Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | NATUZZI S P A |
Entity Central Index Key | 0000900391 |
Current Fiscal Year End Date | --12-31 |
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 |
Entity Address, Country | IT |
Document Shell Company Report | false |
Entity Common Stock, Shares Outstanding | 54,853,045 |
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.Ordinary Shares, with a par value of €1.00 each |
Consolidated statements of fina
Consolidated statements of financial position - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current assets | ||
Property, plant and equipment | € 102,523 | € 111,086 |
Right-of-use assets | 54,718 | 55,798 |
Intangible assets and goodwill | 6,021 | 5,892 |
Equity-method investees | 41,342 | 40,220 |
Other non-current receivables | 4,519 | 4,533 |
Other non-current assets | 2,896 | 3,359 |
Deferred tax assets | 513 | 475 |
Total non-current assets | 212,532 | 165,565 |
Current assets | ||
Inventories | 69,685 | 84,227 |
Trade receivables | 29,187 | 40,967 |
Other current receivables | 7,723 | 9,507 |
Other current assets | 9,241 | 8,107 |
Current income tax assets | 1,082 | 1,986 |
Gains on derivative financial instruments | 145 | 218 |
Cash and cash equivalents | 39,799 | 62,131 |
Total current assets | 156,862 | 207,143 |
TOTAL ASSETS | 369,394 | 372,708 |
EQUITY | ||
Share capital | 54,853 | 54,853 |
Reserves | 17,147 | 17,198 |
Retained earnings | 31,126 | 64,496 |
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY | 103,126 | 136,547 |
Non-controlling interests | 1,692 | 1,634 |
TOTAL EQUITY | 104,818 | 138,181 |
Non-current liabilities | ||
Long-term borrowings | 14,091 | 10,361 |
Long-term lease liabilities | 46,053 | |
Employees' leaving entitlement | 16,121 | 17,181 |
Non-current contract liabilities | 9,089 | 9,934 |
Provisions | 12,966 | 14,502 |
Deferred income for government grants | 13,869 | 13,002 |
Other non-current liabilities | 1,119 | |
Deferred tax liabilities | 430 | 42 |
Total non current liabilities | 112,619 | 66,141 |
Current liabilities | ||
Bank overdrafts and short-term borrowings | 24,170 | 35,148 |
Current portion of long-term borrowings | 4,321 | 10,582 |
Current portion of lease liabilities | 11,314 | |
Trade payables | 68,476 | 77,901 |
Other payables | 22,049 | 26,914 |
Current contract liabilities | 14,014 | 12,165 |
Provisions | 4,489 | 4,476 |
Other current liabilities | 1,069 | |
Liabilities for current income tax | 1,283 | 880 |
Losses on derivative financial instruments | 772 | 320 |
Total current liabilities | 151,957 | 168,386 |
TOTAL LIABILITIES | 264,576 | 234,527 |
TOTAL EQUITY AND LIABILITIES | € 369,394 | € 372,708 |
Consolidated statements of prof
Consolidated statements of profit or loss - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |
Profit or loss [abstract] | ||||
Revenue | € 386,962 | € 428,539 | € 448,880 | |
Cost of sales | (271,931) | (308,250) | (318,401) | |
Gross Profit | 115,031 | 120,289 | 130,479 | |
Other income | 5,162 | 5,944 | 1,650 | |
Selling expenses | (105,250) | (114,997) | (118,254) | |
Administrative expenses | (34,026) | (35,344) | (36,105) | |
Impairment on trade receivables | (2,389) | (745) | (1,475) | |
Other expenses | (1,016) | (605) | (250) | |
Operating loss | (22,488) | (25,458) | (23,955) | |
Finance income | 400 | 379 | 1,252 | |
Finance costs | (7,928) | (5,580) | (6,289) | |
Net exchange rate gains/(losses) | (2,340) | (3,914) | 1,033 | |
Gain from disposal and loss of control of a subsidiary | 75,411 | |||
Net finance income/(costs) | (9,868) | 66,296 | (4,004) | |
Share of profit/(loss) of equity-method investees | 1,011 | (290) | ||
Profit/(loss) before tax | (31,345) | 40,548 | (27,959) | |
Income tax expense | (2,335) | (7,429) | (2,886) | |
Profit/(loss) for the year | (33,680) | 33,119 | (30,845) | |
Profit/(loss) attributable to: | ||||
Owners of the Company | (33,370) | 33,289 | (30,392) | |
Non-controlling interests | € (310) | € (170) | € (453) | |
Profit/(loss) per share | ||||
Basic profit/(loss) per share | € (0.61) | € 0.61 | € (0.55) | |
Diluted profit/(loss) per share | € (0.61) | € 0.61 | € (0.55) | |
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Consolidated statements of comp
Consolidated statements of comprehensive income - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of comprehensive income [abstract] | ||||
Profit/(loss) for the year | € (33,680) | € 33,119 | € (30,845) | [1] |
Items that will not be reclassified to profit or loss | ||||
Actuarial gains/(losses) on employees' leaving entitlement | (615) | 573 | (108) | |
Tax impact | (8) | |||
Total | (615) | 573 | (116) | |
Items that are or may be reclassified subsequently to profit or loss | ||||
Exchange rate differences on translation of foreign operations | 586 | 251 | (7,778) | |
Tax impact | ||||
Total | 586 | 251 | (7,778) | |
Other comprehensive income/(loss) for the year, net of tax | (29) | 824 | (7,894) | |
Total comprehensive income/(loss) for the year | (33,709) | 33,943 | (38,739) | |
Total comprehensive income/(loss) attributable to: | ||||
Owners of the Company | (33,421) | 34,089 | (38,059) | |
Non-controlling interests | € (288) | € (146) | € (680) | |
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Consolidated statements of chan
Consolidated statements of changes in equity - EUR (€) € in Thousands | Total | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | Adjusted Balance [member] | Share capital [member] | Share capital [member]Increase (decrease) due to changes in accounting policy required by IFRSs [member] | Share capital [member]Adjusted Balance [member] | IFRS translation reserve [member] | IFRS translation reserve [member]Increase (decrease) due to changes in accounting policy required by IFRSs [member] | IFRS translation reserve [member]Adjusted Balance [member] | IAS 19 reserve [member] | IAS 19 reserve [member]Increase (decrease) due to changes in accounting policy required by IFRSs [member] | IAS 19 reserve [member]Adjusted Balance [member] | Other reserves [member] | Other reserves [member]Increase (decrease) due to changes in accounting policy required by IFRSs [member] | Other reserves [member]Adjusted Balance [member] | Retained earnings [member] | Retained earnings [member]Increase (decrease) due to changes in accounting policy required by IFRSs [member] | Retained earnings [member]Adjusted Balance [member] | Attributable to Owners of the Company [member] | Attributable to Owners of the Company [member]Increase (decrease) due to changes in accounting policy required by IFRSs [member] | Attributable to Owners of the Company [member]Adjusted Balance [member] | Attributable to Non-controlling interests [member] | Attributable to Non-controlling interests [member]Increase (decrease) due to changes in accounting policy required by IFRSs [member] | Attributable to Non-controlling interests [member]Adjusted Balance [member] | |
Equity, beginning balance at Jan. 01, 2017 | € 143,999 | € 54,853 | € 12,606 | € 11,459 | € 61,636 | € 140,554 | € 3,445 | ||||||||||||||||||
Dividends distribution | (726) | (726) | |||||||||||||||||||||||
Loss for the year | (30,845) | [1] | (30,392) | (30,392) | (453) | ||||||||||||||||||||
Other comprehensive income/(loss) for the year | (7,894) | (7,551) | € (116) | (7,667) | (227) | ||||||||||||||||||||
Equity, ending balance at Dec. 31, 2017 | 104,534 | € (37) | € 104,497 | 54,853 | € 54,853 | 5,055 | € 5,055 | (116) | € (116) | 11,459 | € 11,459 | 31,244 | € (37) | € 31,207 | 102,495 | € (37) | € 102,458 | 2,039 | € 2,039 | ||||||
Dividends distribution | (453) | (453) | |||||||||||||||||||||||
Capital contribution | 194 | 194 | |||||||||||||||||||||||
Loss for the year | 33,119 | 33,289 | 33,289 | (170) | |||||||||||||||||||||
Other comprehensive income/(loss) for the year | 824 | 227 | 573 | 800 | 24 | ||||||||||||||||||||
Equity, ending balance at Dec. 31, 2018 | 138,181 | 54,853 | 5,282 | 457 | 11,459 | 64,496 | 136,547 | 1,634 | |||||||||||||||||
Capital contribution | 346 | 346 | |||||||||||||||||||||||
Loss for the year | (33,680) | (33,370) | (33,370) | (310) | |||||||||||||||||||||
Other comprehensive income/(loss) for the year | (29) | 564 | (615) | (51) | 22 | ||||||||||||||||||||
Equity, ending balance at Dec. 31, 2019 | € 104,818 | € 54,853 | € 5,846 | € (158) | € 11,459 | € 31,126 | € 103,126 | € 1,692 | |||||||||||||||||
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) € in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Cash flows from operating activities: | |||||
Profit/(loss) for the year | € (33,680) | € 33,119 | € (30,845) | [1] | |
Adjustments for: | |||||
Depreciation | 24,196 | 10,154 | 10,861 | ||
Amortization | 917 | 910 | 1,569 | ||
Interest expenses | 5,930 | 3,796 | 4,639 | ||
Share of (profit)/loss of equity-method investees, net of tax | (1,011) | 290 | (18) | ||
(Gain) from loss of control in a former subsidiary | (75,411) | ||||
(Gain)/loss on sale of property, plant and equipment | (171) | 73 | |||
Unrealized foreign exchange (gains)/losses | 525 | 174 | (1,141) | ||
Deferred income for capital grants | (1,626) | (769) | (989) | ||
Tax expense | 2,335 | 7,429 | 2,886 | ||
Total adjustment | 31,266 | (53,598) | 17,880 | ||
Inventories | 14,542 | 5,999 | (1,387) | ||
Trade and other receivables | 13,578 | (3,678) | 5,723 | ||
Other assets | (671) | (1,675) | 1,484 | ||
Trade and other payables | (9,490) | 7,365 | 11,854 | ||
Contract liabilities | 1,004 | 12,317 | 3,235 | ||
Provisions | (1,523) | (3,694) | 3,732 | ||
Other liabilities | 1,273 | 1,119 | |||
One-time termination benefit payments | (3,812) | (1,411) | (8,272) | ||
Employees' leaving entitlement | (1,676) | (1,066) | (606) | ||
Total changes | 13,225 | 15,276 | 15,763 | ||
Cash provided by (used in) operating activities | 10,811 | (5,203) | 2,798 | ||
Interest paid | (5,111) | (3,033) | (2,821) | ||
Income taxes paid | (1,048) | (3,112) | (4,878) | ||
Net cash used in operating activities | 4,652 | (11,348) | (4,901) | ||
Cash flows from investing activities: | |||||
Additions | (3,805) | (7,283) | (6,708) | ||
Disposals | 66 | 572 | 760 | ||
Intangible assets | (913) | (878) | (845) | ||
Government grants received for PPE | 1,327 | ||||
Purchase of business, net of cash acquired | (3,558) | ||||
Disposal of a business, net of cash disposed of | 22,156 | ||||
Net cash provided by (used in) investing activities | (3,325) | 14,567 | (10,351) | ||
Cash flows from financing activities: | |||||
Proceeds | 4,615 | 12,500 | |||
Repayments | (5,980) | (4,774) | (4,744) | ||
Short-term borrowings | (11,190) | 7,419 | 5,956 | ||
Payment of lease liabilities | (11,960) | ||||
Dividends distribution to non-controlling interests | (453) | (1,349) | |||
Capital contribution by non-controlling interests | 346 | ||||
Net cash provided by (used in) financing activities | (24,169) | 2,192 | 12,363 | ||
Increase (decrease) in cash and cash equivalents | (22,842) | 5,411 | (2,889) | ||
Cash and cash equivalents as at January 1 | [2] | 60,369 | 55,035 | 60,565 | |
Effect of movements in exchange rates on cash held | 298 | (77) | (2,641) | ||
Cash and cash equivalents as at December 31 | [2] | € 37,825 | € 60,369 | € 55,035 | |
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). | ||||
[2] | As at December 31, 2019, 2018 and 2017 cash and cash equivalents include bank overdrafts of 1,974, 1,762 and nil, 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of cash flows [abstract] | |||
Bank overdrafts repayable on demand | € 1,974 | € 1,762 | € 0 |
Introduction
Introduction | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Introduction | 1 Introduction The consolidated financial statements of the Natuzzi S.p.A. as at December 31, 2019 and 2018 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. The consolidated financial statements as at December 31, 2018 were the Group’s first set of consolidated financial statements prepared in accordance with IFRS and IFRS 1 “First-time Adoption of International Financial Reporting” has been applied. Being a first-time adopter, the Group restated the 2017 consolidated financial statements for comparative purposes, in order to present the effect of the adoption of the IFRS. The prior year note 43 described the effects of the transition from the generally accepted accounting principles in the Republic of Italy (“Italian GAAP”) to the IFRS and presented the related reconciliation schedules. The Group’s date of transition to the IFRS was January 1, 2017 and its first set of consolidated financial statements prepared in accordance with the IFRS was that as at and for the year ended December 31, 2018. 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, 2017. During 2019, 2018 and 2017 no significant non-recurring |
Description of the business and
Description of the business and Group composition | 12 Months Ended |
Dec. 31, 2019 | |
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). 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, 2019, 2018 and 2017. The 2019, 2018 and 2017 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, 2019 have been approved by the Company’s Board of Directors (the Board) on May 22, 2020 and authorised on June 12, 2020. The subsidiaries included in the consolidation as at December 31, 2019 and 2018, together with the related percentages of ownership and other information, are as follows: Name Percentage of Percentage of Share/ quota capital 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 157,654,283 Salvador de Bahia, Brazil (1 ) Natco S.p.A. 99.99 99.99 EUR 4,420,000 Santeramo in Colle, Italy (2 ) I.M.P.E. S.p.A. 100.00 100.00 EUR 1,000,000 Bari, Italy (3 ) Nacon S.p.A. 100.00 100.00 EUR 2,800,000 Santeramo in Colle, Italy (4 ) Lagene S.r.l. 100.00 100.00 EUR 10,000 Santeramo in Colle, Italy (4 ) Natuzzi Americas Inc. 100.00 100.00 USD 89 High Point, N. Carolina, USA (4 ) Natuzzi Iberica S.A. 100.00 100.00 EUR 386,255 Madrid, Spain (4 ) Natuzzi Switzerland AG 100.00 100.00 CHF 2,000,000 Dietikon, Switzerland (4 ) Natuzzi Germany Gmbh 100.00 100.00 EUR 25,000 Köln, Germany (4 ) Natuzzi Japan KK 100.00 100.00 JPY 28,000,000 Tokyo, Japan (4 ) Natuzzi Services Limited 100.00 100.00 GBP 25,349,353 London, UK (4 ) Natuzzi UK Retail Limited 70.00 — GBP 100 Cardiff (UK) (4 ) Natuzzi Russia OOO 100.00 100.00 RUB 8,700,000 Moscow, Russia (4 ) Natuzzi India Furniture PVT Ltd 100.00 100.00 INR 16,200,000 New Delhi, India (4 ) Natuzzi Florida LLC 51.00 51.00 USD 4,955,186 High Point, N. Carolina, USA (4 ) Natmex S.DE.R.L.DE.C.V 99.00 99.00 MXN 69,195,993 Mexico City, Mexico (4 ) Natuzzi France S.a.s. 100.00 100.00 EUR 200,100 Paris, France (4 ) Softaly (Furniture) Shanghai Co. Ltd 96.50 96.50 CNY 100,000 Shanghai, China (4 ) Natuzzi Oceania PTI Ltd 100.00 100.00 AUD 320,002 Sydney, Australia (4 ) Natuzzi Netherlands Holding 100.00 100.00 EUR 34,605,000 Amsterdam, Holland (5 ) New Comfort S.r.l. — 100.00 EUR 20,000 Santeramo in Colle, Italy (6 ) Italsofa Shanghai Ltd 96.50 96.50 CNY 124,154,580 Shanghai, China (6 ) Natuzzi Trade Service S.r.l. 100.00 100.00 EUR 14,000,000 Santeramo in Colle, Italy (6 ) (1) Manufacture and distribution (2) Intragroup leather dyeing and finishing (3) Production and distribution of polyurethane foam (4) Services and distribution (5) Investment holding (6) Dormant As at December 31, 2019 the consolidation area changed due to the set up of Natuzzi UK Retail Limited and the liquidation of New Comfort S.r.l.. As at December 31, 2018 the consolidation area changed due to: (a) the deconsolidation of Natuzzi Trading (Shanghai) Co. Ltd occurred on July 27, 2018 as a consequence of the loss of control (see note 1 1 The following table summarises the information relating to the only material non-controlling Summarized statement of financial position of Natuzzi Florida LLC and Non-controlling 31/12/19 31/12/18 Current assets 2,870 3,890 Non-current 10,479 1,713 Current liabilities (4,186 ) (4,033 ) Non-current (7,267 ) — Net assets 1,896 1,570 Net assets attributable to NCI – 49% 929 769 Summarized statement of profit or loss of Natuzzi Florida LLC and Non-controlling 2019 2018 Revenue 10,163 8,201 Expenses (10,581 ) (8,540 ) Loss for the year (418 ) (339 ) Other comprehensive income 37 57 Total comprehensive loss for the year (381 ) (282 ) Loss allocated to NCI – 49% (205 ) (166 ) OCI allocated to NCI 18 28 Cash flow provided by operating activities 1,530 179 Cash flow used in investing activities (1,188 ) (543 ) Cash flow used in financing activities (dividends to NCI: nil) (603 ) — |
General principles for the prep
General principles for the preparation of the consolidated financial statements | 12 Months Ended |
Dec. 31, 2019 | |
Text block [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. This is the first set of the Group’s consolidated financial statements in which IFRS 16 “Leases” has been applied. The related changes to significant accounting policies are described in note 5. (b) Historical cost convention The consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities (including derivative instruments) measured at fair value. (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 non-current 12-month 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 are presented in Euro (the Group’s presentation currency) and all amounts are 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, which is the Natuzzi S.p.A.’s functional currency. All amounts have been rounded to the nearest thousand, unless otherwise stated. (e) Use of estimates and judgement The preparation of consolidated financial statements requires the use of accounting estimates. Actual results may differ from these estimates. Management also needs to exercise judgement in applying the Group’s accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are susceptible to adjustment in the event actual results are materially different than the estimates. Detailed information about each of these estimates and judgements is included in other notes together with information about the basis of calculation for each affected line item in the consolidated financial statements. The areas involving significant estimates or judgements are: (a) impairment of property, plant and equipment, notes 4(i) and 8; (b) impairment of right-of-use-assets, (c) estimated goodwill impairment, notes 4(i) and 10; (d) estimation of fair value of the investment in a joint venture recorded as such after loss of control, note 11; (e) impairment of trade receivables, notes 4(n), 15 and 30; (f) assessment of the lease term of lease liabilities depending on whether the Group is reasonably certain to exercise the extension options, notes 4(f), 9 and 20; (g) estimation of provision for warranty claims, notes 4(r) and 23; (h) estimation of fair values of contingent liabilities, notes 4(r), 23 and 42; (i) estimated fair value of derivative financial instruments, notes 29 and 30; (j) recognition of deferred tax assets, notes 4(aa) and 38. Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances. (f) Going concern assumption The consolidated financial statements have been prepared on a going concern basis, which assumes that the Group will be able to meet its obligations as they fall due within one year from the date of the approval of these consolidated financial statements. Negative events and conditions, management’s plans and Directors’ conclusions on the Group’s going concern assumption as at December 31, 2019 are reported below. (i) Negative events and conditions The Group has a history of incurring substantial operating losses. In particular, the Group has recognised a net loss after tax of 33,680 and an operating loss of 22,488 for the year ended December 31, 2019 and, as at that date, current assets exceed current liabilities by 4,905 and total equity is of 104,818. In addition, due to the loss for the year, it was unable to generate sufficient cash flows from operating activities during the year which adversely affected its net working capital and net financial position as at December 31, 2019. Net working capital decreased to 4,905 at year end compared to 38,757 as at December 31, 2018 as a result of the above-mentioned loss for the year and the first-time adoption of IFRS 16 – Leases (see note 5 (A)). The principal reason for the loss for the year ended December 31, 2019 is the approximate 10% contraction in the Group’s revenue, down from 428,539 for 2018 to 386,962 for 2019. Furthermore, during the four-month period ended as at April 30, 2020, the COVID-19 so-called (ii) Management’s plans Management’s plans to mitigate the adverse effects of such events and conditions that raise Such plans, listed in order of importance based on their weight in cash flow forecasts for the years ending December 31, 2020 and 2021, are as follows. — Implementation, due to COVID-19, of stricter procedures 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. — Receipt of financial support from the Parent majority shareholder. In particularly, 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 was received on March 2, 2020. — Access to COVID-19 long-term bank borrowing based on the measures to support business approved by the Italian Government with Law Decree no. 23/2020 (the “Liquidity Decree”). The Parent applied for such loan on April 29, 2020 and should receive it during the third quarter of 2020. Specifically, the requested loan is 90% guaranteed by a State agency and has a nominal amount of 65,000 with installments repayable on a quarterly basis starting from 2022, after the two-year interest-only period, and ending in 2026. The interest rate will be based on an Italian variable index plus a spread to be defined. — Use of social security procedures that allow the Parent and other subsidiaries to pay workers and employees a reduced salary for a certain period. — Savings in selling and administrative expenses mainly through: (a) cutting certain costs chiefly related to marketing, travel, facilities management and professional services; (b) layoff of redundant employees of business support offices mainly located in the Parent’s headquarters in Italy pursuant to individual written agreements that will provide for one-off termination benefits. — Manufacturing footprint optimisation in order to reduce the cost of sales through: (a) the relocation of part of the production capacity among the existing Group’s plants; (b) the outsourcing of production of certain finished products, that are positioned in the mid-low range selling price, to third-party manufacturers located in low cost countries such as Vietnam; (c) the management of production excess capacity in Italy with the layoff of redundant workers pursuant to individual written agreements that will provide for one-off termination benefits; (d) the outsourcing and/or insourcing, depending on the location of the manufacturing facility, of the production of certain semi-finished products (i.e., polyurethane and wood) in order to optimise the structure of the cost of sales. — Deferral of certain capital expenditures that had been scheduled for 2020 due to COVID-19 negative event. — Obtainment of suspension and deferral of the instalments of the long-term borrowings due in 2020 provided by COVID-19 measures adopted by the Italian and other governments. — Use of suspension and deferral of tax payments, VAT payments, payments to public administrations, payments of withholding tax on wages, payments of social security contributions, payments of mandatory insurance premium and of related obligations, as provided by the COVID-19 measures adopted by the Italian Government with the Cure Italy Decree. — Cash receipts related to government grants of 7,144 and subsidized loans of 9,755 related to benefits that the Parent obtained in 2019 from the Italian Government as part of the incentive programs for under-industrialised regions in Southern of Italy. Such grants and subsidized loans will be received over the next few years for the purchase of certain items of property, plant and equipment necessary to upgrade the Italian manufacturing facility and for certain innovative research and development expenses. Such grants will be cashed as soon as the Parent presents the application to the government agency with details of the expenditures. — Closure of not profitable wholesalers, renegotiation of sale prices and other commercial conditions for other customers thanks to benefits due to the outsourcing of manufacturing of certain products in low cost countries. — Rationalization of branded and unbranded product models in order to reduce their complexity and improve margins. — Closer monitoring of franchised operated store performances. — New opening of stores directly operated by the Parent (directly operated stores) and franchised stores operated by third parties (franchised operated stores). — Disposal of some non-strategic assets such as land, buildings and operations of two subsidiaries (tannery and foam operations), with a total carrying value of 26,745 as at December 31, 2019. The estimated fair value of such disposal assets is significantly higher than the carrying value as at December 31, 2019. — Request to lessors for the majority of the lease contracts of rent concessions or deferral payments to compensate the closure of the Group’s stores due to COVID-19 “lockdown”. Furthermore, management has prepared the updated cash flow forecasts for the years ending December 31, 2020 and 2021 taking into account the effects of COVID-19 on the Group’s revenue and cash flows as at April 30, 2020 and the above plans. In particular, such cash flow forecasts take into consideration the Group’s actual results of operation for the four months ended April 30, 2020 and are based on the following key assumptions: (a) reduction of revenue for 2020 by approximately 20% compared to 2019 revenue; (b) reduction of variable costs for 2020 in line with the decrease in revenue; (c) increasing of revenue for 2021 by approximately 20% compared to 2020; (d) increasing of variable costs for 2021 in line with the increase in revenue; (e) cut-down of certain fixed costs by approximately 10% in 2020 and 5% in 2021 compared to 2019; (f) receipt in 2020 of COVID-19 long-term financing of 65,000 from banks based on the measures to support business approved by the Italian Government with the “Liquidity Decree”; (g) receipt of financial support of 15,000 from the Parent’s majority shareholder; (h) deferral of certain capital expenditures that had been scheduled for 2020, while others will be financed with the government grants already received as at December 31, 2019; (i) access to the COVID-19 and other social security procedures that allow the Parent and other subsidiaries to pay workers and employees a reduced salary for a certain period; and (j) layoff of redundant workers pursuant to individual written agreements that will provide for one-off termination benefits. Such cash flows forecasts, even in several worst-cases scenario prepared by management, indicate that, taking into account all management’s plans, the Group will have sufficient funds to meet its liabilities as they fall due within one year from the date of the approval of these consolidated financial statements. (iii) Directors’ conclusions The Directors believe that the above plans, many of which have already been implemented, combined with the cash and cash equivalents and unused credit facilities as at December 31, 2019 will be sufficient to allow the Group to meet its obligations as they fall due within one year from the date of the approval of these consolidated financial statements. As at December 31, 2019, the Group’s cash and cash equivalents amount to 39,799, while its long-term borrowings are of 18,412, including the current portion of 4,321, and its bank overdrafts and short-term borrowings are 24,170. Furthermore, as at December 31, 2019, the unused portion of credit facilities available to the Group, for which no commitment fees are due, amounts to 24,251. Such unused portion is related to a non-recourse factoring agreement for export-related trade receivables (18,080), borrowings to be secured with trade receivables (3,577) and bank overdrafts (2,594). However, the Directors note that the above cash flow forecasts for the years ending December 31, 2020 and 2021 are heavily dependent, in particular, on the key assumption about the receipt during the third quarter of 2020 of COVID-19 long-term bank borrowing of 65,000. Although they are confident that such long-term bank borrowing will be received for the requested amount and during the third quarter of 2020, since the Parent meets all the conditions specified by article 1 of the “Liquidity Decree”, there is uncertainty about the amount of the loan that will actually be disbursed by the banks as well as the timing of this disbursement. This circumstance represents a material uncertainty that raises substantial doubt on the Group’s ability to continue as a going concern for a reasonable period of time and, therefore, to continue realising its assets and discharging its liabilities in the normal course of business. Nevertheless, in consideration of the procedures performed to assess the uncertainty described above, such as the sensitivity analysis performed on the cash flows forecasts for 2020 and 2021, as well as alternative plans that management may implement to mitigate this uncertainty, the Directors have a reasonable expectation that the Group has adequate sources of funding to meet its liabilities as they fall due within one year from the date of the approval of these consolidated financial statements. For these reasons, the Directors have adopted the going concern assumption as a basis of preparation of the consolidated financial statements as at December 31, 2019. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of significant accounting policies | 4 Summary of significant accounting policies This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements. These policies have been consistently applied to all the years presented, unless otherwise indicated. The accounting policies have been applied consistently by Group’s entities. ( 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. Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling Non-controlling (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. Natuzzi S.p.A. has only one joint venture as at December 31, 2019 and 2018 (see note 11). (v) Equity method Under the equity method of accounting, the 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 movements 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 an impairment of the asset transferred. 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 non-controlling non-controlling 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) revenues and expenses for each statement of profit or loss and statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case revenues and expenses are translated at the dates of the transactions); (c) and all resulting exchange differences are recognised in other comprehensive income. Since January 1, 2017, the Group’s date of transition to IFRSs, such differences have been 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 Two foreign subsidiaries are considered to be an integral part of Natuzzi S.p.A. (the Parent Company) due to the primary and secondary indicators reported in IAS 21 paragraphs 9 and 10. Therefore, the functional currency for these foreign subsidiaries is the functional currency of the Parent, namely the Euro. As a result, all monetary assets and liabilities are remeasured, at the end of each reporting period, using Euro and the resulting gain or loss is recognised in profit or loss. For all non-monetary non-Euro non-Euro (d) Foreign currency transactions Transactions in foreign currencies are translated into 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 at the exchange rate at the reporting date. Non-monetary (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 its 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 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 The Group has applied IFRS 16 “Leases” using the modified retrospective approach, under which comparative information is not restated. The Group reports below the accounting policies under both IFRS 16 (for the current period) and IAS 17 (for the comparative period presented) in order for users to understand the current period as well as comparative information and changes in significant accounting policies. As at January 1, 2019 and December 31, 2019 the Group does 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 right-of-use right-of-use right-of-use re-measurements 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 leases in the Group, the lessee’s incremental borrowing rate is used, 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 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 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 right-of-use The Group presents right-of-use The Group has elected not to recognise right-of-use (ii) Policy applicable before 1 January 2019 as a lessee For contracts entered into before 1 January 2019, the Group determined whether the arrangement was or contained a lease based on the assessment of whether fulfilment of the arrangement was dependent on the use of a specific asset or assets and the arrangement had conveyed a right to use the asset. An arrangement conveyed the right to use the asset if one of the following was met: (a) the purchaser had the ability or right to operate the asset while obtaining or controlling more than an insignificant amount of the output; (b) the purchaser had the ability or right to control physical access to the asset while obtaining or controlling more than an insignificant amount of the output; or (c) facts and circumstances indicated that it was remote that other parties would take more than an insignificant amount of the output, and the price per unit was neither fixed per unit of output nor equal to the current market price per unit of output. In the comparative period, as a lessee the Group classified leases that transferred substantially all of the risks and rewards of ownership as finance leases. When this was the case, the leased assets were measured initially at an amount equal to the lower of their fair value and the present value of the minimum lease payments. Minimum lease payments were the payments over the lease term that the lessee was required to make, excluding any contingent rent. Subsequent to initial recognition, the assets were accounted for in accordance with the accounting policy applicable to that asset. Assets held under other leases were classified as operating leases and were not recognised in the Group’s statement of financial position. Payments made under operating leases were recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received were recognised as an integral part of the total lease expense, over the term of the lease. (g) Business combinations (i) Acquisitions on or after January 1, 2017 The Group accounts for business combinations using the acquisition method when control is transferred to the Group (see 4(a)(i)). 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 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 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 remeasured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognised in profit or loss. (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 Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (i) Impairment of non-financial At each reporting date, the Group reviews the carrying amounts of its non-financial 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 CGUs 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 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 a joint venture. Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is an arrangement 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 the joint venture 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 realizable value. Goods in process and finished goods are valued at the lower of production cost and net realizable 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 realizable value. The provision for slow moving and obsolete raw materials and finished goods is based on the estimated realizable 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 4n(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 For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, 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. Cash and cash equivalents are recorded at their nominal amount as it substantially coincides with the fair value. (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 measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. In particular, the Group adopted the practical expedient to use a provision matrix that it 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 The expected loss rates are based on the payment profiles of sales over a period of 36 months before December 31, 2019 or January 1, 2019, 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 measures the expected credit losses for individual receivables which are known to be uncollectible based on the financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and default or late payments. Trade receivables are written off when there is no reasonable expectation of recovery. 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 1 8 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–months expected credit losses basis. Management considers other receivables to have a low credit risk if they have a low risk of default and their counterparties are able to meet its contractual cash flow obligations in the short-term. (iii) Cash and cash equivalents The 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-months expected credit losses basis and reflects the short-term nature of the exposures. The Group considers cash and cash equivalents to have “low credit risk” based on the external credit ratings of the financial institutions. (o) Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year 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 of the loan 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 financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash 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) 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. (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 may be 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 (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 (see note 5 (C)). Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to 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 (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 cash flow hedge 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 cash flow hedge 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 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 |
