCI | (96) | 90 | |
Cash flow provided by operating activities | 1,464 | 4,160 | |
Cash flow used in investing activities | (599) | (12) | |
Cash flow used in financing activities (dividends to NCI: nil) | € (1,892) | € (1,561) |
General principles for the pr_2
General principles for the preparation of the consolidated financial statements - Additional Information (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of general principles for the preparation of the consolidated financial statements [Line Items] | ||
Cash and cash equivalents | € 54,475 | € 53,472 |
Unused credit facility | € 24,307 | € 14,947 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of initial application of standards or interpretations [line items] | |||
Expected loss rates payment period | 5 years | ||
Contractual payments period | 180 days | ||
Shipping and handling expenses | € 55,912 | € 54,672 | € 28,749 |
Advertising expenses | 6,193 | 5,576 | 4,837 |
Commission Expenses | € 7,318 | € 7,503 | € 5,403 |
Bottom of range [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Proportion of voting rights held in associate | 20% | ||
Bottom of range [member] | Software [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Intangible assets useful lives | 3 years | ||
Bottom of range [member] | Trademarks and patents [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Intangible assets useful lives | 3 years | ||
Bottom of range [member] | Other intangible assets [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Intangible assets useful lives | 2 years | ||
Bottom of range [member] | Buildings [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Property, plant and equipment useful lives | 10 years | ||
Bottom of range [member] | Machinery and equipment [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Property, plant and equipment useful lives | 4 years | ||
Bottom of range [member] | Office furniture and equipment [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Property, plant and equipment useful lives | 5 years | ||
Bottom of range [member] | Retail gallery and store furnishing [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Property, plant and equipment useful lives | 3 years | ||
Bottom of range [member] | Leasehold improvements [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Property, plant and equipment useful lives | 5 years | ||
Top of range [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Proportion of voting rights held in associate | 50% | ||
Top of range [member] | Software [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Intangible assets useful lives | 5 years | ||
Top of range [member] | Trademarks and patents [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Intangible assets useful lives | 5 years | ||
Top of range [member] | Other intangible assets [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Intangible assets useful lives | 5 years | ||
Top of range [member] | Buildings [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Property, plant and equipment useful lives | 50 years | ||
Top of range [member] | Machinery and equipment [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Property, plant and equipment useful lives | 10 years | ||
Top of range [member] | Office furniture and equipment [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Property, plant and equipment useful lives | 10 years | ||
Top of range [member] | Retail gallery and store furnishing [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Property, plant and equipment useful lives | 4 years | ||
Top of range [member] | Leasehold improvements [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Property, plant and equipment useful lives | 10 years |
Changes in Significant Accoun_2
Changes in Significant Accounting Policies - Additional Information (Detail) - EUR (€) | 12 Months Ended | ||||
Jan. 01, 2021 | Jan. 01, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Redesignated Financial Assets And Liabilities [Line Items] | |||||
Lease incentives | € 635,000 | € 1,515,000 | € 1,799,000 | ||
IFRS 16 [member] | |||||
Disclosure Of Redesignated Financial Assets And Liabilities [Line Items] | |||||
Impact on retained earnings | € 0 | € 0 | |||
Lease incentives | € 635,000 | € 1,515,000 |
Operating Segment - Additional
Operating Segment - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Disclosure of operating segments [abstract] | |
Number of operating segments | 2 |
Number of reporting segments | 1 |
Assets Held for Sale - Addition
Assets Held for Sale - Additional Information (Detail) - EUR (€) € in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 08, 2021 | |
Assets Held For Sale [Line Items] | |||||
(Gain) from loss of control in a former subsidiary | € 5,026 | ||||
Revenue | € 468,487 | 427,375 | € 328,343 | ||
Profit / (loss) before tax | € 3,561 | € 8,774 | € (20,565) | ||
Vita Group [member] | Share Sell and Purchase Agreement [member] | Disposal Groups Classified as Held For Sale [member] | IMPE S.p.A. [member] | Classification of Assets as Held For Sale [member] | |||||
Assets Held For Sale [Line Items] | |||||
Disposal group assets held for sale, consideration agreed | € 8,200 | ||||
Disposal group assets held for sale, last tranche | € 1,100 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 83,054 | € 85,306 |
Ending balance | 84,431 | 83,054 |
Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 309,039 | 308,615 |
Additions | 9,494 | 7,041 |
Disposals | (4,088) | (11,059) |
Impairment loss | (43) | 0 |
Effect of translation adj. | 2,832 | 4,442 |
Ending balance | 317,234 | 309,039 |
Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (225,985) | (223,309) |
Depreciation | (8,785) | (8,575) |
Disposals | 3,503 | 9,754 |
Effect of translation adj. | (1,536) | (3,855) |
Ending balance | (232,803) | (225,985) |
Land and buildings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 63,660 | 67,042 |
Ending balance | € 61,708 | € 63,660 |
Land and buildings [member] | Bottom Of Range [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 0% | 0% |
Land and buildings [member] | Top of Range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 10% | 10% |
Land and buildings [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 155,082 | € 153,205 |
Additions | 1,167 | 1,064 |
Disposals | (331) | (1,023) |
Effect of translation adj. | 1,883 | 1,836 |
Ending balance | 157,801 | 155,082 |
Land and buildings [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (91,422) | (86,163) |
Depreciation | (3,611) | (3,590) |
Disposals | 168 | 125 |
Effect of translation adj. | (1,228) | (1,794) |
Ending balance | (96,093) | (91,422) |
Machinery and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 12,151 | 10,507 |
Ending balance | € 14,409 | € 12,151 |
Machinery and equipment [member] | Bottom Of Range [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 10% | 10% |
Machinery and equipment [member] | Top of Range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 25% | 25% |
Machinery and equipment [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 112,124 | € 108,223 |
Additions | 5,125 | 4,573 |
Disposals | (2,757) | (1,121) |
Impairment loss | (37) | |
Reclassifications from constr. in progress | 14 | 108 |
Effect of translation adj. | 510 | 341 |
Ending balance | 114,979 | 112,124 |
Machinery and equipment [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (99,973) | (97,716) |
Depreciation | (2,990) | (2,697) |
Disposals | 2,732 | 770 |
Effect of translation adj. | (339) | (330) |
Ending balance | (100,570) | (99,973) |
Office furniture and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 779 | 562 |
Ending balance | € 934 | € 779 |
Office furniture and equipment [member] | Bottom Of Range [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 10% | 10% |
Office furniture and equipment [member] | Top of Range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 20% | 20% |
Office furniture and equipment [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 14,013 | € 14,334 |
Additions | 429 | 363 |
Disposals | (542) | (1,086) |
Impairment loss | (6) | |
Reclassifications from constr. in progress | 10 | 169 |
Effect of translation adj. | 81 | 233 |
Ending balance | 13,985 | 14,013 |
Office furniture and equipment [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (13,234) | (13,772) |
Depreciation | (298) | (320) |
Disposals | 541 | 1,032 |
Effect of translation adj. | (60) | (174) |
Ending balance | (13,051) | (13,234) |
Retail gallery and store furnishings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 436 | 381 |
Ending balance | € 303 | € 436 |
Retail gallery and store furnishings [member] | Bottom Of Range [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 25% | 25% |
Retail gallery and store furnishings [member] | Top of Range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 35% | 35% |
Retail gallery and store furnishings [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 7,354 | € 13,081 |
Additions | 60 | 316 |
Disposals | (144) | (6,744) |
Reclassifications from constr. in progress | 32 | |
Effect of translation adj. | 68 | 669 |
Ending balance | 7,338 | 7,354 |
Retail gallery and store furnishings [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (6,918) | (12,700) |
Depreciation | (244) | (337) |
Disposals | 60 | 6,746 |
Effect of translation adj. | 67 | (627) |
Ending balance | (7,035) | (6,918) |
Leasehold improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 5,869 | 6,454 |
Ending balance | € 6,065 | € 5,869 |
Leasehold improvements [member] | Bottom Of Range [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 10% | 10% |
Leasehold improvements [member] | Top of Range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 20% | 20% |
Leasehold improvements [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 20,307 | € 19,412 |
Additions | 1,614 | 615 |
Disposals | (77) | (1,085) |
Effect of translation adj. | 275 | 1,365 |
Ending balance | 22,119 | 20,307 |
Leasehold improvements [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (14,438) | (12,958) |
Depreciation | (1,642) | (1,631) |
Disposals | 2 | 1,081 |
Effect of translation adj. | (24) | (930) |
Ending balance | (16,054) | (14,438) |
Constr. in progress [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 159 | 360 |
Ending balance | 1,012 | 159 |
Constr. in progress [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 159 | 360 |
Additions | 1,099 | 110 |
Disposals | (237) | |
Reclassifications from constr. in progress | (24) | (309) |
Effect of translation adj. | 15 | (2) |
Ending balance | € 1,012 | € 159 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | May 31, 2021 | Mar. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Gain on disposals of property, plant and equipment | € 157 | € 2,105 | |||
Property, plant and equipment temporarily idle | 5,215 | 3,240 | |||
Property subject to mortgage | € 35,839 | 37,210 | |||
Italian upholstered furniture plant [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Weighted average cost of capital rate | 10.82% | ||||
Long-term growth rate | 1.73% | ||||
Annual sales growth rate for 2023 | (20.80%) | ||||
Annual sales growth rate (average of 2024-2027 period) | 5% | ||||
Directly operated retail stores CGUs [member] | United States of America [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Weighted average cost of capital rate | 7.50% | ||||
Long-term growth rate | 2.72% | ||||
Annual sales growth rate for 2023 | (5.77%) | ||||
Annual sales growth rate (average of 2024-2027 period) | 5% | ||||
Directly operated retail stores CGUs [member] | Italy [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Weighted average cost of capital rate | 10.82% | ||||
Long-term growth rate | 1.73% | ||||
Annual sales growth rate for 2023 | 4.38% | ||||
Annual sales growth rate (average of 2024-2027 period) | 3.75% | ||||
Directly operated retail stores CGUs [member] | Spain [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Weighted average cost of capital rate | 9.85% | ||||
Long-term growth rate | 1.83% | ||||
Annual sales growth rate for 2023 | 9.85% | ||||
Annual sales growth rate (average of 2024-2027 period) | 4% | ||||
Directly operated retail stores CGUs [member] | United Kingdom [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Weighted average cost of capital rate | 8.32% | ||||
Long-term growth rate | 2.54% | ||||
Annual sales growth rate for 2023 | (5.81%) | ||||
Annual sales growth rate (average of 2024-2027 period) | 5% | ||||
Gross carrying amount [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Impairment loss | € 43 | 0 | |||
Industrial Real Estate Complexes [Member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Cash consideration from disposal of property plant and equipment | € 4,254 | € 4,254 | € 4,254 | ||
Gain on disposals of property, plant and equipment | € 1,748 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Summary of Breakdown of Property, Plant and Equipment by Country (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | € 84,431 | € 83,054 | € 85,306 |
Italy [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 46,610 | 45,470 | |
Romania [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 17,952 | 18,502 | |
United States of America [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 14,807 | 13,884 | |
Brazil [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 3,092 | 2,753 | |
Europe [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 957 | 1,253 | |
China [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 695 | 810 | |
Other countries [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | € 318 | € 382 |
Property, Plant and Equipment_4
Property, Plant and Equipment - Summary of Breakdown of Property, Plant and Equipment Based on Cash Generating Units (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | € 84,431 | € 83,054 | € 85,306 |
Italian upholstered furniture plant [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 33,087 | 34,704 | |
Romanian upholstered furniture plant [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 19,338 | 19,627 | |
Brazilian upholstered furniture plant [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 3,350 | 2,978 | |
Chinese upholstered furniture plant [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 2,223 | 2,215 | |
Others [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | € 26,433 | € 23,530 |
Right-of-use-assets - Summary o
Right-of-use-assets - Summary of Changes in Carrying Amount of Right-of-use Assets (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Balance | € 50,755 | € 49,013 | |
Depreciation | (11,834) | (11,706) | € (13,376) |
Balance | 42,825 | 50,755 | 49,013 |
Right-of-use assets [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Balance | 82,819 | 68,733 | |
Additions | 6,541 | 3,194 | |
Disposals | (5,371) | (1,267) | |
Adjustments due to remeasurements | (227) | 9,084 | |
Adjustments due to modifications | (167) | 41 | |
Effect of translation adjustments | 1,048 | 3,034 | |
Balance | 84,643 | 82,819 | 68,733 |
Accumulated Depreciation and Impairment Loss [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Accumulated depreciation and impairment loss | (32,064) | (19,720) | |
Depreciation | (11,834) | (11,706) | |
Disposals | 3,060 | 1,209 | |
Impairment loss | (848) | (1,188) | |
Adjustments due to remeasurements | (51) | ||
Effect of translation adjustments | (81) | (659) | |
Accumulated depreciation and impairment loss | (41,818) | (32,064) | (19,720) |
Buildings [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Balance | 50,583 | 48,593 | |
Balance | 42,786 | 50,583 | 48,593 |
Buildings [member] | Right-of-use assets [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Balance | 81,784 | 67,710 | |
Additions | 6,541 | 3,194 | |
Disposals | (5,371) | (1,267) | |
Adjustments due to remeasurements | (227) | 9,084 | |
Adjustments due to modifications | (167) | 42 | |
Effect of translation adjustments | 1,037 | 3,021 | |
Balance | 83,597 | 81,784 | 67,710 |
Buildings [member] | Accumulated Depreciation and Impairment Loss [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Accumulated depreciation and impairment loss | (31,201) | (19,117) | |
Depreciation | (11,699) | (11,457) | |
Disposals | 3,060 | 1,209 | |
Impairment loss | (848) | (1,188) | |
Adjustments due to remeasurements | (51) | ||
Effect of translation adjustments | (72) | (648) | |
Accumulated depreciation and impairment loss | (40,811) | (31,201) | (19,117) |
Vehicles [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Balance | 172 | 420 | |
Balance | 39 | 172 | 420 |
Vehicles [member] | Right-of-use assets [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Balance | 1,035 | 1,023 | |
Adjustments due to modifications | (1) | ||
Effect of translation adjustments | 11 | 13 | |
Balance | 1,046 | 1,035 | 1,023 |
Vehicles [member] | Accumulated Depreciation and Impairment Loss [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Accumulated depreciation and impairment loss | (863) | (603) | |
Depreciation | (135) | (249) | |
Effect of translation adjustments | (9) | (11) | |
Accumulated depreciation and impairment loss | € (1,007) | € (863) | € (603) |