Changes in significant accounti
Changes in significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Changes in significant accounting policies | 5 Changes in significant accounting policies (A) IFRS 16 “Leases” The Group initially applied IFRS 16 “Leases” from January 1, 2019 (date of initial application). The Group applied IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings as at January 1, 2019. Accordingly, the comparative information presented for 2018 is not restated – i.e. it is presented, as previously reported, under IAS 17 and related interpretations. As at January 1, 2019 and December 31, 2019 the Group does not act as lessor in any lease contracts. The details of the changes in accounting policies are disclosed below. Additionally, the disclosure requirements in IFRS 16 have not generally been applied to comparative information. Previously, the Group determined at contract inception whether an arrangement was or contained a lease under IFRIC 4 “Determining whether an Arrangement contains a Lease”. The Group now assesses whether a contract is or contains a lease based on the definition of a lease, as explained in note 4(f). On transition to IFRS 16, the Group elected to apply the practical expedient to grandfather the assessment of which transactions are leases. The Group applied IFRS 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed for whether there is a lease under IFRS 16. Therefore, the definition of a lease under IFRS 16 was applied only to contracts entered into or changed on or after January 1, 2019. As a lessee, the Group leases many assets including property, vehicles, IT and office equipment. The Group previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Group. Under IFRS 16, the Group recognises right-of-use assets and lease liabilities for most of these leases – i.e. these leases are on-balance sheet. 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 price. However, for leases of property the Group has elected to separate non-lease components. Previously, the Group classified property leases as operating leases under IAS 17. On transition, for these leases, lease liabilities were measured at the present value of the remaining lease payments, discounted at the Group’s incremental borrowing rate as at January 1, 2019 (see description on impact of transition below). Right-of-use The Group used a number of practical expedients when applying IFRS 16 to leases previously classified as operating leases under IAS 17. In particular, the Group: (a) did not recognise right-of-use right-of-use right-of-use On transition to IFRS 16, the Group recognised additional right-of-use assets and additional lease liabilities, recognising the difference of nil in retained earnings. The impact on transition is summarised in the tables reported below. Impact on the consolidated statement of financial position as at January 1, 2019 Right-of-use 56,758 Decrease of right-of-use (960 ) Decrease of other liabilities for lease incentives 960 Lease liabilities (56,758 ) Retained earnings — Due to adoption of IFRS 16 as at January 1, 2019, lease incentives of 960 were reclassified from other liabilities to right-of-use Reconciliation of operating lease to lease liabilities as at January 1, 2019 Operating lease commitments as at December 31, 2018 as disclosed 80,740 Effect due to discounted using the incremental borrowing rate as at January 1, 2019 63,320 Effect due to recognition exemption for leases of low-value assets (33 ) Effect due to recognition exemption for leases with less than 12 months of lease term at transition (1,744 ) Effect due to extension options and other (4,785 ) Lease liabilities recognised as at January 1, 2019 56,758 When measuring lease liabilities for leases that were classified as operating leases, the Group discounted lease payments using its incremental borrowing rate as at January 1, 2019. The weighted-average rate applied is 5.04%. For the impact of IFRS 16 on profit or loss for the year, see note 9. For the impact of IFRS 16 on Adjusted EBITDA, see note 41. For the details of accounting policies under IFRS 16 and IAS 17, see note 4(f). (B) Other standards A number of other new standards are also effective from January 1, 2019 but they do not have a material effect on the Group’s financial statements. Further, the Group’s existing accounting policy for uncertain income tax treatments is consistent with the requirements in IFRIC 23 “Uncertainty over Income Tax Treatments”, which became effective on January 1, 2019. (C) IFRS 9 “Financial Instruments” 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 replaces 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 restate comparative information, which continued to be reported under previous Italian GAAP, and not to apply the new requirements for hedging accounting. Therefore, the cumulative effect of adopting IFRS 9 has been recognised as an adjustment to the opening balance of retained earnings as at January 1, 2018. As a result of the adoption of IFRS 9, the Group has adopted consequential amendments to IAS 1 “Presentation of Financial Statements”, which require impairment of financial assets to be presented in a separate line item in the statement of profit or loss and OCI. Previously, the Group’s approach was to include the impairment of trade receivables in selling expenses. Consequently, the Group reclassified impairment losses amounting to 1,475, recognised under previous Italian GAAP, from “selling expenses” to “impairment loss on trade receivables” in the consolidated statement of profit or loss for the year ended December 31, 2017. Further, as a result of the adoption of IFRS 9, the Group has recognised additional impairment on the Group’s trade receivables of 37, which resulted in a decrease for the same amount in trade receivables and retained earnings as at January 1, 2018 (tax effect has been considered and it was nil). Additionally, the Group has adopted consequential amendments to IFRS 7 “Financial Instruments: Disclosures” that are applied to disclosures about 2018 but have not been generally applied to comparative information. (i) Classification and measurement of financial assets and financial liabilities IFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, fair value to other comprehensive income (FVOCI) and fair value to profit and loss (FVTPL). The classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. IFRS 9 eliminates the previous IAS 39 categories of held to maturity, loans and receivables and available for sale. Under IFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the hybrid financial instrument as a whole is assessed for classification. IFRS 9 largely retains the existing requirements in IAS 39 for the classification and measurement of financial liabilities. The adoption of IFRS 9 has not had a significant effect on the Group’s accounting policies related to financial liabilities and derivative financial instruments. 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). The following tables show the original measurement categories under previous Italian GAAP and the new measurement categories under IFRS 9 for each class of the Group’s financial assets and financial liabilities as at January 1, 2018. Original classification under previous GAAP New classification under IFRS 9 Original carrying amount under previous GAAP New carrying amount under IFRS 9 Financial assets Other non-current Amortised cost Amortised cost 1,402 1,402 Trade receivables Amortised cost Amortised cost 37,549 37,512 Other current receivables Amortised cost Amortised cost 12,910 12,910 Cash and cash equivalents Amortised cost Amortised cost 55,035 55,035 Gains on derivative financial instruments FVTPL FVTPL 339 339 Total financial assets 107,235 107,198 Original classification under previous GAAP New classification under IFRS 9 Original carrying amount under previous GAAP New carrying amount under IFRS 9 Financial liabilities Long-term borrowings Amortised cost Amortised cost 25,717 25,717 Bank overdrafts and short-term borrowings Amortised cost Amortised cost 25,967 25,967 Trade payables Amortised cost Amortised cost 76,035 76,035 Other payables Amortised cost Amortised cost 27,587 27,587 Losses on derivative financial instruments FVTPL FVTPL 267 267 Total financial liabilities 155,573 155,573 As shown in the above tables, the only effect of adopting IFRS 9 is on the carrying amount of trade receivables as at January 1, 2018, due solely to the new impairment requirements. (ii) Impairment of financial assets IFRS 9 replaces the “incurred loss” model in IAS 39 with an “expected credit loss” (ECL) model. The new impairment model applies to financial assets measured at amortised cost, contract assets and debt investments at FVOCI, but not to investments in equity instruments. Under IFRS 9, credit losses are recognised earlier than under IAS 39. For assets in the scope of the IFRS 9 impairment model, impairment losses are generally expected to increase and become more volatile. The Group has determined that the application of IFRS 9’s impairment requirements as at January 1, 2018 resulted in an additional accrual of 37 for impairment of the trade receivables. Therefore, the allowance for impairment of trade receivables has changed from 10,775 to 10,812 as at January 1, 2018 (see note 15). As at December 31, 2017 and January 1, 2017, under the previous accounting policy Italian GAAP the impairment of trade receivables was assessed based on the incurred loss model. The Group estimated the losses using consistent methods that took into consideration, in particular, insurance coverage in place, the creditworthiness of its customers, historical trends and general economic conditions. Individual receivables which were known to be uncollectible were assessed for impairment and the losses were recognised in a separate provision for impairment. The other receivables were assessed collectively to determine whether there was objective evidence that an impairment had been incurred but not yet been identified. For these receivables, the estimated impairment losses were recognised in a separate provision for impairment. The Group considered that there was evidence of impairment if any of the following indicators were present: (a) significant financial difficulties of the debtor; (b) probability that the debtor will enter bankruptcy or financial reorganisation; and (c) default or late payments. Receivables for which an impairment provision was recognised were written off against the provision when there was no expectation of recovering additional cash. (iii) Hedge accounting At the date of initial application, all of the Group’s existing forward exchange contracts were not eligible to be treated as hedging relationships, since hedge effectiveness is not constantly monitored (see note 29). This approach is consistent with previous Italian GAAP. Changes in the fair value of derivatives are therefore recognised in profit or loss. |
Operating segment
Operating segment | 12 Months Ended |
Dec. 31, 2019 | |
Text block [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. |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Business combinations | 7 Business combinations (i) Business combinations occurred in 2019 and 2018 No business combinations have occurred in 2019 and 2018. (ii) Business combinations occurred in 2017 In January 2017 Natmex S.DE.R.L.DE.C.V., a subsidiary of the Parent, acquired 100% of a business composed by the three “Natuzzi” stores and twelve “Natuzzi” point of sales, located in Mexico, for a consideration of 4,123. This business was operating as a Natuzzi franchisee. At the date of the acquisition, the franchise agreements between Natuzzi and the original business were terminated. The primary reason for this acquisition was the opportunity to maintain the market presence in Mexico. The main factor that contributed to the determination of the purchase price was the presence of the stores and point of sales in key locations. The acquisition was accounted for using the acquisition method of accounting, in accordance with IFRS 3, and it resulted in the recognition of goodwill of Euro 2,041, which represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed . Inventory 1,895 Other assets 187 Total identifiable net assets acquired 2,082 Goodwill arising on acquisition 2,041 Consideration transferred 4,123 The goodwill is attributable mainly to the presence of the stores and points of sale in key locations. The results of this business acquisition have been included in the consolidated statement of profit or loss from the date of the acquisition. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Property, plant and equipment | 8 Property, plant and equipment Changes in the carrying amount of property, plant and equipment and accumulated depreciation for the years ended December 31, 2019 and 2018 are analysed in the following tables. Land and buildings Machinery and equipment Office furniture and equipment Retail gallery and store furnishing Leasehold improvements Constr. in progress Total Cost as at December 31, 2017 169,273 132,240 15,412 32,586 19,450 272 369,233 Additions 646 2,320 365 881 2,288 660 7,160 Disposals (27 ) (7,905 ) (725 ) (20,329 ) (917 ) — (29,903 ) Effect of translation adj. 153 (301 ) 27 356 (85 ) (20 ) 130 Cost as at December 31, 2018 170,045 126,354 15,079 13,494 20,736 912 346,620 Additions 560 1,510 126 285 1,671 38 4,190 Disposals (3 ) (522 ) (114 ) (4 ) — — (643 ) Reclassifications — 183 — — 545 (728 ) — Effect of translation adj. 213 (60 ) 32 (43 ) 423 33 598 Cost as at December 31, 2019 170,815 127,465 15,123 13,732 23,375 255 350,765 Land and buildings Machinery and equipment Office furniture and equipment Retail gallery and store furnishing Leasehold improvements Constr. in progress Total Accumulated depreciation as at December 31, 2017 (81,888 ) (114,485 ) (14,252 ) (31,821 ) (11,597 ) — (254,043 ) Depreciation (4,018 ) (3,381 ) (204 ) (140 ) (2,411 ) — (10,154 ) Disposals 23 7,588 369 20,060 501 — 28,541 Effect of translation adj. (100 ) 484 4 (357 ) 91 — 122 Accumulated depreciation as at December 31, 2018 (85,983 ) (109,794 ) (14,083 ) (12,258 ) (13,416 ) — (235,534 ) Depreciation (3,984 ) (3,221 ) (381 ) (535 ) (2,848 ) — (10,969 ) Disposals — 462 112 3 — — 577 Effect of translation adj. (2,338 ) (1,120 ) 66 (206 ) 1,282 — (2,316 ) Accumulated depreciation as at December 31, 2019 (92,305 ) (113,673 ) (14,286 ) (12,996 ) (14,982 ) — (248,242 ) Net book value as at December 31, 2017 87,385 17,755 1,160 765 7,853 272 115,190 Net book value as at December 31, 2018 84,062 16,560 996 1,236 7,320 912 111,086 Net book value as at December 31, 2019 78,510 13,792 837 736 8,393 255 102,523 Annual rate of depreciation for 2019 and 2018 0%-10% 10%-25% 10%-20% 25%-35% 10%-20% — As at December 31, 2019, properties with a carrying amount of 47,865 (as at December 31, 2018 26,932) are subject to registered mortgages to guarantee the long-term borrowings (see note 19). The following tables show property, plant and equipment by country. 31/12/19 31/12/18 Italy 57,035 61,271 Romania 19,831 23,406 United States of America 17,800 17,830 Brazil 4,250 4,552 China 2,334 2,562 Europe 1,260 1,463 Other countries 13 2 Total 102,523 111,086 As at December 31, 2019 and 2018, the carrying amount of property, plant and equipment not in use is of 10,468 and 10,795, respectively. The Company plans to sell such assets in the next years. In 2019 and 2018, the Company performed an impairment test in accordance with its accounting policy over those property, plant and equipment for which events and changes in circumstances indicated that the carrying amount of certain assets or Cash Generating Units (CGUs) may not be recoverable. For property, plant and equipment in use, the Company determined the recoverable amount as value in use using the discounted cash flow method, at the lowest level for which identifiable cash flows are independent of other cash flows, and compared it with the carrying value. Cash flow projections have been derived from the budget approved by the Board of Directors. Forecasts have been developed taking into consideration the track records of actual results reported by the Company. For property, plant and equipment not in use, 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 2019 and 2018 impairment review of the Company’s property, plant and equipment, no impairment losses have emerged. |
Right-of-use-assets
Right-of-use-assets | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Right-of-use-assets | 9 Right-of-use-assets 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. Retail stores, warehouse and factory facilities leases were entered into several years ago. Previously, these leases were classified as operating leases under IAS 17. The Group leases vehicles under a number of leases, which were classified as operating lease under IAS 17. 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. Some property leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable In 2019 the Company performed an impairment test in accordance with its accounting policy over those right-of-use right-of-use Information about leases for which the Group is a lessee is presented below. (i) Right-of-use Buildings Vehicles Total Cost as at January 1, 2019 55,159 639 55,798 Additions 10,786 395 11,181 Effect of translation adjustments 922 3 925 Cost as at December 31, 2019 66,867 1,037 67,904 Accumulated depreciation as at January 1, 2019 — — — Depreciation (12,926) (301) (13,227) Effect of translation adjustments 42 (1) 41 Accumulated depreciation as at December 31, 2019 (12,884) (302) (13,186) Net book value as at January 1, 2019 55,159 639 55,798 Net book value as at December 31, 2019 53,983 735 54,718 (ii) Amounts recognized in profit or loss under IFRS 16 for the year ended December 31, 2019 Depreciation charge of right-of-use 13,227 Interest on lease liabilities 2,635 Expenses relating to short-term leases 1,090 Expenses relating to leases of low-value low-value 132 Total 17,084 (iii) Amounts recognized in profit or loss under IAS 17 for the years ended December 31, 2018 and 2017 Lease expenses recognised in profit or loss under IAS 17 for the years ended December 31, 2018 and 2017 amount to 17,705 and 17,215, respectively. (iv) Amounts recognized in statement of cash flow for the year ended December 31, 2019 Lease payments recognised in statement of cash flows for the year ended December 31, 2019 amount to 14,251 and include interests paid for 2,291 (see note 20). |
Intangibles assets and goodwill
Intangibles assets and goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Intangibles assets and goodwill | 10 Intangibles assets and goodwill Changes in the carrying amount of intangible assets, goodwill, and accumulated amortization for the years ended December 31, 2019 and 2018 are analysed in the following tables. Trademarks patents and other Software Goodwill Total Cost as at December 31, 2017 13,896 28,926 3,846 46,668 Additions 169 711 — 880 Disposals (3 ) (42 ) — (45 ) Effect of translation adjustments (41 ) 22 101 82 Cost as at December 31, 2018 14,021 29,617 3,947 47,585 Additions 66 847 — 913 Disposals — — — — Effect of translation adjustments (1 ) 7 121 127 Cost as at December 31, 2019 14,086 30,471 4,068 48,625 Accumulated amortization as at December 31, 2017 (13,579 ) (27,252 ) — (40,831 ) Amortisation (158 ) (752 ) — (910 ) Disposals 1 42 — 43 Effect of translation adjustments 27 (22 ) — 5 Accumulated amortization as at December 31, 2018 (13,709 ) (27,984 ) — (41,693 ) Amortisation (150 ) (767 ) — (917 ) Disposals — — — — Effect of translation adjustments 225 (219 ) — 6 Accumulated amortization as at December 31, 2019 (13,634 ) (28,970 ) — (42,604 ) Net book value as at December 31, 2017 317 1,674 3,846 5,837 Net book value as at December 31, 2018 312 1,633 3,947 5,892 Net book value as at December 31, 2019 452 1,501 4,068 6,021 Goodwill in the amount of 2,147 is related to the 2017 acquisition of a Natuzzi Mexico franchisee by the subsidiary Natmex S.DE.R.L.DE.C.V., as previously commented in note 7, and additionally in the amount of 1,921 is related to the 2016 acquisition of four “Divani&Divani by Natuzzi” stores, located in the North East of Italy. The latter acquisition was performed with a related party at arm’s length conditions. Impairment tests have been performed on goodwill in 2019 and 2018. No impairment loss has been recorded as a result of the tests performed. The key inputs and assumptions that were used in performing the 2019 and 2018 impairment tests for goodwill are as follows. December 31, 2019 CGU Net book value Growth WACC Sales 2020-2024 Italy – retail stores 1,921 1.0% 9.05% 8.5% Mexico – retail stores 2,147 3.4% 13.92% 9.3% Total goodwill 4,068 December 31, 2018 CGU Net book value Growth WACC Sales Italy – retail stores 1,921 0.5% 11% 6% Mexico – retail stores 2,026 0.5% 18% 8.5% Total goodwill 3,947 Further, the cash flows included specific estimates for five years and a terminal growth rate thereafter. Cash flows projections have been derived from the budget approved by the Board of Directors. The estimated recoverable amount of each CGU significantly exceeded its carrying amount. Research and development costs recognised as an expense for the years ended December 31, 2019, 2018 and 2017 amount to 3,700, 3,362 and 4,508, respectively. |
Equity-method investees
Equity-method investees | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Equity-method investees | 11 Equity-method investees Changes in the carrying amount of equity-method investees for the years ended December 31, 2019 and 2018 are analysed as follows. Natuzzi Nars Salena Other Total Balance as at December 31, 2017 — 45 — 34 79 Acquisition of non-controlling 48,024 — — — 48,024 Elimination of intercompany profit (7,350 ) — — — (7,350 ) Share of profit/(loss) for the year (295 ) 39 — (34 ) (290 ) Share of other comprehensive income (246 ) — — — (246 ) Effect of translation adjustments — 3 — — 3 Balance as at December 31, 2018 40,133 87 — — 40,220 Share of profit for the year 992 19 — — 1,011 Share of other comprehensive income 111 — — — 111 Balance as at December 31, 2019 41,236 106 — — 41,342 As at December 31, 2019 and 2018 equity-method investees mainly include: (a) the 49% remaining stake in Natuzzi Trading Shanghai; (b) the 49% stake in Nars Miami LLCC; (c) the 49% interest in 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 of Natuzzi S.p.A. On March 22, 2018, the Company signed a Joint Venture Agreement and a Share Purchase Agreement with Kuka Group (Kuka), a leading distributor of upholstered furniture in China. Such agreements, which aim to expand the Company’s retail network on the Chinese market, provide for an investment by Kuka in the Group of 65,000, of which: (a) a 35,000 capital injection into the subsidiary Natuzzi Trading (Shanghai) Co. Ltd. (Natuzzi Trading Shanghai), increasing the share capital of the latter, in exchange for a 27.46% interest; and (b) 30,000 for the purchase of an additional 23.54% interest in the subsidiary, Natuzzi Trading Shanghai, which is owned by Natuzzi. Such agreements were finally completed on July 27, 2018, after obtaining the necessary authorizations and approvals. Following such agreements, the Company and Kuka own, respectively, a 49% and a 51% interest in Natuzzi Trading Shanghai. Both the Joint Venture Agreement and the Share Purchase Agreement incorporated some conditions precedent, including: (a) the stipulation of a license contract between Natuzzi and Kuka for the use of the exclusive and permanent rights to Natuzzi trademarks, for a total consideration of 15,000; (b) the stipulation of the distribution contracts between Natuzzi and Kuka, in accordance with which Natuzzi Trading Shanghai is to exclusively distribute Natuzzi Italia and Natuzzi Editions branded products, to be purchased mainly by Natuzzi Group, through a network of directly-operated single-brand stores and franchises in China, as well as through online stores. Such contract was signed on March 22, 2018 and became effective on July 27, 2018. Following the transaction, Natuzzi lost control over its former subsidiary Natuzzi Trading Shanghai, reducing its shareholding to 49%. At the date of loss of control, July 27, 2018, based on IFRS 10 paragraphs 25 and B98 of the Application Guidance, the Company has: (a) derecognised assets and liabilities of Natuzzi Trading Shanghai at their carrying amounts (net assets amounted to 2,613) at the date of loss of control; (b) recognised the fair value of the consideration received from Kuka of 30,000 for the transfer of a 23.54% interest in Natuzzi Trading Shanghai; (c) recognised the 49% retained interest in Natuzzi Trading Shanghai at its fair value, amounting to 48,024, at the date of the loss of control; (d) reclassified to profit or loss all the amounts recognised in other comprehensive income of Natuzzi Trading Shanghai; (e) recognised the resulting difference as a gain in the consolidated statement of profit or loss, in the amount of 75,411. The fair value of the retained interest in Natuzzi Trading Shanghai, amounting to 48,024, has been estimated by applying a discounted earnings technique, and is based on significant inputs that are not observable in the market (level 3). The fair value estimate is based on an assumed discount rate of 14.25% and a terminal value, calculated assuming a nil growth rate. The cash consideration paid by Kula Group, amounting to 65,000, for the acquisition of the 51% stake in Natuzzi Trading Shanghai reflects the strategic factors associated with applicable synergies in relation to market, products and distribution for such counterparty. Since those factors were deemed to be specific to the counterparty, the Company has determined appropriate to estimate the fair value of the retained investment in Natuzzi Trading Shanghai upon the results of a third-party independent appraisal. The fair value was estimated in the amount of 48,024 and has appropriately taken into consideration the sensitivity factors included in the appraisal. The fair values of the identifiable assets and liabilities of Natuzzi Trading Shanghai as at the date control was lost were the following: Assets Property, plant and equipment 541 Intangible assets 9,397 Other non-current 271 Deferred tax assets 167 Inventories 851 Trade receivables 243 Other current receivables 388 Restricted cash for capital contribution 35,000 Cash and cash equivalents 4,886 Total assets (a) 51,744 Liabilities Deferred tax liabilities 2,349 Trade payables 992 Other payables 3,710 Liabilities for current income tax 31 Total liabilities (b) 7,082 Total identifiable net assets at fair value c = (a-b) 44,662 49% interest measured at fair value (c x 49%) 21,884 Goodwill arising on the transaction 26,140 Fair value of the retained 49% interest 48,024 Details of the net cash flows deriving from the transaction are as follows: Cash received for the disposal of the 23.54% interest 30,000 Chinese withholding tax (2,958 ) Cash and cash equivalents of Natuzzi Trading Shanghai (4,886 ) Net cash flows as per cash flows statement 22,156 Until the date control was lost, Natuzzi Trading Shanghai contributed 13,500 of revenue and 1,603 to profit before tax of the Group. As at December 31, 2019 and 2018, the investment retained by Natuzzi in Natuzzi Trading Shanghai is therefore accounted for using the equity method. The following table shows the reconciliation of the fair value of the retained interest in Natuzzi Trading Shanghai at the date of loss of control with the carrying amount as at December 31, 2018 included in the consolidated statement of financial position. Fair value at the date of loss of control 48,024 Elimination of intercompany profit from licensing Natuzzi trademarks (7,350 ) Group’s share of profit for the year 311 Elimination of amortisation of Natuzzi’s trademarks 153 Elimination of intercompany profit on inventories (597 ) Amortisation of intangibles assets (216 ) Reversal of deferred tax liabilities 54 Group’s share of loss for the year, net of equity method adjustments (295 ) (295 ) Group’s share of other comprehensive income (246 ) Carrying amount as at December 31, 2018 40,133 The elimination of the intercompany profit from licensing Natuzzi’s trademarks refers to the stipulation of a license contract between the Company and Natuzzi Trading Shanghai for the use of the exclusive and perpetual rights to Natuzzi’s trademarks for a cash consideration of 15,000. The Company concluded that such revenue from licensing its trademarks to Natuzzi Trading Shanghai has to be recognised over time as the transaction satisfies all the criteria in IFRS 15 B58 (“license with the right to access”) and to the extent of the unrelated investor’s (i.e., Kuka’s) interest in Natuzzi Trading Shanghai. Therefore, the Company while applying the equity method has eliminated the 49% intercompany profit arising from this transaction, in the amount of 7,350. Further, the Company has recorded the deferred revenue of 7,650 under contract liabilities (see note 22) and such amount will be recognised in profit or loss over the useful life of the licensed trademarks. The following table shows the reconciliation of the carrying amount of the retained interest in Natuzzi Trading Shanghai as at December 31, 2018 with the carrying amount as at December 31, 2019 included in the consolidated statement of financial position. Carrying amount as at December 31, 2018 40,133 Group’s share of profit for the year 1,684 Elimination of amortisation of Natuzzi’s trademarks 368 Elimination of intercompany profit on inventories (671 ) Amortisation of intangibles assets (519 ) Reversal of deferred tax liabilities 130 Group’s share of profit for the year, net of equity method adjustments 992 992 Group’s share of other comprehensive income 111 Carrying amount as at December 31, 2019 41,236 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 equity 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 equity as at December 31, 2019 and 2018 31/12/19 31/12/18 Current assets 48,910 42,288 Non-current 23,166 15,785 Current liabilities (25,663 ) (20,328 ) Non-current (5,004 ) — Equity 41,409 37,745 Group’s share in equity – 49% 20,290 18,495 Intangible assets 3,870 4,389 Goodwill 26,140 26,140 Elimination of intercompany profit from licensing Natuzzi’s trademarks (6,829 ) (7,197 ) Elimination of intercompany profit on inventories (1,268 ) (597 ) Deferred tax liabilities (967 ) (1,097 ) Group’s carrying amount of the investment 41,236 40,133 As at December 31, 2019 and 2018 cash and cash equivalents, bank overdrafts and borrowings, lease liabilities current and non-current 31/12/19 31/12/18 Cash and cash equivalents 37,049 32,845 Bank overdrafts and borrowings — (360 ) Lease liabilities current (1,982 ) — Lease liabilities non-current (5,004 ) — Total, net 30,063 32,485 Summarised statement of profit or loss of Natuzzi Trading Shanghai and Group’s share of profit for the year ended December 31, 2019 and for the period July 27, 2018 – December 31, 2018 2019 2018 Revenue 52,714 13,836 Cost of sales (33,754 ) (8,197 ) Other income and expenses, net 41 919 Selling expenses (13,570 ) (5,141 ) Administrative expenses (1,883 ) (632 ) Net finance income 1,194 350 Profit before tax 4,742 1,135 Income tax expense (1,304 ) (500 ) Profit for the period 3,438 635 Other comprehensive profit/(loss) 227 (503 ) Total comprehensive profit for the period 3,665 132 Group’s share of profit for the period – 49% 1,684 311 Elimination of amortisation of Natuzzi’s trademarks 368 153 Elimination of intercompany profit on inventories (671 ) (597 ) Amortisation of intangible assets (519 ) (216 ) Deferred tax liabilities 130 54 Group’s share of profit/(loss) for the period, net of equity method adj. 992 (295 ) Group’s share of other comprehensive income/(loss) for the period 111 (246 ) Group’s share of total comprehensive income/(loss) for the period 1,103 (541 ) For the year ended December 31, 2019 depreciation and amortization, interest income, interest expense and income tax expense amount to 2,916, 1,419, 257 and 1,304, respectively. For the 5 months period ended December 31, 2018 depreciation and amortisation, interest income, interest expense and income tax expense amount to 427, 356, 13 and 500, respectively. (ii) Disclosures on Nars Miami LLCC Nars Miami LLCC 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). |
Other non-current receivables
Other non-current receivables | 12 Months Ended |
Dec. 31, 2019 | |
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Other non-current receivables | 12 Other non-current Other non-current 31/12/19 31/12/18 Security deposits for lease contracts 3,920 3,984 Receivable from disposal of assets 599 549 Total 4,519 4,533 The receivable from extraordinary 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, 2019 | |
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Other assets (non-current and current) | 13 Other assets (non-current Other assets are analysed as follows: 31/12/19 31/12/18 Advances to suppliers 4,507 3,471 Deferred costs for Natuzzi Display System 2,580 2,617 Deferred costs for slotting fees 1,951 1,922 Delivery and commission costs for sales derecognised 2,302 1,839 Deferred costs for Service-Type Warranty 389 452 Prepaid expenses and accrued income 408 1,165 Total other assets 12,137 11,466 Less current portion (9,241 ) (8,107 ) Non-current 2,896 3,359 “Advances to suppliers” represent advance payments for raw materials, services and general expenses. “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). “Delivery and commission costs for sales derecognised” 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 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, 2019 | |
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Inventories | 14 Inventories Inventories are analysed as follows: 31/12/19 31/12/18 Leather and other raw materials 24,088 30,568 Goods in process 8,800 10,815 Finished goods 36,797 42,844 Total 69,685 84,227 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, 2019 and 2018. 31/12/19 31/12/18 Balance at beginning of year 9,341 8,464 Additions 2,892 1,564 Reductions (378 ) (687 ) Balance at end of year 11,855 9,341 There are no pledged inventories that could be limited in their availability. |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Trade receivables | 15 Trade receivables Trade receivables by geographic region are analysed as follows: 31/12/19 31/12/18 Domestic customers 14,401 20,247 European customers 4,348 7,815 North American customers 4,986 3,573 South American customers 5,703 3,531 Chinese customers 4,055 7,233 Other foreign customers 4,393 8,195 Gross trade receivables 37,886 50,594 Allowance for doubtful accounts (8,699 ) (9,627 ) Total trade receivables 29,187 40,967 Trade receivables are due primarily from distributors and retailers who sell directly to end customers. Trade receivables due from related parties amount to 5,235 as at December 31, 2019 (9,333 as at December 31, 2018). Transactions with related parties are conducted at arm’s length (see note 43). As at December 31, 2019 and 2018 and for each year of the two-year Year No. of customers % of trade receivables 2019 — — 2018 2 21% In 2019, 2018 and 2017 no customer has exceeded 5% of revenue. The following tables provide the movements in the allowance for doubtful accounts for the years ended December 31, 2019 and 2018. 31/12/19 31/12/18 Balance at beginning of year 9,627 10,775 Effect of the adoption of IFRS 9 (see note 5(C)) — 37 Charges – bad debt expense 2,389 745 Reductions – write off of uncollectible amounts (3,317 ) (1,930 ) Balance at end of year 8,699 9,627 Information about the Group’s exposure to credit risk and impairment losses for trade receivables is included in note 30(C)(ii-a). Trade receivables denominated in foreign currencies as at December 31, 2019 and 2018 amount to 19,807 and 26,490, respectively. |
Other current receivables
Other current receivables | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other current receivables | 16 Other current receivables Other current receivables are analysed as follows: 31/12/19 31/12/18 VAT 3,939 4,217 Receivables from National Institute for Social Security 2,004 1,533 Other 1,780 3,757 Total 7,723 9,507 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 for those employees subject to temporary work force reduction. 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, 2019 | |
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Cash and cash equivalents | 17 Cash and cash equivalents Cash and cash equivalents are analysed as follows: 31/12/19 31/12/18 Cash on hand 188 439 Bank accounts 39,611 61,692 Total 39,799 62,131 As at December 31, 2019 the Chinese subsidiary Italsofa Shanghai Ltd has a deposit of 13,090 with a domestic bank. The remittance of such cash to the Parent in Italy could take 3 to 4 months due to the local requirements that need to be complied with before this can take place. Cash and cash equivalents denominated in foreign currencies as at December 31, 2019 and 2018 amount to 36,031 and 49,413, respectively. Furthermore, the following tables show the Group’s cash and cash equivalents broken-down by region. 31/12/19 31/12/18 Europe 21,168 40,479 China 16,572 18,290 North America 1,317 2,857 South America 575 318 Other 167 187 Total 39,799 62,131 For the purpose of the statement of cash flows, cash and cash equivalents comprise the following: 31/12/19 31/12/18 31/12/17 Cash and cash equivalents in the statement of financial position 39,799 62,131 55,035 Bank overdrafts repayable on demand (1,974 ) (1,762 ) — Cash and cash equivalents in the statement of cash flows 37,825 60,369 55,035 Bank overdrafts repayable on demand form an integral part of the Group’s cash management. |
Share capital, reserves and ret
Share capital, reserves and retained earnings | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Share capital, reserves and retained earnings | 18 Share capital, reserves and retained earnings As at December 31, 2019, 2018 and 2017 the equity attributable to owners of the Company is analysed as follows: 31/12/19 31/12/18 31/12/17 Share capital 54,853 54,853 54,853 Reserves 17,147 17,198 16,398 Retained earnings 31,126 64,496 31,244 Total 103,126 136,547 102,495 As at December 31, 2019 and 2018, the Company’s share capital, which is totally authorized and issued, is composed of 54,853,045 ordinary shares with par value of Euro 1 each, for a total of 54,853. 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, 2019, 2018 and 2017, as follows: 31/12/19 31/12/18 31/12/17 Mr. Pasquale Natuzzi 56.5% 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 38.4% 38.4% 38.4% Total 100.0 % 100.0 % 100.0 % An analysis of “Reserves” is as follows: 31/12/19 31/12/18 31/12/17 Legal reserve 10,971 10,971 10,971 Majority shareholder capital contribution 488 488 488 Foreign operations translation reserve 5,846 5,282 5,055 Remeasurement of defined benefit plan (158) 457 (116) Total 17,147 17,198 16,398 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, 2019, 2018 and 2017. The “Majority shareholder capital contribution” is one of the Parent Company’s reserves, which is restricted for capital grants received. 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)). The disaggregation of changes of OCI by each type of reserve in equity is shown in the tables below. Year ended December 31, 2019 Foreign operations Remeasurement of Total Exchange difference on translation of foreign operations 475 — 475 Share of OCI of equity-method investees 111 — 111 Actuarial losses on employees’ leaving entitlement — (615 ) (615 ) Total 586 (615 ) (29 ) Year ended December 31, 2018 Foreign operations Remeasurement of Total Exchange difference on translation of foreign operations 497 — 497 Share of OCI of equity-method investees (246) — (246) Actuarial gains on employees’ leaving entitlement — 573 573 Total 251 573 824 Year ended December 31, 2017 Foreign operations Remeasurement of Total Exchange difference on translation of foreign operations (7,778) — (7,778) Actuarial gains on employees’ leaving entitlement — 116 (116) Total (7,778 ) 116 (7,894 ) 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, as well as the level of dividends to ordinary shareholders. 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. The Group’s policy is to keep the ratio below 2. 2 The Group’s net debt to equity ratio as at December 31, 2019 and 2018 is as follows: 31/12/19 31/12/18 Total liabilities 264,576 234,527 Less cash and cash equivalents (39,799 ) (62,131 ) Net debt (a) 224,777 172,396 Total equity (b) 104,818 138,181 Net debt to equity ratio (a/b) 2.14 1.25 |
Long-term borrowings
Long-term borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Long-term borrowings | 19 Long-term borrowings Long-term borrowings as at December 31, 2019 and 2018 consist of the following: 31/12/19 31/12/18 6-months — 893 6-months 4,601 6,631 3-months 1,500 2,500 6-months 42 83 3-months 428 628 3-months . 1,125 1,625 3-months 1,191 1,583 2.3% fixed long-term debt with final payment due July 2025 6,075 7,000 0.210% fixed long-term debt with final payment due December 2030 3,105 — 80% of 6-months 345 — Total long-term debt 18,412 20,943 Less current installments (4,321 ) (10,582 ) Long-term borrowings, excluding current installments 14,091 10,361 In August 2014, the Company incurred long-term debt for a 5,000 nominal amount with installments payable on a monthly basis. The final payment occurred in August 2019. This loan was collateralized by a mortgage on the properties located in Matera (Italy), for an amount of 10,000. 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 2015 the Company incurred long-term debt for nominal amount of 5,000 with installments payable on a quarterly basis and with final payment due in June 2021. This long-term floating-rate debt, of which 1,500 remains at year-end, 3-months year-end In 2015, one of the Italian subsidiaries incurred long-term debt for a 200 nominal amount with installments payable on a monthly basis and with final payment due December 2020. The interest rate is based on the 6-month year-end, In 2017, one of the Italian subsidiaries incurred long-term debt for a 1,000 nominal amount, with installments payable on a monthly basis and with final payment due February 2022. This long-term floating-rate debt, of which 428 remains at year-end, 3-months In January 2017, the Company incurred long-term debt for a 2,500 nominal amount with installments payable on a quarterly basis and with final payment due March 2022. This long-term floating-rate debt, of which 1,125 remains at year-end, 3-months year-end 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 November 2022. This long-term floating-rate debt, of which 1,191 remains at year-end, 3-months In July 2017, the Company incurred long-term fixed rate debt for a 7,000 nominal amount with installments payable on a monthly basis and with final payments due July 2025. This long-term fixed-rate debt, of which 6,075 remains at year-end, In December 2019, the Company incurred long-term debt for a 4,181 nominal amount with installments payable on semi-annual basis and with final payment due December 2030. This long-term fixed-rate debt, of which 3,105 remains at year-end, 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 floating-rate debt, of which 345 remains at year-end, 6-months During 2019 and 2018, 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, 2019, 2018 and 2017 is 454, 636 and 738, respectively. Interest due is paid with the related installment. |
Lease liabilities (non-current
Lease liabilities (non-current and current) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Non Current and Current Portion of the Lease Liabilities [abstract] | |
Lease liabilities (non-current and current) | 20 Lease liabilities (non-current The non-current Non-current 46,053 Current portion of the lease liabilities 11,314 Total 57,367 Changes in the carrying amount of the lease liabilities for the year ended December 31, 2019 is reported in the following table. Balance as at January 1, 2019 56,758 Additions for new leases 11,544 Interest expenses 2,291 Lease payments (14,251) Effect of translation adjustments 1,025 Balance as at December 31, 2019 57,367 As at December 31, 2019 the incremental borrowing rate is within the range of 3% and 12%. The maturity analysis of the contractual undiscounted cash flows of the lease liabilities as at December 31, 2019 is reported in the table below. Less than one year 13,928 One to five years 36,540 More than five years 17,760 Total undiscounted lease liabilities as at December 31, 2019 68,228 As at December 31, 2019 lease liabilities denominated in foreign currencies amount to 38,844. |
Employees' leaving entitlement
Employees' leaving entitlement | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Employees' leaving entitlement | 21 Employees’ leaving entitlement Changes to employees’ leaving entitlement occurring during 2019 and 2018 are analysed as follows: 31/12/19 31/12/18 Balance at beginning of year 17,181 18,820 Current service cost 111 148 Interest expense 253 235 Benefits paid (2,039) (1,449) Actuarial gains/(losses) 615 (573) Balance at end of year 16,121 17,181 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: 31/12/19 31/12/18 Annual discount rate 0.77% 1.57% Annual future salary increase rate 0.00% 0.00% Annual inflation rate 1.20% 1.50% Annual DBO increase rate 2.400% 2.625% 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 4.00% 4.00% Annual frequency of DBO advances 2.00% 2.00% A quantitative sensitivity analysis for significant assumptions impacting the DBO as at December 31, 2019 and 2018 is reported as follows: 31/12/19 31/12/18 +1% on turnover rate (111) (68) -1% on turnover rate 123 75 +0.25% on annual inflation rate 231 259 -0.25% on annual inflation rate (227) (256) +0.25% on annual discount rate (360) (402) -0.25% on annual discount rate 373 417 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: 31/12/19 31/12/18 Within 1 year 1,203 1,065 Between 2 and 5 years 3,704 4,181 The average duration of the defined benefit plan as at December 31, 2019 and 2018 is 10.00 years and 10.63 years, respectively. |
Contract liabilities (non-curre
Contract liabilities (non-current and current) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Contract liabilities (non-current and current) | 22 Contract liabilities (non-current Contract liabilities as at December 31, 2019 and 2018 consist of the following: 31/12/19 31/12/18 Advance payments from customers 11,821 10,312 Deferred income from licensing of Natuzzi’ s trademarks 7,108 7,491 Deferred revenue for Natuzzi Display System 3,369 3,399 Deferred revenue for Service-Type Warranty 805 897 Total contract liabilities 23,103 22,099 Less non-current (9,089) (9,934) Current portion 14,014 12,165 “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, as part of the transaction with Kuka previously described in note 11. Such revenue, in the amount of 7,108 (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, 2019, 2018 and 2017 that was included in the opening contract liabilities balance amounts to 12,165, 12,973 and 10,647, respectively. |
Provisions (non-current and cur
Provisions (non-current and current) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Provisions (non-current and current) | 23 Provisions (non-current Provisions as at December 31, 2019 and 2018 consist of the following: 31/12/19 31/12/18 Provision for legal claims 10,469 10,926 Provision for tax claims 641 1,098 Provision for warranties 4,489 4,476 Termination indemnities for sales agents 1,197 1,141 Other provisions 659 1,337 Total provisions 17,455 18,978 Less current portion (4,489) (4,476) Non-current 12,966 14,502 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 Company 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 standard assurance warranty terms (see note 4(t)). The warranty claims for the finished product 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. Main assumptions used to calculate the provision for such assurance type warranty are the warranty period for all products sold, current sales levels and historical 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, 2019 and 2018 are analysed as follows: Provision Provision Provision Termination Other Total Balance as at December 31, 2017 13,008 1,912 5,957 1,196 599 22,672 Provisions made during the year 1,225 — 1,180 177 1,792 4,374 Reductions of the year (3,307) (814) (2,661) (232) (1,054) (8,068) Balance as at December 31, 2018 10,926 1,098 4,476 1,141 1,337 18,978 Provisions made during the year 1,941 267 2,370 115 3,905 8,598 Reductions of the year (2,398) (724) (2,357) (59) (4,583) (10,121) Balance as at December 31, 2019 10,469 641 4,489 1,197 659 17,455 As at December 31, 2019, the provision for legal claims refers for 9,804 (9,287 as at December 31, 2018) to the probable contingent legal liability related to legal procedures initiated by 159 workers against the Company for the misapplication of the social security procedure “CIGS— Cassa Integrazione Guadagni Straordinaria Corte di Cassazione |
Deferred income for government
Deferred income for government grants | 12 Months Ended |
Dec. 31, 2019 | |
Text block [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, 2019 and 2018 are analysed as follows: 31/12/19 31/12/18 Balance at beginning of year 13,002 13,771 Additions 2,493 292 Credit to profit or loss (1,626) (1,061) Balance at end of year 13,869 13,002 Government grants are related to benefits the Group obtained in 2019 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. There are no unfulfilled conditions or contingencies attached to these grants. 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. |
Other liabilities (non-current
Other liabilities (non-current and current) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other liabilities (non-current and current) | 25 Other liabilities (non-current Other liabilities as at December 31, 2019 and 2018 are analysed as follows: 31/12/19 31/12/18 Advance payments for government grants 1,069 — Lease incentives — 960 Other — 159 Total 1,069 1,119 Advance payments for government grants are related to considerations received by the Parent for government grants obtained for next years’ purchases of property, plant and equipment and next years’ expenses related to research projects. Due to adoption of IFRS 16 as at January 1, 2019, lease incentives were reclassified to right-of-use |
Bank overdrafts and short-term
Bank overdrafts and short-term borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Bank overdrafts and short-term borrowings | 26 Bank overdrafts and short-term borrowings Bank overdrafts and short-term borrowings as at December 31, 2019 and 2018 are analysed as follows: 31/12/19 31/12/18 Bank overdrafts 1,974 1,762 Borrowings secured over trade receivables 21,029 29,992 Borrowings unsecured 1,167 3,394 Total 24,170 35,148 As at December 31, 2019 and 2018 bank overdrafts and short-term borrowings denominated in foreign currencies amount to 253 and 254, respectively. The weighted average interest rates on the bank overdrafts and short-term borrowings for the years ended December 31, 2019 and 2018 are as follows: 2019 2018 Bank overdrafts 4.13% 4.35% Borrowings 2.55% 2.69% As at December 31, 2019, the unused portion of credit facilities available to the Group, for which no commitment fees are due, amount to 24,251. Such unused portion is related to a non-recourse |
Trade payables
Trade payables | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Trade payables | 27 Trade payables Trade payables as at December 31, 2019 and 2018 are analysed as follows: 31/12/19 31/12/18 Invoices received 47,402 57,325 Invoices to be received 21,074 20,576 Total 68,476 77,901 Trade payables mainly represent amounts payable for purchases of goods and services in Italy and abroad, and include 26,065 as at December 31, 2019 denominated in foreign currencies (29,155 as at December 31, 2018). Trade payables include amounts due to related parties amounting to 124 and 1,004, respectively as at December 31, 2019 and 2018 (see note 43). |
Other payables
Other payables | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other payables | 28 Other payables Other payables as at December 31, 2019 and 2018 are analysed as follows: 31/12/19 31/12/18 Salaries and wages 5,412 5,085 Social security contributions 4,289 6,901 Vacation accrual 3,889 6,408 Withholding taxes on payroll and on others 2,059 2,379 Other accounts payable 6,400 6,141 Total 22,049 26,914 |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Derivative financial instruments | 29 Derivative financial instruments A significant portion of the Group’s net sales and costs are denominated in currencies other than the euro. Consequently, a significant portion of the Group’s revenue 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 declines 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 and, also, to former applicable Italian GAAP. Therefore, the Company reflects the positive or negative changes in the fair value of those derivatives through profit or loss in the captions “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, 2019 and 2018. 31/12/19 31/12/18 British pounds 16,947 10,612 Euro 11,347 11,407 U.S. dollars 6,347 14,528 Canadian dollars 1,937 1,300 Japanese yen 1,549 2,318 Australian dollars 1,280 2,129 Danish kroner 751 1,086 Swedish kroner 208 265 Total 40,366 43,645 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”. 2019 2018 Contract amount Unrealised gains/(losses) Contract amount Unrealised gains/(losses) Assets 10,419 145 27,459 218 Liabilities 29,947 (772 ) 16,186 (320 ) Total 40,366 (627 ) 43,645 (102 ) As at December 31, 2019 and 2018, the forward exchange contracts have a net unrealized expense of 627 and 102, 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, 2019 | |
Text block [abstract] | |
Financial Instruments - Fair values and risk management | 30 Financial Instruments – Fair values and risk management The effect of initially applying IFRS 9 on the Group’s financial instruments is described in note 5. Due to the transition method chosen, comparative information has not been restated to reflect the new requirements. A. Accounting classification The following tables show the classification and carrying amounts of Group’s financial assets and financial liabilities as at December 31, 2019 and 2018. Financial assets 31/12/19 31/12/18 Financial assets measured at amortised cost Other non-current 4,519 4,533 Trade receivables 29,187 40,967 Other current receivables 7,723 9,507 Cash and cash equivalents 39,799 62,131 Total (a) 81,228 117,138 Financial assets measured at fair value Forward exchange contracts 145 218 Total (b) 145 218 Total financial assets (a+b) 81,373 117,356 Financial assets measured at amortised cost include trade receivables, other receivables (non-current Financial liabilities 31/12/19 31/12/18 Financial liabilities measured at amortised cost Long-term borrowings 18,412 20,943 Lease liabilities 57,367 — Bank overdrafts and short-term borrowings 24,170 35,148 Trade payables 68,476 77,901 Other payables 22,049 26,914 Total (a) 190,474 160,906 Financial liabilities measured at fair value Forward exchange contracts 772 320 Total (b) 772 320 Total financial liabilities (a+b) 191,246 161,226 Financial liabilities measured at amortised cost include long-term borrowings (non-current (non-current For the details on “Long-term borrowings”, “Lease liabilities” and “Bank overdrafts and short-term borrowings” reference should be made to note 19, 20 and 26. B. Fair value and measurement of fair values 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, 2019 and 2018, other than those with carrying amount that are reasonable approximation of fair value. 31/12/19 31/12/18 Carrying Fair value Carrying Fair Financial assets Forward exchange contracts 145 145 218 218 Financial liabilities Floating-rate borrowings 9,232 9,322 13,943 13,943 Fixed rate borrowings 9,180 10,256 7,000 7,000 Total long-term borrowings 18,412 19,578 20,943 20,943 Forward exchange contracts 772 772 320 320 As at December 31, 2019 and 2018, 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 2019 and 2018. There were no level 3 (significant unobservable inputs) fair values estimated as at December 31, 2019 and 2018. 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 C. Financial risk management The main financial risks which the Group is exposed to are reported in the following. 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. (i) Risk management framework The Group is exposed to credit risk, liquidity risk and market risk. The management of these risks is performed on the basis of guidelines set by the Group’s senior management. 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, short-term borrowings and a non-recourse (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, 2019, 2018 and 2017 are related mainly to trade receivables. (ii-a) The Group’s customers are mainly represented by distributors, retailers and end consumers. Customer credit risk is managed on the basis of the Group’s established policies, procedures and controls relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Sales to the end consumers are required to be settled in cash or using major credit cards, mitigating credit risk. Outstanding customer receivables are regularly monitored to prevent losses. The Company insures the collections risk related to a significant portion of trade receivables (about 80%), with a third party insurer and, in case of insolvency, the insurance company has to refund 85% of uncollected outstanding balances. For receivables subject to collective valuation an impairment analysis is performed at each reporting date, starting from year-end For individual receivables which are known to be uncollectible an impairment analysis is performed at each reporting date to measure expected credit losses. The provision 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. The Group evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets (see note 15). In addition, in July 2015 the Company signed a non-recourse Given the considerations above, the credit risk is full for non-insured non-recourse Therefore, the allowance 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. As at December 31, 2019 and 2018 the ageing of trade receivables is as follows: 31/12/19 31/12/18 Current (not past due) 15,179 24,251 From 1 to 29 days past due 8,570 8,614 From 30 to 60 days past due 1,298 1,409 From 61 to 90 days past due 2,531 1,274 More than 90 days past due 10,308 15,046 Gross trade receivables 37,886 50,594 Allowance for doubtful accounts (8,699 ) (9,627 ) Net trade receivables 29,187 40,967 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, 2019, 2018 and January 1, 2018, further to the adoption of IFRS 9. December 31, 2019 Days past due <30 days 30-60 days 61-90 days > 91 days Total Trade receivables subject to collective valuation 4,936 387 — 309 5,632 Trade receivables subject to specific valuation 32,524 Total gross carrying amount 37,886 Default rate 0.13 % 1.42 % 3.83 % 27.07 % — Expected credit loss 6 5 — 84 95 December 31, 2018 Days past due <30 days 30-60 days 61-90 days > 91 days Total Trade receivables subject to collective valuation 9,288 1,323 88 669 11,368 Trade receivables subject to specific valuation 39,226 Total gross carrying amount 50,594 Default rate 0.10 % 0.99 % 2.90 % 5.80 % — Expected credit loss 9 13 3 39 64 January 1, 2018 Days past due <30 days 30-60 days 61-90 days > 91 days Total Trade receivables subject to collective valuation 11,661 651 254 173 12,739 Trade receivables subject to specific valuation 35,585 Total gross carrying amount 48,324 Default rate 0.11 % 1.04 % 2.99 % 5.33 % — Expected credit loss 13 7 8 9 37 (ii-b) As at December 31, 2019 and 2018 other receivables current and non-current 12-months (ii-c) As at December 31, 2019 and 2018 the Group has cash and cash equivalents of 39,799 and 62,131, respectively. The 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 losses basis and reflects the short-term nature of the exposures. The Group considers its cash and cash equivalents to have a low credit risk based on the external credit ratings of the financial institutions. As at December 31, 2019 and 2018 the identified impairment loss of cash and cash equivalents is immaterial. (ii-d) Domestic currency swaps (see note 29) are entered into with financial institutions that have outstanding external credit ratings (“investment grade”). As at December 31, 2019 and 2018 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. 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, long-term borrowings and a non-recourse The tables below summarize the remaining contractual maturities of financial liabilities as at December 31, 2019 and 2018. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements. December 31, 2019 Less than 2 to 12 1 to 2 2 to 5 More than Total Long-term borrowings 512 4,222 6,568 5,389 3,525 20,216 Lease liabilities 3,341 10,587 9,972 26,568 17,760 68,228 Bank overdrafts and short-term borrowings 24,170 — — — — 24,170 Trade and other payables 22,049 68,476 — — — 90,525 Losses on derivative financial instruments 772 — — — — 772 Total financial liabilities 50,844 83,285 16,540 31,957 21,285 203,911 December 31, 2018 Less than 2 to 12 1 to 2 2 to 5 More than Total Long-term borrowings 899 10,019 3,416 6,158 1,358 21,850 Bank overdrafts and short-term borrowings 35,148 — — — — 35,148 Trade and other payables 26,914 77,901 — — — 104,815 Losses on derivative financial instruments 320 — — — — 320 Total financial liabilities 63,281 87,920 3,416 6,158 1,358 162,133 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, 2019, the Group has unused credit lines of 24,251 (see note 26); (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 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, and a product diversification in the different brands. In order to manage the 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, 2019, approximately 49.9% of the Group’s borrowings were at a fixed rate of interest (2018: 33.4%). 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/ Effect on profit December 31, 2019 +45 (51) December 31, 2019 -45 51 December 31, 2018 +45 (71) December 31, 2018 -45 71 December 31, 2017 +45 (90) December 31, 2017 -45 78 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, the Group purchases a significant portion of raw materials in U.S. Dollars, and sells a significant amount of finished products in Euro. As a consequence, the Group is exposed to a foreign currency risk, which is managed by forward exchange contracts. 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. Change in Effect on profit December 31, 2019 +5% 3,155 December 31, 2019 -5% (3,486) December 31, 2018 +5% 2,776 December 31, 2018 -5% (3,183) December 31, 2017 +5% 3,023 December 31, 2017 -5% (3,449) As at December 31, 2019 and 2018 the Group’s financial assets and financial liabilities denominated in foreign currency are as follows: Financial assets 31/12/19 31/12/18 Trade receivables 19,807 26,490 Cash and cash equivalents 36,031 49,413 Total financial assets 55,838 75,903 Financial liabilities 31/12/19 31/12/18 Lease liabilities 38,844 — Bank overdraft and short-term borrowings 253 254 Trade payables 26,065 29,155 Total financial liabilities 65,162 29,409 As at December 31, 2019 and 2018, the summary quantitative data about Group’s exposure to currency risk as reported to the management of the Group is as follows: December 31, 2019 Financial (a) Financial (b) Net Exposure Chinese Yuan 20,592 12,071 8,521 U.S. dollars 15,524 26,995 (11,471 ) British pounds 5,984 12,482 (6,498 ) Brazilian Reais 5,975 2,012 3,963 Canadian dollars 3,758 124 3,634 Mexican pesos 984 910 74 Romanian Leu 528 6,673 (6,145 ) Other 2,493 3,895 (1,402 ) Total 55,838 65,162 (9,324 ) December 31, 2018 Financial (a) Financial (b) Net Exposure Chinese Yuan 27,101 9,726 17,375 U.S. dollars 19,661 8,841 10,820 British pounds 8,696 2,482 6,214 Brazilian Reais 6,211 2,250 3,961 Canadian dollars 3,696 236 3,460 Mexican pesos 3,344 43 3,301 Romanian Leu 886 4,976 (4,090 ) Other 6,308 855 5,453 Total 75,903 29,409 46,494 (v) Changes in liabilities arising from financing activities The following tables show the changes in financial liabilities arising from financing activities for the three years ended December 31, 2019, 2018 and 2017. December 31, 2019 Jan. 1, 2019 Cash flows Changes in Other Dec. 31, 2019 Long-term borrowings 20,943 (1,365 ) — (1,166 ) 18,412 Lease liabilities 56,758 (11,960 ) — 12,569 57,367 Bank overdrafts and short-term borrowings 35,148 (10,978 ) — — 24,170 Losses on derivative financial instruments 320 — 452 — 772 Total liabilities from financing activities 113,169 (24,303 ) 452 11,403 100,721 December 31, 2018 Jan. 1, 2018 Cash flows Changes in Dec. 31, 2018 Long-term borrowings 25,717 (4,774 ) — 20,943 Bank overdrafts and short-term borrowings 25,967 9,181 — 35,148 Losses on derivative financial instruments 267 — 53 320 Total liabilities from financing activities 51,951 4,407 53 56,411 December 31, 2017 Jan. 1, 2017 Cash flows Changes in Dec. 31, 2017 Long-term borrowings 17,961 7,756 — 25,717 Bank overdrafts and short-term borrowings 24,427 1,540 — 25,967 Losses on derivative financial instruments 1,293 — (1,026 ) 267 Total liabilities from financing activities 43,681 9,296 (1,026 ) 51,951 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Text block [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 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 2019 2018 2017 Sale of upholstery furniture 329,162 365,346 389,528 Sale of home furnishing accessories 39,623 41,733 33,560 Sale of polyurethane foam 9,665 14,958 15,501 Sale of other goods 8,512 6,502 10,291 Total 386,962 428,539 448,880 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 2019 2018 2017 Europe, Middle East and Africa 183,794 212,481 218,896 Americas 137,665 137,452 153,647 Asia-Pacific 65,503 78,606 76,337 Total 386,962 428,539 448,880 Geographical location of customers 2019 2018 2017 United States of America 97,723 94,393 107,262 Italy 48,557 53,261 55,379 United Kingdom 39,416 43,501 48,266 China 39,258 47,099 41,369 Canada 18,355 17,371 20,030 Spain 14,846 17,334 17,077 Brazil 12,120 16,332 16,182 Australia 8,668 9,903 9,738 France 8,493 11,179 9,999 Belgium 7,809 8,682 8,214 Germany 7,234 11,455 12,462 Korea 5,626 8,232 9,847 Other countries (none greater than 5%) 78,857 89,797 93,055 Total 386,962 428,539 448,880 Distribution channels 2019 2018 2017 Wholesale (distributors and retailers) 320,263 365,499 392,332 Directly operated stores (end c onsu 66,699 63,040 56,548 Total 386,962 428,539 448,880 Brands 2019 2018 2017 Natuzzi Editions 160,136 167,925 183,838 Natuzzi Italia 135,500 144,953 134,740 Private label 73,149 94,201 104,509 Other 18,177 21,460 25,793 Total 386,962 428,539 448,880 Timing of revenue recognition 2019 2018 2017 Goods transferred at a point in time 385,510 427,493 448,206 Goods and services transferred over time 1,452 1,046 674 Subtotal 386,962 428,539 448,880 (iii) Contract balances The following table provides information about receivables and contract liabilities from contracts with customers. 31/12/19 31/12/18 31/12/17 Trade receivables 29,187 40,967 37,549 Contract liabilities 23,103 22,099 15,533 Reference should be made to note 15 “Trade receivables” and note 22 “Contract liabilities” (non-current (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 the related revenue recognition policies see note 4(t). The transaction price allocated to the remaining performance obligations (partially unsatisfied) as at December 31, 2019, 2018 and 2017 is as follows: 31/12/19 31/12/18 31/12/17 Sale of Natuzzi Display System Within a year 1,416 1,138 758 More than a year 1,953 2,261 1,878 Total 3,369 3,399 2,636 Sale of Service-Type Warranties Within a year 394 332 278 More than a year 411 565 682 Total 805 897 960 Sale of the licence-for Within a year 383 383 — More than a year 6,725 7,108 — Total 7,108 7,491 — (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 rebates, which give rise to variable consideration. In particular, the Group provides retrospective volume rebates to certain customers once the quantity of products purchased during the period exceeds a threshold specified in the contract. Rebates are offset against amounts payable by the customer. Accumulated experience is used to estimate and provide for the rebates, 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. These assurance-type warranties are accounted for under IAS 37. Refer to the accounting policy on warranty provisions in note 4(r). Customers who purchase the Group’s upholstered furniture 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. (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). |
Cost of sales
Cost of sales | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Cost of sales | 32 Cost of sales Cost of sales is analysed as follows: 2019 2018 2017 Opening inventories 84,227 91,077 91,014 Purchases 139,205 177,591 180,872 Labour costs 86,209 89,827 92,330 Third party manufacturers costs 3,919 6,039 8,725 Other manufacturing costs 29,519 29,004 37,605 Government grants related to PPE (1,463 ) (1,061 ) (1,068 ) Closing inventories (69,685 ) (84,227 ) (91,077 ) Total 271,931 308,250 318,401 The line item “Other manufacturing costs” includes the depreciation expenses of property plant and equipment used in the production of finished goods. The depreciation expenses amount to 11,709, 7,455 and 8,565 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Other income and other expenses
Other income and other expenses | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other income and other expenses | 33 Other income and other expenses Other income is analysed as follows: 2019 2018 2017 VAT relief 1,216 1,392 — Reimbursement 519 — 1,650 Release of provisions for contingent liabilities 332 1,700 — Other 3,095 2,852 — Total 5,162 5,944 1,650 During 2019 and 2018 the Brazilian subsidiary obtained a VAT relief of 1,216 and 1,392, respectively, connected to local tax rules on VAT payments. During 2019 and 2017, the Company recorded a refund of 519 and 1,650, respectively, related to the positive outcome of litigation started in previous years and fully settled at year-end. During 2018 and 2019, the Company released provisions for legal claims by 332 and 1,700, respectively, further to the positive settlement of some legal disputes with suppliers. Other expenses include 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, 2019 | |
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Selling expenses | 34 Selling expenses Selling expenses are analysed as follows: 2019 2018 2017 Shipping and handling costs 35,513 40,765 40,952 Labour costs 23,782 24,772 26,210 Depreciation and amortization 11,805 2,274 2,124 Custom’s duties 9,261 2,860 — Commissions 8,393 10,225 9,512 Advertising 7,145 12,687 15,407 Utilities 2,457 2,394 2,301 Fairs 1,864 2,308 2,896 Commercial insurance cost 700 532 496 Promotion 651 920 1,252 Leases 649 12,553 11,946 Credit insurance cost 591 579 563 Samples 519 995 1,295 Consultancy 305 630 1,020 Other 1,615 503 2,280 Total 105,250 114,997 118,254 |
Administrative expenses
Administrative expenses | 12 Months Ended |
Dec. 31, 2019 | |
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Administrative expenses | 35 Administrative expenses Administrative expenses are analysed as follows: 2019 2018 2017 Labour costs 19,060 20,023 19,364 Consultancies 4,761 4,076 4,089 Non deductibles and indirect taxes 2,261 2,022 2,331 Travel expenses 2,226 2,712 3,210 Depreciation and amortization 1,585 1,301 1,668 Directors and auditors—fees 831 801 734 Mail & Phone 622 675 745 Printing & Stationery 381 457 500 Cars costs 236 487 507 Electronic data processing 12 96 118 Government grants related to PPE (163 ) — — Other 2,214 2,694 2,839 Total 34,026 35,344 36,105 |
Finance income and costs
Finance income and costs | 12 Months Ended |
Dec. 31, 2019 | |
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Finance income and costs | 36 Finance income and costs Finance income is analysed as follows: 2019 2018 2017 Interest income from financial institutions 121 191 325 Other interest income 279 188 927 Total 400 379 1,252 Finance costs are analysed as follows: 2019 2018 2017 Interest expenses due to financial institutions 2,864 3,298 3,140 Interests expenses from lease liabilities 2,635 — — Other interest expenses 431 498 1,499 Financial institution commissions 1,998 1,784 1,650 Total 7,928 5,580 6,289 |
Net exchange rate gains_(losses
Net exchange rate gains/(losses) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Net exchange rate gains (losses) | 37 Net exchange rate gains/(losses) Net exchange rate gains/(losses) are analysed as follows: 2019 2018 2017 Net realised gains/(losses) on derivative instruments (737 ) (906 ) 1,912 Net realised gains/(losses) on trade receivables and payables 1,600 3,353 445 Total net realised gains (a) 863 2,447 2,357 Net unrealised gains/(losses) on derivative instruments (638 ) (57 ) 943 Net unrealised gains/(losses) on trade receivables and payables (531 ) (5,437 ) (48 ) Net unrealised gains/(losses) on non-monetary (2,034 ) (867 ) (2,219 ) Total net unrealised losses (b) (3,203 ) (6,361 ) (1,324 ) Total realised and unrealised exchange rate gains/(losses) (a+b) (2,340 ) (3,914 ) 1,033 “Net unrealised gains/(losses) on non-monetary non-monetary |
Income tax expense