Right-of-use-assets - Additiona
Right-of-use-assets - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Payment of lease liabilities | € 12,926 | € 12,693 | € 12,496 |
Interest paid on lease liabilities | € 2,877 | 2,603 | 2,589 |
Buildings [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Information about lessee's exposure arising from extension options and termination options | Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term. | ||
Information about restrictions or covenants imposed by leases on lessee | For certain of these leases, the Group is restricted from entering into any sub-lease arrangements. | ||
Buildings [member] | Bottom of range [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Lessee operating lease term | 5 years | ||
Buildings [member] | Top of range [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Lessee operating lease term | 10 years | ||
Vehicles [member] | Bottom of range [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Lessee operating lease term | 2 years | ||
Vehicles [member] | Top of range [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Lessee operating lease term | 4 years | ||
IT and Office Equipment [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Statement that lessee accounts for short-term leases using recognition exemption | These leases are short-term and/or leases of low-value items. | ||
Statement that lessee accounts for leases of low-value assets using recognition exemption | These leases are short-term and/or leases of low-value items. | ||
IT and Office Equipment [member] | Bottom of range [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Lessee operating lease term | 1 year | ||
IT and Office Equipment [member] | Top of range [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Lessee operating lease term | 3 years | ||
Right-of-use assets [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Impairment losses | € 890 | € 1,188 | € 584 |
Right-of-use-assets - Summary_2
Right-of-use-assets - Summary of Breakdown of Right-of-use Assets Based on Geographical Location (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | € 42,825 | € 50,755 | € 49,013 |
United States of America [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | 18,938 | 15,853 | |
Italy [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | 9,249 | 11,977 | |
Spain [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | 3,473 | 4,809 | |
United Kingdom [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | 4,985 | 7,625 | |
China [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | 2,493 | 4,076 | |
Other countries [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | € 3,687 | € 6,415 |
Right-of-use-assets - Summary_3
Right-of-use-assets - Summary of amounts recognized in statement of net income loss (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Presentation of leases for lessee [abstract] | |||
Depreciation charge of right-of-use assets | € 11,834 | € 11,706 | € 13,376 |
Interest on lease liabilities | 2,877 | 2,584 | 2,613 |
Expenses relating to short-term leases | 1,465 | 1,187 | 719 |
Expenses relating to leases of low-value assets, excluding short-term leases | 125 | 169 | 122 |
Covid-19 rent concessions | (635) | (1,515) | (1,799) |
Total | € 15,666 | € 14,131 | € 15,031 |
Intangibles Assets and Goodwi_3
Intangibles Assets and Goodwill - Summary of Carrying Amount of Intangible Assets and Goodwill (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | € 4,146 | € 3,757 |
Ending balance | 4,254 | 4,146 |
Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 48,273 | 46,933 |
Additions | 1,174 | 1,476 |
Disposals | (120) | (190) |
Impairment reversal | 1 | |
Effect of translation adjustments | 37 | 54 |
Ending balance | 49,365 | 48,273 |
Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (44,127) | (43,176) |
Amortisation | (1,031) | (1,090) |
Disposals | 86 | 188 |
Effect of translation adjustments | (39) | (49) |
Ending balance | (45,111) | (44,127) |
Trademark patents and other [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 381 | 417 |
Ending balance | 380 | 381 |
Trademark patents and other [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 14,116 | 14,022 |
Additions | 164 | 100 |
Disposals | (22) | |
Effect of translation adjustments | (3) | 16 |
Ending balance | 14,277 | 14,116 |
Trademark patents and other [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (13,735) | (13,605) |
Amortisation | (164) | (140) |
Disposals | 2 | 22 |
Effect of translation adjustments | (12) | |
Ending balance | (13,897) | (13,735) |
Software [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 1,844 | 1,419 |
Ending balance | 1,953 | 1,844 |
Software [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 32,236 | 30,990 |
Additions | 1,010 | 1,376 |
Disposals | (120) | (168) |
Impairment reversal | 1 | |
Effect of translation adjustments | 40 | 38 |
Ending balance | 33,167 | 32,236 |
Software [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (30,392) | (29,571) |
Amortisation | (867) | (950) |
Disposals | 84 | 166 |
Effect of translation adjustments | (39) | (37) |
Ending balance | (31,214) | (30,392) |
Goodwill [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 1,921 | 1,921 |
Ending balance | 1,921 | 1,921 |
Goodwill [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 1,921 | 1,921 |
Ending balance | € 1,921 | € 1,921 |
Intangibles Assets and Goodwi_4
Intangibles Assets and Goodwill - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Impairment of goodwill | € 0 | ||
Research and development expense | 3,521 | € 3,270 | € 3,137 |
Italy [member] | 2017 Acquisitions [member] | Retail stores [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | € 1,921 | € 1,921 |
Equity-method investees - Summa
Equity-method investees - Summary of Changes in Carrying Amount of Equity-method investees (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |||
Beginning balance | € 44,522 | € 40,089 | |
Acquisition of non-controlling interests | 461 | 288 | |
Share of profit for the year | 356 | 3,561 | € 1,455 |
Share of other comprehensive income | (784) | 2,328 | (373) |
Dividends received | (3,697) | (1,744) | |
Share capital reduction | (3,156) | ||
Effect of translation adjustments | (6) | ||
Ending balance | 37,696 | 44,522 | 40,089 |
Nars Miami LLC [member] | |||
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |||
Beginning balance | 4 | 98 | |
Share of profit for the year | 431 | 152 | |
Share of other comprehensive income | 8 | ||
Dividends received | (254) | ||
Effect of translation adjustments | (4) | ||
Ending balance | 431 | 4 | 98 |
Natuzzi Store (UK) Ltd [Member] | |||
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |||
Beginning balance | 18 | ||
Acquisition of non-controlling interests | 18 | ||
Share of profit for the year | 36 | ||
Effect of translation adjustments | (2) | ||
Ending balance | 52 | 18 | |
Foundation "Made in Italy circolare e sostenibile" [Member] | |||
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |||
Acquisition of non-controlling interests | 8 | ||
Ending balance | 8 | ||
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |||
Beginning balance | 44,230 | 39,991 | |
Share of profit for the year | 436 | 3,409 | |
Share of other comprehensive income | (784) | 2,320 | |
Dividends received | (3,697) | (1,490) | (2,335) |
Share capital reduction | (3,156) | ||
Ending balance | 37,029 | 44,230 | € 39,991 |
Natuzzi Texas LLC [Member] | |||
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |||
Beginning balance | 270 | ||
Acquisition of non-controlling interests | 453 | 270 | |
Share of profit for the year | (547) | ||
Ending balance | € 176 | € 270 |
Equity-method investees - Addit
Equity-method investees - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |||
Equity investment | € 37,696 | € 44,522 | € 40,089 |
Nars Miam LLC [member] | |||
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |||
Ownership interest of equity method investees | 49% | 49% | |
Natuzzi Store (UK) Ltd [Member] | |||
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |||
Ownership interest of equity method investees | 30% | 30% | |
Equity investment | € 52 | € 18 | |
Salena S.r.l. [member] | |||
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |||
Ownership interest of equity method investees | 49% | 49% | |
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |||
Ownership interest in joint venture | 49% | 49% | 49% |
Equity investment | € 37,029 | € 44,230 | € 39,991 |
Natuzzi Texas LLC [Member] | |||
Disclosure Of Investments Accounted For Using Equity Method [Line Items] | |||
Ownership interest in joint venture | 51% | 51% | |
Equity investment | € 176 | € 270 |
Equity-method investees - Sum_2
Equity-method investees - Summary of Reconciliation of Carrying Amount of Retained Interest in Joint Venture with Carrying Amount in Consolidated Statement of Financial Position (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Joint Ventures [Line Items] | |||
Dividends distribution | € (551) | € (545) | € (388) |
Share capital reduction | (3,156) | ||
Profit / (loss) for the period | (540) | 3,585 | (24,678) |
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||
Disclosure Of Joint Ventures [Line Items] | |||
Carrying amount | 37,029 | 44,230 | 39,991 |
Dividends distribution | (3,697) | (1,490) | |
Share capital reduction | (3,156) | ||
Profit / (loss) for the period | 3,020 | 4,065 | 1,873 |
Amortisation | (519) | (519) | (519) |
Reversal of deferred tax liabilities | 130 | 130 | |
Group’s share of profit/(loss) for the year, net of equity method adjustments | 436 | 3,409 | 1,455 |
Group’s share of other comprehensive income | (784) | 2,320 | € (365) |
Natuzzi Trading (Shanghai) Co., Ltd [member] | Elimination of intersegment amounts [member] | Reportable legal entities [member] | |||
Disclosure Of Joint Ventures [Line Items] | |||
Amortisation | 367 | 367 | |
Natuzzi Trading (Shanghai) Co., Ltd [member] | Elimination of intersegment amounts [member] | Reportable legal entities [member] | Inventories [member] | |||
Disclosure Of Joint Ventures [Line Items] | |||
Elimination of intercompany profit | € (2,562) | € (634) |
Equity-method investees - Sum_3
Equity-method investees - Summarised Statement of Financial Position and Profit or Loss of Joint Venture (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of subsidiaries [line items] | |||
Current assets | € 191,023 | € 200,397 | |
Non-current assets | 177,584 | 189,635 | |
Current liabilities | (180,784) | (198,702) | |
Non-current liabilities | (95,267) | (107,484) | |
Group’s share in net assets – 49% | 87,858 | 82,335 | € 74,344 |
Profit/(loss) for the year | 1,288 | 4,385 | (24,906) |
Deferred tax liabilities | (996) | (996) | |
Equity-method investees | 37,696 | 44,522 | 40,089 |
Revenue | 468,487 | 427,375 | 328,343 |
Cost of sales | (304,154) | (273,575) | (225,151) |
Other expenses | (1,678) | (289) | (1,915) |
Selling expenses | (124,924) | (121,631) | (84,518) |
Administrative expenses | (35,474) | (33,302) | (29,444) |
Net finance income | (5,245) | 331 | (11,415) |
Profit/(loss) before tax | 3,561 | 8,774 | (20,565) |
Income tax expense | (2,273) | (4,389) | (4,341) |
Profit/(loss) for the year | 1,288 | 4,385 | (24,906) |
Other comprehensive income/(loss) for the year | 2,049 | 3,410 | (4,160) |
Total comprehensive income/(loss) for the year | 3,337 | 7,795 | (29,066) |
Owners of the Company | (540) | 3,585 | (24,678) |
Deferred tax liabilities | 146 | 382 | (575) |
Dividends received by the Group | 3,697 | 1,744 | |
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||
Disclosure of subsidiaries [line items] | |||
Current assets | 64,298 | 79,527 | |
Non-current assets | 19,833 | 21,619 | |
Current liabilities | (42,049) | (50,092) | |
Non-current liabilities | (1,794) | (1,344) | |
Net assets | 40,288 | 49,710 | |
Group’s share in net assets – 49% | 19,742 | 24,358 | |
Intangible assets | 2,312 | 2,832 | |
Net book value after impairment test | 26,140 | 26,140 | |
Profit/(loss) for the year | 6,164 | 8,295 | 3,822 |
Deferred tax liabilities | (578) | (707) | |
Equity-method investees | 37,029 | 44,230 | 39,991 |
Revenue | 98,483 | 96,272 | 62,023 |
Cost of sales | (60,481) | (57,120) | (37,414) |
Other expenses | 91 | (39) | (413) |
Selling expenses | (24,473) | (23,937) | (17,685) |
Administrative expenses | (5,665) | (4,983) | (2,185) |
Net finance income | 1,037 | 1,213 | 864 |
Profit/(loss) before tax | 8,810 | 11,406 | 5,190 |
Income tax expense | (2,646) | (3,111) | (1,368) |
Profit/(loss) for the year | 6,164 | 8,295 | 3,822 |
Other comprehensive income/(loss) for the year | (1,600) | 4,734 | (744) |
Total comprehensive income/(loss) for the year | 4,564 | 13,029 | 3,078 |
Owners of the Company | 3,020 | 4,065 | 1,873 |
Amortisation of intangibles assets | 519 | 519 | 519 |
Amortisation | (519) | (519) | (519) |
Deferred tax liabilities | 130 | 130 | 130 |
Group’s share of profit/(loss), net of equity method adj. | 436 | 3,409 | 1,455 |
Group’s share of other comprehensive income | (784) | 2,320 | (365) |
Group’s share of total comprehensive income/(loss) for the period | (348) | 5,729 | 1,090 |
Dividends received by the Group | 3,697 | 1,490 | 2,335 |
Natuzzi Trading (Shanghai) Co., Ltd [member] | Inventories [member] | |||
Disclosure of subsidiaries [line items] | |||
Profit/(loss) for the year | (2,562) | (634) | (396) |
Profit/(loss) for the year | (2,562) | (634) | (396) |
Natuzzi Trading (Shanghai) Co., Ltd [member] | Brand names [member] | |||
Disclosure of subsidiaries [line items] | |||
Amortisation of intangibles assets | 367 | 367 | 367 |
Amortisation | (367) | (367) | € (367) |
Natuzzi Trading (Shanghai) Co., Ltd [member] | Reportable legal entities [member] | Inventories [member] | |||
Disclosure of subsidiaries [line items] | |||
Profit/(loss) for the year | (4,860) | (2,298) | |
Profit/(loss) for the year | (4,860) | (2,298) | |
Natuzzi Trading (Shanghai) Co., Ltd [member] | Reportable legal entities [member] | Brand names [member] | |||
Disclosure of subsidiaries [line items] | |||
Profit/(loss) for the year | (5,727) | (6,095) | |
Profit/(loss) for the year | € (5,727) | € (6,095) |
Equity-method investees - Sum_4
Equity-method investees - Summarised Statement of Financial Position and Profit or Loss of Joint Venture (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||
Disclosure of subsidiaries [line items] | |||
Ownership interest in joint venture | 49% | 49% | 49% |
Equity-method investees - Sched
Equity-method investees - Schedule of Cash and Cash Equivalents, Bank Overdrafts and Borrowings (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Joint Ventures [Line Items] | ||
Lease liabilities current | € (10,825) | € (10,546) |
Lease liabilities non-current | (41,024) | (46,592) |
Natuzzi Trading (Shanghai) Co., Ltd [member] | ||
Disclosure Of Joint Ventures [Line Items] | ||
Cash and cash equivalents | 32,844 | 61,944 |
Lease liabilities current | (2,648) | (2,616) |
Lease liabilities non-current | (1,794) | (1,344) |
Total, net of cash and cash equivalents, bank overdrafts and borrowings, lease liabilities current and non-current | € 28,402 | € 57,984 |
Equity-method investees - Depre
Equity-method investees - Depreciation and Amortization, Interest Income, Interest Expense and Income Tax Expense (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Joint Ventures [Line Items] | |||
Depreciation and amortisation | € 8,356 | € 7,895 | € 10,144 |
Income tax expense | 2,273 | 4,389 | 4,341 |
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||
Disclosure Of Joint Ventures [Line Items] | |||
Depreciation and amortisation | 1,945 | 4,507 | 4,106 |
Interest income | 1,729 | 1,529 | 1,256 |
Interest expense | 692 | 316 | 392 |
Income tax expense | € 2,646 | € 3,111 | € 1,368 |
Other Non-current Receivables -
Other Non-current Receivables - Summary of Other Non-current Receivables (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Trade and other non-current receivables [abstract] | ||
Security deposits for lease contracts | € 5,776 | € 4,557 |
Receivable from disposal of assets | 118 | 297 |
Total | € 5,894 | € 4,854 |
Other Assets (Non-current and_3
Other Assets (Non-current and Current) - Summary of Other Assets (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Miscellaneous assets [abstract] | ||
Advances to suppliers | € 4,697 | € 5,842 |
Deferred delivery and commission costs related to finished goods | 1,655 | 4,831 |
Deferred costs for Natuzzi Display System | 1,579 | 1,676 |
Deferred costs for slotting fees | 725 | 868 |
Deferred costs for Service-Type Warranty | 209 | 205 |
Other prepaid expenses and accrued income | 560 | 305 |
Total other assets | 9,425 | 13,727 |
Less current portion | (7,973) | (12,309) |
Non-current portion | € 1,452 | € 1,418 |
Other Assets (Non-current and_4
Other Assets (Non-current and Current) - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Miscellaneous assets [abstract] | |
Life of contractual insurance period | 5 years |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Classes of current inventories [abstract] | ||||
Leather and other raw materials | € 27,003 | € 27,006 | ||