Income tax expense | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Income tax expense | 38 Income tax expense Italian companies are subject to two enacted income taxes at the following rates: 2019 2018 2017 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. The 2016 budget law (Law n. 208 of December 28, 2015) was passed by the Italian Parliament on December 22, 2015 with significant changes relating to Italy’s corporate income tax. In fact, the Italian tax rate has been reduced from 27.5% to 24.0% starting from fiscal year 2017. 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 2019, 2018 and 2017 is 4.82% (3.90% plus 0.92%). Total income taxes for the years ended December 31, 2019, 2018 and 2017 are allocated as follows: 2019 2018 2017 Current: - Domestic (585 ) (4,504 ) (40 ) - Foreign (1,400 ) (3,052 ) (3,777 ) Total (a) (1,985 ) (7,556 ) (3,817 ) Deferred: - Domestic (387 ) 270 (310 ) - Foreign 37 (143 ) 1,241 Total (b) (350 ) 127 931 Total (a + b) (2,335 ) (7,429 ) (2,886 ) Consolidated profit/(loss) before income taxes and Non-controlling 2019 2018 2017 Domestic (24,808 ) 40,822 (28,358 ) Foreign (6,537 ) (274 ) 399 Total (31,345 ) 40,548 (27,959 ) The effective income taxes differ from the expected income tax expense (computed by applying the IRES state tax, which is 24% for 2019, 2018 and 2017, to income before income taxes and Non-controlling 2019 2018 2017 Expected tax benefit (expense) at statutory tax rates 7,523 (9,732 ) 6,710 Effect of: - Tax exempt income 3,297 1,665 952 - Aggregate effect of different tax rates in foreign jurisdictions (139 ) 208 25 - Italian regional tax (78 ) (46 ) (39 ) - Non-deductible (4,521 ) (2,667 ) (1,972 ) - Tax effect on unremitted earnings (430 ) (1,252 ) (1,998 ) - Non taxable gain from disposal and loss of control of a subsidiary — 17,193 — - Chinese withholding tax on income not recoverable (139 ) (4,458 ) — - Tax audit settlement for other taxes — — 930 - Effect of net change in deferred tax assets unrecognised (7,848 ) (8,340 ) (7,494 ) Actual tax charge (2,335 ) (7,429 ) (2,886 ) The effective income tax rates for the years ended December 31, 2019, 2018 and 2017 are 7.45%, 18.32% and 10.32%, respectively. The income tax payable recorded as at December 31, 2019 and 2018 is 1,283 and 880, respectively. Whereas, the current income tax receivable recorded as at December 31, 2019 and 2018 is 1,082 and 1,986, respectively. The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as at December 31, 2019 and 2018 are presented below: Deferred tax assets 31/12/19 31/12/18 Deferred costs 845 — Provision for contingent liabilities 677 621 Inventories obsolescence 297 152 Intercompany profit on inventories 59 1,162 Other temporary differences 96 92 Total deferred tax assets 1,974 2,027 Deferred tax liabilities 31/12/19 31/12/18 Deferred revenue (IFRS 15) (934 ) (716 ) Unrealised net gains on foreign exchange rate (396 ) (735 ) Withholding tax on unremitted earnings of subsidiaries (430 ) — Other temporary differences (131 ) (143 ) Total deferred tax liabilities (1,891 ) (1,594 ) 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, 2019 and 2018. 31/12/19 31/12/18 Deferred tax assets 1,974 2,027 Deferred tax liabilities compensated (1,461 ) (1,552 ) Net deferred tax assets 513 475 Deferred tax liabilities (430 ) (42 ) Movements in deferred tax balances occurred during 2019, 2018 and 2017 are analysed as follows: Def. tax assets Def. tax liabilities Total Balance as at January 1, 2017 2,557 (3,174 ) (617 ) Recognised in profit or loss 99 832 931 Recognised in OCI — (8 ) (8 ) Balance as at December 31, 2017 2,656 (2,350 ) 306 Recognised in profit or loss (629 ) 756 127 Recognised in OCI — — — Balance as at December 31, 2018 2,027 (1,594 ) 433 Recognised in profit or loss (53 ) (297 ) (350 ) Recognised in OCI — — — Balance as at December 31, 2019 1,974 (1,891 ) 83 The deferred taxes reported above have been calculated considering the tax rate reduction from 27.5% to 24.0% approved by the Italian Parliament and starting from 2017. Therefore, the tax rate applied to calculate each of the Italian deferred tax assets and liabilities has been set considering the estimated period in which each of the related temporary differences will be reversed. Deferred tax assets recognised are mainly related to deferred costs recorded by the Company and provisions for contingent liabilities and inventories obsolescence recorded by Natuzzi China Ltd. 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, 2019 and 2018, 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, 2019 and 2018, management has not identified any relevant tax planning strategies prudent and feasible available to increase the recognition of the deferred tax assets. Therefore, as at December 31, 2019 and 2018 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 1,974 as at December 31, 2019 (2,027 as at December 31, 2018). 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 31/12/19 31/12/18 Tax loss carry-forwards 97,544 99,133 Provision for contingent liabilities 5,839 3,234 Inventory obsolescence 2,336 2,055 Allowance for doubtful accounts 2,296 2,145 Intercompany profit on inventories 1,643 1,040 Provision for warranties 1,419 1,343 Impairment of property, plant and equipment 984 1,228 Goodwill and intangible assets 483 569 IAS 19 adjustment - employees’ leaving entitlement 389 470 Deferred costs — 541 Other temporary differences 1,124 1,304 Total unrecognised deferred tax assets 114,057 113,062 As at December 31, 2019 and 2018, taxes that will be due on the distribution of the portion of shareholders’ equity equal to unremitted earnings of some subsidiaries are 2,626 and 2,901, respectively. The Group has not provided for such taxes as at likelihood of distribution is not probable. As at December 31, 2019 and 2018 the tax losses carried-forward of the Group expire as follows: 2019 Expire date 2018 Expire date Expire in five years 26,180 2020-2024 25,647 2019-2023 Expire after five years 34,078 > 2024 39,333 > 2023 Never expire 339,563 — 328,650 — Total 399,821 393,630 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 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 2015. |
Earnings_(losses) per share
Earnings/(losses) per share | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Earnings/(losses) per share | 39 Earnings/(losses) per share Basic and diluted earnings/(losses) per share is analysed as follows: 2019 2018 2017 Weighted average number of ordinary shares 54,853,045 54,853,045 54,853,045 Basic earnings/(losses) per share (0.61 ) 0.61 (0.55 ) Diluted earnings/(losses) per share (0.61 ) 0.61 (0.55 ) Basic earnings/(losses) per share is calculated by dividing earnings/(losses) for the year, attributable to ordinary equity holders of the Parent Company, by the weighted average number of ordinary shares outstanding during the year. The weighted-average number of ordinary shares equals the number of ordinary shares issued as at December 31, 2019, 2018 and 2017 since there have been no transactions involving ordinary shares both in 2019, 2018 and 2017. Diluted earnings/(losses) per share as at December 31, 2019, 2018 and 2017 equals the basic losses per share, since the Parent Company has not issued any financial instruments convertible to ordinary shares, and there are therefore no dilutive impacts. 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. 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, 2019 | |
Text block [abstract] | |
Expenses by nature | 40 Expenses by nature The following table shows the expenses by nature for the years ended December 31, 2019, 2018 and 2017 as required by IAS 1.104. 2019 2018 2017 Changes in inventories 14,542 6,850 (63 ) Raw materials and consumables 139,205 177,591 180,872 Services 91,526 107,074 118,681 Employee benefits expense 129,051 134,622 137,904 Depreciation and amortization, net of government grants 23,487 10,003 11,362 Other 13,396 22,451 24,004 Total cost of sales, selling and administrative expenses 411,207 458,591 472,760 The following tables show in which caption is included the depreciation and amortization, net of government grants. Included in cost of sales 2019 2018 2017 Depreciation of property, plant and equipment 7,867 7,455 8,565 Depreciation of right-of-use 3,842 — — Amortisation of intangible assets 14 34 73 Government grants (1,463 ) (1,061 ) (1,068 ) Total (a) 10,260 6,428 7,570 Included in selling expenses Depreciation of property, plant and equipment 2,721 2,274 1,818 Depreciation of right-of-use 9,084 — — Amortisation of intangible assets — — 306 Total (b) 11,805 2,274 2,124 Included in administrative expenses Depreciation of property, plant and equipment 381 425 478 Depreciation of right-of-use 301 — — Amortisation of intangible assets 903 876 1,190 Government grants (163 ) — — Total (c) 1,422 1,301 1,668 Total depreciation and amortization (a+b+c) 23,487 10,003 11,362 The following tables show in which caption is included the employee benefits expense. Included in cost of sales 2019 2018 2017 Salary and wages 60,756 62,815 57,401 Social security costs 17,251 18,310 18,854 Employees’ leaving entitlement 3,704 3,827 3,710 Other costs 4,498 4,875 12,365 Total (a) 86,209 89,827 92,330 Included in selling expenses Salary and wages 18,736 19,754 20,475 Social security costs 3,800 4,019 4,376 Employees’ leaving entitlement 557 350 660 Other costs 689 649 699 Total (b) 23,782 24,772 26,210 Included in administrative expenses Salary and wages 13,725 14,585 13,843 Social security costs 3,502 3,638 3,570 Employees’ leaving entitlement 664 635 831 Other costs 1,169 1,165 1,120 Total (c) 19,060 20,023 19,364 Total employee benefits expense (a+b+c) 129,051 134,622 137,904 |
Adjusted earnings before intere
Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) | 41 Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) Management supplementally has presented the performance measure Adjusted EBITDA because it monitors this performance measure at a consolidated level and it believes that this measure is relevant to an understanding of the Group’s financial performance. Adjusted EBITDA is calculated by adjusting profit or loss from continuing operations to exclude the impact of taxation, net finance income/(costs), depreciation, amortisation, government grants related to depreciation and share of profit of equity-method investees. Adjusted EBITDA is not a defined performance measure in IFRS. The Group’s definition of Adjusted EBITDA may not be comparable with similarly titled performance measures and disclosures by other entities. The following tables show the reconciliation of Adjusted EBITDA to profit/(loss) for the years ended December 31, 2019, 2018 and 2017. 2019 2018 2017 Profit/(loss) for the year (33,680 ) 33,119 (30,845 ) Income tax expense 2,335 7,429 2,886 Profit/(loss) before tax (31,345 ) 40,548 (27,959 ) Adjustments for: - Net finance income/(costs) 9,868 (66,296 ) 4,004 - Share of profit/(loss) equity-method investees (1,011 ) 290 — - Depreciation 24,196 10,154 10,861 - Amortisation 917 910 1,569 - Government grants (1,626 ) (1,061 ) (1,068 ) Adjusted EBITDA 999 (15,455 ) (12,593 ) The Group initially applied IFRS 16 as at January 1, 2019 (see note 5(A)). In applying IFRS 16, in relation to the leases that were classified as operating leases, the Group recognises depreciation and interest costs, instead of operating lease expense. In relation to those leases, the Group recognised 13,227 of depreciation charges and 2,635 of additional interest costs from leases in 2019. Further, the Group used the modified retrospective approach when initially applying IFRS 16 and under such approach comparative information is not restated. |
Commitments and contingent liab
Commitments and contingent liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Commitments and contingent liabilities | 42 Commitments and contingent liabilities As at December 31, 2019, the Group is not committed to investing in significant property, plant and equipment, intangibles assets and other capital expenditure. Certain financial institutions have provided guarantees as at December 31, 2019 to secure payments to third parties amounting to 6, 7 The Group is involved in a number of certain and probable 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 provision 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, 2019 | |
Text block [abstract] | |
Related parties | 43 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: 2019 2018 2017 Directors’ fee 400 387 270 Short-term employee benefits 1,704 1,875 1,853 Social security contributions and defined contribution plans 563 500 500 Employee Benefit Obligations 118 110 133 Total 2,785 2,872 2,756 The amounts disclosed in the table 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 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, 2019 Sales Expenses Amounts owed by Amounts due to Natuzzi Trading Shanghai Co, Ltd. 36,442 124 3,619 124 Nars Miami LLCC 646 — 169 — Natuzzi Design S.a.s. 1,686 — 1,013 — Natuzzi Arredamenti S.r.l. 842 — 367 — Natuzzi Sofa S.r.l. 249 — 67 — Total 39,865 124 5,235 124 December 31, 2018 Sales Expenses Amounts owed by Amounts due to Natuzzi Trading Shanghai Co, Ltd. 12,589 1,001 7,383 1,001 Nars Miami LLCC 776 — 191 — Natuzzi Design S.a.s. 1,750 — 1,338 — Natuzzi Arredamenti S.r.l. 1,010 — 343 — Natuzzi Sofa S.r.l. 291 — 78 — NA.FO. S.r.l. — — — 3 Total 16,416 1,001 9,333 1,004 December 31, 2017 Sales Expenses Amounts owed by Amounts due to Nars Miami LLCC 742 — 70 — Natuzzi Design S.a.s. 1,591 — 930 — Natuzzi Arredamenti S.r.l. 946 — 329 — Natuzzi Sofa S.r.l. 310 — 78 — NA.FO. S.r.l. 4 — — 8 Total 3,593 — 1,407 8 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Subsequent events | 44 Subsequent events The following events have occurred in the period between the reporting date and the date of authorisation of these consolidated financial statements. (i) Financial support from the Parent’s majority shareholder In light of the extraordinary challenges imposed by COVID-19 (ii) COVID-19 On March 11, 2020, the World Health Organisation declared the Coronavirus COVID-19 The COVID-19 Since the outbreak of the Coronavirus pandemic in Italy and worldwide, the Group has been working relentlessly to guarantee the health and safety of its employees, customers and suppliers, in compliance with the indications provided by the regional and national health authorities. The Group promptly developed a specific Crisis Response Plan and immediately put in place a series of measures at all levels of its organisation both at headquarters and at the foreign subsidiaries, involving all the relevant functions. The Group Crisis Unit in Italy is in operation 24 hours a day and it constantly liaises with the foreign group companies; it reviews the situation daily and adjusts the status of the action plan with the CEO. All travel abroad, to and from risk areas, has been cancelled or reduced to a minimum, and is limited to guaranteeing operational requirements, also considering that specific limitations may be placed on travelling to and from Italy. The Group has also been making wide use of the remote work option, which involves almost the entirety of its resources, to ensure seamless continuity vis-à-vis During the four-month period ended as at April 30, 2020, the COVID-19 so-called The plans implemented by management to mitigate the above adverse effects of such event are described in note 3(f) to these consolidated financial statements. Furthermore, the Group has performed a sensitivity analysis for the impairment of its financial and non-financial |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [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. Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling Non-controlling (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. Natuzzi S.p.A. has only one joint venture as at December 31, 2019 and 2018 (see note 11). (v) Equity method Under the equity method of accounting, the 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 movements 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 an impairment of the asset transferred. 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 non-controlling non-controlling 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) revenues and expenses for each statement of profit or loss and statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case revenues and expenses are translated at the dates of the transactions); (c) and all resulting exchange differences are recognised in other comprehensive income. Since January 1, 2017, the Group’s date of transition to IFRSs, such differences have been 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 Two foreign subsidiaries are considered to be an integral part of Natuzzi S.p.A. (the Parent Company) due to the primary and secondary indicators reported in IAS 21 paragraphs 9 and 10. Therefore, the functional currency for these foreign subsidiaries is the functional currency of the Parent, namely the Euro. As a result, all monetary assets and liabilities are remeasured, at the end of each reporting period, using Euro and the resulting gain or loss is recognised in profit or loss. For all non-monetary non-Euro non-Euro |
Foreign currency transactions | (d) Foreign currency transactions Transactions in foreign currencies are translated into 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 at the exchange rate at the reporting date. Non-monetary |
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 its 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 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 The Group has applied IFRS 16 “Leases” using the modified retrospective approach, under which comparative information is not restated. The Group reports below the accounting policies under both IFRS 16 (for the current period) and IAS 17 (for the comparative period presented) in order for users to understand the current period as well as comparative information and changes in significant accounting policies. As at January 1, 2019 and December 31, 2019 the Group does 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 right-of-use right-of-use right-of-use re-measurements 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 leases in the Group, the lessee’s incremental borrowing rate is used, 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 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 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 right-of-use The Group presents right-of-use The Group has elected not to recognise right-of-use (ii) Policy applicable before 1 January 2019 as a lessee For contracts entered into before 1 January 2019, the Group determined whether the arrangement was or contained a lease based on the assessment of whether fulfilment of the arrangement was dependent on the use of a specific asset or assets and the arrangement had conveyed a right to use the asset. An arrangement conveyed the right to use the asset if one of the following was met: (a) the purchaser had the ability or right to operate the asset while obtaining or controlling more than an insignificant amount of the output; (b) the purchaser had the ability or right to control physical access to the asset while obtaining or controlling more than an insignificant amount of the output; or (c) facts and circumstances indicated that it was remote that other parties would take more than an insignificant amount of the output, and the price per unit was neither fixed per unit of output nor equal to the current market price per unit of output. In the comparative period, as a lessee the Group classified leases that transferred substantially all of the risks and rewards of ownership as finance leases. When this was the case, the leased assets were measured initially at an amount equal to the lower of their fair value and the present value of the minimum lease payments. Minimum lease payments were the payments over the lease term that the lessee was required to make, excluding any contingent rent. Subsequent to initial recognition, the assets were accounted for in accordance with the accounting policy applicable to that asset. Assets held under other leases were classified as operating leases and were not recognised in the Group’s statement of financial position. Payments made under operating leases were recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received were recognised as an integral part of the total lease expense, over the term of the lease. |
Business combinations | (g) Business combinations (i) Acquisitions on or after January 1, 2017 The Group accounts for business combinations using the acquisition method when control is transferred to the Group (see 4(a)(i)). 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 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 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 remeasured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognised in profit or loss. (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 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 At each reporting date, the Group reviews the carrying amounts of its non-financial 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 CGUs 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 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 a joint venture. Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is an arrangement 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 the joint venture 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 realizable value. Goods in process and finished goods are valued at the lower of production cost and net realizable 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 realizable value. The provision for slow moving and obsolete raw materials and finished goods is based on the estimated realizable 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 4n(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 For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, 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. Cash and cash equivalents are recorded at their nominal amount as it substantially coincides with the fair value. |
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 measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. In particular, the Group adopted the practical expedient to use a provision matrix that it 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 The expected loss rates are based on the payment profiles of sales over a period of 36 months before December 31, 2019 or January 1, 2019, 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 measures the expected credit losses for individual receivables which are known to be uncollectible based on the financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and default or late payments. Trade receivables are written off when there is no reasonable expectation of recovery. 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 1 8 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–months expected credit losses basis. Management considers other receivables to have a low credit risk if they have a low risk of default and their counterparties are able to meet its contractual cash flow obligations in the short-term. (iii) Cash and cash equivalents The 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-months expected credit losses basis and reflects the short-term nature of the exposures. The Group considers cash and cash equivalents to have “low credit risk” based on the external credit ratings of the financial institutions. |
Trade and other payables | (o) Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year 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 of the loan 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 financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash 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' leaving entitlement | (q) 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 may be 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 |
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 (see note 5 (C)). Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to 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 (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 cash flow hedge 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 cash flow hedge 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 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 cash flow hedge 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 remains in equity until the forecast transaction occurs, resulting in the recognition of a non-financial (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. (iii) Derivative financial instruments and hedge accounting – Policy applicable before January 1, 2018 The policy applied in the comparative information presented as at December 31, 2017 is in accordance with the previous Italian GAAP. For additional details refers to note 5. |
Revenues from contracts with customers | (t) Revenues 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 The Group sells a wide range of upholstered furniture (upholstered sofas and beds) and home furnishing accessories (for instance coffee tables, lamps, rugs, wall units) in the wholesale market (Natuzzi branded products and private label products). The upholstered furniture is manufactured in the plants located in Italy, Romania, China and Brazil. Sales are recognised when control of the products has transferred, being 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 months period. 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 60-90 A 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 The Group operates a chain of retail stores (Natuzzi Italia stores, Natuzzi Edition stores and Divani & Divani by Natuzzi stores) selling a wide range of upholstered furniture (upholstered sofas and beds) and home furnishing accessories (for instance coffee tables, lamps, rugs, 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 by-products The Group sells polyurethane foam, because the facility’s production is in excess of the Group’s needs, and leather by-products 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 60-90 A 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 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 60-90 The Group recognises to 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 other assets. (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 contract liabilities. (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, labor costs (included one-time right-of-use-assets right-of-use-assets, Selling expenses consist of the following expenses: shipping and handling costs incurred for transporting finished products to customers, advertising costs, labor costs for sales personnel, rental expenses for stores, commissions to sales representatives and related costs, depreciation expense of property, plant and equipment and right-of-use-assets right-of-use-assets, Administrative expenses consist of the following expenses: costs for administrative personnel, advisory fees for accounting and information-technology services, traveling expenses for management and other personnel, depreciation expense related to property, plant and equipment and right-of-use-assets right-of-use-assets, 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 as fulfillment costs under the caption “other assets” of the consolidated 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, 2019, 2018 and 2017, are 35,513, 40,765 and 40,952, 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, 2019, 2018 and 2017 are 7,145, 12,687 and 15,407, 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 are 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 the profit or loss, as the amortisation period is less than one year. Commissions expenses recorded in the profit or loss for the years ended December 31, 2019, 2018 and 2017 are 8,393, 10,225 and 9,512, respectively. |
Government grants | (y) Government grants Grants from the government are recognised at their fair value when there is a 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 the 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. The amortisation of the deferred grant is recognized in the profit or loss as reduction of 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, dividend income, net gain or loss on derivative financial instruments, foreign currency gain or loss on financial assets and financial liabilities, gain on the remeasurement to fair value of interest in a joint venture as a consequence of the lost of control, hedge ineffectiveness recognised in profit or loss. Interest income or expense is recognised using the effective interest method. Dividend income is recognised in profit or loss on the date on which the Group’s right to receive payment is established. 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 income 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 amount 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 | (ab) Operating profit 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 A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial When one is 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 per share | (ad) Earnings per share (i) Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares. (ii) Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income 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. |
Standards, amendments and interpretations issued but not yet effective | (ae) 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 2020 or subsequent years are listed below. In May 2017 the IASB issued IFRS 17 - Insurance Contracts 3 In October 2018 the IASB issued narrow scope amendments to IFRS 3 - Business Combinations In October 2018 the IASB issued amendments to IAS 1 - Presentation of Financial Statements IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors In September 2019 the IASB issued amendments to IFRS 9 - Financial Instruments, IAS 39 - Financial Instruments: Recognition and Measurement IFRS 7 - Financial Instruments: Disclosures In January 2020 the IASB issued amendments to IAS 1 - Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current non-current, In March 2018 the IASB revised the Conceptual Framework for Financial Reporting, Conceptual Framework Conceptual Framework |
Description of the business a_2
Description of the business and Group composition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018, together with the related percentages of ownership and other information, are as follows: Name Percentage of Percentage of Share/ quota capital 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 157,654,283 Salvador de Bahia, Brazil (1 ) Natco S.p.A. 99.99 99.99 EUR 4,420,000 Santeramo in Colle, Italy (2 ) I.M.P.E. S.p.A. 100.00 100.00 EUR 1,000,000 Bari, Italy (3 ) Nacon S.p.A. 100.00 100.00 EUR 2,800,000 Santeramo in Colle, Italy (4 ) Lagene S.r.l. 100.00 100.00 EUR 10,000 Santeramo in Colle, Italy (4 ) Natuzzi Americas Inc. 100.00 100.00 USD 89 High Point, N. Carolina, USA (4 ) Natuzzi Iberica S.A. 100.00 100.00 EUR 386,255 Madrid, Spain (4 ) Natuzzi Switzerland AG 100.00 100.00 CHF 2,000,000 Dietikon, Switzerland (4 ) Natuzzi Germany Gmbh 100.00 100.00 EUR 25,000 Köln, Germany (4 ) Natuzzi Japan KK 100.00 100.00 JPY 28,000,000 Tokyo, Japan (4 ) Natuzzi Services Limited 100.00 100.00 GBP 25,349,353 London, UK (4 ) Natuzzi UK Retail Limited 70.00 — GBP 100 Cardiff (UK) (4 ) Natuzzi Russia OOO 100.00 100.00 RUB 8,700,000 Moscow, Russia (4 ) Natuzzi India Furniture PVT Ltd 100.00 100.00 INR 16,200,000 New Delhi, India (4 ) Natuzzi Florida LLC 51.00 51.00 USD 4,955,186 High Point, N. Carolina, USA (4 ) Natmex S.DE.R.L.DE.C.V 99.00 99.00 MXN 69,195,993 Mexico City, Mexico (4 ) Natuzzi France S.a.s. 100.00 100.00 EUR 200,100 Paris, France (4 ) Softaly (Furniture) Shanghai Co. Ltd 96.50 96.50 CNY 100,000 Shanghai, China (4 ) Natuzzi Oceania PTI Ltd 100.00 100.00 AUD 320,002 Sydney, Australia (4 ) Natuzzi Netherlands Holding 100.00 100.00 EUR 34,605,000 Amsterdam, Holland (5 ) New Comfort S.r.l. — 100.00 EUR 20,000 Santeramo in Colle, Italy (6 ) Italsofa Shanghai Ltd 96.50 96.50 CNY 124,154,580 Shanghai, China (6 ) Natuzzi Trade Service S.r.l. 100.00 100.00 EUR 14,000,000 Santeramo in Colle, Italy (6 ) (1) Manufacture and distribution (2) Intragroup leather dyeing and finishing (3) Production and distribution of polyurethane foam (4) Services and distribution (5) Investment holding (6) Dormant |
Summary of detailed information about material non-controlling interests | The following table summarises the information relating to the only material non-controlling Summarized statement of financial position of Natuzzi Florida LLC and Non-controlling 31/12/19 31/12/18 Current assets 2,870 3,890 Non-current 10,479 1,713 Current liabilities (4,186 ) (4,033 ) Non-current (7,267 ) — Net assets 1,896 1,570 Net assets attributable to NCI – 49% 929 769 Summarized statement of profit or loss of Natuzzi Florida LLC and Non-controlling 2019 2018 Revenue 10,163 8,201 Expenses (10,581 ) (8,540 ) Loss for the year (418 ) (339 ) Other comprehensive income 37 57 Total comprehensive loss for the year (381 ) (282 ) Loss allocated to NCI – 49% (205 ) (166 ) OCI allocated to NCI 18 28 Cash flow provided by operating activities 1,530 179 Cash flow used in investing activities (1,188 ) (543 ) Cash flow used in financing activities (dividends to NCI: nil) (603 ) — |
Changes in significant accoun_2
Changes in significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary Of Impact Of Rightofuse Asset And Lease Liabilities Included In Consolidated Statement Of Financial Position | Impact on the consolidated statement of financial position as at January 1, 2019 Right-of-use 56,758 Decrease of right-of-use (960 ) Decrease of other liabilities for lease incentives 960 Lease liabilities (56,758 ) Retained earnings — |
Summary Of Valuation Of Operating Lease Liabilites As On Opening Date | Reconciliation of operating lease to lease liabilities as at January 1, 2019 Operating lease commitments as at December 31, 2018 as disclosed 80,740 Effect due to discounted using the incremental borrowing rate as at January 1, 2019 63,320 Effect due to recognition exemption for leases of low-value assets (33 ) Effect due to recognition exemption for leases with less than 12 months of lease term at transition (1,744 ) Effect due to extension options and other (4,785 ) Lease liabilities recognised as at January 1, 2019 56,758 |
Summary of Measurement of Financial Assets and Financial Liabilities | The following tables show the original measurement categories under previous Italian GAAP and the new measurement categories under IFRS 9 for each class of the Group’s financial assets and financial liabilities as at January 1, 2018. Original classification under previous GAAP New classification under IFRS 9 Original carrying amount under previous GAAP New carrying amount under IFRS 9 Financial assets Other non-current Amortised cost Amortised cost 1,402 1,402 Trade receivables Amortised cost Amortised cost 37,549 37,512 Other current receivables Amortised cost Amortised cost 12,910 12,910 Cash and cash equivalents Amortised cost Amortised cost 55,035 55,035 Gains on derivative financial instruments FVTPL FVTPL 339 339 Total financial assets 107,235 107,198 Original classification under previous GAAP New classification under IFRS 9 Original carrying amount under previous GAAP New carrying amount under IFRS 9 Financial liabilities Long-term borrowings Amortised cost Amortised cost 25,717 25,717 Bank overdrafts and short-term borrowings Amortised cost Amortised cost 25,967 25,967 Trade payables Amortised cost Amortised cost 76,035 76,035 Other payables Amortised cost Amortised cost 27,587 27,587 Losses on derivative financial instruments FVTPL FVTPL 267 267 Total financial liabilities 155,573 155,573 |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Fair Value of Assets and Liabilities | The following table summarizes the fair value of the assets acquired and liabilities assumed at date of acquisition. Inventory 1,895 Other assets 187 Total identifiable net assets acquired 2,082 Goodwill arising on acquisition 2,041 Consideration transferred 4,123 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment and Related Accumulated Depreciation | Changes in the carrying amount of property, plant and equipment and accumulated depreciation for the years ended December 31, 2019 and 2018 are analysed in the following tables. Land and buildings Machinery and equipment Office furniture and equipment Retail gallery and store furnishing Leasehold improvements Constr. in progress Total Cost as at December 31, 2017 169,273 132,240 15,412 32,586 19,450 272 369,233 Additions 646 2,320 365 881 2,288 660 7,160 Disposals (27 ) (7,905 ) (725 ) (20,329 ) (917 ) — (29,903 ) Effect of translation adj. 153 (301 ) 27 356 (85 ) (20 ) 130 Cost as at December 31, 2018 170,045 126,354 15,079 13,494 20,736 912 346,620 Additions 560 1,510 126 285 1,671 38 4,190 Disposals (3 ) (522 ) (114 ) (4 ) — — (643 ) Reclassifications — 183 — — 545 (728 ) — Effect of translation adj. 213 (60 ) 32 (43 ) 423 33 598 Cost as at December 31, 2019 170,815 127,465 15,123 13,732 23,375 255 350,765 Land and buildings Machinery and equipment Office furniture and equipment Retail gallery and store furnishing Leasehold improvements Constr. in progress Total Accumulated depreciation as at December 31, 2017 (81,888 ) (114,485 ) (14,252 ) (31,821 ) (11,597 ) — (254,043 ) Depreciation (4,018 ) (3,381 ) (204 ) (140 ) (2,411 ) — (10,154 ) Disposals 23 7,588 369 20,060 501 — 28,541 Effect of translation adj. (100 ) 484 4 (357 ) 91 — 122 Accumulated depreciation as at December 31, 2018 (85,983 ) (109,794 ) (14,083 ) (12,258 ) (13,416 ) — (235,534 ) Depreciation (3,984 ) (3,221 ) (381 ) (535 ) (2,848 ) — (10,969 ) Disposals — 462 112 3 — — 577 Effect of translation adj. (2,338 ) (1,120 ) 66 (206 ) 1,282 — (2,316 ) Accumulated depreciation as at December 31, 2019 (92,305 ) (113,673 ) (14,286 ) (12,996 ) (14,982 ) — (248,242 ) Net book value as at December 31, 2017 87,385 17,755 1,160 765 7,853 272 115,190 Net book value as at December 31, 2018 84,062 16,560 996 1,236 7,320 912 111,086 Net book value as at December 31, 2019 78,510 13,792 837 736 8,393 255 102,523 Annual rate of depreciation for 2019 and 2018 0%-10% 10%-25% 10%-20% 25%-35% 10%-20% — |
Summary of Property, Plant and Equipment by Country | The following tables show property, plant and equipment by country. 31/12/19 31/12/18 Italy 57,035 61,271 Romania 19,831 23,406 United States of America 17,800 17,830 Brazil 4,250 4,552 China 2,334 2,562 Europe 1,260 1,463 Other countries 13 2 Total 102,523 111,086 |
Right-of-use-assets (Tables)
Right-of-use-assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Summary of Information about leases right-of-use-assets | (i) Right-of-use Buildings Vehicles Total Cost as at January 1, 2019 55,159 639 55,798 Additions 10,786 395 11,181 Effect of translation adjustments 922 3 925 Cost as at December 31, 2019 66,867 1,037 67,904 Accumulated depreciation as at January 1, 2019 — — — Depreciation (12,926) (301) (13,227) Effect of translation adjustments 42 (1) 41 Accumulated depreciation as at December 31, 2019 (12,884) (302) (13,186) Net book value as at January 1, 2019 55,159 639 55,798 Net book value as at December 31, 2019 53,983 735 54,718 |
Summary of amounts recognized in statement of net income loss. | (ii) Amounts recognized in profit or loss under IFRS 16 for the year ended December 31, 2019 Depreciation charge of right-of-use 13,227 Interest on lease liabilities 2,635 Expenses relating to short-term leases 1,090 Expenses relating to leases of low-value low-value 132 Total 17,084 |
Intangibles assets and goodwi_2
Intangibles assets and goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Intangible Assets, Goodwill, and Accumulated Amortization | Changes in the carrying amount of intangible assets, goodwill, and accumulated amortization for the years ended December 31, 2019 and 2018 are analysed in the following tables. Trademarks patents and other Software Goodwill Total Cost as at December 31, 2017 13,896 28,926 3,846 46,668 Additions 169 711 — 880 Disposals (3 ) (42 ) — (45 ) Effect of translation adjustments (41 ) 22 101 82 Cost as at December 31, 2018 14,021 29,617 3,947 47,585 Additions 66 847 — 913 Disposals — — — — Effect of translation adjustments (1 ) 7 121 127 Cost as at December 31, 2019 14,086 30,471 4,068 48,625 Accumulated amortization as at December 31, 2017 (13,579 ) (27,252 ) — (40,831 ) Amortisation (158 ) (752 ) — (910 ) Disposals 1 42 — 43 Effect of translation adjustments 27 (22 ) — 5 Accumulated amortization as at December 31, 2018 (13,709 ) (27,984 ) — (41,693 ) Amortisation (150 ) (767 ) — (917 ) Disposals — — — — Effect of translation adjustments 225 (219 ) — 6 Accumulated amortization as at December 31, 2019 (13,634 ) (28,970 ) — (42,604 ) Net book value as at December 31, 2017 317 1,674 3,846 5,837 Net book value as at December 31, 2018 312 1,633 3,947 5,892 Net book value as at December 31, 2019 452 1,501 4,068 6,021 |
Summary of Inputs and Assumptions Used in Performing Impairment Test for Intangible Assets and Goodwill | The key inputs and assumptions that were used in performing the 2019 and 2018 impairment tests for goodwill are as follows. December 31, 2019 CGU Net book value Growth WACC Sales 2020-2024 Italy – retail stores 1,921 1.0% 9.05% 8.5% Mexico – retail stores 2,147 3.4% 13.92% 9.3% Total goodwill 4,068 December 31, 2018 CGU Net book value Growth WACC Sales Italy – retail stores 1,921 0.5% 11% 6% Mexico – retail stores 2,026 0.5% 18% 8.5% Total goodwill 3,947 |