Goods in process | 10,464 | 14,090 | ||
Finished goods | 32,653 | 39,115 | ||
Total | € 70,120 | € 80,211 | € 63,909 | € 69,685 |
Inventories - Summary of Change
Inventories - Summary of Changes in the Provision for Slow Moving and Obsolete Raw Materials and Finished Products (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Classes of current inventories [abstract] | ||
Beginning balance | € 15,568 | € 13,059 |
Additions | 1,819 | 3,413 |
Reductions | (981) | (904) |
Ending balance | € 16,406 | € 15,568 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Classes of current inventories [abstract] | |||
Inventories recognized as an expense | € 190,023 | € 168,492 | € 126,580 |
Trade Receivables - Summary of
Trade Receivables - Summary of Trade Receivables Disaggregated by Nature of Relations with Customers (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | € 39,056 | € 41,259 |
Gross Carrying Amount [Member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | 44,660 | 46,584 |
Gross Carrying Amount [Member] | Third Parties [Member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | 37,203 | 38,556 |
Gross Carrying Amount [Member] | Related Party [Member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | 7,457 | 8,028 |
Accumulated Impairment [Member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | € (5,604) | € (5,325) |
Trade Receivables - Summary o_2
Trade Receivables - Summary of Trade Receivables by Geographic Region (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | € 39,056 | € 41,259 |
Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | 44,660 | 46,584 |
Gross carrying amount [member] | Italian Customers [Member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | 10,124 | 10,678 |
Gross carrying amount [member] | Other European Customers | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | 10,761 | 12,252 |
Gross carrying amount [member] | North American customers [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | 8,233 | 7,232 |
Gross carrying amount [member] | Chinese customers [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | 5,589 | 7,059 |
Gross carrying amount [member] | South American customers [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | 5,047 | 4,956 |
Gross carrying amount [member] | Other foreign customers [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | 4,906 | 4,407 |
Provision for doubtful accounts [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Total trade receivables, net | € (5,604) | € (5,325) |
Trade Receivables - Summary o_3
Trade Receivables - Summary of Changes in Provision for Doubtful Accounts (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Changes In Allowance For Doubtful Accounts [Abstract] | ||
Balance at beginning of year | € 5,325 | € 7,881 |
Charges – bad debt expense | 330 | 76 |
Reductions – write off of uncollectible amounts | (95) | (2,015) |
Foreign exchange effect | 44 | |
Reversal - reversal to profit and loss | (617) | |
Balance at end of year | € 5,604 | € 5,325 |
Trade Receivables -Summary of C
Trade Receivables -Summary of Carrying Amount of Trade Receivables that have been Transferred but have not been Derecognized and the Associated Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [abstract] | ||
Carrying amount of trade receivables transferred | € 18,670 | € 29,778 |
Carrying amount of associated liabilities | (17,307) | (26,341) |
Total, net | € 1,363 | € 3,437 |
Other Current Receivables - Sum
Other Current Receivables - Summary of Other Current Receivables (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Trade and other current receivables [abstract] | ||
VAT | € 3,051 | € 3,588 |
Receivables from National Institute for Social Security | 3,823 | 3,187 |
Receivables from VITA Group | 1,374 | |
Receivables for share capital reduction | 3,337 | |
Other | 6,068 | 2,869 |
Total | € 16,279 | € 11,018 |
Other Current Receivables - Add
Other Current Receivables - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Top of Range [member] | |
Disclosure Of Other Current Receivables [Line Items] | |
Maturity of VAT collection | 2 years |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents [abstract] | |||
Cash on hand | € 89 | € 201 | |
Bank accounts | 54,386 | 53,271 | |
Total | € 54,475 | € 53,472 | € 48,187 |
Cash and Cash Equivalents - S_2
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents by Geographic Area (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of geographical areas [line items] | |||
Cash | € 54,475 | € 53,472 | € 48,187 |
Europe [member] | |||
Disclosure of geographical areas [line items] | |||
Cash | 32,779 | 36,550 | |
China [member] | |||
Disclosure of geographical areas [line items] | |||
Cash | 15,355 | 9,938 | |
North America [member] | |||
Disclosure of geographical areas [line items] | |||
Cash | 4,482 | 5,924 | |
South America [member] | |||
Disclosure of geographical areas [line items] | |||
Cash | 1,498 | 786 | |
Other [member] | |||
Disclosure of geographical areas [line items] | |||
Cash | € 361 | € 274 |
Cash and Cash Equivalents - S_3
Cash and Cash Equivalents - Summary of Reconciliation Between Amount of Cash and Cash Equivalents (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash and cash equivalents if different from statement of financial position [abstract] | |||||
Cash and cash equivalents in the statement of financial position | € 54,475 | € 53,472 | € 48,187 | ||
Bank overdrafts repayable on demand | (1,754) | (1,223) | (2,111) | ||
Cash and cash equivalents in the statement of cash flows | [1] | € 52,721 | € 52,249 | € 46,076 | € 37,825 |
[1] As at December 31, 2022, 2021 and 2020 cash and cash equivalents include bank overdrafts of 1,754 , 1,223 and 2,111 , respectively, that are repayable on demand and form an integral part of the Group’s cash management. |
Share Capital, Reserves and R_3
Share Capital, Reserves and Retained Earnings - Summary of Changes in Equity Interest (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Share Capital Reserves And Other Equity Interest [Abstract] | |||
Share capital | € 55,073 | € 54,853 | € 54,853 |
Reserves | 23,292 | 17,449 | 13,043 |
Retained earnings | 9,493 | 10,033 | 6,448 |
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY | € 87,858 | € 82,335 | € 74,344 |
Share Capital, Reserves and R_4
Share Capital, Reserves and Retained Earnings - Additional Information (Detail) € / shares in Units, € in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 30, 2022 shares | Dec. 31, 2022 EUR (€) Vote € / shares shares | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | |
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | ||||
Shares authorized | 55,073,045 | |||
Shares issued | 55,073,045 | |||
Par value | € / shares | € 1 | |||
Share capital | € | € 55,073 | € 54,853 | € 54,853 | |
Subscription of shares | 220,000 | 220,000 | ||
Number of vote per shares owned | Vote | 1 | |||
Percentage of net income retained as legal reserve | 5% | |||
Maximum percentage of issued share capital to retain legal reserve | 20% | |||
Percentage of issued share capital excess of which is distributable as dividends | 20% | |||
Total legal reserves | € | € 10,971 | € 10,971 | € 10,971 | |
Net debt to equity ratio | 2.39 | 3.01 | ||
Natuzzi Singapore PTE. LTD. [Member] | ||||
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | ||||
Percentage of stake related to Reserve for gain on disposal of Non-controlling interests | 20% | |||
Top of Range [member] | ||||
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | ||||
Net debt to equity ratio | 3.20 |
Share Capital, Reserves and R_5
Share Capital, Reserves and Retained Earnings - Disclosure of Share Capital Owned (Detail) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Share capital ownership percentage | 100% | 100% | 100% |
Mr. Pasquale Natuzzi [member] | |||
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Share capital ownership percentage | 56.20% | 56.50% | 56.50% |
Mrs. Anna Maria Natuzzi [member] | |||
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Share capital ownership percentage | 2.60% | 2.60% | 2.60% |
Mrs. Annunziata Natuzzi [member] | |||
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Share capital ownership percentage | 2.50% | 2.50% | 2.50% |
Other Investors [member] | |||
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Share capital ownership percentage | 38.70% | 38.40% | 38.40% |
Share Capital, Reserves and R_6
Share Capital, Reserves and Retained Earnings - Analysis of Share Capital Reserves (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of reserves within equity [abstract] | |||
Legal reserve | € 10,971 | € 10,971 | € 10,971 |
Majority shareholder capital contribution | 488 | 488 | 488 |
Shareholders: unpaid share capital | (165) | ||
Share premium reserve | 175 | ||
Stock option reserve | 824 | ||
Reserve for gain on disposal of Non-controlling interests | 4,219 | 1,088 | |
Foreign operations translation reserve | 5,468 | 5,899 | 1,954 |
Remeasurement of defined benefit plan | 1,312 | (997) | (370) |
Total | € 23,292 | € 17,449 | € 13,043 |
Share Capital, Reserves and R_7
Share Capital, Reserves and Retained Earnings - Summary of OCI Accumulated in Reserves, Net of Tax (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||
Foreign operations translation | € 5,468 | € 5,899 | € 1,954 |
Remeasurement of defined benefit plan | 1,312 | (997) | (370) |
Total OCI | 6,924 | 4,875 | 1,465 |
Owners of the Company [Member] | |||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||
Total OCI | 6,780 | 4,902 | 1,584 |
Non-controlling interests [member] | |||
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items] | |||
Total OCI | € 144 | € (27) | € (119) |
Share Capital, Reserves and R_8
Share Capital, Reserves and Retained Earnings - Disclosure of Disaggregation of Changes of OCI (Detail) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Exchange difference on translation of foreign operations | € 524,000 | € 1,709,000 | € (3,575,000) |
Share of OCI of equity-method investees | (784,000) | 2,328,000 | (373,000) |
Actuarial losses on employees' leaving entitlement | 2,309,000 | (627,000) | (212,000) |
Total | 2,049,000 | 3,410,000 | (4,160,000) |
Translation reserve [member] | |||
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Exchange difference on translation of foreign operations | 524,000 | 1,709,000 | (3,575,000) |
Share of OCI of equity-method investees | (784,000) | 2,328,000 | (373,000) |
Total | 260,000 | 4,037,000 | (3,948,000) |
Remeasurement of defined benefit obligation [member] | |||
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Actuarial losses on employees' leaving entitlement | 2,309,000 | (627,000) | (212,000) |
Total | € 2,309,000 | € (627,000) | € (212,000) |
Share Capital, Reserves and R_9
Share Capital, Reserves and Retained Earnings - Summary of net debt to equity ratio (Detail) € in Thousands | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | Dec. 31, 2019 EUR (€) |
Disclosure Of Net Debt To Equity Ratio [Abstract] | ||||
Total liabilities | € 276,051 | € 306,186 | ||
Less cash and cash equivalents | (54,475) | (53,472) | ||
Net debt (a) | 221,576 | 252,714 | ||
Total equity (b) | € 92,556 | € 83,846 | € 75,364 | € 104,818 |
Net debt to equity ratio | 2.39 | 3.01 |
Long-term Borrowings - Summary
Long-term Borrowings - Summary of Detailed Information About Loans Outstanding (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Mar. 31, 2022 | Jan. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | € 17,289 | € 17,439 | ||
Less current installments | (5,806) | (3,862) | ||
Long-term borrowings | 11,483 | 13,577 | ||
Three-month Euribor (360) plus a 2.2% spread long-term debt with final payment due August 2022 [member] | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | 139 | |||
Six-months Euribor (360) plus a 2.75% spread long-term debt with final payment due December 2022 [member] | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | 92 | |||
Three-month Euribor (360) plus a 1.9% spread long-term debt with final payment due June 2023 [member] | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | 0 | 621 | ||
Six-month Euribor (360) plus a 2.5% spread long-term debt with final payment due August 2023 [member] | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | 2,344 | 2,946 | ||
11.76% Fixed long-term debt with final payment due October 2023 [member] | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | 116 | 216 | ||
Six-month Euribor (360) plus a 2.75% spread long-term debt with final payment due March 2025 | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | 3,215 | 4,646 | ||
2.3% fixed long-term debt with final payment due January 2026 [member] | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | 3,451 | 4,518 | ||
No interest rate long-term debt with final payment due September 2027 [member] | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | 345 | 395 | ||
0.21% fixed long-term debt with final payment due December 2030 [member] | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | 2,916 | 2,963 | ||
80% of six-months Euribor (360) plus a 0.95% spread long-term debt with final payment due January 2035 [member] | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | 864 | € 903 | ||
Three-month Euribor (360) plus 2.00% spread long-term debt with final payment due December 2027 [Member] | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | 4,000 | € 4,000 | ||
0.055 Fixed Long-Term Debt With Final Payment Due December 2025 | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Total long-term borrowings | € 38 | € 38 |
Long-term Borrowings - Summar_2
Long-term Borrowings - Summary of Detailed Information About Loans Outstanding (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Three-month Euribor (360) plus a 2.2% spread long-term debt with final payment due August 2022 [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Long-term debt interest rate basis | Three-month Euribor (360) | Three-month Euribor (360) |
Long-term debt interest rate spread | 2.20% | 2.20% |
Long-term debt maturity | August 2022 | August 2022 |
Six-months Euribor (360) plus a 2.75% spread long-term debt with final payment due December 2022 [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Long-term debt interest rate basis | Six-month Euribor (360) | Six-month Euribor (360) |
Long-term debt interest rate spread | 2.75% | 2.75% |
Long-term debt maturity | December 2022 | December 2022 |
Three-month Euribor (360) plus a 1.9% spread long-term debt with final payment due June 2023 [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Long-term debt interest rate basis | Three-month Euribor (360) | Three-month Euribor (360) |
Long-term debt interest rate spread | 1.90% | 1.90% |
Long-term debt maturity | June 2023 | June 2023 |
Six-month Euribor (360) plus a 2.5% spread long-term debt with final payment due August 2023 [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Long-term debt interest rate basis | Six-month Euribor (360) | Six-month Euribor (360) |
Long-term debt interest rate | 2.50% | 2.50% |
Long-term debt maturity | August 2023 | August 2023 |
11.76% Fixed long-term debt with final payment due October 2023 [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Long-term debt interest rate | 11.76% | 11.76% |
Long-term debt maturity | October 2023 | October 2023 |
Six-month Euribor (360) plus a 2.75% spread long-term debt with final payment due March 2025 | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Long-term debt interest rate basis | Six-month Euribor (360) | Six-month Euribor (360) |
Long-term debt interest rate | 2.75% | 2.75% |
Long-term debt maturity | March 2025 | March 2025 |
2.3% fixed long-term debt with final payment due January 2026 [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Long-term debt interest rate | 2.30% | 2.30% |
Long-term debt maturity | January 2026 | January 2026 |
No interest rate long-term debt with final payment due September 2027 [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Long-term debt interest rate | 0% | 0% |
Long-term debt maturity | September 2027 | September 2027 |
0.21% fixed long-term debt with final payment due December 2030 [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Long-term debt interest rate | 0.21% | 0.21% |
Long-term debt maturity | December 2030 | December 2030 |
80% of six-months Euribor (360) plus a 0.95% spread long-term debt with final payment due January 2035 [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Long-term debt interest rate basis | Six-month Euribor (360) | Six-month Euribor (360) |
Long-term debt interest rate | 80% | 80% |
Long-term debt interest rate spread | 0.95% | 0.95% |
Long-term debt maturity | January 2035 | January 2035 |
Three-month Euribor (360) plus 2.00% spread long-term debt with final payment due December 2027 [Member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Long-term debt interest rate basis | Three-month Euribor (360) | Three-month Euribor (360) |
Long-term debt interest rate spread | 2% | 2% |
Long-term debt maturity | December 2027 | December 2027 |
0.055 Fixed Long-Term Debt With Final Payment Due December 2025 | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Long-term debt interest rate | 0.055% | 0.055% |