Equity-method investees (Tables
Equity-method investees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [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, 2019 and 2018 are analysed as follows. Natuzzi Nars Salena Other Total Balance as at December 31, 2017 — 45 — 34 79 Acquisition of non-controlling 48,024 — — — 48,024 Elimination of intercompany profit (7,350 ) — — — (7,350 ) Share of profit/(loss) for the year (295 ) 39 — (34 ) (290 ) Share of other comprehensive income (246 ) — — — (246 ) Effect of translation adjustments — 3 — — 3 Balance as at December 31, 2018 40,133 87 — — 40,220 Share of profit for the year 992 19 — — 1,011 Share of other comprehensive income 111 — — — 111 Balance as at December 31, 2019 41,236 106 — — 41,342 |
Schedule of Fair Values of Identifiable Assets and Liabilities and Cash Flow Deriving from Transaction of Subsidiary | The fair values of the identifiable assets and liabilities of Natuzzi Trading Shanghai as at the date control was lost were the following: Assets Property, plant and equipment 541 Intangible assets 9,397 Other non-current 271 Deferred tax assets 167 Inventories 851 Trade receivables 243 Other current receivables 388 Restricted cash for capital contribution 35,000 Cash and cash equivalents 4,886 Total assets (a) 51,744 Liabilities Deferred tax liabilities 2,349 Trade payables 992 Other payables 3,710 Liabilities for current income tax 31 Total liabilities (b) 7,082 Total identifiable net assets at fair value c = (a-b) 44,662 49% interest measured at fair value (c x 49%) 21,884 Goodwill arising on the transaction 26,140 Fair value of the retained 49% interest 48,024 Details of the net cash flows deriving from the transaction are as follows: Cash received for the disposal of the 23.54% interest 30,000 Chinese withholding tax (2,958 ) Cash and cash equivalents of Natuzzi Trading Shanghai (4,886 ) Net cash flows as per cash flows statement 22,156 |
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 fair value of the retained interest in Natuzzi Trading Shanghai at the date of loss of control with the carrying amount as at December 31, 2018 included in the consolidated statement of financial position. Fair value at the date of loss of control 48,024 Elimination of intercompany profit from licensing Natuzzi trademarks (7,350 ) Group’s share of profit for the year 311 Elimination of amortisation of Natuzzi’s trademarks 153 Elimination of intercompany profit on inventories (597 ) Amortisation of intangibles assets (216 ) Reversal of deferred tax liabilities 54 Group’s share of loss for the year, net of equity method adjustments (295 ) (295 ) Group’s share of other comprehensive income (246 ) Carrying amount as at December 31, 2018 40,133 The following table shows the reconciliation of the carrying amount of the retained interest in Natuzzi Trading Shanghai as at December 31, 2018 with the carrying amount as at December 31, 2019 included in the consolidated statement of financial position. Carrying amount as at December 31, 2018 40,133 Group’s share of profit for the year 1,684 Elimination of amortisation of Natuzzi’s trademarks 368 Elimination of intercompany profit on inventories (671 ) Amortisation of intangibles assets (519 ) Reversal of deferred tax liabilities 130 Group’s share of profit for the year, net of equity method adjustments 992 992 Group’s share of other comprehensive income 111 Carrying amount as at December 31, 2019 41,236 |
Schedule of Cash and Cash Equivalents, Bank Overdrafts and Borrowings | As at December 31, 2019 and 2018 cash and cash equivalents, bank overdrafts and borrowings, lease liabilities current and non-current 31/12/19 31/12/18 Cash and cash equivalents 37,049 32,845 Bank overdrafts and borrowings — (360 ) Lease liabilities current (1,982 ) — Lease liabilities non-current (5,004 ) — Total, net 30,063 32,485 |
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 equity as at December 31, 2019 and 2018 31/12/19 31/12/18 Current assets 48,910 42,288 Non-current 23,166 15,785 Current liabilities (25,663 ) (20,328 ) Non-current (5,004 ) — Equity 41,409 37,745 Group’s share in equity – 49% 20,290 18,495 Intangible assets 3,870 4,389 Goodwill 26,140 26,140 Elimination of intercompany profit from licensing Natuzzi’s trademarks (6,829 ) (7,197 ) Elimination of intercompany profit on inventories (1,268 ) (597 ) Deferred tax liabilities (967 ) (1,097 ) Group’s carrying amount of the investment 41,236 40,133 Summarised statement of profit or loss of Natuzzi Trading Shanghai and Group’s share of profit for the year ended December 31, 2019 and for the period July 27, 2018 – December 31, 2018 2019 2018 Revenue 52,714 13,836 Cost of sales (33,754 ) (8,197 ) Other income and expenses, net 41 919 Selling expenses (13,570 ) (5,141 ) Administrative expenses (1,883 ) (632 ) Net finance income 1,194 350 Profit before tax 4,742 1,135 Income tax expense (1,304 ) (500 ) Profit for the period 3,438 635 Other comprehensive profit/(loss) 227 (503 ) Total comprehensive profit for the period 3,665 132 Group’s share of profit for the period – 49% 1,684 311 Elimination of amortisation of Natuzzi’s trademarks 368 153 Elimination of intercompany profit on inventories (671 ) (597 ) Amortisation of intangible assets (519 ) (216 ) Deferred tax liabilities 130 54 Group’s share of profit/(loss) for the period, net of equity method adj. 992 (295 ) Group’s share of other comprehensive income/(loss) for the period 111 (246 ) Group’s share of total comprehensive income/(loss) for the period 1,103 (541 ) |
Other non-current receivables (
Other non-current receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Non-Current Receivables | Other non-current 31/12/19 31/12/18 Security deposits for lease contracts 3,920 3,984 Receivable from disposal of assets 599 549 Total 4,519 4,533 |
Other assets (non-current and_2
Other assets (non-current and current) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Assets | Other assets are analysed as follows: 31/12/19 31/12/18 Advances to suppliers 4,507 3,471 Deferred costs for Natuzzi Display System 2,580 2,617 Deferred costs for slotting fees 1,951 1,922 Delivery and commission costs for sales derecognised 2,302 1,839 Deferred costs for Service-Type Warranty 389 452 Prepaid expenses and accrued income 408 1,165 Total other assets 12,137 11,466 Less current portion (9,241 ) (8,107 ) Non-current 2,896 3,359 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Inventories | Inventories are analysed as follows: 31/12/19 31/12/18 Leather and other raw materials 24,088 30,568 Goods in process 8,800 10,815 Finished goods 36,797 42,844 Total 69,685 84,227 |
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, 2019 and 2018. 31/12/19 31/12/18 Balance at beginning of year 9,341 8,464 Additions 2,892 1,564 Reductions (378 ) (687 ) Balance at end of year 11,855 9,341 |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Trade Receivables | Trade receivables by geographic region are analysed as follows: 31/12/19 31/12/18 Domestic customers 14,401 20,247 European customers 4,348 7,815 North American customers 4,986 3,573 South American customers 5,703 3,531 Chinese customers 4,055 7,233 Other foreign customers 4,393 8,195 Gross trade receivables 37,886 50,594 Allowance for doubtful accounts (8,699 ) (9,627 ) Total trade receivables 29,187 40,967 |
Summary of Trade Receivables and Revenue | As at December 31, 2019 and 2018 and for each year of the two-year Year No. of customers % of trade receivables 2019 — — 2018 2 21% |
Summary of Provision for Doubtful Accounts | The following tables provide the movements in the allowance for doubtful accounts for the years ended December 31, 2019 and 2018. 31/12/19 31/12/18 Balance at beginning of year 9,627 10,775 Effect of the adoption of IFRS 9 (see note 5(C)) — 37 Charges – bad debt expense 2,389 745 Reductions – write off of uncollectible amounts (3,317 ) (1,930 ) Balance at end of year 8,699 9,627 |
Other current receivables (Tabl
Other current receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Current Receivables | Other current receivables are analysed as follows: 31/12/19 31/12/18 VAT 3,939 4,217 Receivables from National Institute for Social Security 2,004 1,533 Other 1,780 3,757 Total 7,723 9,507 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Cash and Cash Equivalents | Cash and cash equivalents are analysed as follows: 31/12/19 31/12/18 Cash on hand 188 439 Bank accounts 39,611 61,692 Total 39,799 62,131 |
Summary of Cash and Cash Equivalents by Geographic Area | Furthermore, the following tables show the Group’s cash and cash equivalents broken-down by region. 31/12/19 31/12/18 Europe 21,168 40,479 China 16,572 18,290 North America 1,317 2,857 South America 575 318 Other 167 187 Total 39,799 62,131 |
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: 31/12/19 31/12/18 31/12/17 Cash and cash equivalents in the statement of financial position 39,799 62,131 55,035 Bank overdrafts repayable on demand (1,974 ) (1,762 ) — Cash and cash equivalents in the statement of cash flows 37,825 60,369 55,035 |
Share Capital, reserves and r_2
Share Capital, reserves and retained earnings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Changes in Equity Interest | As at December 31, 2019, 2018 and 2017 the equity attributable to owners of the Company is analysed as follows: 31/12/19 31/12/18 31/12/17 Share capital 54,853 54,853 54,853 Reserves 17,147 17,198 16,398 Retained earnings 31,126 64,496 31,244 Total 103,126 136,547 102,495 |
Disclosure of Share Capital Owned | Share capital is owned, as at December 31, 2019, 2018 and 2017, as follows: 31/12/19 31/12/18 31/12/17 Mr. Pasquale Natuzzi 56.5% 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 38.4% 38.4% 38.4% Total 100.0 % 100.0 % 100.0 % |
Analysis of Share Capital Reserves | An analysis of “Reserves” is as follows: 31/12/19 31/12/18 31/12/17 Legal reserve 10,971 10,971 10,971 Majority shareholder capital contribution 488 488 488 Foreign operations translation reserve 5,846 5,282 5,055 Remeasurement of defined benefit plan (158) 457 (116) Total 17,147 17,198 16,398 |
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, 2019 Foreign operations Remeasurement of Total Exchange difference on translation of foreign operations 475 — 475 Share of OCI of equity-method investees 111 — 111 Actuarial losses on employees’ leaving entitlement — (615 ) (615 ) Total 586 (615 ) (29 ) Year ended December 31, 2018 Foreign operations Remeasurement of Total Exchange difference on translation of foreign operations 497 — 497 Share of OCI of equity-method investees (246) — (246) Actuarial gains on employees’ leaving entitlement — 573 573 Total 251 573 824 Year ended December 31, 2017 Foreign operations Remeasurement of Total Exchange difference on translation of foreign operations (7,778) — (7,778) Actuarial gains on employees’ leaving entitlement — 116 (116) Total (7,778 ) 116 (7,894 ) |
Disclosure Of Net Debt To Equity Ratio | The Group’s net debt to equity ratio as at December 31, 2019 and 2018 is as follows: 31/12/19 31/12/18 Total liabilities 264,576 234,527 Less cash and cash equivalents (39,799 ) (62,131 ) Net debt (a) 224,777 172,396 Total equity (b) 104,818 138,181 Net debt to equity ratio (a/b) 2.14 1.25 |
Long-term borrowings (Tables)
Long-term borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Detailed Information About Loans Outstanding | Long-term borrowings as at December 31, 2019 and 2018 consist of the following: 31/12/19 31/12/18 6-months — 893 6-months 4,601 6,631 3-months 1,500 2,500 6-months 42 83 3-months 428 628 3-months . 1,125 1,625 3-months 1,191 1,583 2.3% fixed long-term debt with final payment due July 2025 6,075 7,000 0.210% fixed long-term debt with final payment due December 2030 3,105 — 80% of 6-months 345 — Total long-term debt 18,412 20,943 Less current installments (4,321 ) (10,582 ) Long-term borrowings, excluding current installments 14,091 10,361 |
Lease liabilities (non-curren_2
Lease liabilities (non-current and current) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 Non-current 46,053 Current portion of the lease liabilities 11,314 Total 57,367 |
Summary of Changes in Carrying Amount of Lease Liabilities | Changes in the carrying amount of the lease liabilities for the year ended December 31, 2019 is reported in the following table. Balance as at January 1, 2019 56,758 Additions for new leases 11,544 Interest expenses 2,291 Lease payments (14,251) Effect of translation adjustments 1,025 Balance as at December 31, 2019 57,367 |
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, 2019 is reported in the table below. Less than one year 13,928 One to five years 36,540 More than five years 17,760 Total undiscounted lease liabilities as at December 31, 2019 68,228 |
Employees' leaving entitlement
Employees' leaving entitlement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Changes to Employees' Leaving Entitlement | Changes to employees’ leaving entitlement occurring during 2019 and 2018 are analysed as follows: 31/12/19 31/12/18 Balance at beginning of year 17,181 18,820 Current service cost 111 148 Interest expense 253 235 Benefits paid (2,039) (1,449) Actuarial gains/(losses) 615 (573) Balance at end of year 16,121 17,181 |
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: 31/12/19 31/12/18 Annual discount rate 0.77% 1.57% Annual future salary increase rate 0.00% 0.00% Annual inflation rate 1.20% 1.50% Annual DBO increase rate 2.400% 2.625% 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 4.00% 4.00% 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, 2019 and 2018 is reported as follows: 31/12/19 31/12/18 +1% on turnover rate (111) (68) -1% on turnover rate 123 75 +0.25% on annual inflation rate 231 259 -0.25% on annual inflation rate (227) (256) +0.25% on annual discount rate (360) (402) -0.25% on annual discount rate 373 417 |
Schedule of Expected Payments or Contributions to Defined Benefit Plan | The following are the expected payments of the employees’ leaving entitlement in future years: 31/12/19 31/12/18 Within 1 year 1,203 1,065 Between 2 and 5 years 3,704 4,181 |
Contract liabilities (non-cur_2
Contract liabilities (non-current and current) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Contract Liabilities | Contract liabilities as at December 31, 2019 and 2018 consist of the following: 31/12/19 31/12/18 Advance payments from customers 11,821 10,312 Deferred income from licensing of Natuzzi’ s trademarks 7,108 7,491 Deferred revenue for Natuzzi Display System 3,369 3,399 Deferred revenue for Service-Type Warranty 805 897 Total contract liabilities 23,103 22,099 Less non-current (9,089) (9,934) Current portion 14,014 12,165 |
Provisions (non-current and c_2
Provisions (non-current and current) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Disclosure of Provision Related to Investment | Provisions as at December 31, 2019 and 2018 consist of the following: 31/12/19 31/12/18 Provision for legal claims 10,469 10,926 Provision for tax claims 641 1,098 Provision for warranties 4,489 4,476 Termination indemnities for sales agents 1,197 1,141 Other provisions 659 1,337 Total provisions 17,455 18,978 Less current portion (4,489) (4,476) Non-current 12,966 14,502 |
Disclosure of Changes in Provision Related to Investment | Changes in the above provisions for the years ended December 31, 2019 and 2018 are analysed as follows: Provision Provision Provision Termination Other Total Balance as at December 31, 2017 13,008 1,912 5,957 1,196 599 22,672 Provisions made during the year 1,225 — 1,180 177 1,792 4,374 Reductions of the year (3,307) (814) (2,661) (232) (1,054) (8,068) Balance as at December 31, 2018 10,926 1,098 4,476 1,141 1,337 18,978 Provisions made during the year 1,941 267 2,370 115 3,905 8,598 Reductions of the year (2,398) (724) (2,357) (59) (4,583) (10,121) Balance as at December 31, 2019 10,469 641 4,489 1,197 659 17,455 |
Deferred income for governmen_2
Deferred income for government grants (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [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, 2019 and 2018 are analysed as follows: 31/12/19 31/12/18 Balance at beginning of year 13,002 13,771 Additions 2,493 292 Credit to profit or loss (1,626) (1,061) Balance at end of year 13,869 13,002 |
Other liabilities (non-curren_2
Other liabilities (non-current and current) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Other Liabilities | Other liabilities as at December 31, 2019 and 2018 are analysed as follows: 31/12/19 31/12/18 Advance payments for government grants 1,069 — Lease incentives — 960 Other — 159 Total 1,069 1,119 |
Bank overdrafts and short-ter_2
Bank overdrafts and short-term borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Schedule of Bank Overdrafts and Short-term Borrowings | Bank overdrafts and short-term borrowings as at December 31, 2019 and 2018 are analysed as follows: 31/12/19 31/12/18 Bank overdrafts 1,974 1,762 Borrowings secured over trade receivables 21,029 29,992 Borrowings unsecured 1,167 3,394 Total 24,170 35,148 |
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, 2019 and 2018 are as follows: 2019 2018 Bank overdrafts 4.13% 4.35% Borrowings 2.55% 2.69% |
Trade payables (Tables)
Trade payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Trade Payables | Trade payables as at December 31, 2019 and 2018 are analysed as follows: 31/12/19 31/12/18 Invoices received 47,402 57,325 Invoices to be received 21,074 20,576 Total 68,476 77,901 |
Other payables (Tables)
Other payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule Other Payables | Other payables as at December 31, 2019 and 2018 are analysed as follows: 31/12/19 31/12/18 Salaries and wages 5,412 5,085 Social security contributions 4,289 6,901 Vacation accrual 3,889 6,408 Withholding taxes on payroll and on others 2,059 2,379 Other accounts payable 6,400 6,141 Total 22,049 26,914 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [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, 2019 and 2018. 31/12/19 31/12/18 British pounds 16,947 10,612 Euro 11,347 11,407 U.S. dollars 6,347 14,528 Canadian dollars 1,937 1,300 Japanese yen 1,549 2,318 Australian dollars 1,280 2,129 Danish kroner 751 1,086 Swedish kroner 208 265 Total 40,366 43,645 |
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”. 2019 2018 Contract amount Unrealised gains/(losses) Contract amount Unrealised gains/(losses) Assets 10,419 145 27,459 218 Liabilities 29,947 (772 ) 16,186 (320 ) Total 40,366 (627 ) 43,645 (102 ) |
Financial Instruments - Fair _2
Financial Instruments - Fair values and risk management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [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, 2019 and 2018. Financial assets 31/12/19 31/12/18 Financial assets measured at amortised cost Other non-current 4,519 4,533 Trade receivables 29,187 40,967 Other current receivables 7,723 9,507 Cash and cash equivalents 39,799 62,131 Total (a) 81,228 117,138 Financial assets measured at fair value Forward exchange contracts 145 218 Total (b) 145 218 Total financial assets (a+b) 81,373 117,356 Financial assets measured at amortised cost include trade receivables, other receivables (non-current Financial liabilities 31/12/19 31/12/18 Financial liabilities measured at amortised cost Long-term borrowings 18,412 20,943 Lease liabilities 57,367 — Bank overdrafts and short-term borrowings 24,170 35,148 Trade payables 68,476 77,901 Other payables 22,049 26,914 Total (a) 190,474 160,906 Financial liabilities measured at fair value Forward exchange contracts 772 320 Total (b) 772 320 Total financial liabilities (a+b) 191,246 161,226 |
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, 2019 and 2018, other than those with carrying amount that are reasonable approximation of fair value. 31/12/19 31/12/18 Carrying Fair value Carrying Fair Financial assets Forward exchange contracts 145 145 218 218 Financial liabilities Floating-rate borrowings 9,232 9,322 13,943 13,943 Fixed rate borrowings 9,180 10,256 7,000 7,000 Total long-term borrowings 18,412 19,578 20,943 20,943 Forward exchange contracts 772 772 320 320 |
Summary of Trade Receivables Past Due | As at December 31, 2019 and 2018 the ageing of trade receivables is as follows: 31/12/19 31/12/18 Current (not past due) 15,179 24,251 From 1 to 29 days past due 8,570 8,614 From 30 to 60 days past due 1,298 1,409 From 61 to 90 days past due 2,531 1,274 More than 90 days past due 10,308 15,046 Gross trade receivables 37,886 50,594 Allowance for doubtful accounts (8,699 ) (9,627 ) Net trade receivables 29,187 40,967 |
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, 2019, 2018 and January 1, 2018, further to the adoption of IFRS 9. December 31, 2019 Days past due <30 days 30-60 days 61-90 days > 91 days Total Trade receivables subject to collective valuation 4,936 387 — 309 5,632 Trade receivables subject to specific valuation 32,524 Total gross carrying amount 37,886 Default rate 0.13 % 1.42 % 3.83 % 27.07 % — Expected credit loss 6 5 — 84 95 December 31, 2018 Days past due <30 days 30-60 days 61-90 days > 91 days Total Trade receivables subject to collective valuation 9,288 1,323 88 669 11,368 Trade receivables subject to specific valuation 39,226 Total gross carrying amount 50,594 Default rate 0.10 % 0.99 % 2.90 % 5.80 % — Expected credit loss 9 13 3 39 64 January 1, 2018 Days past due <30 days 30-60 days 61-90 days > 91 days Total Trade receivables subject to collective valuation 11,661 651 254 173 12,739 Trade receivables subject to specific valuation 35,585 Total gross carrying amount 48,324 Default rate 0.11 % 1.04 % 2.99 % 5.33 % — Expected credit loss 13 7 8 9 37 |
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, 2019 and 2018. December 31, 2019 Less than 2 to 12 1 to 2 2 to 5 More than Total Long-term borrowings 512 4,222 6,568 5,389 3,525 20,216 Lease liabilities 3,341 10,587 9,972 26,568 17,760 68,228 Bank overdrafts and short-term borrowings 24,170 — — — — 24,170 Trade and other payables 22,049 68,476 — — — 90,525 Losses on derivative financial instruments 772 — — — — 772 Total financial liabilities 50,844 83,285 16,540 31,957 21,285 203,911 December 31, 2018 Less than 2 to 12 1 to 2 2 to 5 More than Total Long-term borrowings 899 10,019 3,416 6,158 1,358 21,850 Bank overdrafts and short-term borrowings 35,148 — — — — 35,148 Trade and other payables 26,914 77,901 — — — 104,815 Losses on derivative financial instruments 320 — — — — 320 Total financial liabilities 63,281 87,920 3,416 6,158 1,358 162,133 |
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/ Effect on profit December 31, 2019 +45 (51) December 31, 2019 -45 51 December 31, 2018 +45 (71) December 31, 2018 -45 71 December 31, 2017 +45 (90) December 31, 2017 -45 78 |
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. Change in Effect on profit December 31, 2019 +5% 3,155 December 31, 2019 -5% (3,486) December 31, 2018 +5% 2,776 December 31, 2018 -5% (3,183) December 31, 2017 +5% 3,023 December 31, 2017 -5% (3,449) |
Summary of Financial Assets and Financial Liabilities Denominated in Foreign Currency | As at December 31, 2019 and 2018 the Group’s financial assets and financial liabilities denominated in foreign currency are as follows: Financial assets 31/12/19 31/12/18 Trade receivables 19,807 26,490 Cash and cash equivalents 36,031 49,413 Total financial assets 55,838 75,903 Financial liabilities 31/12/19 31/12/18 Lease liabilities 38,844 — Bank overdraft and short-term borrowings 253 254 Trade payables 26,065 29,155 Total financial liabilities 65,162 29,409 |
Summary of Quantitative Information about Exposure to Currency Risk | As at December 31, 2019 and 2018, the summary quantitative data about Group’s exposure to currency risk as reported to the management of the Group is as follows: December 31, 2019 Financial (a) Financial (b) Net Exposure Chinese Yuan 20,592 12,071 8,521 U.S. dollars 15,524 26,995 (11,471 ) British pounds 5,984 12,482 (6,498 ) Brazilian Reais 5,975 2,012 3,963 Canadian dollars 3,758 124 3,634 Mexican pesos 984 910 74 Romanian Leu 528 6,673 (6,145 ) Other 2,493 3,895 (1,402 ) Total 55,838 65,162 (9,324 ) December 31, 2018 Financial (a) Financial (b) Net Exposure Chinese Yuan 27,101 9,726 17,375 U.S. dollars 19,661 8,841 10,820 British pounds 8,696 2,482 6,214 Brazilian Reais 6,211 2,250 3,961 Canadian dollars 3,696 236 3,460 Mexican pesos 3,344 43 3,301 Romanian Leu 886 4,976 (4,090 ) Other 6,308 855 5,453 Total 75,903 29,409 46,494 |
Summary of Changes in Liabilities Arising from Financing Activities | The following tables show the changes in financial liabilities arising from financing activities for the three years ended December 31, 2019, 2018 and 2017. December 31, 2019 Jan. 1, 2019 Cash flows Changes in Other Dec. 31, 2019 Long-term borrowings 20,943 (1,365 ) — (1,166 ) 18,412 Lease liabilities 56,758 (11,960 ) — 12,569 57,367 Bank overdrafts and short-term borrowings 35,148 (10,978 ) — — 24,170 Losses on derivative financial instruments 320 — 452 — 772 Total liabilities from financing activities 113,169 (24,303 ) 452 11,403 100,721 December 31, 2018 Jan. 1, 2018 Cash flows Changes in Dec. 31, 2018 Long-term borrowings 25,717 (4,774 ) — 20,943 Bank overdrafts and short-term borrowings 25,967 9,181 — 35,148 Losses on derivative financial instruments 267 — 53 320 Total liabilities from financing activities 51,951 4,407 53 56,411 December 31, 2017 Jan. 1, 2017 Cash flows Changes in Dec. 31, 2017 Long-term borrowings 17,961 7,756 — 25,717 Bank overdrafts and short-term borrowings 24,427 1,540 — 25,967 Losses on derivative financial instruments 1,293 — (1,026 ) 267 Total liabilities from financing activities 43,681 9,296 (1,026 ) 51,951 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Disaggregation of 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 2019 2018 2017 Sale of upholstery furniture 329,162 365,346 389,528 Sale of home furnishing accessories 39,623 41,733 33,560 Sale of polyurethane foam 9,665 14,958 15,501 Sale of other goods 8,512 6,502 10,291 Total 386,962 428,539 448,880 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 2019 2018 2017 Europe, Middle East and Africa 183,794 212,481 218,896 Americas 137,665 137,452 153,647 Asia-Pacific 65,503 78,606 76,337 Total 386,962 428,539 448,880 Geographical location of customers 2019 2018 2017 United States of America 97,723 94,393 107,262 Italy 48,557 53,261 55,379 United Kingdom 39,416 43,501 48,266 China 39,258 47,099 41,369 Canada 18,355 17,371 20,030 Spain 14,846 17,334 17,077 Brazil 12,120 16,332 16,182 Australia 8,668 9,903 9,738 France 8,493 11,179 9,999 Belgium 7,809 8,682 8,214 Germany 7,234 11,455 12,462 Korea 5,626 8,232 9,847 Other countries (none greater than 5%) 78,857 89,797 93,055 Total 386,962 428,539 448,880 Distribution channels 2019 2018 2017 Wholesale (distributors and retailers) 320,263 365,499 392,332 Directly operated stores (end c onsu 66,699 63,040 56,548 Total 386,962 428,539 448,880 Brands 2019 2018 2017 Natuzzi Editions 160,136 167,925 183,838 Natuzzi Italia 135,500 144,953 134,740 Private label 73,149 94,201 104,509 Other 18,177 21,460 25,793 Total 386,962 428,539 448,880 Timing of revenue recognition 2019 2018 2017 Goods transferred at a point in time 385,510 427,493 448,206 Goods and services transferred over time 1,452 1,046 674 Subtotal 386,962 428,539 448,880 |
Summary of Information about Receivables and Contract Liabilities from Contracts with Customers | The following table provides information about receivables and contract liabilities from contracts with customers. 31/12/19 31/12/18 31/12/17 Trade receivables 29,187 40,967 37,549 Contract liabilities 23,103 22,099 15,533 |
Summary of Transaction Price Allocated to Remaining Performance Obligations | The transaction price allocated to the remaining performance obligations (partially unsatisfied) as at December 31, 2019, 2018 and 2017 is as follows: 31/12/19 31/12/18 31/12/17 Sale of Natuzzi Display System Within a year 1,416 1,138 758 More than a year 1,953 2,261 1,878 Total 3,369 3,399 2,636 Sale of Service-Type Warranties Within a year 394 332 278 More than a year 411 565 682 Total 805 897 960 Sale of the licence-for Within a year 383 383 — More than a year 6,725 7,108 — Total 7,108 7,491 — |
Cost of sales (Tables)
Cost of sales (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Cost of Sales | Cost of sales is analysed as follows: 2019 2018 2017 Opening inventories 84,227 91,077 91,014 Purchases 139,205 177,591 180,872 Labour costs 86,209 89,827 92,330 Third party manufacturers costs 3,919 6,039 8,725 Other manufacturing costs 29,519 29,004 37,605 Government grants related to PPE (1,463 ) (1,061 ) (1,068 ) Closing inventories (69,685 ) (84,227 ) (91,077 ) Total 271,931 308,250 318,401 |
Other income and other expens_2
Other income and other expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Income and Expense | Other income is analysed as follows: 2019 2018 2017 VAT relief 1,216 1,392 — Reimbursement 519 — 1,650 Release of provisions for contingent liabilities 332 1,700 — Other 3,095 2,852 — Total 5,162 5,944 1,650 |
Selling expenses (Tables)
Selling expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary Of Selling Expenses | Selling expenses are analysed as follows: 2019 2018 2017 Shipping and handling costs 35,513 40,765 40,952 Labour costs 23,782 24,772 26,210 Depreciation and amortization 11,805 2,274 2,124 Custom’s duties 9,261 2,860 — Commissions 8,393 10,225 9,512 Advertising 7,145 12,687 15,407 Utilities 2,457 2,394 2,301 Fairs 1,864 2,308 2,896 Commercial insurance cost 700 532 496 Promotion 651 920 1,252 Leases 649 12,553 11,946 Credit insurance cost 591 579 563 Samples 519 995 1,295 Consultancy 305 630 1,020 Other 1,615 503 2,280 Total 105,250 114,997 118,254 |
Administrative expenses (Tables
Administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Administrative Expenses | Administrative expenses are analysed as follows: 2019 2018 2017 Labour costs 19,060 20,023 19,364 Consultancies 4,761 4,076 4,089 Non deductibles and indirect taxes 2,261 2,022 2,331 Travel expenses 2,226 2,712 3,210 Depreciation and amortization 1,585 1,301 1,668 Directors and auditors—fees 831 801 734 Mail & Phone 622 675 745 Printing & Stationery 381 457 500 Cars costs 236 487 507 Electronic data processing 12 96 118 Government grants related to PPE (163 ) — — Other 2,214 2,694 2,839 Total 34,026 35,344 36,105 |
Finance income and costs (Table
Finance income and costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Analysis of Finance Income | Finance income is analysed as follows: 2019 2018 2017 Interest income from financial institutions 121 191 325 Other interest income 279 188 927 Total 400 379 1,252 |
Summary of Analysis of Finance Costs | Finance costs are analysed as follows: 2019 2018 2017 Interest expenses due to financial institutions 2,864 3,298 3,140 Interests expenses from lease liabilities 2,635 — — Other interest expenses 431 498 1,499 Financial institution commissions 1,998 1,784 1,650 Total 7,928 5,580 6,289 |
Net exchange rate gains_(loss_2
Net exchange rate gains/(losses) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Net Exchange Rate Gains (Losses) | Net exchange rate gains/(losses) are analysed as follows: 2019 2018 2017 Net realised gains/(losses) on derivative instruments (737 ) (906 ) 1,912 Net realised gains/(losses) on trade receivables and payables 1,600 3,353 445 Total net realised gains (a) 863 2,447 2,357 Net unrealised gains/(losses) on derivative instruments (638 ) (57 ) 943 Net unrealised gains/(losses) on trade receivables and payables (531 ) (5,437 ) (48 ) Net unrealised gains/(losses) on non-monetary (2,034 ) (867 ) (2,219 ) Total net unrealised losses (b) (3,203 ) (6,361 ) (1,324 ) Total realised and unrealised exchange rate gains/(losses) (a+b) (2,340 ) (3,914 ) 1,033 |
Income tax expense (Tables)
Income tax expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Income Tax Rates | Italian companies are subject to two enacted income taxes at the following rates: 2019 2018 2017 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, 2019, 2018 and 2017 are allocated as follows: 2019 2018 2017 Current: - Domestic (585 ) (4,504 ) (40 ) - Foreign (1,400 ) (3,052 ) (3,777 ) Total (a) (1,985 ) (7,556 ) (3,817 ) Deferred: - Domestic (387 ) 270 (310 ) - Foreign 37 (143 ) 1,241 Total (b) (350 ) 127 931 Total (a + b) (2,335 ) (7,429 ) (2,886 ) |
Summary of Consolidated Profit (Loss) Before Income Taxes and Non-Controlling Interest | Consolidated profit/(loss) before income taxes and Non-controlling 2019 2018 2017 Domestic (24,808 ) 40,822 (28,358 ) Foreign (6,537 ) (274 ) 399 Total (31,345 ) 40,548 (27,959 ) |
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 2019, 2018 and 2017, to income before income taxes and Non-controlling 2019 2018 2017 Expected tax benefit (expense) at statutory tax rates 7,523 (9,732 ) 6,710 Effect of: - Tax exempt income 3,297 1,665 952 - Aggregate effect of different tax rates in foreign jurisdictions (139 ) 208 25 - Italian regional tax (78 ) (46 ) (39 ) - Non-deductible (4,521 ) (2,667 ) (1,972 ) - Tax effect on unremitted earnings (430 ) (1,252 ) (1,998 ) - Non taxable gain from disposal and loss of control of a subsidiary — 17,193 — - Chinese withholding tax on income not recoverable (139 ) (4,458 ) — - Tax audit settlement for other taxes — — 930 - Effect of net change in deferred tax assets unrecognised (7,848 ) (8,340 ) (7,494 ) Actual tax charge (2,335 ) (7,429 ) (2,886 ) |
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, 2019 and 2018 are presented below: Deferred tax assets 31/12/19 31/12/18 Deferred costs 845 — Provision for contingent liabilities 677 621 Inventories obsolescence 297 152 Intercompany profit on inventories 59 1,162 Other temporary differences 96 92 Total deferred tax assets 1,974 2,027 Deferred tax liabilities 31/12/19 31/12/18 Deferred revenue (IFRS 15) (934 ) (716 ) Unrealised net gains on foreign exchange rate (396 ) (735 ) Withholding tax on unremitted earnings of subsidiaries (430 ) — Other temporary differences (131 ) (143 ) Total deferred tax liabilities (1,891 ) (1,594 ) |
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, 2019 and 2018. 31/12/19 31/12/18 Deferred tax assets 1,974 2,027 Deferred tax liabilities compensated (1,461 ) (1,552 ) Net deferred tax assets 513 475 Deferred tax liabilities (430 ) (42 ) |
Summary of Movements in deferred Tax Balances | Movements in deferred tax balances occurred during 2019, 2018 and 2017 are analysed as follows: Def. tax assets Def. tax liabilities Total Balance as at January 1, 2017 2,557 (3,174 ) (617 ) Recognised in profit or loss 99 832 931 Recognised in OCI — (8 ) (8 ) Balance as at December 31, 2017 2,656 (2,350 ) 306 Recognised in profit or loss (629 ) 756 127 Recognised in OCI — — — Balance as at December 31, 2018 2,027 (1,594 ) 433 Recognised in profit or loss (53 ) (297 ) (350 ) Recognised in OCI — — — Balance as at December 31, 2019 1,974 (1,891 ) 83 |
Summary of Unrecognised Deferred Tax Assets | 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 31/12/19 31/12/18 Tax loss carry-forwards 97,544 99,133 Provision for contingent liabilities 5,839 3,234 Inventory obsolescence 2,336 2,055 Allowance for doubtful accounts 2,296 2,145 Intercompany profit on inventories 1,643 1,040 Provision for warranties 1,419 1,343 Impairment of property, plant and equipment 984 1,228 Goodwill and intangible assets 483 569 IAS 19 adjustment - employees’ leaving entitlement 389 470 Deferred costs — 541 Other temporary differences 1,124 1,304 Total unrecognised deferred tax assets 114,057 113,062 |
Summary of Tax Loss Carry Forward | As at December 31, 2019 and 2018 the tax losses carried-forward of the Group expire as follows: 2019 Expire date 2018 Expire date Expire in five years 26,180 2020-2024 25,647 2019-2023 Expire after five years 34,078 > 2024 39,333 > 2023 Never expire 339,563 — 328,650 — Total 399,821 393,630 |
Earnings_(losses) per share (Ta
Earnings/(losses) per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Basic and Diluted Earnings (Losses) per Share | Basic and diluted earnings/(losses) per share is analysed as follows: 2019 2018 2017 Weighted average number of ordinary shares 54,853,045 54,853,045 54,853,045 Basic earnings/(losses) per share (0.61 ) 0.61 (0.55 ) Diluted earnings/(losses) per share (0.61 ) 0.61 (0.55 ) |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Expenses by Nature | The following table shows the expenses by nature for the years ended December 31, 2019, 2018 and 2017 as required by IAS 1.104. 2019 2018 2017 Changes in inventories 14,542 6,850 (63 ) Raw materials and consumables 139,205 177,591 180,872 Services 91,526 107,074 118,681 Employee benefits expense 129,051 134,622 137,904 Depreciation and amortization, net of government grants 23,487 10,003 11,362 Other 13,396 22,451 24,004 Total cost of sales, selling and administrative expenses 411,207 458,591 472,760 |
Summary of Depreciation and Amortization | The following tables show in which caption is included the depreciation and amortization, net of government grants. Included in cost of sales 2019 2018 2017 Depreciation of property, plant and equipment 7,867 7,455 8,565 Depreciation of right-of-use 3,842 — — Amortisation of intangible assets 14 34 73 Government grants (1,463 ) (1,061 ) (1,068 ) Total (a) 10,260 6,428 7,570 Included in selling expenses Depreciation of property, plant and equipment 2,721 2,274 1,818 Depreciation of right-of-use 9,084 — — Amortisation of intangible assets — — 306 Total (b) 11,805 2,274 2,124 Included in administrative expenses Depreciation of property, plant and equipment 381 425 478 Depreciation of right-of-use 301 — — Amortisation of intangible assets 903 876 1,190 Government grants (163 ) — — Total (c) 1,422 1,301 1,668 Total depreciation and amortization (a+b+c) 23,487 10,003 11,362 |
Summary of Employee Benefit Expense | The following tables show in which caption is included the employee benefits expense. Included in cost of sales 2019 2018 2017 Salary and wages 60,756 62,815 57,401 Social security costs 17,251 18,310 18,854 Employees’ leaving entitlement 3,704 3,827 3,710 Other costs 4,498 4,875 12,365 Total (a) 86,209 89,827 92,330 Included in selling expenses Salary and wages 18,736 19,754 20,475 Social security costs 3,800 4,019 4,376 Employees’ leaving entitlement 557 350 660 Other costs 689 649 699 Total (b) 23,782 24,772 26,210 Included in administrative expenses Salary and wages 13,725 14,585 13,843 Social security costs 3,502 3,638 3,570 Employees’ leaving entitlement 664 635 831 Other costs 1,169 1,165 1,120 Total (c) 19,060 20,023 19,364 Total employee benefits expense (a+b+c) 129,051 134,622 137,904 |