Long-term debt maturity | December 2025 | December 2025 |
Long-term Borrowings - Addition
Long-term Borrowings - Additional Information (Detail) - EUR (€) € in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | May 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2015 | |
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt | € 17,289 | € 17,439 | |||||||||||
Interest expense related to long-term borrowings | € 423 | € 405 | € 405 | ||||||||||
Bottom of range [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt interest rate | 3% | 3% | |||||||||||
Top of range [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt interest rate | 12% | 12% | |||||||||||
Italian Financial Institution [Member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt interest rate basis | three-month Euribor (360) | ||||||||||||
Long-term debt interest rate spread | 2% | 0.055% | |||||||||||
Long-term debt | € 4,000 | ||||||||||||
Six-month Euribor (360) plus a 2.5% spread long-term debt with final payment due August 2021 [member] | Bottom of range [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Cash receipt turnover percentage | 60% | ||||||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) percentage | 4.50% | ||||||||||||
Debt Service Cover Ratio | 1.35% | ||||||||||||
Six-month Euribor (360) plus a 2.5% spread long-term debt with final payment due August 2021 [member] | Top of range [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Net debt to EBITDA | 3% | ||||||||||||
Six-month Euribor (360) plus a 2.5% spread long-term debt with final payment due August 2021 [member] | Romanian Subsidiary [Member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt nominal amount | € 10,000 | ||||||||||||
Long-term debt maturity | August 2023 | ||||||||||||
Long-term debt interest rate basis | Six-month Euribor (360) | ||||||||||||
Long-term debt interest rate spread | 2.50% | ||||||||||||
Mortgage loan | € 16,628 | ||||||||||||
Long-term debt | 2,344 | ||||||||||||
Long-term debt lump sum repayment | € 1,944 | ||||||||||||
Three-month Euribor (360) plus a 2.2% spread long-term debt with final payment due August 2022 [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt nominal amount | € 1,000 | ||||||||||||
Long-term debt maturity | August 2022 | August 2022 | |||||||||||
Long-term debt interest rate basis | Three-month Euribor (360) | Three-month Euribor (360) | |||||||||||
Long-term debt interest rate spread | 2.20% | 2.20% | |||||||||||
Long-term debt | € 139 | ||||||||||||
Three-month Euribor (360) plus a 1.9% spread long-term debt with final payment due June 2023 [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt nominal amount | € 2,000 | ||||||||||||
Long-term debt maturity | June 2023 | June 2023 | |||||||||||
Long-term debt interest rate basis | Three-month Euribor (360) | Three-month Euribor (360) | |||||||||||
Long-term debt interest rate spread | 1.90% | 1.90% | |||||||||||
Long-term debt | € 0 | € 621 | |||||||||||
2.3% fixed long-term debt with final payment due January 2026 [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt nominal amount | € 7,000 | ||||||||||||
Long-term debt maturity | January 2026 | January 2026 | |||||||||||
Long-term debt | € 3,451 | € 4,518 | |||||||||||
Long-term debt interest rate | 2.30% | 2.30% | |||||||||||
2.3% fixed long-term debt with final payment due January 2026 [member] | Matera [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Mortgage loan | € 14,000 | ||||||||||||
Six-months Euribor (360) plus a 2.75% spread long-term debt with final payment due December 2022 [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt maturity | December 2022 | December 2022 | |||||||||||
Long-term debt interest rate basis | Six-month Euribor (360) | Six-month Euribor (360) | |||||||||||
Long-term debt interest rate spread | 2.75% | 2.75% | |||||||||||
Long-term debt | € 92 | ||||||||||||
Six-months Euribor (360) plus a 2.75% spread long-term debt with final payment due December 2022 [member] | Romanian Subsidiary [Member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt | € 206 | ||||||||||||
0.21% fixed long-term debt with final payment due December 2030 [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt nominal amount | € 4,181 | ||||||||||||
Long-term debt maturity | December 2030 | December 2030 | |||||||||||
Mortgage loan | € 13,936 | ||||||||||||
Long-term debt | € 2,916 | € 2,963 | |||||||||||
Long-term debt interest rate | 0.21% | 0.21% | |||||||||||
80% of six-months Euribor (360) plus a 0.95% spread long-term debt with final payment due January 2035 italian subsidiaries [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt nominal amount | € 435 | ||||||||||||
Long-term debt maturity | January 2035 | ||||||||||||
Long-term debt interest rate basis | Six-month Euribor (360) | ||||||||||||
Long-term debt interest rate spread | 0.95% | ||||||||||||
Mortgage loan | € 3,000 | ||||||||||||
Long-term debt | € 863 | ||||||||||||
Long-term debt interest rate | 80% | ||||||||||||
No interest rate long-term debt with final payment due September 2027 [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt maturity | September 2027 | September 2027 | |||||||||||
Long-term debt | € 345 | € 395 | |||||||||||
Long-term debt interest rate | 0% | 0% | |||||||||||
No interest rate long-term debt with final payment due September 2027 [member] | Swiss Subsidiary [Member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt nominal amount | € 378 | ||||||||||||
Long-term debt | € 345 | ||||||||||||
Long-term debt interest rate | 0% | ||||||||||||
11.76% Fixed long-term debt with final payment due October 2023 [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt maturity | October 2023 | October 2023 | |||||||||||
Long-term debt | € 116 | € 216 | |||||||||||
Long-term debt interest rate | 11.76% | 11.76% | |||||||||||
11.76% Fixed long-term debt with final payment due October 2023 [member] | Brazilian Subsidiary [Member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt | € 116 | € 314 | |||||||||||
Long-term debt interest rate | 11.76% | ||||||||||||
Six-month Euribor (360) plus a 2.75% spread long-term debt with final payment due March 2025 | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt maturity | March 2025 | March 2025 | |||||||||||
Long-term debt interest rate basis | Six-month Euribor (360) | Six-month Euribor (360) | |||||||||||
Long-term debt | € 3,215 | € 4,646 | |||||||||||
Long-term debt interest rate | 2.75% | 2.75% | |||||||||||
Six-month Euribor (360) plus a 2.75% spread long-term debt with final payment due March 2025 | Romanian Subsidiary [Member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt interest rate basis | Six-month Euribor (360) | ||||||||||||
Long-term debt interest rate spread | 2.75% | ||||||||||||
Long-term debt | € 5,000 | € 3,215 | |||||||||||
Long-term debt state- guarantee percentage | 90% | ||||||||||||
Three-month Euribor (360) plus 2.00% spread long-term debt with final payment due December 2027 [Member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt maturity | December 2027 | December 2027 | |||||||||||
Long-term debt interest rate basis | Three-month Euribor (360) | Three-month Euribor (360) | |||||||||||
Long-term debt interest rate spread | 2% | 2% | |||||||||||
Long-term debt | € 4,000 | € 4,000 | |||||||||||
0.055 Fixed Long-Term Debt With Final Payment Due December 2025 | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt maturity | December 2025 | December 2025 | |||||||||||
Long-term debt | € 38 | € 38 | |||||||||||
Long-term debt interest rate | 0.055% | 0.055% | |||||||||||
Three-month Euribor (360) [Member] | Bottom of range [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt interest rate | 0.68% | ||||||||||||
Three-month Euribor (360) [Member] | Top of range [member] | |||||||||||||
Disclosure Of Detailed Information About Borrowings [Line Items] | |||||||||||||
Long-term debt interest rate | 4.48% |
Lease liabilities (non-curren_3
Lease liabilities (non-current and current) - Summary of non-current and current portion of the lease liabilities (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Non Current And Current Portion Of The Lease Liabilities [Abstract] | |||
Non-current portion of the lease liabilities | € 41,024 | € 46,592 | |
Current portion of the lease liabilities | 10,825 | 10,546 | |
Lease liabilities recognised as at January 1, 2019 | € 51,849 | € 57,138 | € 53,593 |
Lease liabilities (non-curren_4
Lease liabilities (non-current and current) - Summary of Changes in Carrying Amount of Lease Liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Non Current And Current Portion Of The Lease Liabilities [Abstract] | |||
Balance at beginning of year | € 57,138 | € 53,593 | |
Additions for new leases | 7,909 | 3,194 | |
Interest expenses | 2,877 | 2,603 | € 2,589 |
Lease payments | (12,926) | (12,693) | (12,496) |
Disposal of leases | (2,568) | (58) | |
Adjustments due to remeasurements | (227) | 9,084 | |
Adjustments due to modifications | (167) | 41 | |
Covid-19 rent concessions | (635) | (1,515) | (1,799) |
Effect of translation adjustments | 448 | 2,889 | |
Balance at end of year | € 51,849 | € 57,138 | € 53,593 |
Lease liabilities (non-curren_5
Lease liabilities (non-current and current) - Additional information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |||
Increase (decrease) in lease liability | € 26,254 | € 22,015 | |
COVID-19-related rent concessions | € 635 | € 1,515 | € 1,799 |
Bottom Of Range [Member] | |||
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |||
Borrowings interest rate | 3% | 3% | |
Top of Range [member] | |||
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |||
Borrowings interest rate | 12% | 12% |
Lease liabilities (non-curren_6
Lease liabilities (non-current and current) - Summary of Maturity Analysis of Contractual Undiscounted Cash Flows of Lease Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | ||
Undiscounted lease liabilities | € 61,340 | € 65,854 |
Later than one year [member] | ||
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | ||
Undiscounted lease liabilities | 13,404 | 13,130 |
One to five years (member) | ||
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | ||
Undiscounted lease liabilities | 35,116 | 38,419 |
More than 5 years [member] | ||
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | ||
Undiscounted lease liabilities | € 12,820 | € 14,305 |
Employees' Leaving Entitlemen_2
Employees' Leaving Entitlement - Summary of Changes To Employees' Leaving Entitlement (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in net defined benefit liability (asset) [abstract] | ||
Beginning balance | € 15,588 | € 15,747 |
Current service cost | 80 | 103 |
Interest expense | 151 | 51 |
Benefits paid | (446) | (940) |
Actuarial losses | 2,309 | 627 |
Ending balance | € 13,064 | € 15,588 |
Employees' Leaving Entitlemen_3
Employees' Leaving Entitlement - Summary of Assumptions Used in Determining Present Value of Defined Benefit Obligation Related to Employee Benefit Obligation (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Actuarial assumption of discount rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Annual rate | 3.63% | 0.98% |
Actuarial assumption of expected rates of salary increases [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Annual rate | 2.30% | 1.75% |
Actuarial assumption of expected rates of inflation [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Annual rate | 2.30% | 1.75% |
Actuarial assumption of expected rates of pension increases [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Annual rate | 3.23% | 2.81% |
Actuarial assumption of mortality rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Actuarial Assumption | RG48 mortality tables published by the General State Accounting | RG48 mortality tables published by the General State Accounting |
Actuarial assumption of inability rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Actuarial Assumption | National Institute for Social Security tables, by age and sex | National Institute for Social Security tables, by age and sex |
Actuarial assumption of retirement age [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Actuarial Assumption | 100% upon achievement of AGO requisites | 100% upon achievement of AGO requisites |
Actuarial assumption frequency of turnover [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Annual rate | 2% | 2% |
Actuarial assumption frequency of defined benefit obligation [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Annual rate | 2% | 2% |
Employees' Leaving Entitlemen_4
Employees' Leaving Entitlement - Summary of Quantitative Sensitivity Analysis for Significant Assumptions (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Actuarial assumption of turnover rate [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Quantitative sensitivity analysis, increase | € (70) | € (118) |
Quantitative sensitivity analysis, decrease | 76 | 130 |
Actuarial assumption of expected rates of inflation [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Quantitative sensitivity analysis, increase | 175 | 232 |
Quantitative sensitivity analysis, decrease | (172) | (227) |
Actuarial assumption of discount rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Quantitative sensitivity analysis, increase | (268) | (362) |
Quantitative sensitivity analysis, decrease | € 276 | € 375 |
Employees' Leaving Entitlemen_5
Employees' Leaving Entitlement - Schedule of Expected Payments or Contributions to Defined Benefit Plan (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Within 1 year [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Expected payments or contributions to defined benefit plan | € 1,027 | € 769 |
Between 2 and 5 years [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Expected payments or contributions to defined benefit plan | € 2,857 | € 3,223 |
Employees' Leaving Entitlemen_6
Employees' Leaving Entitlement - Additional Information (Detail) € / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jul. 15, 2022 EUR (€) shares | Dec. 31, 2022 EUR (€) shares € / shares | Dec. 31, 2021 EUR (€) | Jul. 15, 2022 USD ($) | Dec. 31, 2020 EUR (€) | |
Disclosure of classes of share capital [line items] | |||||
Average duration of defined benefit plans | 9 years 6 months | 10 years 6 months | |||
Number of shares purchased | 55,073,045 | ||||
Strike price relating tranche evaluation latter multiplied | 5 | ||||
Number of ordinary shares | 5 | ||||
Number of equity-based instruments granted | 562,512 | ||||
Description of fair value measurement method of stock options granted | Expected volatility has been based on an evaluation of the historical volatility of both the price of the underlying ADSs of Natuzzi S.p.A. and EURUSD exchange rate, in particular by considering the relevant time series of the preceding 260 business days. | ||||
Fair value of option at grant date | $ | $ 2,458,542 | ||||
25% of subscribed capital | € | € 55,073,000 | € 54,853,000 | € 54,853,000 | ||
Amounts owed by related parties | € | € 7,457,000 | € 8,028,000 | € 7,202,000 | ||
American Depository Shares [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of equity-based instruments granted | 562,512 | 562,512 | |||
Number of options, exercised | 44,000 | ||||
Beneficiary 1 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of equity-based instruments granted | 365,334 | ||||
Beneficiary 1 [member] | American Depository Shares [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Fair value of option at grant date | € | € 4,390 | ||||
Beneficiary 2 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of equity-based instruments granted | 65,826 | ||||
Beneficiary 2 [member] | American Depository Shares [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Fair value of option at grant date | € | € 4,300 | ||||
Beneficiary 3 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of equity-based instruments granted | 131,352 | ||||
Beneficiary Exercised Option [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Capital increase | € | € 220,000,000 | ||||
25% of subscribed capital | € | 55,000,000 | ||||
Amounts owed by related parties | € | € 165,000,000 | ||||
Beneficiary Exercised Option [Member] | American Depository Shares [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of options, exercised | 44,000 | ||||
Exercise price of exercised share options | € / shares | € 5 | ||||
First set vesting through December 31, 2024 [member] | American Depository Shares [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of equity-based instruments granted | 110,000 | ||||
Second set vesting through December 31, 2027 [member] | American Depository Shares [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of equity-based instruments granted | 21,352 | ||||
Ordinary shares [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of equity-based instruments granted | 2,812,560 | ||||
Ordinary shares [member] | Beneficiary Exercised Option [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of options, exercised | 220,000 | ||||
Exercise price of exercised share options | € / shares | € 1 | ||||