Adjusted earnings before inte_2
Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Reconciliation of Adjusted EBITDA to Profit (Loss) | The following tables show the reconciliation of Adjusted EBITDA to profit/(loss) for the years ended December 31, 2019, 2018 and 2017. 2019 2018 2017 Profit/(loss) for the year (33,680 ) 33,119 (30,845 ) Income tax expense 2,335 7,429 2,886 Profit/(loss) before tax (31,345 ) 40,548 (27,959 ) Adjustments for: - Net finance income/(costs) 9,868 (66,296 ) 4,004 - Share of profit/(loss) equity-method investees (1,011 ) 290 — - Depreciation 24,196 10,154 10,861 - Amortisation 917 910 1,569 - Government grants (1,626 ) (1,061 ) (1,068 ) Adjusted EBITDA 999 (15,455 ) (12,593 ) |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Transactions with Related Parties | The compensation of key management personnel of the Group is analysed as follows: 2019 2018 2017 Directors’ fee 400 387 270 Short-term employee benefits 1,704 1,875 1,853 Social security contributions and defined contribution plans 563 500 500 Employee Benefit Obligations 118 110 133 Total 2,785 2,872 2,756 December 31, 2019 Sales Expenses Amounts owed by Amounts due to Natuzzi Trading Shanghai Co, Ltd. 36,442 124 3,619 124 Nars Miami LLCC 646 — 169 — Natuzzi Design S.a.s. 1,686 — 1,013 — Natuzzi Arredamenti S.r.l. 842 — 367 — Natuzzi Sofa S.r.l. 249 — 67 — Total 39,865 124 5,235 124 December 31, 2018 Sales Expenses Amounts owed by Amounts due to Natuzzi Trading Shanghai Co, Ltd. 12,589 1,001 7,383 1,001 Nars Miami LLCC 776 — 191 — Natuzzi Design S.a.s. 1,750 — 1,338 — Natuzzi Arredamenti S.r.l. 1,010 — 343 — Natuzzi Sofa S.r.l. 291 — 78 — NA.FO. S.r.l. — — — 3 Total 16,416 1,001 9,333 1,004 December 31, 2017 Sales Expenses Amounts owed by Amounts due to Nars Miami LLCC 742 — 70 — Natuzzi Design S.a.s. 1,591 — 930 — Natuzzi Arredamenti S.r.l. 946 — 329 — Natuzzi Sofa S.r.l. 310 — 78 — NA.FO. S.r.l. 4 — — 8 Total 3,593 — 1,407 8 |
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, £ in Thousands, SFr in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, in Thousands | 12 Months Ended | ||||||||||||
Dec. 31, 2019EUR (€) | Dec. 31, 2018 | Dec. 31, 2019RON ( ) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2019CHF (SFr) | Dec. 31, 2019JPY (¥) | Dec. 31, 2019GBP (£) | Dec. 31, 2019RUB (₽) | Dec. 31, 2019INR (₨) | Dec. 31, 2019MXN ($) | Dec. 31, 2019AUD ($) | |
Italsofa Romania S.r.l. [member] | Manufacturing and distribution [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||||||||
Share/quota capital | | 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 | 100.00% | 100.00% | |||||||||||
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 | 100.00% | 100.00% | |||||||||||
Share/quota capital | R$ | R$ 157654283 | ||||||||||||
Ownership registered office | Salvador de Bahia, Brazil | ||||||||||||
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 | ||||||||||||
I.M.P.E. S.p.A. [member] | Production and distribution of Polyurethane foam [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||||||||
Share/quota capital | € 1,000,000 | ||||||||||||
Ownership registered office | Bari, Italy | ||||||||||||
Nacon S.p.A. [member] | Services and distribution [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||||||||
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 | 100.00% | 100.00% | |||||||||||
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 | 100.00% | 100.00% | |||||||||||
Share/quota capital | $ | $ 89 | ||||||||||||
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 | 100.00% | 100.00% | |||||||||||
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 | 100.00% | 100.00% | |||||||||||
Share/quota capital | SFr | SFr 2,000,000 | ||||||||||||
Ownership registered office | Dietikon, Switzerland | ||||||||||||
Natuzzi Germany Gmbh [member] | Services and distribution [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||||||||
Share/quota capital | € 25,000 | ||||||||||||
Ownership registered office | Koln, Germany | ||||||||||||
Natuzzi Japan KK [member] | Services and distribution [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||||||||
Share/quota capital | ¥ | ¥ 28,000,000 | ||||||||||||
Ownership registered office | Tokyo, Japan | ||||||||||||
Natuzzi Services Limited [member] | Services and distribution [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||||||||
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 | 70.00% | ||||||||||||
Share/quota capital | £ | £ 100 | ||||||||||||
Ownership registered office | Cardiff (UK | ||||||||||||
Natuzzi Russia OOO [member] | Services and distribution [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||||||||
Share/quota capital | ₽ | ₽ 8,700,000 | ||||||||||||
Ownership registered office | Moscow, Russia | ||||||||||||
Natuzzi India Furniture PVT Ltd [member] | Services and distribution [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||||||||
Share/quota capital | ₨ | ₨ 16,200,000 | ||||||||||||
Ownership registered office | New Delhi, India | ||||||||||||
Natuzzi Florida LLC [member] | Services and distribution [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 51.00% | 51.00% | |||||||||||
Share/quota capital | $ | $ 4,955,186 | ||||||||||||
Ownership registered office | High Point, N. Carolina, USA | ||||||||||||
Natmex S.DE.R.L.DE.C.V [member] | Services and distribution [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 99.00% | 99.00% | |||||||||||
Share/quota capital | $ | $ 69,195,993 | ||||||||||||
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 | 100.00% | 100.00% | |||||||||||
Share/quota capital | € 200,100 | ||||||||||||
Ownership registered office | Paris, France | ||||||||||||
Softaly (Furniture) Shanghai Co. Ltd [member] | Services and distribution [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 96.50% | 96.50% | |||||||||||
Share/quota capital | ¥ | 100,000 | ||||||||||||
Ownership registered office | Shanghai, China | ||||||||||||
Natuzzi Oceania PTI Ltd [member] | Services and distribution [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||||||||
Share/quota capital | $ | $ 320,002 | ||||||||||||
Ownership registered office | Sydney, Australia | ||||||||||||
Natuzzi Netherlands Holding [member] | Investment holding [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||||||||
Share/quota capital | € 34,605,000 | ||||||||||||
Ownership registered office | Amsterdam, Holland | ||||||||||||
New Comfort S.r.l. [member] | Dormant [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | ||||||||||||
Share/quota capital | € 20,000 | ||||||||||||
Ownership registered office | Santeramo in Colle, Italy | ||||||||||||
Italsofa Shanghai Ltd [member] | Dormant [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 96.50% | 96.50% | |||||||||||
Share/quota capital | ¥ | ¥ 124,154,580 | ||||||||||||
Ownership registered office | Shanghai, China | ||||||||||||
Natuzzi Trade Service S.r.l. [member] | Dormant [member] | |||||||||||||
Disclosure of subsidiaries [line items] | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||||||||
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 - Summary of Detailed Information About Material Non-controlling Interests (Detail) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of subsidiaries [line items] | ||||
Current assets | € 156,862 | € 207,143 | ||
Non-current assets | 212,532 | 165,565 | ||
Current liabilities | 151,957 | 168,386 | ||
Non-current liabilities | 112,619 | 66,141 | ||
Revenue | 386,962 | 428,539 | € 448,880 | [1] |
Loss for the year | (33,680) | 33,119 | (30,845) | [1] |
Other comprehensive income | (29) | 824 | (7,894) | |
Total comprehensive loss for the year | (33,709) | 33,943 | (38,739) | |
Loss allocated to NCI | (310) | (170) | (453) | [1] |
Cash flow provided by operating activities | 10,811 | (5,203) | 2,798 | |
Cash flow used in investing activities | (3,325) | 14,567 | (10,351) | |
Cash flow used in financing activities (dividends to NCI: nil) | (24,169) | 2,192 | € 12,363 | |
Natuzzi Florida LLC [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Current assets | 2,870 | 3,890 | ||
Non-current assets | 10,479 | 1,713 | ||
Current liabilities | 4,186 | 4,033 | ||
Non-current liabilities | 7,267 | |||
Net assets | 1,896 | 1,570 | ||
Net assets attributable to NCI – 49% | 929 | 769 | ||
Revenue | 10,163 | 8,201 | ||
Expenses | (10,581) | (8,540) | ||
Loss for the year | (418) | (339) | ||
Other comprehensive income | 37 | 57 | ||
Total comprehensive loss for the year | (381) | (282) | ||
Loss allocated to NCI | (205) | (166) | ||
OCI allocated to NCI | 18 | 28 | ||
Cash flow provided by operating activities | 1,530 | 179 | ||
Cash flow used in investing activities | (1,188) | € (543) | ||
Cash flow used in financing activities (dividends to NCI: nil) | € (603) | |||
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
General principles for the pr_2
General principles for the preparation of the consolidated financial statements - Additional Information (Detail) - EUR (€) € in Thousands | Mar. 02, 2020 | Feb. 28, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Apr. 29, 2020 | Jan. 01, 2017 | |
Disclosure of general principles for the preparation of the consolidated financial statements [Line Items] | |||||||||||
Profit loss | € (33,680) | € 33,119 | € (30,845) | [1] | |||||||
Operating profit | (22,488) | (25,458) | (23,955) | [1] | |||||||
Equity | 104,818 | 138,181 | € 104,534 | 104,534 | € 143,999 | ||||||
Changes in working capital | € 4,905 | 38,757 | |||||||||
Percentage of revenue from group | 10.00% | ||||||||||
Revenue | € 386,962 | 428,539 | 448,880 | [1] | |||||||
Cash receipts from government grants | 1,626 | 1,061 | € 1,068 | € 1,068 | |||||||
Advance payment for rights issue | € 15,000 | ||||||||||
Proceeds from rights issue | € 2,500 | ||||||||||
Cash and cash equivalents | 39,799 | 62,131 | |||||||||
Long-term borrowings | 14,091 | 10,361 | |||||||||
Current portion of long-term borrowings | 4,321 | 10,582 | |||||||||
Bank overdrafts and short-term borrowings | 24,170 | € 35,148 | |||||||||
Unused credit facility | 24,251 | ||||||||||
State agency guarantee percent | 90.00% | ||||||||||
Trade receivables export [member] | |||||||||||
Disclosure of general principles for the preparation of the consolidated financial statements [Line Items] | |||||||||||
Unused credit facility | 18,080 | ||||||||||
Trade receivables secured borrowings [member] | |||||||||||
Disclosure of general principles for the preparation of the consolidated financial statements [Line Items] | |||||||||||
Unused credit facility | 3,577 | ||||||||||
Bank overdrafts [member] | |||||||||||
Disclosure of general principles for the preparation of the consolidated financial statements [Line Items] | |||||||||||
Unused credit facility | 2,594 | ||||||||||
COVID19 [Member] | |||||||||||
Disclosure of general principles for the preparation of the consolidated financial statements [Line Items] | |||||||||||
Increase Decrease in Percentage of Entitys Revenue | 20.00% | 20.00% | |||||||||
Increase Decrease in Percentage of Fixed Cost | 5.00% | 10.00% | |||||||||
Income from Long Term Finance | € 65,000 | ||||||||||
Income From Shareholders | € 15,000 | ||||||||||
Loans to corporate entities [member] | |||||||||||
Disclosure of general principles for the preparation of the consolidated financial statements [Line Items] | |||||||||||
Cash receipts from government grants | 7,144 | ||||||||||
Subsidized loans | 9,755 | ||||||||||
Gross carrying amount [member] | |||||||||||
Disclosure of general principles for the preparation of the consolidated financial statements [Line Items] | |||||||||||
Carrying value of land and building | € 26,745 | ||||||||||
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | |
Disclosure of initial application of standards or interpretations [line items] | ||||
Expected loss rates payment period | 36 months | |||
Contractual payments period | 180 days | |||
Shipping and handling expenses | € 35,513 | € 40,765 | € 40,952 | |
Advertising expenses | 7,145 | 12,687 | € 15,407 | |
Commission Expenses | € 8,393 | € 10,225 | € 9,512 | |
Bottom of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Proportion of voting rights held in associate | 20.00% | |||
Top of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Proportion of voting rights held in associate | 50.00% | |||
Software [member] | Bottom of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Intangible assets useful lives | 3 years | |||
Software [member] | Top of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Intangible assets useful lives | 5 years | |||
Trademarks and patents [member] | Bottom of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Intangible assets useful lives | 3 years | |||
Trademarks and patents [member] | Top of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Intangible assets useful lives | 5 years | |||
Other intangible assets [member] | Bottom of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Intangible assets useful lives | 2 years | |||
Other intangible assets [member] | Top of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Intangible assets useful lives | 5 years | |||
Buildings [member] | Bottom of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Property, plant and equipment useful lives | 10 years | |||
Buildings [member] | Top of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Property, plant and equipment useful lives | 50 years | |||
Machinery and equipment [member] | Bottom of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Property, plant and equipment useful lives | 4 years | |||
Machinery and equipment [member] | Top of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Property, plant and equipment useful lives | 10 years | |||
Office furniture and equipment [member] | Bottom of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Property, plant and equipment useful lives | 5 years | |||
Office furniture and equipment [member] | Top of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Property, plant and equipment useful lives | 10 years | |||
Retail gallery and store furnishing [member] | Bottom of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Property, plant and equipment useful lives | 3 years | |||
Retail gallery and store furnishing [member] | Top of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Property, plant and equipment useful lives | 4 years | |||
Leasehold improvements [member] | Bottom of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Property, plant and equipment useful lives | 5 years | |||
Leasehold improvements [member] | Top of range [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Property, plant and equipment useful lives | 10 years |
Changes in Significant Accoun_3
Changes in Significant Accounting Policies - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | ||
Disclosure of redesignated financial assets and liabilities [line items] | |||||
Impairment loss on trade receivables | € 2,389 | € 745 | € 1,475 | [1] | |
Increase (decrease) in trade receivables | € 0 | € 37 | |||
Allowance for impairment of trade receivables | 10,775 | € 10,812 | |||
Trade receivables [member] | |||||
Disclosure of redesignated financial assets and liabilities [line items] | |||||
Increase (decrease) in trade receivables | € 37 | ||||
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Changes in Significant Accoun_4
Changes in Significant Accounting Policies - Summary of Impact on the consolidated statement of financial position (Detail) - EUR (€) € in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Quantitative Information About Rightofuse Asset And Lease Liabilities [Line Items] | |||
Right-of-use assets | € 54,718 | € 55,798 | |
Lease liabilities | € (57,367) | € (56,758) | |
IFRS 16 [member] | |||
Disclosure Of Quantitative Information About Rightofuse Asset And Lease Liabilities [Line Items] | |||
Right-of-use assets | 56,758 | ||
Lease liabilities | (56,758) | ||
Decrease of right-of-use assets for lease incentives | (960) | ||
Decrease of other liabilities for lease incentives | € 960 |
Changes in Significant Accoun_5
Changes in Significant Accounting Policies - Summary of Reconciliation of operating lease to lease liabilities (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure Of Quantitative Information About Operating Lease Liabilities [Line Items] | |||
Operating lease commitments as at December 31, 2018 as disclosed under IAS 17 in the Group's consolidated financial statements | € 80,740 | ||
Effect due to discounted using the incremental borrowing rate as at January 1, 2019 | 63,320 | ||
Effect due to recognition exemption for leases of low-value assets | (33) | ||
Effect due to recognition exemption for leases with less than 12 months of lease term at transition | (1,744) | ||
Effect due to extension options and other | (4,785) | ||
Lease liabilities recognised as at January 1, 2019 | € 57,367 | € 56,758 |
Changes in Significant Accoun_6
Changes in Significant Accounting Policies - Summary of Measurement of Financial Assets and Financial Liabilities (Detail) € in Thousands | Dec. 31, 2017EUR (€) |
Disclosure of redesignated financial assets and liabilities [line items] | |
Total financial assets, before initial application of IFRS 9 | € 107,235 |
Total financial assets, after initial application of IFRS 9 | 107,198 |
Total financial liabilities, before initial application of IFRS 9 | 155,573 |
Total financial liabilities, after initial application of IFRS 9 | 155,573 |
Financial assets at amortised cost, class [member] | Other Non Current Receivables [member] | |
Disclosure of redesignated financial assets and liabilities [line items] | |
Total financial assets, before initial application of IFRS 9 | 1,402 |
Total financial assets, after initial application of IFRS 9 | 1,402 |
Financial assets at amortised cost, class [member] | Trade receivables [member] | |
Disclosure of redesignated financial assets and liabilities [line items] | |
Total financial assets, before initial application of IFRS 9 | 37,549 |
Total financial assets, after initial application of IFRS 9 | 37,512 |
Financial assets at amortised cost, class [member] | Other Current Receivables [member] | |
Disclosure of redesignated financial assets and liabilities [line items] | |
Total financial assets, before initial application of IFRS 9 | 12,910 |
Total financial assets, after initial application of IFRS 9 | 12,910 |
Financial assets at amortised cost, class [member] | Cash and Cash Equivalent [member] | |
Disclosure of redesignated financial assets and liabilities [line items] | |
Total financial assets, before initial application of IFRS 9 | 55,035 |
Total financial assets, after initial application of IFRS 9 | 55,035 |
Financial assets at fair value through profit or loss, category [member] | Gains losses on derivative financial instruments [member] | |
Disclosure of redesignated financial assets and liabilities [line items] | |
Total financial assets, before initial application of IFRS 9 | 339 |
Total financial assets, after initial application of IFRS 9 | 339 |
Financial liabilities at amortised cost, class [member] | Long-term borrowings [member] | |
Disclosure of redesignated financial assets and liabilities [line items] | |
Total financial liabilities, before initial application of IFRS 9 | 25,717 |
Total financial liabilities, after initial application of IFRS 9 | 25,717 |
Financial liabilities at amortised cost, class [member] | Bank Overdrafts and Short Term Borrowings [member] | |
Disclosure of redesignated financial assets and liabilities [line items] | |
Total financial liabilities, before initial application of IFRS 9 | 25,967 |
Total financial liabilities, after initial application of IFRS 9 | 25,967 |
Financial liabilities at amortised cost, class [member] | Trade Accounts Payable [member] | |
Disclosure of redesignated financial assets and liabilities [line items] | |
Total financial liabilities, before initial application of IFRS 9 | 76,035 |
Total financial liabilities, after initial application of IFRS 9 | 76,035 |
Financial liabilities at amortised cost, class [member] | Other Accounts Payable [member] | |
Disclosure of redesignated financial assets and liabilities [line items] | |
Total financial liabilities, before initial application of IFRS 9 | 27,587 |
Total financial liabilities, after initial application of IFRS 9 | 27,587 |
Financial liabilities at fair value through profit or loss, category [member] | Gains losses on derivative financial instruments [member] | |
Disclosure of redesignated financial assets and liabilities [line items] | |
Total financial liabilities, before initial application of IFRS 9 | 267 |
Total financial liabilities, after initial application of IFRS 9 | € 267 |
Operating Segment - Additional
Operating Segment - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Disclosure of operating segments [abstract] | |
Number of operating segments | 2 |
Number of reporting segments | 1 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - 2017 Acquisitions [member] € in Thousands | Jan. 31, 2017EUR (€)Storepoint_of_sales |
Disclosure of detailed information about business combination [line items] | |
Proportion of acquisition | 100.00% |
Business acquisition | € 4,123 |
Goodwill | € 2,041 |
Number of stores acquired | Store | 3 |
Number of point of sales acquired | point_of_sales | 12 |
Business Combinations - Fair Va
Business Combinations - Fair Value of Assets and Liabilities (Detail) - 2017 Acquisitions [member] € in Thousands | Jan. 31, 2017EUR (€) |
Disclosure of detailed information about business combination [line items] | |
Inventory | € 1,895 |
Other assets | 187 |
Total identifiable net assets acquired | 2,082 |
Goodwill arising on acquisition | 2,041 |
Consideration transferred | € 4,123 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment and Related Accumulated Depreciation (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 111,086 | € 115,190 |
Ending balance | 102,523 | 111,086 |
Gross trade receivables | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 346,620 | 369,233 |
Additions | 4,190 | 7,160 |
Disposals | (643) | (29,903) |
Effect of translation adj. | 598 | 130 |
Ending balance | 350,765 | 346,620 |
Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (235,534) | (254,043) |
Depreciation | (10,969) | (10,154) |
Disposals | 577 | 28,541 |
Effect of translation adj. | (2,316) | 122 |
Ending balance | (248,242) | (235,534) |
Land and buildings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 84,062 | 87,385 |
Ending balance | 78,510 | 84,062 |
Land and buildings [member] | Gross trade receivables | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 170,045 | 169,273 |
Additions | 560 | 646 |
Disposals | (3) | (27) |
Effect of translation adj. | 213 | 153 |
Ending balance | 170,815 | 170,045 |
Land and buildings [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (85,983) | (81,888) |
Depreciation | (3,984) | (4,018) |
Disposals | 23 | |
Effect of translation adj. | (2,338) | (100) |
Ending balance | € (92,305) | (85,983) |
Land and buildings [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 0.00% | |
Land and buildings [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 10.00% | |
Machinery and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 16,560 | 17,755 |
Ending balance | 13,792 | 16,560 |
Machinery and equipment [member] | Gross trade receivables | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 126,354 | 132,240 |
Additions | 1,510 | 2,320 |
Disposals | (522) | (7,905) |
Reclassifications | 183 | |
Effect of translation adj. | (60) | (301) |
Ending balance | 127,465 | 126,354 |
Machinery and equipment [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (109,794) | (114,485) |
Depreciation | (3,221) | (3,381) |
Disposals | 462 | 7,588 |
Effect of translation adj. | (1,120) | 484 |
Ending balance | € (113,673) | (109,794) |
Machinery and equipment [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 10.00% | |
Machinery and equipment [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 25.00% | |
Office furniture and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 996 | 1,160 |
Ending balance | 837 | 996 |
Office furniture and equipment [member] | Gross trade receivables | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 15,079 | 15,412 |
Additions | 126 | 365 |
Disposals | (114) | (725) |
Effect of translation adj. | 32 | 27 |
Ending balance | 15,123 | 15,079 |
Office furniture and equipment [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (14,083) | (14,252) |
Depreciation | (381) | (204) |
Disposals | 112 | 369 |
Effect of translation adj. | 66 | 4 |
Ending balance | € (14,286) | (14,083) |
Office furniture and equipment [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 10.00% | |
Office furniture and equipment [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 20.00% | |
Retail gallery and store furnishings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 1,236 | 765 |
Ending balance | 736 | 1,236 |
Retail gallery and store furnishings [member] | Gross trade receivables | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 13,494 | 32,586 |
Additions | 285 | 881 |
Disposals | (4) | (20,329) |
Effect of translation adj. | (43) | 356 |
Ending balance | 13,732 | 13,494 |
Retail gallery and store furnishings [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (12,258) | (31,821) |
Depreciation | (535) | (140) |
Disposals | 3 | 20,060 |
Effect of translation adj. | (206) | (357) |
Ending balance | € (12,996) | (12,258) |
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 | 25.00% | |
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 | 35.00% | |
Leasehold improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 7,320 | 7,853 |
Ending balance | 8,393 | 7,320 |
Leasehold improvements [member] | Gross trade receivables | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 20,736 | 19,450 |
Additions | 1,671 | 2,288 |
Disposals | (917) | |
Reclassifications | 545 | |
Effect of translation adj. | 423 | (85) |
Ending balance | 23,375 | 20,736 |
Leasehold improvements [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (13,416) | (11,597) |
Depreciation | (2,848) | (2,411) |
Disposals | 501 | |
Effect of translation adj. | 1,282 | 91 |
Ending balance | € (14,982) | (13,416) |
Leasehold improvements [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 10.00% | |
Leasehold improvements [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 20.00% | |
Constr. in progress [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 912 | 272 |
Ending balance | 255 | 912 |
Constr. in progress [member] | Gross trade receivables | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 912 | 272 |
Additions | 38 | 660 |
Reclassifications | (728) | |
Effect of translation adj. | 33 | (20) |
Ending balance | € 255 | € 912 |
Constr. in progress [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 0.00% | |
Constr. in progress [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Annual rate of depreciation | 0.00% |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property, Plant and Equipment by Country (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment | € 102,523 | € 111,086 | € 115,190 |
Italy [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment | 57,035 | 61,271 | |
Romania [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment | 19,831 | 23,406 | |
United States of America [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment | 17,800 | 17,830 | |
Brazil [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment | 4,250 | 4,552 | |
China [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment | 2,334 | 2,562 | |
Europe [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment | 1,260 | 1,463 | |
Other countries [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment | € 13 | € 2 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Additional Information (Detail) - EUR (€) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Carrying amount of property, plant and equipment not in use | € 10,468,000 | € 10,795,000 |
Impairment losses on property,plant and equipment | 0 | 0 |
Property subject to mortgage | € 47,865,000 | € 26,932,000 |
Right-of-use-assets - Summary o
Right-of-use-assets - Summary of Information about leases right-of-use-assets (Detail) € in Thousands | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance as at January 1, 2019 | € 55,798 |
Balance as at December 31, 2019 | 54,718 |
Disclosure Of Depreciation And Amortisation Expense [Abstract] | |
Depreciation | (13,227) |
Balance as at January 1, 2019 | 55,798 |
Balance as at December 31, 2019 | 54,718 |
Accumulated Depreciation [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Effect of translation adjustments | 41 |
Disclosure Of Depreciation And Amortisation Expense [Abstract] | |
Effect of translation adjustments | 41 |
Accumulated depreciation as at December 31, 2019 | (13,186) |
Buildings [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance as at January 1, 2019 | 55,159 |
Balance as at December 31, 2019 | 53,983 |
Disclosure Of Depreciation And Amortisation Expense [Abstract] | |
Depreciation | (12,926) |
Accumulated depreciation as at December 31, 2019 | (12,884) |
Balance as at January 1, 2019 | 55,159 |
Balance as at December 31, 2019 | 53,983 |
Buildings [member] | Accumulated Depreciation [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Effect of translation adjustments | 42 |
Disclosure Of Depreciation And Amortisation Expense [Abstract] | |
Effect of translation adjustments | 42 |
Vehicles [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance as at January 1, 2019 | 639 |
Balance as at December 31, 2019 | 735 |
Disclosure Of Depreciation And Amortisation Expense [Abstract] | |
Depreciation | (301) |
Accumulated depreciation as at December 31, 2019 | (302) |
Balance as at January 1, 2019 | 639 |
Balance as at December 31, 2019 | 735 |
Vehicles [member] | Accumulated Depreciation [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Effect of translation adjustments | (1) |
Disclosure Of Depreciation And Amortisation Expense [Abstract] | |
Effect of translation adjustments | (1) |
Right-of-use assets [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance as at January 1, 2019 | 55,798 |
Additions | 11,181 |
Effect of translation adjustments | 925 |
Balance as at December 31, 2019 | 67,904 |
Disclosure Of Depreciation And Amortisation Expense [Abstract] | |
Effect of translation adjustments | 925 |
Balance as at January 1, 2019 | 55,798 |
Balance as at December 31, 2019 | 67,904 |
Right-of-use assets [member] | Buildings [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance as at January 1, 2019 | 55,159 |
Additions | 10,786 |
Effect of translation adjustments | 922 |
Balance as at December 31, 2019 | 66,867 |
Disclosure Of Depreciation And Amortisation Expense [Abstract] | |
Effect of translation adjustments | 922 |
Balance as at January 1, 2019 | 55,159 |
Balance as at December 31, 2019 | 66,867 |
Right-of-use assets [member] | Vehicles [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance as at January 1, 2019 | 639 |
Additions | 395 |
Effect of translation adjustments | 3 |
Balance as at December 31, 2019 | 1,037 |
Disclosure Of Depreciation And Amortisation Expense [Abstract] | |
Effect of translation adjustments | 3 |
Balance as at January 1, 2019 | 639 |
Balance as at December 31, 2019 | € 1,037 |
Right-of-use-assets - Summary_2
Right-of-use-assets - Summary of amounts recognized in statement of net income loss (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Presentation of leases for lessee [abstract] | |||
Depreciation charge of right-of-use assets | € 13,227 | ||
Interest on lease liabilities | 2,635 | ||
Expenses relating to short-term leases | 1,090 | ||
Expenses relating to leases of low-value assets, excluding short-term leases of low-value | 132 | ||
Total | € 17,084 | € 0 | € 0 |
Right-of-use-assets - Additiona
Right-of-use-assets - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Presentation of leases for lessee [abstract] | |||
Increase in lease liabilities | € 20,709 | ||
Lease Expense | € 17,705 | € 17,215 | |
Payment of lease liabilities | 14,251 | ||
Interest paid on lease liabilities | € 2,291 |
Intangibles Assets and Goodwi_3
Intangibles Assets and Goodwill - Summary of Carrying Amount of Intangible Assets, Goodwill and Accumulated Depreciation (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | € 5,892 | € 5,837 |
Ending balance | 6,021 | 5,892 |
Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 47,585 | 46,668 |
Additions | 913 | 880 |
Disposals | (45) | |
Effect of translation adjustments | 127 | 82 |
Ending balance | 48,625 | 47,585 |
Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (41,693) | (40,831) |
Amortisation | (917) | (910) |
Disposals | 43 | |
Effect of translation adjustments | 6 | 5 |
Ending balance | (42,604) | (41,693) |
Trademark patents and other [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 312 | 317 |
Ending balance | 452 | 312 |
Trademark patents and other [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 14,021 | 13,896 |
Additions | 66 | 169 |
Disposals | (3) | |
Effect of translation adjustments | (1) | (41) |
Ending balance | 14,086 | 14,021 |
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 | (13,709) | (13,579) |
Amortisation | (150) | (158) |
Disposals | 1 | |
Effect of translation adjustments | 225 | 27 |
Ending balance | (13,634) | (13,709) |
Software [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 1,633 | 1,674 |
Ending balance | 1,501 | 1,633 |
Software [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 29,617 | 28,926 |
Additions | 847 | 711 |
Disposals | (42) | |
Effect of translation adjustments | 7 | 22 |
Ending balance | 30,471 | 29,617 |
Software [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (27,984) | (27,252) |
Amortisation | (767) | (752) |
Disposals | 42 | |
Effect of translation adjustments | (219) | (22) |
Ending balance | (28,970) | (27,984) |
Goodwill [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 3,947 | 3,846 |
Ending balance | 4,068 | 3,947 |
Goodwill [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 3,947 | 3,846 |
Effect of translation adjustments | 121 | 101 |
Ending balance | € 4,068 | € 3,947 |
Intangibles Assets and Goodwi_4
Intangibles Assets and Goodwill - Additional Information (Detail) - EUR (€) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2017 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Impairment loss on intangible assets and goodwill | € 0 | € 0 | ||
Research and development expense | € 3,700,000 | € 3,362,000 | € 4,508,000 | |
2017 Acquisitions [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | € 2,041,000 | |||
2016 Acquisitions [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | € 1,921,000 |
Intangibles Assets and Goodwi_5
Intangibles Assets and Goodwill - Summary of Inputs and Assumptions Used in Performing Impairment Test for Intangible Assets and Goodwill (Detail) € in Thousands | 12 Months Ended | |
Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Net book value after impairment test | € 4,068 | € 3,947 |
Italy [member] | Retail stores [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Net book value after impairment test | € 1,921 | € 1,921 |
Growth rate | 1.00% | 0.50% |
WACC | 9.05 | 11 |
Sales CAGR 2018-2022 | 8.50% | 6.00% |
Mexico [member] | Retail stores [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Net book value after impairment test | € 2,147 | € 2,026 |
Growth rate | 3.40% | 0.50% |
WACC | 13.92 | 18 |
Sales CAGR 2018-2022 | 9.30% | 8.50% |
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, 2019 | Dec. 31, 2018 | |
Disclosure Of Investments Accounted For Using Equity Method [line items] | ||
Beginning balance | € 40,220 | € 79 |
Acquisition of non-controlling interests | 48,024 | |
Share of profit/(loss) for the year | 1,011 | (290) |
Share of other comprehensive income | 111 | (246) |
Effect of translation adjustments | 3 | |
Ending balance | 41,342 | 40,220 |
Elimination of intersegment amounts [member] | ||
Disclosure Of Investments Accounted For Using Equity Method [line items] | ||
Elimination of intercompany profit | (7,350) | |
Natuzzi Trading (Shanghai) Co., Ltd [member] | ||
Disclosure Of Investments Accounted For Using Equity Method [line items] | ||
Beginning balance | 40,133 | |
Acquisition of non-controlling interests | 48,024 | |
Share of profit/(loss) for the year | 992 | (295) |
Share of other comprehensive income | 111 | (246) |
Ending balance | 41,236 | 40,133 |
Natuzzi Trading (Shanghai) Co., Ltd [member] | Elimination of intersegment amounts [member] | ||
Disclosure Of Investments Accounted For Using Equity Method [line items] | ||
Elimination of intercompany profit | (7,350) | |
Nars Miami LLC [member] | ||
Disclosure Of Investments Accounted For Using Equity Method [line items] | ||
Beginning balance | 87 | 45 |
Share of profit/(loss) for the year | 19 | 39 |
Effect of translation adjustments | 3 | |
Ending balance | € 106 | 87 |
Other [member] | ||
Disclosure Of Investments Accounted For Using Equity Method [line items] | ||
Beginning balance | 34 | |
Share of profit/(loss) for the year | € (34) |
Equity-method investees - Addit
Equity-method investees - Additional Information (Detail) - EUR (€) € in Thousands | Jul. 27, 2018 | Dec. 31, 2018 | Jul. 27, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Investments Accounted For Using Equity Method [line items] | |||||||
Equity investment | € 40,220 | € 41,342 | € 40,220 | € 79 | |||
(Gain) from loss of control in a former subsidiary | 75,411 | ||||||
Revenue | 386,962 | 428,539 | 448,880 | [1] | |||
Profit / (loss) before tax | (31,345) | 40,548 | (27,959) | [1] | |||
Income tax expense | € 2,335 | € 7,429 | € 2,886 | [1] | |||
Salena S.r.l. [member] | |||||||
Disclosure Of Investments Accounted For Using Equity Method [line items] | |||||||
Ownership interest of equity method investees | 49.00% | 49.00% | |||||
Nars Miam LLC [member] | |||||||
Disclosure Of Investments Accounted For Using Equity Method [line items] | |||||||
Ownership interest of equity method investees | 49.00% | 49.00% | |||||
Kuka Group [member] | |||||||
Disclosure Of Investments Accounted For Using Equity Method [line items] | |||||||