Ordinary shares [member] | First set vesting through December 31, 2024 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of equity-based instruments granted | 550,000 | ||||
Ordinary shares [member] | Second set vesting through December 31, 2027 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of equity-based instruments granted | 106,760 |
Employees' Leaving Entitlemen_7
Employees' Leaving Entitlement - Schedule of Options Granted to Key Officer Beneficiaries (Details) | 12 Months Ended | |
Jul. 15, 2022 shares Beneficiary | Dec. 31, 2022 shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date/beneficiaries | July 15, 2022 | |
Number of equity-based instruments granted | 562,512 | |
Vesting conditions | Continuous service status until the vesting date | |
Top of Range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Contractual life of the options | 6 years | |
Bottom Of Range [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Contractual life of the options | 1 year | |
Ordinary Shares [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 2,812,560 | |
American Depository Shares [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 562,512 | 562,512 |
American Depository Shares vesting on 15/Aug/22 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 87,116 | |
American Depository Shares vesting on 31/May/23 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 97,674 | |
American Depository Shares vesting on 31/May/24 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 103,012 | |
American Depository Shares vesting on 31/May/25 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 91,570 | |
American Depository Shares vesting on 31/May/26 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 91,570 | |
American Depository Shares vesting on 31/May/27 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 91,570 | |
Key Officers [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of beneficiaries | Beneficiary | 3 | |
Beneficiary 1 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 365,334 | |
Beneficiary 1 [member] | American Depository Shares vesting on 15/Aug/22 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 36,533 | |
Beneficiary 1 [member] | American Depository Shares vesting on 31/May/23 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 54,800 | |
Beneficiary 1 [member] | American Depository Shares vesting on 31/May/24 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 54,800 | |
Beneficiary 1 [member] | American Depository Shares vesting on 31/May/25 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 73,067 | |
Beneficiary 1 [member] | American Depository Shares vesting on 31/May/26 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 73,067 | |
Beneficiary 1 [member] | American Depository Shares vesting on 31/May/27 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 73,067 | |
Beneficiary 2 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 65,826 | |
Beneficiary 2 [member] | American Depository Shares vesting on 15/Aug/22 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 6,583 | |
Beneficiary 2 [member] | American Depository Shares vesting on 31/May/23 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 9,874 | |
Beneficiary 2 [member] | American Depository Shares vesting on 31/May/24 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 9,874 | |
Beneficiary 2 [member] | American Depository Shares vesting on 31/May/25 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 13,165 | |
Beneficiary 2 [member] | American Depository Shares vesting on 31/May/26 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 13,165 | |
Beneficiary 2 [member] | American Depository Shares vesting on 31/May/27 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 13,165 | |
Beneficiary 3 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 131,352 | |
Beneficiary 3 [member] | American Depository Shares vesting on 15/Aug/22 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 44,000 | |
Beneficiary 3 [member] | American Depository Shares vesting on 31/May/23 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 33,000 | |
Beneficiary 3 [member] | American Depository Shares vesting on 31/May/24 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 38,338 | |
Beneficiary 3 [member] | American Depository Shares vesting on 31/May/25 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 5,338 | |
Beneficiary 3 [member] | American Depository Shares vesting on 31/May/26 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 5,338 | |
Beneficiary 3 [member] | American Depository Shares vesting on 31/May/27 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of equity-based instruments granted | 5,338 |
Employees' Leaving Entitlemen_8
Employees' Leaving Entitlement - Summary of Inputs Used in Measurement of Fair Values at Grant Date of Equity Settled Share-based Payment Plans (Details) - Jul. 15, 2022 $ in Thousands | EUR (€) € / shares | USD ($) |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value of option at grant date | $ | $ 2,458,542 | |
American Depository Shares [member] | Beneficiary 1 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value of option at grant date | € | € 4,390 | |
Closing price at grant date | € 8.8700 | |
Currency of Exercise Price | U.S. dollar | |
Exercise price | € 14.5950 | |
Expected volatility of the stock price (weighted-average) | 67.73% | |
Expected life (weighted-average) | 2 years 8 months 19 days | |
Risk-free interests rate (based on government bonds) | 2.80% | |
American Depository Shares [member] | Beneficiary 2 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value of option at grant date | € | € 4,300 | |
Closing price at grant date | € 8.8700 | |
Currency of Exercise Price | U.S. dollar | |
Exercise price | € 15.3450 | |
Expected volatility of the stock price (weighted-average) | 67.73% | |
Expected life (weighted-average) | 2 years 8 months 19 days | |
Risk-free interests rate (based on government bonds) | 2.80% | |
American Depository Shares [member] | Beneficiary 3 with First Option [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value of option at grant date | € | € 4,530 | |
EURUSD exchange rate at grant date | € | 1,005.9000 | |
Closing price at grant date | € 8.8700 | |
Currency of Exercise Price | Euro | |
Exercise price | € 5.0295 | |
Expected volatility of the stock price (weighted-average) | 67.73% | |
Expected volatility of EURUSD exchange rate | 7.27% | |
Expected life (weighted-average) | 6 months 3 days | |
Risk-free interests rate (based on government bonds) | 2.80% | |
American Depository Shares [member] | Beneficiary 3 with Second Option [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value of option at grant date | € | € 3,370 | |
Closing price at grant date | € 8.8700 | |
Currency of Exercise Price | U.S. dollar | |
Exercise price | € 15.6000 | |
Expected volatility of the stock price (weighted-average) | 67.73% | |
Expected life (weighted-average) | 7 months 2 days | |
Risk-free interests rate (based on government bonds) | 2.80% |
Employees' Leaving Entitlemen_9
Employees' Leaving Entitlement - Schedule of Number and Weighted-Average Exercise Prices of Share Options (Details) | 12 Months Ended | |
Jul. 15, 2022 shares | Dec. 31, 2022 shares € / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options, granted | 562,512 | |
American Depository Shares [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options, granted | 562,512 | 562,512 |
Number of options, exercised | 44,000 | |
Number of options, outstanding at end of period | 518,512 | |
Number of options, exercisable | 43,116 | |
Weighted average exercise price, granted | € / shares | € 12.85 | |
Weighted average exercise price, exercised | € / shares | 5.03 | |
Weighted average exercise price, outstanding at end of period | € / shares | 13.51 | |
Weighted average exercise price, exercisable | € / shares | € 14.71 |
Contract Liabilities (Non-Cur_3
Contract Liabilities (Non-Current and Current) - Summary of Contract liabilities (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of contract liabilities [line items] | ||
Total contract liabilities | € 24,150 | € 28,202 |
Less current portion | (17,124) | (20,797) |
Non-current portion | 7,026 | 7,405 |
Natuzzi's trademarks [member] | ||
Disclosure of contract liabilities [line items] | ||
Total contract liabilities | 5,960 | 6,343 |
Natuzzi Display System [member] | ||
Disclosure of contract liabilities [line items] | ||
Total contract liabilities | 2,049 | 2,178 |
Service type warranties [member] | ||
Disclosure of contract liabilities [line items] | ||
Total contract liabilities | 406 | 475 |
Advance payments [member] | ||
Disclosure of contract liabilities [line items] | ||
Total contract liabilities | € 15,735 | € 19,206 |
Contract Liabilities (Non-Cur_4
Contract Liabilities (Non-Current and Current) - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of contract liabilities [line items] | |||
Contract revenue | € 20,797 | € 16,150 | € 14,014 |
Natuzzi's trademarks [member] | |||
Disclosure of contract liabilities [line items] | |||
Contract revenue | € 5,960 | ||
Average length of contracts with distributors | 20 years | ||
Natuzzi Display System [member] | |||
Disclosure of contract liabilities [line items] | |||
Average length of contracts with distributors | five years | ||
Service type warranties [member] | |||
Disclosure of contract liabilities [line items] | |||
Average length of contracts with distributors | five years |
Provisions (Non-Current and C_3
Provisions (Non-Current and Current) - Disclosure of Provision Related to Investment (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of other provisions [line items] | |||
Total provisions | € 12,546 | € 13,411 | € 18,019 |
Less current portion | (3,114) | (2,839) | |
Non-current portion | 9,432 | 10,572 | |
Provision for legal claims [member] | |||
Disclosure of other provisions [line items] | |||
Total provisions | 8,626 | 9,403 | 12,865 |
Provision for tax claims [member] | |||
Disclosure of other provisions [line items] | |||
Total provisions | 64 | 229 | 360 |
Provision for warranties [member] | |||
Disclosure of other provisions [line items] | |||
Total provisions | 3,114 | 2,839 | 3,745 |
Termination indemnities for sales agents [member] | |||
Disclosure of other provisions [line items] | |||
Total provisions | € 742 | € 940 | € 1,049 |
Provisions (Non-Current and C_4
Provisions (Non-Current and Current) - Disclosure of Changes in Provision Related to Investment (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of other provisions [line items] | ||
Beginning Balance | € 13,411 | € 18,019 |
Provisions made during the year | 6,634 | 1,802 |
Provisions used during the year | (6,825) | (6,362) |
Provisions reversed during the year | (674) | (48) |
Ending Balance | 12,546 | 13,411 |
Provision for legal claims [member] | ||
Disclosure of other provisions [line items] | ||
Beginning Balance | 9,403 | 12,865 |
Provisions made during the year | 4,785 | 1,110 |
Provisions used during the year | (4,888) | (4,572) |
Provisions reversed during the year | (674) | |
Ending Balance | 8,626 | 9,403 |
Provision for tax claims [member] | ||
Disclosure of other provisions [line items] | ||
Beginning Balance | 229 | 360 |
Provisions used during the year | (165) | (105) |
Provisions reversed during the year | (26) | |
Ending Balance | 64 | 229 |
Provision for warranties [member] | ||
Disclosure of other provisions [line items] | ||
Beginning Balance | 2,839 | 3,745 |
Provisions made during the year | 1,774 | 455 |
Provisions used during the year | (1,499) | (1,339) |
Provisions reversed during the year | (22) | |
Ending Balance | 3,114 | 2,839 |
Termination indemnities for sales agents [member] | ||
Disclosure of other provisions [line items] | ||
Beginning Balance | 940 | 1,049 |
Provisions made during the year | 75 | 237 |
Provisions used during the year | (273) | (346) |
Ending Balance | € 742 | € 940 |
Provisions (Non-Current and C_5
Provisions (Non-Current and Current) - Additional Information (Detail) € in Thousands | 1 Months Ended | 12 Months Ended | |
May 31, 2017 Worker | Dec. 31, 2022 EUR (€) Worker | Dec. 31, 2021 EUR (€) | |
Provision for legal claims [member] | |||
Disclosure of other provisions [line items] | |||
Liability due to legal procedure | € | € 7,163 | ||
Number of workers initiated for legal procedure | Worker | 147 | ||
Number of workers adverse with adverse verdict in legal procedure | Worker | 2 | ||
Legal proceedings contingent liability [member] | |||
Disclosure of other provisions [line items] | |||
Liability due to legal procedure | € | € 7,163 | € 8,608 |
Deferred Income for Governmen_3
Deferred Income for Government Grants - Summary of Changes in the Carrying Amount of Deferred Income for Government Grants (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accruals And Deferred Income 1 [Abstract] | ||
Deferred income beginning balance | € 12,754 | € 12,458 |
Additions | 1,204 | 1,725 |
Credit to profit or loss | (1,716) | (1,429) |
Deferred income ending balance | € 12,242 | € 12,754 |
Deferred Income for Governmen_4
Deferred Income for Government Grants - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment prohibited from selling period | 5 years | ||
Property, plant and equipment | € 84,431 | € 83,054 | € 85,306 |
Property, Plant and Equipment Related to Government Grants [Member] | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Property, plant and equipment | € 4,665 |
Bank overdrafts and short-ter_3
Bank overdrafts and short-term borrowings - Schedule of Bank Overdrafts and Short-term Borrowings (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Bank overdrafts and short-term borrowings | € 29,254 | € 36,147 |
Bank overdrafts [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Bank overdrafts and short-term borrowings | 1,754 | 1,223 |
Borrowings related to a recourse factoring agreement [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Bank overdrafts and short-term borrowings | 17,307 | 26,341 |
Borrowings secured with trade receivables not part of factoring agreement [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Bank overdrafts and short-term borrowings | 9,703 | 8,327 |
Borrowings unsecured [member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Bank overdrafts and short-term borrowings | € 490 | € 256 |
Bank overdrafts and short-ter_4
Bank overdrafts and short-term borrowings - Summary of Weighted Average Interest Rates on Bank Overdrafts and Short-Term Borrowings (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [abstract] | ||
Bank overdrafts | 5.12% | 5.53% |
Borrowings | 3.30% | 3.92% |
Bank Overdraft and Short-term B
Bank Overdraft and Short-term Borrowings - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Unused credit facility | € 24,307 | € 14,947 |
Commitment fee | 0 | |
Trade receivables export [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Unused credit facility | 21,330 | |
Trade receivables secured borrowings [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Unused credit facility | 728 | |
Bank overdrafts [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Unused credit facility | € 2,249 |
Trade Payables - Summary of Tra
Trade Payables - Summary of Trade Payables (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Trade and other current payables [abstract] | ||
Invoices received - supplier not part of factoring facility | € 42,609 | € 52,110 |
Invoices received - supplier factoring facility | 14,294 | 13,581 |
Accruals for invoices to be received | 21,496 | 23,524 |
Total | € 78,399 | € 89,215 |
Trade Payables - Additional Inf
Trade Payables - Additional Information (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Trade and other current payables [abstract] | ||
Trade payables due to related parties | € 59 | € 0 |
Other Payables - Schedule Other
Other Payables - Schedule Other Payables (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Trade and other current payables [abstract] | ||
Salaries and wages | € 9,503 | € 7,991 |
Social security contributions | 6,179 | 5,898 |
Vacation accrual | 4,342 | 4,397 |
Withholding taxes on payroll and on others | 1,886 | 2,000 |
Advance payment from the Parent’s majority shareholder | 2,500 | 2,500 |
Other accounts payable | 9,912 | 8,667 |
Total | € 34,322 | € 31,453 |
Other Payables - Additional Inf
Other Payables - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Mar. 02, 2020 | Dec. 31, 2022 | Feb. 28, 2020 | |
Trade and other current payables [abstract] | |||
Payment received from parents majority shareholder | € 2,500 | ||
Subscription price of a future rights issue | € 15,000 | ||
Partial receipt of subscription price of a future rights issue | € 2,500 | ||
Amount paid back to parent's majority shareholder | € 2,500 |
Other liabilities - Schedule of
Other liabilities - Schedule of Other Liabilities (Detail) € in Thousands | Dec. 31, 2021 EUR (€) |
Other Current Liabilities [Abstract] | |
Advance payments for government grants | € 412 |
Total | € 412 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Euro Equivalent the Contractual Amounts of forward Exchange Contracts (Detail) - Forward exchange contract [member] - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | € 44,984 | € 51,336 |