Purchase of interest in subsidiary | € 30,000 | ||||||
Additional interest in subsidiary | 23.54% | ||||||
Cash consideration | € 15,000 | € 15,000 | |||||
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||||||
Disclosure Of Investments Accounted For Using Equity Method [line items] | |||||||
Ownership interest in joint venture | 49.00% | 49.00% | 49.00% | ||||
Equity investment | € 40,133 | € 41,236 | € 40,133 | ||||
Additional interest in subsidiary | 23.54% | ||||||
Carrying amount of assets and liabilities | € 2,613 | € 2,613 | |||||
Fair value of retained interest | € 48,024 | ||||||
Assumed discount rate | 14.25% | 14.25% | |||||
Revenue | 13,836 | 52,714 | |||||
Profit / (loss) before tax | 1,135 | 4,742 | |||||
Consideration received for trademarks | € 15,000 | ||||||
Deferred revenue | 7,650 | € 7,650 | |||||
Depreciation and amortisation | 427 | 2,916 | |||||
Interest income | 356 | 1,419 | |||||
Interest expense | 13 | 257 | |||||
Income tax expense | € 500 | € 1,304 | |||||
Natuzzi Trading (Shanghai) Co., Ltd [member] | Kuka Group [member] | |||||||
Disclosure Of Investments Accounted For Using Equity Method [line items] | |||||||
Cash consideration paid | € 65,000 | ||||||
Stake rate | 51.00% | ||||||
Estimated fair value on acquisition | € 48,024 | 48,024 | |||||
Natuzzi Trading (Shanghai) Co., Ltd [member] | Reportable legal entities [member] | |||||||
Disclosure Of Investments Accounted For Using Equity Method [line items] | |||||||
Equity method investment percentage | 49.00% | 49.00% | 49.00% | ||||
Elimination of intercompany profit | 7,350 | ||||||
Natuzzi Trading (Shanghai) Co., Ltd [member] | Kuka Group [member] | |||||||
Disclosure Of Investments Accounted For Using Equity Method [line items] | |||||||
Ownership interest in joint venture | 51.00% | ||||||
Equity investment | 65,000 | 65,000 | |||||
Capital injection in subsidiary | € 35,000 | ||||||
Percentage of increase in share capital | 27.46% | ||||||
Purchase of interest in subsidiary | € 30,000 | ||||||
Additional interest in subsidiary | 23.54% | ||||||
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||||||
Disclosure Of Investments Accounted For Using Equity Method [line items] | |||||||
Revenue | 13,500 | ||||||
Profit / (loss) before tax | € 1,603 | ||||||
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Equity-method investees - Sched
Equity-method investees - Schedule of Fair Values of Identifiable Assets and Liabilities of Subsidiary (Detail) - EUR (€) € in Thousands | Jul. 27, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure of joint ventures [line items] | |||||
Property, plant and equipment | € 111,086 | € 102,523 | € 115,190 | ||
Other non-current assets | 3,359 | 2,896 | |||
Deferred tax assets | 475 | 513 | |||
Inventories | 84,227 | 69,685 | 91,077 | € 91,014 | |
Trade receivables | 40,967 | 29,187 | € 37,549 | ||
Other current receivables | 9,507 | 7,723 | |||
Cash and cash equivalents | 62,131 | 39,799 | |||
TOTAL ASSETS | 372,708 | 369,394 | |||
Net cash flows as per cash flows statement | 22,156 | ||||
Deferred tax liabilities | 42 | 430 | |||
Trade payables | 77,901 | 68,476 | |||
Other payables | 26,914 | 22,049 | |||
TOTAL LIABILITIES | 234,527 | 264,576 | |||
Non-controlling interests | 1,634 | 1,692 | |||
Goodwill arising on the transaction | 3,947 | 4,068 | |||
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||||
Disclosure of joint ventures [line items] | |||||
Cash received for the disposal of the 23.54% interest | € 30,000 | ||||
Intangible assets | 4,389 | 3,870 | |||
Chinese withholding tax | (2,958) | ||||
Cash and cash equivalents | 4,886 | ||||
Net cash flows as per cash flows statement | 22,156 | ||||
Deferred tax liabilities | 1,097 | 967 | |||
Total identifiable net assets at fair value | 2,613 | ||||
Goodwill arising on the transaction | € 26,140 | € 26,140 | |||
At fair value [member] | Natuzzi Trading (Shanghai) Co., Ltd [member] | |||||
Disclosure of joint ventures [line items] | |||||
Property, plant and equipment | 541 | ||||
Intangible assets | 9,397 | ||||
Other non-current assets | 271 | ||||
Deferred tax assets | 167 | ||||
Inventories | 851 | ||||
Trade receivables | 243 | ||||
Other current receivables | 388 | ||||
Restricted cash for capital contribution | 35,000 | ||||
Cash and cash equivalents | 4,886 | ||||
TOTAL ASSETS | 51,744 | ||||
Deferred tax liabilities | 2,349 | ||||
Trade payables | 992 | ||||
Other payables | 3,710 | ||||
Liabilities for current income tax | 31 | ||||
TOTAL LIABILITIES | 7,082 | ||||
Total identifiable net assets at fair value | 44,662 | ||||
Non-controlling interests | 21,884 | ||||
Goodwill arising on the transaction | 26,140 | ||||
Fair value of the retained 49% interest | € 48,024 |
Equity-method investees - Sch_2
Equity-method investees - Schedule of Fair Values of Identifiable Assets and Liabilities of Subsidiary (Parenthetical) (Detail) - Natuzzi Trading (Shanghai) Co., Ltd [member] | Jul. 27, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of joint ventures [line items] | ||||
Retained ownership interest of joint venture | 49.00% | 49.00% | 49.00% | |
Additional interest in subsidiary | 23.54% | |||
At fair value [member] | ||||
Disclosure of joint ventures [line items] | ||||
Ownership interest of joint venture | 49.00% | |||
Retained ownership interest of joint venture | 49.00% |
Equity-method investees - Sum_2
Equity-method investees - Summary of Reconciliation of Fair Value of Retained Interest in Joint Venture at the Date of Loss of Control with Carrying Amount in Consolidated Statement of Financial Position (Detail) - EUR (€) € in Thousands | Jul. 27, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] |
Disclosure of joint ventures [line items] | ||||||
Profit / (loss) for the period | € (33,370) | € 33,289 | € (30,392) | |||
Elimination of intersegment amounts [member] | ||||||
Disclosure of joint ventures [line items] | ||||||
Elimination of intercompany profit | (7,350) | |||||
Natuzzi Trading (Shanghai) Co., Ltd [member] | ||||||
Disclosure of joint ventures [line items] | ||||||
Fair value at the date of loss of control | € 48,024 | 48,024 | ||||
Profit / (loss) for the period | 311 | 1,684 | 311 | |||
Amortisation of intangibles assets | 216 | 519 | 216 | |||
Reversal of deferred tax liabilities | 54 | 130 | 54 | |||
Group's share of (loss)/profit for the year, net of equity method adjustments | (295) | 992 | (295) | |||
Group's share of other comprehensive income | (246) | 111 | (246) | |||
Carrying amount as at December 31, 2018 | € 40,133 | 41,236 | 40,133 | |||
Natuzzi Trading (Shanghai) Co., Ltd [member] | Reportable legal entities [member] | ||||||
Disclosure of joint ventures [line items] | ||||||
Elimination of intercompany profit | € 7,350 | |||||
Natuzzi Trading (Shanghai) Co., Ltd [member] | Elimination of intersegment amounts [member] | ||||||
Disclosure of joint ventures [line items] | ||||||
Elimination of intercompany profit | (7,350) | |||||
Natuzzi Trading (Shanghai) Co., Ltd [member] | Elimination of intersegment amounts [member] | Reportable legal entities [member] | ||||||
Disclosure of joint ventures [line items] | ||||||
Elimination of intercompany profit | (7,350) | |||||
Amortisation of intangibles assets | 368 | 153 | ||||
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 | € (671) | € (597) | ||||
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Equity-method investees - Sch_3
Equity-method investees - Schedule of Cash and Cash Equivalents, Bank Overdrafts and Borrowings (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of joint ventures [line items] | ||
Lease liabilities current | € (11,314) | |
Lease liabilities non-current | (46,053) | |
Natuzzi Trading (Shanghai) Co., Ltd [member] | ||
Disclosure of joint ventures [line items] | ||
Cash and cash equivalents | 37,049 | € 32,845 |
Bank overdrafts and borrowings | (360) | |
Lease liabilities current | (1,982) | |
Lease liabilities non-current | (5,004) | |
Total, net of cash and cash equivalents, bank overdrafts and borrowings, lease liabilities current and non-current | € 30,063 | € 32,485 |
Equity-method investees - Sum_3
Equity-method investees - Summarised Statement of Financial Position and Profit or Loss of Joint Venture (Detail) - EUR (€) € in Thousands | 5 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | ||
Disclosure of subsidiaries [line items] | ||||||
Current assets | € 207,143 | € 156,862 | € 207,143 | |||
Non-current assets | 165,565 | 212,532 | 165,565 | |||
Current liabilities | (168,386) | (151,957) | (168,386) | |||
Non-current liabilities | (66,141) | (112,619) | (66,141) | |||
Equity | 138,181 | 104,818 | 138,181 | € 104,534 | € 143,999 | |
Equity attributable to owners of the company | (136,547) | (103,126) | (136,547) | (102,495) | ||
Goodwill | 3,947 | 4,068 | 3,947 | |||
Deferred tax liabilities | (42) | (430) | (42) | |||
Group's carrying amount of the investment | 40,220 | 41,342 | 40,220 | 79 | ||
Revenue | 386,962 | 428,539 | 448,880 | [1] | ||
Cost of sales | (271,931) | (308,250) | (318,401) | [1] | ||
Other income and expenses, net | (1,016) | (605) | (250) | [1] | ||
Selling expenses | (105,250) | (114,997) | (118,254) | [1] | ||
Administrative expenses | (34,026) | (35,344) | (36,105) | [1] | ||
Net finance income (costs) | (9,868) | 66,296 | (4,004) | [1] | ||
Profit/(loss) before tax | (31,345) | 40,548 | (27,959) | [1] | ||
Income tax expense | (2,335) | (7,429) | (2,886) | [1] | ||
Profit / (loss) for the year | (33,680) | 33,119 | (30,845) | [1] | ||
Other comprehensive profit/(loss) | (29) | 824 | (7,894) | |||
Total comprehensive income/(loss) for the year | (33,709) | 33,943 | (38,739) | |||
Owners of the Company | (33,370) | 33,289 | (30,392) | [1] | ||
Deferred tax liabilities | (350) | 127 | € 931 | |||
Natuzzi Trading (Shanghai) Co., Ltd [member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Current assets | 42,288 | 48,910 | 42,288 | |||
Non-current assets | 15,785 | 23,166 | 15,785 | |||
Current liabilities | (20,328) | (25,663) | (20,328) | |||
Non-current liabilities | (5,004) | |||||
Equity | 37,745 | 41,409 | 37,745 | |||
Equity attributable to owners of the company | 18,495 | 20,290 | 18,495 | |||
Intangible assets | 4,389 | 3,870 | 4,389 | |||
Goodwill | 26,140 | 26,140 | 26,140 | |||
Deferred tax liabilities | (1,097) | (967) | (1,097) | |||
Group's carrying amount of the investment | 40,133 | 41,236 | 40,133 | |||
Revenue | 13,836 | 52,714 | ||||
Cost of sales | (8,197) | (33,754) | ||||
Other income and expenses, net | 919 | 41 | ||||
Selling expenses | (5,141) | (13,570) | ||||
Administrative expenses | (632) | (1,883) | ||||
Net finance income (costs) | 350 | 1,194 | ||||
Profit/(loss) before tax | 1,135 | 4,742 | ||||
Income tax expense | (500) | (1,304) | ||||
Profit / (loss) for the year | 635 | 3,438 | ||||
Other comprehensive profit/(loss) | (503) | 227 | ||||
Total comprehensive income/(loss) for the year | 132 | 3,665 | ||||
Owners of the Company | 311 | 1,684 | 311 | |||
Amortisation of intangibles assets | 216 | 519 | 216 | |||
Deferred tax liabilities | 54 | 130 | ||||
Group's share of loss for the period, net of equity method adj. | (295) | 992 | (295) | |||
Group's share of other comprehensive loss for the period | (246) | 111 | (246) | |||
Group's share of total comprehensive loss for the period | (541) | 1,103 | ||||
Natuzzi Trading (Shanghai) Co., Ltd [member] | Inventories [member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Profit / (loss) for the year | (597) | (671) | ||||
Natuzzi Trading (Shanghai) Co., Ltd [member] | Brand names [member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Amortisation of intangibles assets | € 153 | 368 | ||||
Natuzzi Trading (Shanghai) Co., Ltd [member] | Reportable legal entities [member] | Inventories [member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Profit / (loss) for the year | (1,268) | (597) | ||||
Natuzzi Trading (Shanghai) Co., Ltd [member] | Reportable legal entities [member] | Brand names [member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Profit / (loss) for the year | € (6,829) | € (7,197) | ||||
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Equity-method investees - Sum_4
Equity-method investees - Summarised Statement of Financial Position and Profit or Loss of Joint Venture (Parenthetical) (Detail) | 5 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of group's share in equity | 49.00% | 49.00% | 49.00% |
Other Non-current Receivables -
Other Non-current Receivables - Summary of Other Non-current Receivables (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other non-current receivables [abstract] | ||
Security deposits for lease contracts | € 3,920 | € 3,984 |
Receivable from disposal of assets | 599 | 549 |
Total | € 4,519 | € 4,533 |
Other Assets (Non-current and_3
Other Assets (Non-current and Current) - Summary of Other Assets (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Miscellaneous assets [abstract] | ||
Advances to suppliers | € 4,507 | € 3,471 |
Deferred costs for Natuzzi Display System | 2,580 | 2,617 |
Deferred costs for slotting fees | 1,951 | 1,922 |
Delivery and commission costs for sales derecognised | 2,302 | 1,839 |
Deferred costs for Service-Type Warranty | 389 | 452 |
Prepaid expenses and accrued income | 408 | 1,165 |
Total other assets | 12,137 | 11,466 |
Less current portion | (9,241) | (8,107) |
Non-current portion | € 2,896 | € 3,359 |
Other Assets (Non-current and_4
Other Assets (Non-current and Current) - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Miscellaneous assets [abstract] | |
Life of contractual insurance period | 5 years |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Classes of current inventories [abstract] | ||||
Leather and other raw materials | € 24,088 | € 30,568 | ||
Goods in process | 8,800 | 10,815 | ||
Finished products | 36,797 | 42,844 | ||
Total | € 69,685 | € 84,227 | € 91,077 | € 91,014 |
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, 2019 | Dec. 31, 2018 | |
Classes of current inventories [abstract] | ||
Beginning balance | € 9,341 | € 8,464 |
Additions | 2,892 | 1,564 |
Reductions | (378) | (687) |
Ending balance | € 11,855 | € 9,341 |
Trade Receivables - Summary of
Trade Receivables - Summary of Trade Receivables (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
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 | € 29,187 | € 40,967 | € 37,549 |
Gross trade receivables | |||
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 | 37,886 | 50,594 | |
Allowance 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 | (8,699) | (9,627) | |
Domestic customers [member] | Gross trade receivables | |||
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 | 14,401 | 20,247 | |
European Customers [member] | Gross trade receivables | |||
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 | 4,348 | 7,815 | |
North American customers [member] | Gross trade receivables | |||
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 | 4,986 | 3,573 | |
South American customers [member] | Gross trade receivables | |||
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 | 5,703 | 3,531 | |
Chinese customers [member] | Gross trade receivables | |||
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 | 4,055 | 7,233 | |
Other foreign customers [member] | Gross trade receivables | |||
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 | € 4,393 | € 8,195 |
Trade Receivables - Additional
Trade Receivables - Additional Information (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Trade receivables [line items] | |||
Total trade receivables | € 29,187 | € 40,967 | € 37,549 |
Trade receivables due from related parties | 5,235 | 9,333 | |
Currency denominated, foreign currency [member] | |||
Disclosure of Trade receivables [line items] | |||
Total trade receivables | € 19,807 | € 26,490 |
Trade Receivables - Summary o_2
Trade Receivables - Summary of Trade Receivables and Revenue (Detail) - Trade receivables [member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of major customers [line items] | ||
No. of customers | 2 | |
% of trade receivables | 21.00% |
Trade Receivables - Summary o_3
Trade Receivables - Summary of Changes in Allowance for Doubtful Accounts (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of changes in allowance for doubtful accounts [abstract] | ||
Balance at beginning of year | € 9,627 | € 10,775 |
Effect of the adoption of IFRS 9 (see note 5) | 0 | 37 |
Charges - bad debt expense | 2,389 | 745 |
Reductions - write off of uncollectible amounts | (3,317) | (1,930) |
Balance at end of year | € 8,699 | € 9,627 |
Other Current Receivables - Sum
Other Current Receivables - Summary of Other Current Receivables (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other current receivables [abstract] | ||
VAT | € 3,939 | € 4,217 |
Receivables from National Institute for Social Security | 2,004 | 1,533 |
Other | 1,780 | 3,757 |
Total | € 7,723 | € 9,507 |
Other Current Receivables - Add
Other Current Receivables - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents [abstract] | |||
Cash on hand | € 188 | € 439 | |
Bank accounts | 39,611 | 61,692 | |
Total | € 39,799 | € 62,131 | € 55,035 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of geographical areas [line items] | |||
Cash | € 39,799 | € 62,131 | € 55,035 |
Europe [member] | |||
Disclosure of geographical areas [line items] | |||
Cash | 21,168 | 40,479 | |
China [member] | |||
Disclosure of geographical areas [line items] | |||
Cash | 16,572 | 18,290 | |
North America [member] | |||
Disclosure of geographical areas [line items] | |||
Cash | 1,317 | 2,857 | |
South America [member] | |||
Disclosure of geographical areas [line items] | |||
Cash | 575 | 318 | |
Other [member] | |||
Disclosure of geographical areas [line items] | |||
Cash | € 167 | € 187 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Cash and cash equivalents if different from statement of financial position [abstract] | |||||
Cash and cash equivalents in the statement of financial position | € 39,799 | € 62,131 | € 55,035 | ||
Bank overdrafts repayable on demand | (1,974) | (1,762) | 0 | ||
Cash and cash equivalents in the statement of cash flows | [1] | € 37,825 | € 60,369 | € 55,035 | € 60,565 |
[1] | As at December 31, 2019, 2018 and 2017 cash and cash equivalents include bank overdrafts of 1,974, 1,762 and nil, respectively, that are repayable on demand and form an integral part of the Group’s cash management. |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents [Line Items] | ||
Cash and cash equivalents | € 39,799 | € 62,131 |
Subsidiary Deposits To Banks | 13,090 | |
Currency risk [member] | ||
Cash and cash equivalents [Line Items] | ||
Cash and cash equivalents | € 36,031 | € 49,413 |
Share Capital, Reserves and R_3
Share Capital, Reserves and Retained Earnings - Summary of Changes in Equity Interest (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Share Capital Reserves And Other Equity Interest [abstract] | |||
Share capital | € 54,853 | € 54,853 | € 54,853 |
Reserves | 17,147 | 17,198 | 16,398 |
Retained earnings | 31,126 | 64,496 | 31,244 |
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY | € 103,126 | € 136,547 | € 102,495 |
Share Capital, Reserves and R_4
Share Capital, Reserves and Retained Earnings - Additional Information (Detail) € / shares in Units, € in Thousands | 12 Months Ended | ||
Dec. 31, 2019EUR (€)Vote€ / sharesshares | Dec. 31, 2018EUR (€)€ / sharesshares | Dec. 31, 2017EUR (€) | |
Disclosure Of Share Capital Reserves And Other Equity Interest [abstract] | |||
Shares authorized | shares | 54,853,045 | 54,853,045 | |
Shares issued | shares | 54,853,045 | 54,853,045 | |
Par value | € / shares | € 1 | € 1 | |
Share capital | € | € 54,853 | € 54,853 | € 54,853 |
Number of vote per shares owned | Vote | 1 | ||
Percentage of net income retained as legal reserve | 5.00% | ||
Maximum percentage of issued share capital to retain legal reserve | 20.00% | ||
Percentage of issued share capital excess of which is distributable as dividends | 20.00% | ||
Total legal reserves | € | € 10,971 | € 10,971 | € 10,971 |
Share Capital, Reserves and R_5
Share Capital, Reserves and Retained Earnings - Disclosure of Share Capital Owned (Detail) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Share capital ownership percentage | 100.00% | 100.00% | 100.00% |
Mr. Pasquale Natuzzi [member] | |||
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Share capital ownership percentage | 56.50% | 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 | 38.40% | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of reserves within equity [abstract] | |||
Legal reserve | € 10,971 | € 10,971 | € 10,971 |
Majority shareholder capital contribution | 488 | 488 | 488 |
Foreign operations translation reserve | 5,846 | 5,282 | 5,055 |
Remeasurement of defined benefit plan | (158) | 457 | (116) |
Total | € 17,147 | € 17,198 | € 16,398 |
Share Capital, Reserves and R_7
Share Capital, Reserves and Retained Earnings - Disclosure of Disaggregation of Changes of OCI (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Exchange difference on translation of foreign operations | € 475 | € 497 | € (7,778) |
Share of OCI of equity-method investees | 111 | (246) | |
Actuarial losses/gains on employees' leaving entitlement | (615) | 573 | (116) |
Total | (29) | 824 | (7,894) |
IAS 19 reserve [member] | |||
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Exchange difference on translation of foreign operations | 475 | 497 | (7,778) |
Share of OCI of equity-method investees | 111 | (246) | |
Total | 586 | 251 | (7,778) |
Remeasurement of defined benefit obligation [member] | |||
Disclosure of Share Capital Reserves and Other Equity Interest [line items] | |||
Actuarial losses/gains on employees' leaving entitlement | (615) | 573 | 116 |
Total | € (615) | € 573 | € 116 |
Share Capital, Reserves and R_8
Share Capital, Reserves and Retained Earnings - Summary of net debt to equity ratio (Detail) € in Thousands | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Jan. 01, 2017EUR (€) |
Disclosure Of Net Debt To Equity Ratio [Abstract] | ||||
Total liabilities | € 264,576 | € 234,527 | ||
Less: cash and cash equivalents | (39,799) | (62,131) | ||
Net debt (a) | 224,777 | 172,396 | ||
Total equity (b) | € 104,818 | € 138,181 | € 104,534 | € 143,999 |
Net debt to equity ratio (a/b) | 2.14 | 1.25 |
Long-term Borrowings - Summary
Long-term Borrowings - Summary of Detailed Information About Loans Outstanding (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | € 18,412 | € 20,943 |
Less current installments | (4,321) | (10,582) |
Long-term borrowings, excluding current installments | 14,091 | 10,361 |
6-months Euribor (360) plus a 3.9% spread long-term debt with final payment due August 2019 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 893 | |
6-months Euribor (360) plus a 2.5% spread long-term debt with final payment due August 2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 4,601 | 6,631 |
3-months Euribor (360) plus a 4% spread long-term debt with final payment due June 2021 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 1,500 | 2,500 |
6-months Euribor (360) plus a 2.9% spread long-term debt with final payment due December 2020 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 42 | 83 |
3-months Euribor (360) plus a 2.2% spread long-term debt with final payment due February 2022 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 428 | 628 |
3-months Euribor (360) plus a 3.5% spread long-term debt with final payment due March 2022 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 1,125 | 1,625 |
3-months Euribor (360) plus a 1.9% spread long-term debt with final payment due November 2022 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 1,191 | 1,583 |
2.3% fixed long-term debt with final payment due July 2025 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 6,075 | € 7,000 |
0.210% fixed long-term debt with final payment due December 2030 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 3,105 | |
80% of 6-months Euribor (360) plus a 0.95% spread long-term debt with final payment due Jan. 2035 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | € 345 |
Long-term Borrowings - Summar_2
Long-term Borrowings - Summary of Detailed Information About Loans Outstanding (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
6-months Euribor (360) plus a 2.5% spread long-term debt with final payment due August 2021 [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Long-term debt interest rate basis | 6-months Euribor (360) |
Long-term debt interest rate spread | 2.50% |
Long-term debt maturity | August 2021 |
6-months Euribor (360) plus a 3.9% spread long-term debt with final payment due August 2019 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Long-term debt interest rate basis | 6-months Euribor (360) |
Long-term debt interest rate spread | 3.90% |
Long-term debt maturity | August 2019 |
3-months Euribor (360) plus a 4% spread long-term debt with final payment due June 2021 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Long-term debt interest rate basis | 3-months Euribor (360) |
Long-term debt interest rate spread | 4.00% |
Long-term debt maturity | June 2021 |
6-months Euribor (360) plus a 2.9% spread long-term debt with final payment due December 2020 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Long-term debt interest rate basis | 6-months Euribor (360) |
Long-term debt interest rate spread | 2.90% |
Long-term debt maturity | December 2020 |
3-months Euribor (360) plus a 3.5% spread long-term debt with final payment due March 2022 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Long-term debt interest rate basis | 3-months Euribor (360) |
Long-term debt interest rate spread | 3.50% |
Long-term debt maturity | March 2022 |
3-months Euribor (360) plus a 2.2% spread long-term debt with final payment due February 2022 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Long-term debt interest rate basis | 3-months Euribor (360) |
Long-term debt interest rate spread | 2.20% |
Long-term debt maturity | February 2022 |
3-months Euribor (360) plus a 1.9% spread long-term debt with final payment due November 2022 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Long-term debt interest rate basis | 3-months Euribor (360) |
Long-term debt interest rate spread | 1.90% |
Long-term debt maturity | November 2022 |
2.3% fixed long-term debt with final payment due July 2025 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Long-term debt interest rate spread | 2.30% |
Long-term debt maturity | July 2025 |
0.210% fixed long-term debt with final payment due December 2030 [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Long-term debt interest rate spread | 0.21% |
Long-term debt maturity | December 2030 |
80% of 6-months Euribor (360) plus a 0.95% spread long-term debt with final payment due Jan. 2035 [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Long-term debt interest rate basis | 6-months Euribor (360) |
Long-term debt interest rate | 80.00% |
Long-term debt interest rate spread | 0.95% |
Long-term debt maturity | January 2035 |
Long-term Borrowings - Addition
Long-term Borrowings - Additional Information (Detail) | 12 Months Ended | ||||||||
Dec. 31, 2019EUR (€)Installment | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Aug. 31, 2019EUR (€) | Nov. 30, 2017EUR (€) | Jul. 31, 2017EUR (€) | Jan. 31, 2017EUR (€) | Dec. 31, 2015EUR (€) | Aug. 31, 2014EUR (€) | |
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt | € 18,412,000 | € 20,943,000 | |||||||
Interest expense related to long-term borrowings | 454,000 | 636,000 | € 738,000 | ||||||
Matera [member] | Long term debt collateralised by mortgages [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt nominal amount | € 5,000,000 | ||||||||
Mortgage loan | € 10,000,000 | ||||||||
Long term floating rate debt maturity August 2017 [member] | Romanian subsidiary [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt nominal amount | € 10,000,000 | ||||||||
6-months Euribor (360) plus a 2.5% spread long-term debt with final payment due August 2021 [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt | € 4,601,000 | 6,631,000 | |||||||
Long-term debt maturity | August 2021 | ||||||||
Long-term debt interest rate basis | 6-months Euribor (360) | ||||||||
Long-term debt interest rate spread | 2.50% | ||||||||
6-months 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] | |||||||||
Debt Service Cover Ratio | 135.00% | ||||||||
6-months 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 | 300.00% | ||||||||
6-months 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 | € 4,601,000 | ||||||||
Long-term debt maturity | August 2021 | ||||||||
Number of monthly installments | Installment | 19 | ||||||||
Long-term debt monthly installment | € 103,000 | ||||||||
Long-term debt lump sum repayment | 2,644,000 | ||||||||
Mortgage loan | 16,628,000 | ||||||||
3-months Euribor (360) plus a 4% spread long-term debt with final payment due June 2021 [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt | € 1,500,000 | 2,500,000 | |||||||
Long-term debt nominal amount | 5,000,000 | ||||||||
Long-term debt maturity | June 2021 | ||||||||
Long-term debt interest rate basis | 3-months Euribor (360) | ||||||||
Long-term debt interest rate spread | 4.00% | ||||||||
3-months Euribor (360) plus a 2.2% spread long-term debt with final payment due February 2022 [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt | € 428,000 | 628,000 | |||||||
Long-term debt maturity | February 2022 | ||||||||
Long-term debt interest rate basis | 3-months Euribor (360) | ||||||||
Long-term debt interest rate spread | 2.20% | ||||||||
3-months Euribor (360) plus a 2.2% spread long-term debt with final payment due February 2022 [member] | Italian subsidiaries [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt | € 428,000 | ||||||||
Long-term debt nominal amount | € 1,000,000 | ||||||||
Long-term debt maturity | February 2022 | ||||||||
Long-term debt interest rate basis | 3-months Euribor (360) | ||||||||
Long-term debt interest rate spread | 2.20% | ||||||||
3-months Euribor (360) plus a 1.9% spread long-term debt with final payment due November 2022 [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt | € 1,191,000 | 1,583,000 | |||||||
Long-term debt nominal amount | € 2,000,000 | ||||||||
Long-term debt maturity | November 2022 | ||||||||
Long-term debt interest rate basis | 3-months Euribor (360) | ||||||||
Long-term debt interest rate spread | 1.90% | ||||||||
2.3% fixed long-term debt with final payment due July 2025 [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt | € 6,075,000 | 7,000,000 | |||||||
Long-term debt nominal amount | € 7,000,000 | ||||||||
Long-term debt maturity | July 2025 | ||||||||
Long-term debt interest rate spread | 2.30% | ||||||||
2.3% fixed long-term debt with final payment due July 2025 [member] | Matera [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Mortgage loan | € 14,000,000 | ||||||||
6-months Euribor (360) plus a 2.9% spread long-term debt with final payment due December 2020 [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt | € 42,000 | 83,000 | |||||||
Long-term debt maturity | December 2020 | ||||||||
Long-term debt interest rate basis | 6-months Euribor (360) | ||||||||
Long-term debt interest rate spread | 2.90% | ||||||||
6-months Euribor (360) plus a 2.9% spread long-term debt with final payment due December 2020 [member] | Italian subsidiaries [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt | € 42,000 | ||||||||
Long-term debt nominal amount | € 200,000 | ||||||||
Long-term debt maturity | December 2020 | ||||||||
Long-term debt interest rate basis | 6-months Euribor (360) | ||||||||
Long-term debt interest rate spread | 2.90% | ||||||||
Mortgage loan | € 300,000 | ||||||||
3-months Euribor (360) plus a 3.5% spread long-term debt with final payment due March 2022 [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt | € 1,125,000 | € 1,625,000 | |||||||
Long-term debt nominal amount | € 2,500,000 | ||||||||
Long-term debt maturity | March 2022 | ||||||||
Long-term debt interest rate basis | 3-months Euribor (360) | ||||||||
Long-term debt interest rate spread | 3.50% | ||||||||
0.210% fixed long-term debt with final payment due December 2030 [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt | € 3,105,000 | ||||||||
Long-term debt nominal amount | € 4,181,000 | ||||||||
Long-term debt maturity | December 2030 | ||||||||
Long-term debt interest rate spread | 0.21% | ||||||||
Mortgage loan | € 13,936,000 | ||||||||
80% of 6-months Euribor (360) plus a 0.95% spread long-term debt with final payment due Jan. 2035 [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Long-term debt | 345,000 | ||||||||
Long-term debt nominal amount | € 435,000 | ||||||||
Long-term debt maturity | January 2035 | ||||||||
Long-term debt interest rate basis | 6-months Euribor (360) | ||||||||
Long-term debt interest rate spread | 0.95% | ||||||||
Mortgage loan | € 3,000,000 |
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, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |||
Non-current portion of the lease liabilities | € 46,053 | ||
Current portion of the lease liabilities | 11,314 | ||
Total | € 57,367 | € 56,758 |
Lease liabilities (non-curren_4
Lease liabilities (non-current and current) - Summary of Changes in Carrying Amount of Lease Liabilities (Details) € in Thousands | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |
Balance as at January 1, 2019 | € 56,758 |
Additions for new leases | 11,544 |
Interest expense | 2,291 |
Lease payments | (14,251) |
Effect of translation adjustments | 1,025 |
Balance as at December 31, 2019 | € 57,367 |
Lease liabilities (non-curren_5
Lease liabilities (non-current and current) - Additional information (Detail) € in Thousands | Dec. 31, 2019EUR (€) |
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |
Undiscounted lease liabilities | € 68,228 |
Foreign countries [member] | |
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |
Undiscounted lease liabilities | € 38,844 |
Bottom of range [member] | |
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |
Borrowings interest rate | 3.00% |
Top of range [member] | |
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |
Borrowings interest rate | 12.00% |
Lease liabilities (non-curren_6
Lease liabilities (non-current and current) - Summary of Maturity Analysis of Contractual Undiscounted Cash Flows of Lease Liabilities (Details) € in Thousands | Dec. 31, 2019EUR (€) |
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |
Undiscounted lease liabilities | € 68,228 |
Later than one year [member] | |
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |
Undiscounted lease liabilities | 13,928 |
One to five years (member) | |
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |
Undiscounted lease liabilities | 36,540 |
More than 5 years [member] | |
Disclosure of Non Current and Current Portion of the Lease Liabilities [Line Items] | |
Undiscounted lease liabilities | € 17,760 |
Employees' Leaving Entitlemen_2
Employees' Leaving Entitlement - Summary of Changes To Employees' Leaving Entitlement (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in net defined benefit liability (asset) [abstract] | ||
Beginning balance | € 17,181 | € 18,820 |
Current service cost | 111 | 148 |
Interest expense | 253 | 235 |
Benefits paid | (2,039) | (1,449) |
Actuarial gains/(losses) | 615 | (573) |
Ending balance | € 16,121 | € 17,181 |
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, 2019 | Dec. 31, 2018 | |
Actuarial assumption of discount rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Annual rate | 0.77% | 1.57% |
Actuarial assumption of expected rates of salary increases [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Annual rate | 0.00% | 0.00% |
Actuarial assumption of expected rates of inflation [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Annual rate | 1.20% | 1.50% |
Actuarial assumption of expected rates of pension increases [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Annual rate | 2.40% | 2.625% |
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 | 4.00% | 4.00% |
Actuarial assumption frequency of defined benefit obligation [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Annual rate | 2.00% | 2.00% |
Employees' Leaving Entitlemen_4
Employees' Leaving Entitlement - Summary of Quantitative Sensitivity Analysis for Significant Assumptions (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Actuarial assumption of turnover rate [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Quantitative sensitivity analysis, increase | € (111) | € (68) |
Quantitative sensitivity analysis, decrease | 123 | 75 |
Actuarial assumption of expected rates of inflation [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Quantitative sensitivity analysis, increase | 231 | 259 |
Quantitative sensitivity analysis, decrease | (227) | (256) |
Actuarial assumption of discount rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Quantitative sensitivity analysis, increase | (360) | (402) |
Quantitative sensitivity analysis, decrease | € 373 | € 417 |
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, 2019 | Dec. 31, 2018 | |
Within 1 year [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Expected payments or contributions to defined benefit plan | € 1,203 | € 1,065 |
Between 2 and 5 years [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Expected payments or contributions to defined benefit plan | € 3,704 | € 4,181 |
Employees' Leaving Entitlemen_6
Employees' Leaving Entitlement - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in net defined benefit liability (asset) [abstract] | ||
Average duration of defined benefit plans | 10 years | 10 years 7 months 17 days |
Contract Liabilities (Non-Cur_3
Contract Liabilities (Non-Current and Current) - Summary of Contract liabilities (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of contract liabilities [line items] | |||
Total contract liabilities | € 23,103 | € 22,099 | € 15,533 |
Less non-current portion | (9,089) | (9,934) | |
Current portion | 14,014 | 12,165 | |
Advance payments [member] | |||
Disclosure of contract liabilities [line items] | |||
Total contract liabilities | 11,821 | 10,312 | |
Natuzzi's trademarks [member] | |||
Disclosure of contract liabilities [line items] | |||
Total contract liabilities | 7,108 | 7,491 | |