U.S. dollars [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 11,598 | 20,532 |
British pounds [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 13,753 | 14,723 |
Euro [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 9,720 | 12,192 |
Chinese renminbi [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 7,428 | |
Australian dollars [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 1,624 | 1,826 |
Japanese yen [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | € 861 | 1,152 |
Canadian dollars [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 812 | |
Swedish kroner [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | € 99 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Information Regarding the Contract Amount in Estimated Fair Value of All of the Group's Forward Exchange Contacts (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Derivative Financial Instruments [line items] | ||
Contract amount | € 44,984 | € 51,336 |
Unrealised gains (losses) | (859) | (595) |
Financial liabilities at fair value, class [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Contract amount | 6,510 | 33,177 |
Unrealised gains (losses) | (66) | (691) |
Financial assets at fair value, class [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Contract amount | 38,474 | 18,159 |
Unrealised gains (losses) | € 925 | € 96 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional information (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Change in value of forward elements of forward contracts [abstract] | ||
Net unrealized expense (gain) | € (859) | € 595 |
Financial Instruments - Fair _3
Financial Instruments - Fair Values and Risk Management - Schedule of Classification and Carrying Amounts of Group's Financial Assets and Financial Liabilities (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | € 116,629 | € 110,699 |
Total financial liabilities | 211,179 | 232,083 |
Financial liabilities measured at amortised cost, class [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 211,113 | 231,392 |
Financial liabilities measured at fair value through profit or loss, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 66 | 691 |
Forward exchange contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 66 | 691 |
Long-term borrowings [member] | Financial liabilities measured at amortised cost, class [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 17,289 | 17,439 |
Lease liabilities [member] | Financial liabilities measured at amortised cost, class [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 51,849 | 57,138 |
Bank Overdrafts and Short Term Borrowings [member] | Financial liabilities measured at amortised cost, class [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 29,254 | 36,147 |
Trade Accounts Payable [member] | Financial liabilities measured at amortised cost, class [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 78,399 | 89,215 |
Other Accounts Payable [member] | Financial liabilities measured at amortised cost, class [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 34,322 | 31,453 |
Financial assets measured at amortised cost, class [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 115,704 | 110,603 |
Financial assets measured at amortised cost, class [member] | Other Non Current Receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 5,894 | 4,854 |
Financial assets measured at amortised cost, class [member] | Trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 39,056 | 41,259 |
Financial assets measured at amortised cost, class [member] | Other Current Receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 16,279 | 11,018 |
Financial assets measured at amortised cost, class [member] | Cash and Cash Equivalent [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 54,475 | 53,472 |
Financial assets measured at fair value through profit or loss, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 925 | 96 |
Financial assets measured at fair value through profit or loss, category [member] | Forward exchange contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | € 925 | € 96 |
Financial Instruments - Fair _4
Financial Instruments - Fair Values and Risk Management - Summary of Carrying Amount and Fair Value of Financial Assets and Financial Liabilities (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | € 116,629 | € 110,699 |
Total financial liabilities | 211,179 | 232,083 |
Gross carrying amount [member] | Forward exchange contract [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 925 | 96 |
Total financial liabilities | 66 | 691 |
Gross carrying amount [member] | Long-term borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 17,289 | 17,439 |
Gross carrying amount [member] | Long-term borrowings [member] | Floating-rate borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 10,423 | 9,347 |
Gross carrying amount [member] | Long-term borrowings [member] | Fixed rate borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 6,866 | 8,092 |
At fair value [member] | Forward exchange contract [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 925 | 96 |
Total financial liabilities | 66 | 691 |
At fair value [member] | Long-term borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 18,465 | 18,860 |
At fair value [member] | Long-term borrowings [member] | Floating-rate borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 10,540 | 9,552 |
At fair value [member] | Long-term borrowings [member] | Fixed rate borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | € 7,925 | € 9,308 |
Financial Instruments - Fair _5
Financial Instruments - Fair Values and Risk Management - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2021 EUR (€) | Mar. 31, 2022 EUR (€) | Jan. 31, 2022 EUR (€) | Aug. 31, 2021 | Mar. 31, 2021 EUR (€) | Jul. 31, 2020 EUR (€) | Dec. 31, 2022 EUR (€) Customer | Dec. 31, 2021 EUR (€) Customer | Dec. 31, 2020 EUR (€) Customer | |
Disclosure of detailed information about financial instruments [line items] | |||||||||
Transfers between Level 1 and Level 2, assets | € 0 | € 0 | |||||||
Transfers between Level 1 and Level 2, liabilities | 0 | 0 | |||||||
Transfers between Level 2 and Level 1, assets | 0 | 0 | |||||||
Transfers between Level 2 and Level 1, liabilities | 0 | 0 | |||||||
Transfers into Level 3, assets | 0 | 0 | |||||||
Transfers out of Level 3, assets | 0 | 0 | |||||||
Transfers into Level 3, liabilities | 0 | 0 | |||||||
Transfers out of Level 3, liabilities | 0 | 0 | |||||||
Current and non-current receivables | 6,068,000 | 2,869,000 | |||||||
Cash and cash equivalents | 54,475,000 | 53,472,000 | |||||||
Cash consideration received for asset disposal | 624,000 | 4,511,000 | € 2,888,000 | ||||||
Long-term loan | 17,289,000 | 17,439,000 | |||||||
Unused credit lines | 24,307,000 | ||||||||
Impairment loss on trade receivables | € 331,000 | € 110,000 | € 1,802,000 | ||||||
Fixed rate borrowings [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Borrowings interest rate | 39.70% | 46.40% | |||||||
Romanian Financial Institution | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Long-term loan | € 5,000,000 | ||||||||
Long-term debt interest rate basis | six-month Euribor (360) | ||||||||
Long-term debt interest rate spread | 2.75% | ||||||||
Italian Financial Institution [Member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Long-term loan | € 4,000,000 | ||||||||
Long-term debt interest rate basis | three-month Euribor (360) | ||||||||
Long-term debt interest rate spread | 2% | 0.055% | |||||||
Natuzzi Singapore PTE. LTD. [Member] | Truong Thanh Furniture Corporation | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Proportion of ownership interest in subsidiary | 74.40% | ||||||||
Natuzzi Singapore PTE. LTD. [Member] | Truong Thanh Furniture Corporation | Subscription and Shareholders Agreement [Member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Proportion of ownership interest in subsidiary | 20% | 20% | 20% | ||||||
Cash consideration from capital subscription | € 4,885,000 | ||||||||
Disposal of major subsidiary [member] | IMPE S.p.A. [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Proceeds from sale of interests in subsidiary | € 8,202,000 | ||||||||
Trade receivables [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
No. of customers | Customer | 1 | 1 | 1 | ||||||
Revenue [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
No. of customers | Customer | 1 | 1 | 1 | ||||||
Credit risk [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Percentage of uncollected outstanding balances of trade receivable in case of customer insolvency | 85% | ||||||||
Percentage of insured trade receivables | 15% | ||||||||
Current and non-current receivables | € 22,173,000 | € 15,872,000 | |||||||
Liquidity risk [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Additional renewal term of factoring agreement | 5 years | ||||||||
Bottom Of Range [Member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Maximum payment period for individual customers | 30 days | ||||||||
Borrowings interest rate | 3% | 3% | |||||||
Bottom Of Range [Member] | Trade receivables [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Percentage of concentration risk | 5% | 5% | 5% | ||||||
Bottom Of Range [Member] | Revenue [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Percentage of concentration risk | 5% | 5% | 5% | ||||||
Bottom Of Range [Member] | Group's Distributors and Retailers [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Percentage of concentration risk | 80% | ||||||||
Customer concentration transacting period | 5 years | ||||||||
Top of Range [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Maximum payment period for individual customers | 90 days | ||||||||
Temporarily extended payment period for certain customers | 120 days | ||||||||
Borrowings interest rate | 12% | 12% | |||||||
Top of Range [member] | Liquidity risk [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Short-term borrowings | € 40,000,000 |
Financial Instruments - Fair _6
Financial Instruments - Fair Values and Risk Management - Impairment Losses on Financial Assets Recognised in Profit or Loss (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |||
Impairment loss on trade receivables | € 331 | € 110 | € 1,802 |
Financial Instruments - Fair _7
Financial Instruments - Fair Values and Risk Management - Summary of Percentage of Revenue and Trade Receivables (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | |||
Revenue | € 74,107 | € 52,304 | € 41,606 |
Trade receivables | 7,457 | 8,028 | 7,202 |
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Revenue | 59,838 | 48,457 | 38,401 |
Trade receivables | € 5,314 | € 6,953 | € 5,961 |
Financial Instruments - Fair _8
Financial Instruments - Fair Values and Risk Management - Summary of Insured and Non-insured Trade Receivables (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | € 39,056 | € 41,259 |
Gross carrying amount [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | 44,660 | 46,584 |
Gross carrying amount [member] | Insured trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | 25,624 | 26,459 |
Gross carrying amount [member] | Non-insured trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | 19,036 | 20,125 |
Provision for doubtful accounts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | € (5,604) | € (5,325) |
Financial Instruments - Fair _9
Financial Instruments - Fair Values and Risk Management - Summary of Trade Receivables Past Due (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | € 39,056 | € 41,259 |
Gross carrying amount [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | 44,660 | 46,584 |
Accumulated impairment [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | (5,604) | (5,325) |
Current (not past due) | ||
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | 29,111 | 30,146 |
From 1 to 29 days past due | ||
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | 7,158 | 7,854 |
From 30 to 60 days past due | ||
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | 1,355 | 1,030 |
From 61 to 90 days past due | ||
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | 563 | 355 |
More than 90 days past due | ||
Disclosure of detailed information about financial instruments [line items] | ||
Trade receivables | € 6,473 | € 7,199 |
Financial Instruments - Fair_10
Financial Instruments - Fair Values and Risk Management - Summary of Information about Credit Risk Exposure on Trade Receivables Using a Provision Matrix (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of credit risk exposure [line items] | ||
Total gross carrying amount | € 39,056 | € 41,259 |
Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total gross carrying amount | 44,660 | 46,584 |
Credit risk [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Trade receivables subject to collective valuation | 2,514 | 16,055 |
Trade receivables subject to specific valuation | 42,146 | 30,529 |
Total gross carrying amount | 44,660 | 46,584 |
Expected credit loss | 43 | 101 |
Less than Thirty days [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total gross carrying amount | 7,158 | 7,854 |
Less than Thirty days [member] | Credit risk [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Trade receivables subject to collective valuation | € 2,332 | € 15,783 |
Default rate | 0.53% | 0.54% |
Expected credit loss | € 12 | € 85 |
Thirty to sixty days [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total gross carrying amount | 1,355 | 1,030 |
Thirty to sixty days [member] | Credit risk [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Trade receivables subject to collective valuation | € 68 | € 266 |
Default rate | 5.46% | 5.55% |
Expected credit loss | € 4 | € 15 |
Sixty One Days To Ninety Days [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total gross carrying amount | 563 | 355 |
Sixty One Days To Ninety Days [member] | Credit risk [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Trade receivables subject to collective valuation | € 84 | € 6 |
Default rate | 17.08% | 12.71% |
Expected credit loss | € 14 | € 1 |
Past Due Greater Than Ninety Days [member] | Credit risk [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Trade receivables subject to collective valuation | € 30 | |
Default rate | 43.47% | 28.86% |
Expected credit loss | € 13 |
Financial Instruments - Fair_11
Financial Instruments - Fair Values and Risk Management - Summary of Maturity Profile of Financial Liabilities Based on Contractual Undiscounted Payments (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term borrowings | € 18,523 | € 19,503 |
Lease liabilities | 61,340 | 65,854 |
Bank overdrafts and short-term borrowings | 29,254 | 36,147 |
Trade and other payables | 112,721 | 120,668 |
Losses on derivative financial instruments | 66 | 691 |
Total financial liabilities | 221,904 | 242,863 |
Less than 2 months [member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term borrowings | 577 | 774 |
Lease liabilities | 1,895 | 1,889 |
Bank overdrafts and short-term borrowings | 29,254 | 36,147 |
Trade and other payables | 34,322 | 31,453 |
Losses on derivative financial instruments | 66 | 691 |
Total financial liabilities | 66,114 | 70,954 |
2 to 12 months [member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term borrowings | 6,015 | 3,981 |
Lease liabilities | 11,509 | 11,241 |
Trade and other payables | 78,399 | 89,215 |
Total financial liabilities | 95,923 | 104,437 |
1 to 2 years [member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term borrowings | 4,124 | 5,935 |
Lease liabilities | 10,190 | 12,760 |
Total financial liabilities | 14,314 | 18,695 |
2 to 5 years [member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term borrowings | 5,534 | 6,006 |
Lease liabilities | 24,926 | 25,659 |
Total financial liabilities | 30,460 | 31,665 |
More than 5 years [member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term borrowings | 2,273 | 2,807 |
Lease liabilities | 12,820 | 14,305 |
Total financial liabilities | € 15,093 | € 17,112 |
Financial Instruments - Fair_12
Financial Instruments - Fair Values and Risk Management - Summary of Sensitivity to Reasonably Possible Change in Interest Rates on that Portion of Loans and Borrowings Affected (Detail) - Market risk [member] - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase in basis points [member] | |||
Disclosure of credit risk exposure [line items] | |||
Effect on profit before tax | € 4,287 | € 5,381 | € 2,161 |
Decrease in basis points [member] | |||
Disclosure of credit risk exposure [line items] | |||
Effect on profit before tax | € (4,798) | € (5,113) | € (2,447) |
Floating-rate borrowings [member] | Increase in basis points [member] | |||
Disclosure of credit risk exposure [line items] | |||
Increase/decrease in basis points | +45 | +45 | +45 |
Effect on profit before tax | € (52) | € (43) | € (38) |
Floating-rate borrowings [member] | Decrease in basis points [member] | |||
Disclosure of credit risk exposure [line items] | |||
Increase/decrease in basis points | -45 | -45 | -45 |
Effect on profit before tax | € 52 | € 43 | € 38 |
Financial Instruments - Fair_13
Financial Instruments - Fair Values and Risk Management - Summary of Sensitivity to Reasonably Possible Change in Foreign Exchange Rates and Impact on Profit Before Tax (Detail) - Market risk [member] - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Increase in basis points [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in foreign exchange rates | 5% | 5% | 5% |
Effect on profit before tax | € 4,287 | € 5,381 | € 2,161 |
Decrease in basis points [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in foreign exchange rates | (5.00%) | (5.00%) | (5.00%) |
Effect on profit before tax | € (4,798) | € (5,113) | € (2,447) |
Financial Instruments - Fair_14
Financial Instruments - Fair Values and Risk Management - Summary of Financial Assets and Financial Liabilities Denominated in Foreign Currency (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | € 54,475 | € 53,472 | |
Total financial assets | 116,629 | 110,699 | |
Long-term borrowings | 11,483 | 13,577 | |
Lease liabilities | 51,849 | 57,138 | € 53,593 |
Total financial liabilities | 211,179 | 232,083 | |
Currency risk [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade receivables | 25,055 | 29,434 | |
Cash and cash equivalents | 45,820 | 48,014 | |
Total financial assets | 70,875 | 77,448 | |
Long-term borrowings | 461 | 611 | |
Lease liabilities | 35,602 | 37,643 | |
Bank overdraft and short-term borrowings | 14,668 | 24,783 | |
Trade payables | 27,169 | 35,524 | |
Total financial liabilities | € 77,900 | € 98,561 |
Financial Instruments - Fair_15
Financial Instruments - Fair Values and Risk Management - Summary Of Quantitative Information About Exposure To Currency Risk (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | € 116,629 | € 110,699 |
Financial liabilities | 211,179 | 232,083 |
U.S. dollars [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 35,160 | 29,658 |
Financial liabilities | 41,618 | 46,930 |
Net Exposure | (6,458) | (17,272) |
Chinese Yuan [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 14,681 | 18,927 |
Financial liabilities | 8,206 | 14,192 |
Net Exposure | 6,475 | 4,735 |
British pounds [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 9,499 | 15,027 |
Financial liabilities | 10,089 | 16,664 |
Net Exposure | (590) | (1,637) |
Brazilian Reais [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 4,457 | 4,334 |
Financial liabilities | 2,371 | 2,435 |
Net Exposure | 2,086 | 1,899 |
Canadian dollars [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 397 | 2,263 |
Financial liabilities | 427 | 1,290 |
Net Exposure | (30) | 973 |
Romanian Leu [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,723 | 666 |
Financial liabilities | 8,732 | 7,934 |
Net Exposure | (6,009) | (7,268) |
Mexican pesos [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,713 | 1,395 |
Financial liabilities | 1,850 | 1,883 |
Net Exposure | (137) | (488) |
Other [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,245 | 5,178 |
Financial liabilities | 4,607 | 7,233 |
Net Exposure | (2,362) | (2,055) |
Total currencies [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 70,875 | 77,448 |
Financial liabilities | 77,900 | 98,561 |
Net Exposure | € (7,025) | € (21,113) |
Financial Instruments - Fair_16
Financial Instruments - Fair Values and Risk Management - Summary of Changes in Liabilities Arising from Financing Activities (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | € 112,235 | € 101,851 | € 101,641 |
Cash outflows | (22,497) | (16,311) | (12,970) |
Cash inflows | 6,308 | 12,227 | 7,530 |
Other changes | 7,045 | 14,468 | 5,650 |
Ending balance | 103,091 | 112,235 | 101,851 |
Long-term borrowings [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 17,439 | 16,426 | 18,412 |
Cash outflows | (4,473) | (4,788) | (2,675) |
Cash inflows | 4,038 | 5,873 | 875 |
Other changes | 286 | (72) | (186) |
Ending balance | 17,290 | 17,439 | 16,426 |
Lease liabilities [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 57,138 | 53,593 | 57,367 |
Cash outflows | (10,049) | (10,090) | (9,907) |
Other changes | 4,760 | 13,635 | 6,133 |
Ending balance | 51,849 | 57,138 | 53,593 |
Short-term borrowings [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 34,924 | 28,701 | 22,196 |
Cash outflows | (7,424) | ||
Cash inflows | 6,210 | 6,518 | |
Other changes | 13 | (13) | |
Ending balance | 27,500 | 34,924 | 28,701 |
Bank overdrafts [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 1,223 | 2,111 | 1,974 |
Cash outflows | (888) | ||
Cash inflows | 531 | 137 | |
Ending balance | 1,754 | 1,223 | 2,111 |
Non-controlling interests [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 1,511 | 1,020 | 1,692 |
Cash outflows | (551) | (545) | (388) |
Cash inflows | 1,739 | 144 | |
Other changes | 1,999 | 892 | (284) |
Ending balance | € 4,698 | € 1,511 | € 1,020 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue from Contracts with Customers (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | € 468,487 | € 427,375 | € 328,343 |
Goods or services transferred at point in time [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 467,255 | 426,200 | 326,705 |
Goods or services transferred over time [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 1,232 | 1,175 | 1,638 |
Wholesale (distributors and retailers) [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 386,421 | 359,021 | 274,070 |
Directly operated stores (end consumers) [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 82,066 | 68,354 | 54,273 |
Europe, Middle East and Africa [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 215,596 | 197,584 | 165,025 |
Americas [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 165,453 | 157,373 | 99,383 |
Asia Pacific [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 87,438 | 72,418 | 63,935 |
United States of America [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 119,749 | 117,012 | 73,676 |
Italy [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 61,284 | 53,157 | 46,269 |
China [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 59,358 | 48,857 | 38,339 |
United Kingdom [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 55,300 | 45,864 | 36,463 |
Spain [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 16,037 | 15,864 | 13,039 |
Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 15,544 | 14,166 | 8,641 |
Canada [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 15,033 | 13,127 | 9,233 |
Mexico [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 10,594 | 7,509 | 4,829 |
Australia [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 9,864 | 6,335 | 6,867 |
Belgium [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 8,084 | 9,250 | 7,281 |
South Korea [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 6,150 | 7,574 | 7,151 |
Israel [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 5,804 | 5,236 | 3,997 |
Other countries [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 85,686 | 83,424 | 67,238 |
Sale of upholstery furniture [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 398,768 | 373,936 | 280,210 |
Sale of home furnishing accessories [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 54,478 | 39,803 | 33,325 |
Sale of polyurethane foam [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 5,208 | 7,660 | 6,848 |
Sale of other goods [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 10,033 | 5,976 | 7,960 |
Natuzzi Editions Brand [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 213,481 | 203,849 | 152,452 |
Natuzzi Italia Brand [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 191,624 | 156,977 | 115,155 |
Private label [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 48,141 | 52,922 | 45,928 |
Other [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | € 15,241 | € 13,627 | € 14,808 |
Revenue - Summary of Informatio
Revenue - Summary of Information About Receivables, Contract Assets And Contract Liabilities From Contracts With Customers (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables from contracts with customers [abstract] | ||
Trade receivables | € 39,056 | € 41,259 |
Contract liabilities | € 24,150 | € 28,202 |
Revenue - Summary of Transactio
Revenue - Summary of Transaction Price Allocated to Remaining Performance Obligations (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | € 5,960 | € 6,343 |
Natuzzi Display System [member] | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 2,049 | 2,178 |
Service type warranties [member] | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 406 | 475 |
Within 1 year [member] | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 383 | 383 |
Within 1 year [member] | Natuzzi Display System [member] | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 849 | 1,009 |
Within 1 year [member] | Service type warranties [member] | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 157 | 199 |
Later than one year [member] | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 5,577 | 5,960 |
Later than one year [member] | Natuzzi Display System [member] | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 1,200 | 1,169 |
Later than one year [member] | Service type warranties [member] | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | € 249 | € 276 |
Cost of Sales - Summary of Cost
Cost of Sales - Summary of Cost of Sales (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Cost Of Sales [Abstract] | |||
Opening inventories | € 80,211 | € 63,909 | € 69,685 |
Purchases of raw materials | 152,181 | 161,625 | 105,643 |
Purchases of finished products | 27,751 | 23,169 | 15,161 |
Labour costs | 86,352 | 80,346 | 71,937 |
Depreciation and amortisation | 8,356 | 7,895 | 10,144 |
Third party manufacturers costs | 1,587 | 2,172 | 2,829 |
Other manufacturing costs | 19,250 | 15,922 | 14,853 |
Government grants related to PPE | (1,414) | (1,252) | (1,192) |
Closing inventories | (70,120) | (80,211) | (63,909) |
Total | € 304,154 | € 273,575 | € 225,151 |
Other Income and Other Expense
Other Income and Other Expense - Summary of Other Income and Expense (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Other Income And Expenses [Abstract] | |||
Gain on disposal of certain items of property | € 157 | € 2,105 | |
VAT relief | 1,573 | 1,395 | € 755 |
Reimbursements | 1,289 | 580 | 498 |
Release of provisions for contingent liabilities | 100 | ||
Other | 3,505 | 2,334 | 2,529 |
Total | € 6,524 | € 6,414 | € 3,882 |
Other Income and Other Expens_3
Other Income and Other Expense - Additional information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Other Income And Expenses [Abstract] | |||
Capital gain on disposal of asset | € 151 | € 2,105 | |
VAT relief | 1,573 | 1,395 | € 755 |
Reimbursements | 1,289 | € 580 | € 498 |
Revenues deriving from active leases | 620 | ||
Other expense | 1,678 | ||
Legal dispute | € 979 |
Selling Expenses - Summary Of S
Selling Expenses - Summary Of Selling Expenses (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of selling expenses [line items] | |||
Depreciation and amortisation | € 8,356 | € 7,895 | € 10,144 |
Commissions to sales representatives | 7,318 | 7,503 | 5,403 |
Advertising expenses | 6,193 | 5,576 | 4,837 |
Covid-19 rent concessions | (635) | (1,515) | (1,799) |
Total | 124,924 | 121,631 | 84,518 |
Selling expenses [member] | |||
Disclosure of selling expenses [line items] | |||
Shipping and handling costs | 55,912 | 54,672 | 28,749 |
Labour costs | 24,615 | 24,241 | 20,077 |
Depreciation and amortisation | 11,832 | 11,819 | 12,441 |
Customs duties | 7,929 | 10,614 | 6,958 |
Commissions to sales representatives | 7,318 | 7,503 | 5,403 |
Advertising expenses | 6,193 | 5,576 | 4,837 |
Utilities | 3,675 | 2,668 | 2,149 |
Fairs | 1,050 | 807 | 591 |
Other insurance costs | 1,034 | 946 | 843 |
Impairment of non-financial assets | 890 | 1,188 | 2,450 |
Leases | 785 | 607 | 483 |
Promotions | 661 | 655 | 409 |
Advisory services | 611 | 546 | 284 |
Insurance costs on trade receivables | 567 | 347 | 578 |
Samples | 546 | 687 | 582 |
COVID-19 government grants | (299) | (1,534) | |
Covid-19 rent concessions | (635) | (1,515) | (1,799) |
Other | 1,941 | 569 | 1,017 |
Total | € 124,924 | € 121,631 | € 84,518 |
Selling Expenses - Additional I
Selling Expenses - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Selling Expenses [Abstract] | |||
Lease incentives | € 635 | € 1,515 | € 1,799 |
Administrative Expenses - Summa
Administrative Expenses - Summary of Administrative Expenses (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Selling, general and administrative expense [abstract] | |||
Labour costs | € 19,447 | € 17,342 | € 15,578 |
Professional services costs | 3,151 | 3,690 | 4,409 |
Indirect taxes | 2,177 | 3,617 | 2,354 |
Directors and audit committee fees | 1,895 | 1,868 | 736 |
Office and software maintainance | 2,138 | 1,784 | 1,502 |
Depreciation and amortization | 1,462 | 1,657 | 1,580 |
Travel expenses | 2,689 | 1,388 | 868 |
Mail and Phone | 550 | 519 | 523 |
Printing and Stationery | 570 | 354 | 278 |
Car costs | 467 | 257 | 195 |
Government grants related to PPE | (59) | (54) | (49) |
Other | 987 | 880 | 1,470 |
Total | € 35,474 | € 33,302 | € 29,444 |
Finance Income and Costs - Summ
Finance Income and Costs - Summary of Analysis of Finance Income (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Finance Income [Abstract] | |||
Interest income from financial institutions | € 29 | € 39 | € 171 |
Other interest income | 839 | 186 | 146 |
Total | € 868 | € 225 | € 317 |
Finance Income and Costs - Su_2
Finance Income and Costs - Summary of Analysis of Finance Costs (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Finance Income [Abstract] | |||
Interest expenses due to financial institutions | € 2,564 | € 1,857 | € 1,803 |
Interests expenses related to lease liabilities | 2,877 | 2,584 | 2,613 |
Other interest expenses | 1,033 | 276 | 1,546 |
Financial institution commissions | 2,067 | 2,069 | 1,869 |
Total | € 8,541 | € 6,786 | € 7,831 |
Net exchange rate gains_(loss_3
Net exchange rate gains/(losses) - Schedule of Net Exchange Rate Gains (Losses) (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Net Exchange Rate Gains Losses [Abstract] | |||
Net realised gains/(losses) on derivative instruments | € (1,663) | € (1,428) | € 317 |
Net realised gains/(losses) on trade receivables and payables | 530 | 4,612 | (2,793) |
Total net realised gains/(losses) (a) | (1,133) | 3,184 | (2,476) |
Net unrealised gains/(losses) on derivative instruments | 1,454 | (454) | 486 |
Net unrealised gains/(losses) on trade receivables and payables | 2,286 | (144) | (1,507) |
Net unrealised gains/(losses) on non-monetary assets | (179) | (720) | (404) |
Total net unrealised gains/(losses) (b) | 3,561 | (1,318) | (1,425) |
Total realised and unrealised exchange rate gains/(losses) (a+b) | € 2,428 | € 1,866 | € (3,901) |
Income Tax Expense - Summary of
Income Tax Expense - Summary of Income Tax Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IRES (state tax) [member] | |||
Disclosure of effective income tax rate [line items] | |||
Applicable tax rate | 24% | 24% | 24% |
IRAP (regional tax) [member] | |||
Disclosure of effective income tax rate [line items] | |||
Applicable tax rate | 4.82% | 4.82% | 4.82% |
Income Tax Expense - Additional
Income Tax Expense - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income tax [line items] | |||
Profit / (loss) before tax | € 3,561 | € 8,774 | € (20,565) |
Income tax expense | € 2,273 | 4,389 | € 4,341 |
Effective income tax rates | 63.80% | ||
Current income tax receivable | € 2,195 | 2,032 | |
Deferred tax assets | € 1,965 | 1,295 | |
Maximum percentage of permitted tax loss carry forwards can be utilized to off set | 80% | ||
Current income tax payable | € 1,874 | 2,740 | |
Tax on unremitted earnings of subsidiaries [member] | |||
Income tax [line items] | |||
Tax effect of unremitted earnings | 1,129 | 1,051 | |
Tax on dividends distribution Of Subsidiaries [member] | |||
Income tax [line items] | |||
Tax effect of aforementioned retained earnings recognized | € 576 | € 576 | |
IRAP (regional tax) [member] | |||
Income tax [line items] | |||
Applicable tax rate | 4.82% | 4.82% | 4.82% |
Increase in applicable tax rate | 0.92% | 0.92% | 0.92% |
Current tax rate | 3.90% | 3.90% | 3.90% |
IRES (state tax) [member] | |||
Income tax [line items] | |||
Applicable tax rate | 24% | 24% | 24% |
Income tax expense | € (2,273) | € (4,389) | € (4,341) |
Tax effect of unremitted earnings | (755) | (515) | € (1,024) |
Uncertain tax treatment [Member] | |||
Income tax [line items] | |||
Current income tax payable | 300 | € 300 | |
Uncertain tax treatment [Member] | Bottom of range [member] | |||
Income tax [line items] | |||
Current income tax payable | 200 | ||
Uncertain tax treatment [Member] | Top of range [member] | |||
Income tax [line items] | |||
Current income tax payable | € 400 |
Income Tax Expense - Summary _2
Income Tax Expense - Summary of Total Income Taxes (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Income Taxes [line items] | |||
Current tax expense income | € (2,420) | € (5,286) | € (3,766) |
Deferred tax liability asset | 147 | 897 | (575) |
Total | (2,273) | (4,389) | (4,341) |
Domestic [member] | |||
Disclosure Of Income Taxes [line items] | |||
Current tax expense income | (838) | (2,116) | (2,221) |
Deferred tax liability asset | 430 | ||
Foreign [member] | |||
Disclosure Of Income Taxes [line items] | |||
Current tax expense income | (1,582) | (3,170) | (1,545) |
Deferred tax liability asset | € 147 | € 897 | € (1,005) |
Income Tax Expense - Summary _3
Income Tax Expense - Summary of Net Profit/(Loss) Before Income Taxes and Non-controlling Interest (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Income Taxes [line items] | |||
Profit / (loss) before tax | € 3,561 | € 8,774 | € (20,565) |
Actual tax charge | 2,273 | 4,389 | 4,341 |
IRES (state tax) [member] | |||
Disclosure Of Income Taxes [line items] | |||
Expected tax benefit (expense) at statutory tax rates | (855) | (2,106) | 4,936 |
Tax exempt income | 2,618 | 2,320 | 4,806 |
Aggregate effect of different tax rates in foreign jurisdictions | (79) | 191 | 322 |
Italian regional tax | (28) | (78) | (24) |
Non-deductible expenses | (1,635) | (5,152) | (5,575) |
Tax effect on unremitted earnings | (755) | (515) | (1,024) |
Non taxable gain from disposal of a subsidiary | 0 | 1,057 | 0 |
Chinese withholding tax on income not recoverable | 0 | (699) | (1,396) |
Effect of net change in deferred tax assets unrecognised | (1,539) | 593 | (6,386) |
Actual tax charge | (2,273) | (4,389) | (4,341) |
Domestic [member] | |||
Disclosure Of Income Taxes [line items] | |||
Profit / (loss) before tax | (7,448) | (1,551) | (17,049) |
Foreign [member] | |||
Disclosure Of Income Taxes [line items] | |||
Profit / (loss) before tax | € 11,009 | € 10,325 | € (3,516) |
Income Tax Expense - Summary _4
Income Tax Expense - Summary of Deferred Tax Assets and Liabilities (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets And Liabilities [line items] | ||
Total deferred tax assets | € 1,965 | € 1,295 |
Deferred tax liabilities | (996) | (996) |
Total deferred tax liabilities | (1,929) | (1,405) |
Inventories obsolescence [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax assets | 745 | 633 |
Provision for contingent liabilities [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax assets | 492 | 466 |
Other temporary differences [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax assets | 22 | 174 |
Deferred tax liabilities | (152) | (149) |
Intercompany profit on inventory [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax assets | 706 | 22 |
Withholding tax on unremitted earnings of subsidiaries [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax liabilities | (516) | (516) |
Withholding tax on liquidation of subsidiaries [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax liabilities | (480) | (482) |
IAS 19 adjustment - employees' leaving entitlement [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax liabilities | (302) | |
Unrealised net gains on foreign exchange [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax liabilities | € (479) | € (258) |
Income Tax Expense - Summary _5
Income Tax Expense - Summary of Movements in deferred Tax Balances (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Tax Assets And Liabilities [line items] | |||
initial balance | € (110) | € (492) | € 83 |
Recognised in profit or loss | 146 | 382 | (575) |
Final balance | 36 | (110) | (492) |
Deferred tax assets [member] | |||
Deferred Tax Assets And Liabilities [line items] | |||
initial balance | 1,295 | 2,023 | 1,974 |
Recognised in profit or loss | 670 | (728) | 49 |
Final balance | 1,965 | 1,295 | 2,023 |
Deferred tax liability [member] | |||
Deferred Tax Assets And Liabilities [line items] | |||
initial balance | (1,405) | (2,515) | (1,891) |
Recognised in profit or loss | (524) | 1,110 | (624) |
Final balance | € (1,929) | € (1,405) | € (2,515) |
Income Tax Expense - Summary _6
Income Tax Expense - Summary of Reconciliation of Deferred Tax Assets and Liabilities Included in Consolidated Statements of Financial Position (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax assets | € 1,965 | € 1,295 |
Net deferred tax assets | 1,032 | 886 |
Deferred tax liabilities | (996) | (996) |
Deferred tax liabilities compensated [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax liabilities compensated | € (933) | € (409) |
Income Tax Expense - Summary _7
Income Tax Expense - Summary of Unrecognised Deferred Tax Assets (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets And Liabilities [line items] | ||
Unrecognised deferred tax assets, Gross Amount | € 409,482 | € 424,128 |
Unrecognised deferred tax assets, Tax effect | 101,604 | 100,735 |
Tax loss carry forwards [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Unrecognised deferred tax assets, Gross Amount | 366,175 | 368,779 |
Unrecognised deferred tax assets, Tax effect | 90,713 | 88,328 |
Provision for contingent liabilities [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Unrecognised deferred tax assets, Gross Amount | 7,673 | 12,231 |
Unrecognised deferred tax assets, Tax effect | 2,207 | 2,888 |
Inventory obsolescence [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Unrecognised deferred tax assets, Gross Amount | 8,266 | 11,985 |
Unrecognised deferred tax assets, Tax effect | 2,327 | 2,560 |
Allowance for doubtful accounts [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Unrecognised deferred tax assets, Gross Amount | 5,125 | 6,810 |
Unrecognised deferred tax assets, Tax effect | 1,230 | 1,540 |
Intercompany profit on inventory [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Unrecognised deferred tax assets, Gross Amount | 4,716 | 5,676 |
Unrecognised deferred tax assets, Tax effect | 1,359 | 1,614 |
Provision for warranties [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Unrecognised deferred tax assets, Gross Amount | 3,375 | 3,117 |
Unrecognised deferred tax assets, Tax effect | 973 | 898 |
Impairment of non-financial assets [Member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Unrecognised deferred tax assets, Gross Amount | 3,284 | 3,989 |
Unrecognised deferred tax assets, Tax effect | 870 | 1,018 |
IAS 19 adjustment - employees' leaving entitlement [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Unrecognised deferred tax assets, Gross Amount | 1,807 | |
Unrecognised deferred tax assets, Tax effect | 434 | |
Other temporary differences [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Unrecognised deferred tax assets, Gross Amount | 10,868 | 9,734 |
Unrecognised deferred tax assets, Tax effect | € 1,925 | € 1,455 |
Income Tax Expense - Summary _8
Income Tax Expense - Summary of Tax Loss Carry Forward (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Tax Loss Carryforwards [line items] | ||
Total | € 366,175 | € 368,780 |
Not More than Five Years [Member] | ||
Disclosure Of Tax Loss Carryforwards [line items] | ||
Total | € 5,132 | € 6,207 |
Expiration Date | 2023-2027 | 2022-2026 |
More than Five Years [Member] | ||
Disclosure Of Tax Loss Carryforwards [line items] | ||
Total | € 347 | € 3,257 |
Expiration Date | 2027 | 2026 |
No expiration [member] | ||
Disclosure Of Tax Loss Carryforwards [line items] | ||
Total | € 360,696 | € 359,316 |
Earnings_(loss) per share - Sum
Earnings/(loss) per share - Summary of Basic and Diluted Earnings (Losses) per Share (Detail) - € / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share [abstract] | |||
Weighted average number of ordinary shares | 54,899,456 | 54,853,045 | 54,853,045 |
Basic earnings/(loss) per share | € (0.01) | € 0.07 | € (0.45) |
Diluted earnings/(loss) per share | € (0.01) | € 0.07 | € (0.45) |
Earnings_(loss) per share - Add
Earnings/(loss) per share - Additional Information (Detail) - shares | 1 Months Ended | 12 Months Ended |
Jul. 30, 2022 | Dec. 31, 2022 | |
Earnings per share [abstract] | ||
Description of conversion ratio | On February 8, 2019 the Company announced a change in the ratio of its American Depositary Receipts (ADRs) to ordinary shares, from 1 ADR representing 1 share to 1 ADR representing 5 shares. | |
Subscription of shares | 220,000 | 220,000 |
Expenses by Nature - Summary of
Expenses by Nature - Summary of Expenses by Nature (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Expense By Nature [Abstract] | |||
Changes in inventories | € 10,091 | € (16,302) | € 5,776 |
Purchases of raw materials | 152,181 | 161,625 | 105,643 |
Purchases of finished products | 27,751 | 23,169 | 15,161 |
Services costs | 110,773 | 100,656 | 68,613 |
Employee benefits expenses | 130,414 | 121,929 | 107,592 |
Depreciation and amortisation, net of government grants | 20,177 | 20,065 | 22,924 |
Other | 13,165 | 17,366 | 13,404 |
Total cost of sales, selling and administrative expenses | € 464,552 | € 428,508 | € 339,113 |
Expenses by Nature - Summary _2
Expenses by Nature - Summary of Depreciation and Amortization (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Depreciation And Amortization [Line Items] | |||
Total depreciation and amortisation | € 20,177 | € 20,065 | € 22,924 |
Total depreciation and amortisation | 8,356 | 7,895 | 10,144 |
Cost of sales [member] | |||
Disclosure Of Depreciation And Amortization [Line Items] | |||
Depreciation | 6,234 | 5,970 | 6,846 |
Amortisation of intangible assets | 2 | 2 | 8 |
Government grants | (1,414) | (1,252) | (1,192) |
Total depreciation and amortisation | 6,942 | 6,643 | 8,952 |
Cost of sales [member] | Right-of-use assets [member] | |||
Disclosure Of Depreciation And Amortization [Line Items] | |||
Depreciation | 2,120 | 1,923 | 3,290 |
Selling expenses [member] | |||
Disclosure Of Depreciation And Amortization [Line Items] | |||
Total depreciation and amortisation | 11,832 | 11,819 | 12,441 |
Selling expenses [member] | Right-of-use assets [member] | |||
Disclosure Of Depreciation And Amortization [Line Items] | |||
Depreciation | 9,579 | 9,534 | 9,776 |
Selling expenses [member] | Property, plant and equipment [member] | |||
Disclosure Of Depreciation And Amortization [Line Items] | |||
Depreciation | 2,253 | 2,285 | 2,665 |
Administrative expenses [member] | |||
Disclosure Of Depreciation And Amortization [Line Items] | |||
Amortisation of intangible assets | 1,029 | 1,088 | 899 |
Government grants | (59) | (54) | (49) |
Total depreciation and amortisation | 1,403 | 1,603 | 1,531 |
Administrative expenses [member] | Right-of-use assets [member] | |||
Disclosure Of Depreciation And Amortization [Line Items] | |||
Depreciation | 135 | 249 | 310 |
Administrative expenses [member] | Property, plant and equipment [member] | |||
Disclosure Of Depreciation And Amortization [Line Items] | |||
Depreciation | € 298 | € 320 | € 371 |
Expenses by Nature - Summary _3
Expenses by Nature - Summary of Employee Benefit Expense (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Employee Benefit Expenses [Line Items] | |||
Salaries and wages | € 19,447 | € 17,342 | € 15,578 |
Employee benefits expenses | 130,414 | 121,929 | 107,592 |
Cost of sales [member] | |||
Disclosure Of Employee Benefit Expenses [Line Items] | |||
Salaries and wages | 58,913 | 58,552 | 48,514 |
Social security contributions | 17,788 | 14,696 | 12,138 |
Employees’ leaving entitlement | 4,598 | 3,493 | 4,915 |
Other costs | 5,053 | 3,605 | 6,370 |
Employee benefits expenses | 86,352 | 80,346 | 71,937 |
Selling expenses [member] | |||
Disclosure Of Employee Benefit Expenses [Line Items] | |||
Salaries and wages | 19,218 | 19,359 | 15,912 |
Social security contributions | 3,507 | 3,512 | 3,059 |
Employees’ leaving entitlement | 513 | 492 | 542 |
Other costs | 1,377 | 878 | 564 |
Employee benefits expenses | 24,615 | 24,241 | 20,077 |
Administrative expenses [member] | |||
Disclosure Of Employee Benefit Expenses [Line Items] | |||
Salaries and wages | 14,345 | 12,666 | 11,272 |
Social security contributions | 3,026 | 3,012 | 2,717 |
Employees’ leaving entitlement | 657 | 619 | 605 |
Other costs | 1,419 | 1,045 | 984 |
Employee benefits expenses | € 19,447 | € 17,342 | € 15,578 |
Expenses by Nature - Additional
Expenses by Nature - Additional Information (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Depreciation And Amortization Expense [Abstract] | |||
Employee benefits received | € 0 | € 6,980 | € 13,600 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - Additional information (Detail) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Guarantees [member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Contingent liability | € 4,424 | € 4,988 |
Related Parties and Information
Related Parties and Information about Significant Non-Recurring Events and A tipycal/Unusual Transactions - Schedule of Compensation of Key Management Personnel of the Group (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |||
Directors’ fee | € 854 | € 511 | € 412 |
Short-term employee benefits | 1,851 | 1,934 | 2,026 |
Social security contributions and defined contribution plans | 685 | 692 | 634 |
Employee benefit obligations | 125 | 132 | 137 |
Expenses for stock options | 998 | ||
Total | € 4,513 | € 3,269 | € 3,209 |
Related Parties and Informati_2
Related Parties and Information about Significant Non-Recurring Events and A tipycal/Unusual Transactions - Additional Information (Detail) - EUR (€) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | |
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Loans and/or guarantees provided to key management personnel | € 0 | ||||
Payment received from parents majority shareholder | € 2,500,000 | ||||
Description of related party transactions, arm's length basis | All outstanding balances with these related parties are priced on an arm’s length basis and are to be settled in cash within three months of the reporting date. | ||||
Guarantees given, related party transactions | € 0 | ||||
Guarantees received, related party transactions | 0 | ||||
Proceeds from borrowings | 0 | € 0 | € 0 | ||
Repayments of borrowings | 0 | ||||
Related Parties [Member] | Truong Thanh Furniture Corporation (TTF) [Member] | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Percentage of investment diluted | 5.60% | ||||
Related Parties [Member] | Natuzzi Singapore PTE. LTD. [Member] | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Percentage of interest sold or exchanged | 7% | ||||
Capital injection in subsidiary | € 1,300,000 | ||||
Legal Services | Parent [member] | |||||
Disclosure Of Transactions Between Related Parties [Line Items] | |||||
Cost | € 33,000 | € 86,000 | € 392,000 |
Related Parties and Informati_3
Related Parties and Information about Significant Non-Recurring Events and A tipycal/Unusual Transactions - Schedule of Transactions With Directors of the Group (Detail) - Director - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Cost | € 33 | € 86 | € 392 |
Legal Services | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Cost | € 33 | € 86 | € 392 |
Related Parties and Informati_4
Related Parties and Information about Significant Non-Recurring Events and A tipycal/Unusual Transactions - Summary of Transactions with Associates, Joint Ventures and Other Related Parties (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Sales | € 74,107 | € 52,304 | € 41,606 |
Expenses | 42 | 9 | |
Dividends received | 3,697 | 1,744 | 2,335 |
Amounts owed by related parties | 7,457 | 8,028 | 7,202 |
Amounts due to related parties | 59 | ||
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Sales | 59,838 | 48,457 | 38,401 |
Expenses | 9 | ||
Dividends received | 3,697 | 1,490 | 2,335 |
Amounts owed by related parties | 5,314 | 6,953 | 5,961 |
Nars Miami LLCC [Member] | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Sales | 1,484 | 806 | 406 |
Expenses | 16 | ||
Dividends received | 254 | ||
Amounts owed by related parties | 231 | 123 | 27 |
Amounts due to related parties | 59 | ||
Natuzzi Texas LLC [Member] | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Sales | 992 | ||
Amounts owed by related parties | 1,193 | ||
Natuzzi Stores UK LTD [Member] | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Sales | 7,110 | ||
Amounts owed by related parties | 14 | ||
Natuzzi Design S.a.s. [Member] | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Sales | 2,550 | 1,820 | 1,734 |
Amounts owed by related parties | 426 | 710 | 888 |
Natuzzi Arredamenti S.r.l. [Member] | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Sales | 1,734 | 989 | 827 |
Expenses | 26 | ||
Amounts owed by related parties | 231 | 191 | 279 |
Natuzzi Sofa S.r.l. [Member] | |||
Disclosure Of Transactions Between Related Parties [Line Items] | |||
Sales | 399 | 232 | 238 |
Amounts owed by related parties | € 48 | € 51 | € 47 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Natuzzi Spa Development Contract [Member] - EUR (€) € in Thousands | 1 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2019 | |
Disclosure of non-adjusting events after reporting period [line items] | ||
Percentage of public support to extent | 71.20% | |
Events After Reporting Period | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Quantified eligible expenses | € 31,316 | |
Contribution amounts | 8,766 | |
Subsidized loan | € 13,572 | |
Percentage of subsidized loan equal to total support of eligible investments | 71.30% |