Natuzzi Display System [member] | |||
Disclosure of contract liabilities [line items] | |||
Total contract liabilities | 3,369 | 3,399 | |
Service type warranties [member] | |||
Disclosure of contract liabilities [line items] | |||
Total contract liabilities | € 805 | € 897 |
Contract Liabilities (Non-Cur_4
Contract Liabilities (Non-Current and Current) - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of contract liabilities [line items] | |||
Contract revenue | € 12,165 | € 12,973 | € 10,647 |
Natuzzi trademarks [member] | |||
Disclosure of contract liabilities [line items] | |||
Contract revenue | € 7,108 | ||
Average length of contracts with distributors | 20 years | ||
Natuzzi Display System [member] | |||
Disclosure of contract liabilities [line items] | |||
Average length of contracts with distributors | P5Y | ||
Service type warranties [member] | |||
Disclosure of contract liabilities [line items] | |||
Average length of contracts with distributors | P5Y |
Provisions (Non-Current and C_3
Provisions (Non-Current and Current) - Disclosure of Provision Related to Investment (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of other provisions [line items] | |||
Total provisions | € 17,455 | € 18,978 | € 22,672 |
Less current portion | (4,489) | (4,476) | |
Non-current portion | 12,966 | 14,502 | |
Provision for legal claims [member] | |||
Disclosure of other provisions [line items] | |||
Total provisions | 10,469 | 10,926 | 13,008 |
Provision for tax claims [member] | |||
Disclosure of other provisions [line items] | |||
Total provisions | 641 | 1,098 | 1,912 |
Provision for warranties [member] | |||
Disclosure of other provisions [line items] | |||
Total provisions | 4,489 | 4,476 | 5,957 |
Termination indemnities for sales agents [member] | |||
Disclosure of other provisions [line items] | |||
Total provisions | 1,197 | 1,141 | 1,196 |
Other provisions [member] | |||
Disclosure of other provisions [line items] | |||
Total provisions | € 659 | € 1,337 | € 599 |
Provisions (Non-Current and C_4
Provisions (Non-Current and Current) - Additional Information (Detail) € in Thousands | 1 Months Ended | 12 Months Ended | |
May 31, 2017Worker | Dec. 31, 2019EUR (€)Worker | Dec. 31, 2018EUR (€) | |
Legal proceedings contingent liability [member] | |||
Disclosure of other provisions [line items] | |||
Liability due to legal procedure | € | € 9,804 | € 9,287 | |
Provision for legal claims [member] | |||
Disclosure of other provisions [line items] | |||
Liability due to legal procedure | € | € 9,804 | ||
Number of workers initiated for legal procedure | Worker | 159 | ||
Number of workers adverse with adverse verdict in legal procedure | Worker | 2 |
Provisions (Non-Current and C_5
Provisions (Non-Current and Current) - Disclosure of Changes in Provision Related to Investment (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of other provisions [line items] | ||
Beginning Balance | € 18,978 | € 22,672 |
Provisions made during the year | 8,598 | 4,374 |
Reductions of the year | (10,121) | (8,068) |
Ending Balance | 17,455 | 18,978 |
Provision for legal claims [member] | ||
Disclosure of other provisions [line items] | ||
Beginning Balance | 10,926 | 13,008 |
Provisions made during the year | 1,941 | 1,225 |
Reductions of the year | (2,398) | (3,307) |
Ending Balance | 10,469 | 10,926 |
Provision for tax claims [member] | ||
Disclosure of other provisions [line items] | ||
Beginning Balance | 1,098 | 1,912 |
Provisions made during the year | 267 | |
Reductions of the year | (724) | (814) |
Ending Balance | 641 | 1,098 |
Provision for warranties [member] | ||
Disclosure of other provisions [line items] | ||
Beginning Balance | 4,476 | 5,957 |
Provisions made during the year | 2,370 | 1,180 |
Reductions of the year | (2,357) | (2,661) |
Ending Balance | 4,489 | 4,476 |
Termination indemnities for sales agents [member] | ||
Disclosure of other provisions [line items] | ||
Beginning Balance | 1,141 | 1,196 |
Provisions made during the year | 115 | 177 |
Reductions of the year | (59) | (232) |
Ending Balance | 1,197 | 1,141 |
Other provisions [member] | ||
Disclosure of other provisions [line items] | ||
Beginning Balance | 1,337 | 599 |
Provisions made during the year | 3,905 | 1,792 |
Reductions of the year | (4,583) | (1,054) |
Ending Balance | € 659 | € 1,337 |
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, 2019 | Dec. 31, 2018 | |
Accruals and deferred income [abstract] | ||
Deferred income beginning balance | € 13,002 | € 13,771 |
Additions | 2,493 | 292 |
Credit to profit or loss | (1,626) | (1,061) |
Deferred income ending balance | € 13,869 | € 13,002 |
Other liabilities (non-curren_3
Other liabilities (non-current and current) - Schedule of Other Liabilities (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Miscellaneous non-current liabilities [abstract] | ||
Advance payments for government grants | € 1,069 | |
Lease incentives | € 960 | |
Other | 159 | |
Total | € 1,069 | € 1,119 |
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, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Bank overdraft and short-term borrowings | € 24,170 | € 35,148 |
Bank overdrafts [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank overdraft and short-term borrowings | 1,974 | 1,762 |
Borrowings secured over trade receivables [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank overdraft and short-term borrowings | 21,029 | 29,992 |
Borrowings unsecured [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank overdraft and short-term borrowings | € 1,167 | € 3,394 |
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, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [abstract] | ||
Bank overdrafts | 4.13% | 4.35% |
Borrowings | 2.55% | 2.69% |
Bank Overdraft and Short-term B
Bank Overdraft and Short-term Borrowings - Additional Information (Detail) - EUR (€) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Unused credit facility | € 24,251,000 | |
Commitment fee | 0 | |
Bank overdraft and short-term borrowings | 18,412,000 | € 20,943,000 |
Currency risk [member] | Short-term borrowings [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Bank overdraft and short-term borrowings | 253,000 | € 254,000 |
Trade receivables export [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Unused credit facility | 18,080,000 | |
Trade receivables secured borrowings [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Unused credit facility | 3,577,000 | |
Bank overdrafts [member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Unused credit facility | € 2,594,000 |
Trade Payables - Summary of Tra
Trade Payables - Summary of Trade Payables (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other current payables [abstract] | ||
Invoices received | € 47,402 | € 57,325 |
Invoices to be received | 21,074 | 20,576 |
Trade payables | € 68,476 | € 77,901 |
Trade Payables - Additional Inf
Trade Payables - Additional Information (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of trade payables [line items] | ||
Trade payables | € 68,476 | € 77,901 |
Trade payables due to related parties | 124 | 1,004 |
Currency denominated, foreign currency [member] | ||
Disclosure of trade payables [line items] | ||
Trade payables | € 26,065 | € 29,155 |
Other Payables - Schedule Other
Other Payables - Schedule Other Payables (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other current payables [abstract] | ||
Salaries and wages | € 5,412 | € 5,085 |
Social security contributions | 4,289 | 6,901 |
Vacation accrual | 3,889 | 6,408 |
Withholding taxes on payroll and on others | 2,059 | 2,379 |
Other accounts payable | 6,400 | 6,141 |
Total | € 22,049 | € 26,914 |
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, 2019 | Dec. 31, 2018 |
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | € 40,366 | € 43,645 |
British pounds [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 16,947 | 10,612 |
Euro [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 11,347 | 11,407 |
U.S. dollars [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 6,347 | 14,528 |
Canadian dollars [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 1,937 | 1,300 |
Japanese yen [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 1,549 | 2,318 |
Australian dollars [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 1,280 | 2,129 |
Danish kroner [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | 751 | 1,086 |
Swedish kroner [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Notional amount | € 208 | € 265 |
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, 2019 | Dec. 31, 2018 | |
Disclosure Of Derivative Financial Instruments [line items] | ||
Contract amount | € 40,366 | € 43,645 |
Unrealised gains (losses) | (627) | (102) |
Financial liabilities at fair value, class [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Contract amount | 29,947 | 16,186 |
Unrealised gains (losses) | (772) | (320) |
Financial assets at fair value, class [member] | ||
Disclosure Of Derivative Financial Instruments [line items] | ||
Contract amount | 10,419 | 27,459 |
Unrealised gains (losses) | € 145 | € 218 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional information (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in value of forward elements of forward contracts [abstract] | ||
Net unrealized expense (gain) | € 627 | € 102 |
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, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | € 81,373 | € 117,356 |
Total financial liabilities | 191,246 | 161,226 |
Forward exchange contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 772 | 320 |
Financial liabilities measured at amortised cost, class [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 190,474 | 160,906 |
Financial liabilities measured at amortised cost, class [member] | Long-term borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 18,412 | 20,943 |
Financial liabilities measured at amortised cost, class [member] | Lease liabilities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 57,367 | |
Financial liabilities measured at amortised cost, class [member] | Bank Overdrafts and Short Term Borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 24,170 | 35,148 |
Financial liabilities measured at amortised cost, class [member] | Trade Accounts Payable [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 68,476 | 77,901 |
Financial liabilities measured at amortised cost, class [member] | Other Accounts Payable [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 22,049 | 26,914 |
Financial liabilities measured at fair value through profit or loss, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 772 | 320 |
Financial assets measured at amortised cost, class [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 81,228 | 117,138 |
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 | 4,519 | 4,533 |
Financial assets measured at amortised cost, class [member] | Trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 29,187 | 40,967 |
Financial assets measured at amortised cost, class [member] | Other Current Receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 7,723 | 9,507 |
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 | 39,799 | 62,131 |
Financial assets measured at fair value through profit or loss, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 145 | 218 |
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 | € 145 | € 218 |
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, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | € 81,373 | € 117,356 |
Total financial liabilities | 191,246 | 161,226 |
Gross trade receivables | Forward exchange contract [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 145 | 218 |
Total financial liabilities | 772 | 320 |
Gross trade receivables | Long-term borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 18,412 | 20,943 |
Gross trade receivables | Long-term borrowings [member] | Floating-rate borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 9,232 | 13,943 |
Gross trade receivables | Long-term borrowings [member] | Fixed rate borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 9,180 | 7,000 |
At fair value [member] | Forward exchange contract [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 145 | 218 |
Total financial liabilities | 772 | 320 |
At fair value [member] | Long-term borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 19,578 | 20,943 |
At fair value [member] | Long-term borrowings [member] | Floating-rate borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 9,322 | 13,943 |
At fair value [member] | Long-term borrowings [member] | Fixed rate borrowings [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | € 10,256 | € 7,000 |
Financial Instruments - Fair _5
Financial Instruments - Fair Values and Risk Management - Additional Information (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 31, 2015 |
Disclosure of detailed information about financial instruments [line items] | |||
Unused credit lines | € 24,251 | ||
Current and non-current receivables | 1,780 | € 3,757 | |
Cash and cash equivalents | € 39,799 | € 62,131 | |
Fixed rate borrowings [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings at fixed rate | 49.90% | 33.40% | |
Credit risk [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of insures the collections risk related to a significant portion of trade receivable | 80.00% | ||
Percentage of uncollected outstanding balances of trade receivable in case of insolvency | 85.00% | ||
Maximum amount of customer receivables to bank in exchange of short-term credit | € 47,500 | ||
Percentage of insured receivables | 15.00% | ||
Current and non-current receivables | € 12,242 | € 14,040 |
Financial Instruments - Fair _6
Financial Instruments - Fair Values and Risk Management - Summary of Trade Receivables Past Due (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | |||
Current trade receivables | € 29,187 | € 40,967 | € 37,549 |
Gross carrying amount [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Current trade receivables | 37,886 | 50,594 | |
Accumulated impairment [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Current trade receivables | (8,699) | (9,627) | |
Current (not past due) | |||
Disclosure of detailed information about financial instruments [line items] | |||
Current trade receivables | 15,179 | 24,251 | |
From 1 to 29 days past due | |||
Disclosure of detailed information about financial instruments [line items] | |||
Current trade receivables | 8,570 | 8,614 | |
From 30 to 60 days past due | |||
Disclosure of detailed information about financial instruments [line items] | |||
Current trade receivables | 1,298 | 1,409 | |
From 61 to 90 days past due | |||
Disclosure of detailed information about financial instruments [line items] | |||
Current trade receivables | 2,531 | 1,274 | |
More than 90 days past due | |||
Disclosure of detailed information about financial instruments [line items] | |||
Current trade receivables | € 10,308 | € 15,046 |
Financial Instruments - Fair _7
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, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disclosure of credit risk exposure [line items] | ||||
Total gross carrying amount | € 29,187 | € 40,967 | € 37,549 | |
Gross trade receivables | ||||
Disclosure of credit risk exposure [line items] | ||||
Total gross carrying amount | 37,886 | 50,594 | ||
Less than Thirty days [member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Total gross carrying amount | 8,570 | 8,614 | ||
Thirty to sixty days [member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Total gross carrying amount | 1,298 | 1,409 | ||
Sixty One Days To Ninety Days [member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Total gross carrying amount | 2,531 | 1,274 | ||
Past Due Greater Than Ninety One Days [member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Total gross carrying amount | 10,308 | 15,046 | ||
Credit risk [member] | Gross trade receivables | ||||
Disclosure of credit risk exposure [line items] | ||||
Trade receivables subject to collective valuation | 5,632 | 11,368 | € 12,739 | |
Trade receivables subject to specific valuation | 32,524 | 39,226 | 35,585 | |
Total gross carrying amount | 37,886 | 50,594 | 48,324 | |
Expected credit loss | 95 | 64 | 37 | |
Credit risk [member] | Less than Thirty days [member] | Gross trade receivables | ||||
Disclosure of credit risk exposure [line items] | ||||
Trade receivables subject to collective valuation | € 4,936 | € 9,288 | € 11,661 | |
Default rate | 0.13% | 0.10% | 0.11% | |
Expected credit loss | € 6 | € 9 | € 13 | |
Credit risk [member] | Thirty to sixty days [member] | Gross trade receivables | ||||
Disclosure of credit risk exposure [line items] | ||||
Trade receivables subject to collective valuation | € 387 | € 1,323 | € 651 | |
Default rate | 1.42% | 0.99% | 1.04% | |
Expected credit loss | € 5 | € 13 | € 7 | |
Credit risk [member] | Sixty One Days To Ninety Days [member] | Gross trade receivables | ||||
Disclosure of credit risk exposure [line items] | ||||
Trade receivables subject to collective valuation | € 88 | € 254 | ||
Default rate | 3.83% | 2.90% | 2.99% | |
Expected credit loss | € 3 | € 8 | ||
Credit risk [member] | Past Due Greater Than Ninety One Days [member] | Gross trade receivables | ||||
Disclosure of credit risk exposure [line items] | ||||
Trade receivables subject to collective valuation | € 309 | € 669 | € 173 | |
Default rate | 27.07% | 5.80% | 5.33% | |
Expected credit loss | € 84 | € 39 | € 9 |
Financial Instruments - Fair _8
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, 2019 | Dec. 31, 2018 |
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term borrowings | € 20,216 | € 21,850 |
Lease liabilities | 68,228 | |
Bank overdraft and short-term borrowings | 24,170 | 35,148 |
Trade and other payables | 90,525 | 104,815 |
Losses on derivative financial instruments | 772 | 320 |
Total financial liabilities | 203,911 | 162,133 |
Less than 2 months [member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term borrowings | 512 | 899 |
Lease liabilities | 3,341 | |
Bank overdraft and short-term borrowings | 24,170 | 35,148 |
Trade and other payables | 22,049 | 26,914 |
Losses on derivative financial instruments | 772 | 320 |
Total financial liabilities | 50,844 | 63,281 |
2 to 12 months [member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term borrowings | 4,222 | 10,019 |
Lease liabilities | 10,587 | |
Trade and other payables | 68,476 | 77,901 |
Total financial liabilities | 83,285 | 87,920 |
1 to 2 years [member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term borrowings | 6,568 | 3,416 |
Lease liabilities | 9,972 | |
Total financial liabilities | 16,540 | 3,416 |
2 to 5 years [member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term borrowings | 5,389 | 6,158 |
Lease liabilities | 26,568 | |
Total financial liabilities | 31,957 | 6,158 |
More than 5 years [member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term borrowings | 3,525 | 1,358 |
Lease liabilities | 17,760 | |
Total financial liabilities | € 21,285 | € 1,358 |
Financial Instruments - Fair _9
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase in basis points [member] | |||
Disclosure of credit risk exposure [line items] | |||
Effect on profit before tax | € 3,155 | € 2,776 | € 3,023 |
Decrease in basis points [member] | |||
Disclosure of credit risk exposure [line items] | |||
Effect on profit before tax | € (3,486) | € (3,183) | € (3,449) |
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 | € (51) | € (71) | € (90) |
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 | € 51 | € 71 | € 78 |
Financial Instruments - Fair_10
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Increase 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 | € 3,155 | € 2,776 | € 3,023 |
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 | € (3,486) | € (3,183) | € (3,449) |
Financial Instruments - Fair_11
Financial Instruments - Fair Values and Risk Management - Summary of Financial Assets and Financial Liabilities Denominated in Foreign Currency (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | € 39,799 | € 62,131 | |
Total Financial assets | 81,373 | 117,356 | |
Bank overdraft and short-term borrowings | 18,412 | 20,943 | |
Lease liabilities | 57,367 | 56,758 | |
Total Financial liabilities | 191,246 | 161,226 | |
Currency risk [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade receivables | 19,807 | 26,490 | |
Cash and cash equivalents | 36,031 | 49,413 | |
Total Financial assets | 55,838 | 75,903 | |
Lease liabilities | 38,844 | ||
Trade payables | 26,065 | 29,155 | |
Total Financial liabilities | 65,162 | 29,409 | |
Currency risk [member] | Short-term borrowings [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Bank overdraft and short-term borrowings | € 253 | € 254 |
Financial Instruments - Fair_12
Financial Instruments - Fair Values and Risk Management - Summary Of Quantitative Information About Exposure To Currency Risk (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | € 81,373 | € 117,356 |
Financial liabilities | 191,246 | 161,226 |
Chinese Yuan [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 20,592 | 27,101 |
Financial liabilities | 12,071 | 9,726 |
Net Exposure | 8,521 | 17,375 |
U.S. dollars [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 15,524 | 19,661 |
Financial liabilities | 26,995 | 8,841 |
Net Exposure | (11,471) | 10,820 |
British pounds [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 5,984 | 8,696 |
Financial liabilities | 12,482 | 2,482 |
Net Exposure | (6,498) | 6,214 |
Brazilian Reais [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 5,975 | 6,211 |
Financial liabilities | 2,012 | 2,250 |
Net Exposure | 3,963 | 3,961 |
Canadian dollars [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 3,758 | 3,696 |
Financial liabilities | 124 | 236 |
Net Exposure | 3,634 | 3,460 |
Mexican pesos [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 984 | 3,344 |
Financial liabilities | 910 | 43 |
Net Exposure | 74 | 3,301 |
Romanian Leu [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 528 | 886 |
Financial liabilities | 6,673 | 4,976 |
Net Exposure | (6,145) | (4,090) |
Other [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,493 | 6,308 |
Financial liabilities | 3,895 | 855 |
Net Exposure | (1,402) | 5,453 |
Total currencies [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 55,838 | 75,903 |
Financial liabilities | 65,162 | 29,409 |
Net Exposure | € (9,324) | € 46,494 |
Financial Instruments - Fair_13
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | € 56,411 | € 51,951 | € 43,681 |
Cash flows | 4,407 | 9,296 | |
Changes in fair value | 53 | (1,026) | |
Ending balance | 56,411 | 51,951 | |
Long-term borrowings [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 20,943 | 25,717 | 17,961 |
Cash flows | (1,365) | (4,774) | 7,756 |
Other changes | (1,166) | ||
Ending balance | 18,412 | 20,943 | 25,717 |
Lease liabilities [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 56,758 | ||
Cash flows | (11,960) | ||
Other changes | 12,569 | ||
Ending balance | 57,367 | 56,758 | |
Bank Overdrafts and Short Term Borrowings [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 35,148 | 25,967 | 24,427 |
Cash flows | (10,978) | 9,181 | 1,540 |
Ending balance | 24,170 | 35,148 | 25,967 |
Losses on derivative financial instruments [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 320 | 267 | 1,293 |
Changes in fair value | 452 | 53 | (1,026) |
Ending balance | 772 | 320 | € 267 |
Adjusted balance due to lease liability [Member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 113,169 | ||
Cash flows | (24,303) | ||
Changes in fair value | 452 | ||
Other changes | 11,403 | ||
Ending balance | € 100,721 | € 113,169 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue from Contracts with Customers (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | € 386,962 | € 428,539 | € 448,880 |
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 | 385,510 | 427,493 | 448,206 |
Goods or services transferred over time [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 1,452 | 1,046 | 674 |
Wholesale (distributors and retailers) [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 320,263 | 365,499 | 392,332 |
Directly operated stores (end consumers) [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 66,699 | 63,040 | 56,548 |
Europe, Middle East and Africa [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 183,794 | 212,481 | 218,896 |
Americas [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 137,665 | 137,452 | 153,647 |
Asia Pacific [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 65,503 | 78,606 | 76,337 |
United States of America [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 97,723 | 94,393 | 107,262 |
Italy [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 48,557 | 53,261 | 55,379 |
China [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 39,258 | 47,099 | 41,369 |
United Kingdom [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 39,416 | 43,501 | 48,266 |
Canada [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 18,355 | 17,371 | 20,030 |
Spain [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 14,846 | 17,334 | 17,077 |
Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 12,120 | 16,332 | 16,182 |
Germany [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 7,234 | 11,455 | 12,462 |
France [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 8,493 | 11,179 | 9,999 |
Australia [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 8,668 | 9,903 | 9,738 |
Belgium [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 7,809 | 8,682 | 8,214 |
Korea [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 5,626 | 8,232 | 9,847 |
Other countries [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 78,857 | 89,797 | 93,055 |
Sale of upholstery furniture [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 329,162 | 365,346 | 389,528 |
Sale of home furnishing accessories [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 39,623 | 41,733 | 33,560 |
Sale of polyurethane foam [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 9,665 | 14,958 | 15,501 |
Sale of other goods [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 8,512 | 6,502 | 10,291 |
Natuzzi Editions Brand [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 160,136 | 167,925 | 183,838 |
Natuzzi Italia Brand [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 135,500 | 144,953 | 134,740 |
Private label [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 73,149 | 94,201 | 104,509 |
Other [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | € 18,177 | € 21,460 | € 25,793 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables from contracts with customers [abstract] | |||
Trade receivables | € 29,187 | € 40,967 | € 37,549 |
Contract liabilities | € 23,103 | € 22,099 | € 15,533 |
Revenue - Summary of Transactio
Revenue - Summary of Transaction Price Allocated to Remaining Performance Obligations (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Transaction price allocated to remaining performance obligations | € 7,108 | € 7,491 | |
Within 1 year [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Transaction price allocated to remaining performance obligations | 383 | 383 | |
Later than one year [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Transaction price allocated to remaining performance obligations | 6,725 | 7,108 | |
Natuzzi Display System [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Transaction price allocated to remaining performance obligations | 3,369 | 3,399 | € 2,636 |
Natuzzi Display System [member] | Within 1 year [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Transaction price allocated to remaining performance obligations | 1,416 | 1,138 | 758 |
Natuzzi Display System [member] | Later than one year [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Transaction price allocated to remaining performance obligations | 1,953 | 2,261 | 1,878 |
Service type warranties [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Transaction price allocated to remaining performance obligations | 805 | 897 | 960 |
Service type warranties [member] | Within 1 year [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Transaction price allocated to remaining performance obligations | 394 | 332 | 278 |
Service type warranties [member] | Later than one year [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Transaction price allocated to remaining performance obligations | € 411 | € 565 | € 682 |
Cost Of Sales - Summary of Cost
Cost Of Sales - Summary of Cost of Sales (Detail) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | |
Disclosure of cost of sales [abstract] | ||||
Opening inventories | € 84,227 | € 91,077 | € 91,014 | |
Purchases | 139,205 | 177,591 | 180,872 | |
Labour costs | 86,209 | 89,827 | 92,330 | |
Third party manufacturers costs | 3,919 | 6,039 | 8,725 | |
Other manufacturing costs | 29,519 | 29,004 | 37,605 | |
Government grants related to PPE | (1,626) | (1,061) | € (1,068) | (1,068) |
Closing inventories | (69,685) | (84,227) | € (91,077) | (91,077) |
Total | € 271,931 | € 308,250 | € 318,401 |
Cost of Sales - Additional Info
Cost of Sales - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other manufacturing costs [member] | Cost of sales [member] | |||
Disclosure Of Cost Of Sales [line items] | |||
Depreciation and amortisation | € 11,709 | € 7,455 | € 8,565 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | [1] | |
Disclosure of other income and expenses [abstract] | |||||
VAT relief | € 1,216 | € 1,392 | |||
Reimbursement | 519 | € 1,650 | |||
Release of provisions for contingent liabilities | 332 | 1,700 | |||
Other | 3,095 | 2,852 | |||
Total | € 5,162 | € 5,944 | € 1,650 | € 1,650 | |
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Other Income and Other Expens_3
Other Income and Other Expense - Additional information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other income and expenses [abstract] | |||
Provisions for legal claims released | € 332 | € 1,700 | |
VAT relief | 1,216 | € 1,392 | |
Litigation settlements | € 519 | € 1,650 |
Selling Expenses - Summary Of S
Selling Expenses - Summary Of Selling Expenses (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | ||
Disclosure of selling expenses [line items] | |||||
Commissions | € 8,393 | € 10,225 | € 9,512 | ||
Advertising | 7,145 | 12,687 | € 15,407 | ||
Total | 105,250 | 114,997 | 118,254 | [1] | |
Selling expenses [member] | |||||
Disclosure of selling expenses [line items] | |||||
Shipping and handling costs | 35,513 | 40,765 | 40,952 | ||
Labour costs | 23,782 | 24,772 | 26,210 | ||
Depreciation and amortization | 11,805 | 2,274 | 2,124 | ||
Customs Duty | 9,261 | 2,860 | |||
Commissions | 8,393 | 10,225 | 9,512 | ||
Advertising | 7,145 | 12,687 | 15,407 | ||
Utilities | 2,457 | 2,394 | 2,301 | ||
Fairs | 1,864 | 2,308 | 2,896 | ||
Commercial insurance cost | 700 | 532 | 496 | ||
Promotion | 651 | 920 | 1,252 | ||
Leases | 649 | 12,553 | 11,946 | ||
Credit insurance cost | 591 | 579 | 563 | ||
Samples | 519 | 995 | 1,295 | ||
Consultancy | 305 | 630 | 1,020 | ||
Other | 1,615 | 503 | 2,280 | ||
Total | € 105,250 | € 114,997 | € 118,254 | ||
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Administrative Expenses - Summa
Administrative Expenses - Summary of Administrative Expenses (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selling, general and administrative expense [abstract] | |||
Labour costs | € 19,060 | € 20,023 | € 19,364 |
Consultancies | 4,761 | 4,076 | 4,089 |
Non deductibles and indirect taxes | 2,226 | 2,712 | 3,210 |
Travel expenses | 2,261 | 2,022 | 2,331 |
Depreciation and amortization | 1,585 | 1,301 | 1,668 |
Directors and auditors—fees | 622 | 675 | 745 |
Mail & Phone | 831 | 801 | 734 |
Printing & Stationery | 236 | 487 | 507 |
Cars cost | 381 | 457 | 500 |
Electronic data processing | 12 | 96 | 118 |
Government grants related to PPE | (163) | ||
Other | 2,214 | 2,694 | 2,839 |
Total | € 34,026 | € 35,344 | € 36,105 |
Finance Income and Costs - Summ
Finance Income and Costs - Summary of Analysis of Finance Income (Detail) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of Finance Income [abstract] | ||||
Interest income from financial institutions | € 121 | € 191 | € 325 | |
Other interest income | 279 | 188 | 927 | |
Total | € 400 | € 379 | € 1,252 | [1] |
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | ||
Disclosure of Finance Income [abstract] | |||||
Interest expenses due to financial institutions | € 2,864 | € 3,298 | € 3,140 | ||
Interests expenses from lease liabilities | 2,635 | ||||
Other interest expenses | 431 | 498 | 1,499 | ||
Financial institution commissions | 1,998 | 1,784 | 1,650 | ||
Total | € 7,928 | € 5,580 | € 6,289 | [1] | |
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net exchange rate gains losses [abstract] | |||
Net realised gains/(losses) on derivative instruments | € (737) | € (906) | € 1,912 |
Net realised gains/(losses) on trade receivables and payables | 1,600 | 3,353 | 445 |
Total net realised gains (a) | 863 | 2,447 | 2,357 |
Net unrealised gains/(losses) on derivative instruments | (638) | (57) | 943 |
Net unrealised gains/(losses) on trade receivables and payables | (531) | (5,437) | (48) |
Net unrealised gains/(losses) on non-monetary assets | (2,034) | (867) | (2,219) |
Total net unrealised losses (b) | (3,203) | (6,361) | (1,324) |
Total realised and unrealised exchange rate gains/(losses) (a+b) | € (2,340) | € (3,914) | € 1,033 |
Income Tax Expense - Summary of
Income Tax Expense - Summary of Income Tax Rates (Detail) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
IRES [member] | ||||
Disclosure of effective income tax rate [line items] | ||||
Applicable tax rate | 24.00% | 24.00% | 24.00% | 27.50% |
IRAP [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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax [line items] | ||||
Effective income tax rates | 7.45% | 18.32% | 10.32% | |
Income tax payable | € 1,283 | € 880 | ||
Current income tax receivable | € 1,082 | 1,986 | ||
Maximum percentage of permitted tax loss carry forwards can be utilized to off set | 80.00% | |||
Deferred tax assets | € 1,974 | 2,027 | ||
Tax on unremitted earnings of subsidiaries [member] | ||||
Income tax [line items] | ||||
Tax effect of unremitted earnings | € 2,626 | € 2,901 | ||
IRAP [member] | ||||
Income tax [line items] | ||||
Applicable tax rate | 4.82% | 4.82% | 4.82% | |
Increase in applicable tax rate | 0.92% | |||
IRES [member] | ||||
Income tax [line items] | ||||
Applicable tax rate | 24.00% | 24.00% | 24.00% | 27.50% |
Tax effect of unremitted earnings | € (430) | € (1,252) | € (1,998) |
Income Tax Expense - Summary _2
Income Tax Expense - Summary of Total Income Taxes (Detail) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure Of Income Taxes [line items] | ||||
Current tax expense income | € (1,985) | € (7,556) | € (3,817) | |
Deferred tax liability asset | (350) | 127 | 931 | |
Total | (2,335) | (7,429) | (2,886) | [1] |
Domestic [member] | ||||
Disclosure Of Income Taxes [line items] | ||||
Current tax expense income | (585) | (4,504) | (40) | |
Deferred tax liability asset | (387) | 270 | (310) | |
Foreign [member] | ||||
Disclosure Of Income Taxes [line items] | ||||
Current tax expense income | (1,400) | (3,052) | (3,777) | |
Deferred tax liability asset | € 37 | € (143) | € 1,241 | |
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure Of Income Taxes [line items] | ||||
Profit / (loss) for the year | € (31,345) | € 40,548 | € (27,959) | [1] |
Actual tax charge | 2,335 | 7,429 | 2,886 | [1] |
IRES [member] | ||||
Disclosure Of Income Taxes [line items] | ||||
Expected tax benefit (expense) at statutory tax rates | 7,523 | (9,732) | 6,710 | |
Tax exempt income | 3,297 | 1,665 | 952 | |
Aggregate effect of different tax rates in foreign jurisdictions | (139) | 208 | 25 | |
Italian regional tax | (78) | (46) | (39) | |
Non-deductible expenses | (4,521) | (2,667) | (1,972) | |
Tax effect on unremitted earnings | (430) | (1,252) | (1,998) | |
Non taxable gain from disposal and loss of control of a subsidiary | 17,193 | |||
Chinese withholding tax on income not recoverable | (139) | (4,458) | ||
Tax audit settlement for other taxes | 930 | |||
Effect of net change in deferred tax assets unrecognised | (7,848) | (8,340) | (7,494) | |
Actual tax charge | (2,335) | (7,429) | (2,886) | |
Domestic [member] | ||||
Disclosure Of Income Taxes [line items] | ||||
Profit / (loss) for the year | (24,808) | 40,822 | (28,358) | |
Foreign [member] | ||||
Disclosure Of Income Taxes [line items] | ||||
Profit / (loss) for the year | € (6,537) | € (274) | € 399 | |
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Income Tax Expense - Summary _4
Income Tax Expense - Summary of Deferred Tax Assets and Liabilities (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets And Liabilities [line items] | ||
Total deferred tax assets | € 1,974 | € 2,027 |
Deferred tax liabilities | (430) | (42) |
Total deferred tax liabilities | (1,891) | (1,594) |
Deferred Costs [Member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax assets | 845 | |
Provision for contingent liabilities [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax assets | 677 | 621 |
Inventories obsolescence [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax assets | 297 | 152 |
Intercompany profit on inventory [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax assets | 1,162 | |
Deferred revenues and costs IFRS 15 [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax assets | 59 | |
Other temporary differences [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax assets | 96 | 92 |
Deferred tax liabilities | (131) | (143) |
Deferred revenue IFRS 15 [Member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax liabilities | (934) | (716) |
Unrealised net gains on foreign exchange [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax liabilities | (396) | € (735) |
Withholding tax on unremitted earnings of subsidiaries [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax liabilities | € (430) |
Income Tax Expense - Summary _5
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, 2019 | Dec. 31, 2018 |
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax assets | € 1,974 | € 2,027 |
Net deferred tax assets | 513 | 475 |
Deferred tax liabilities | (430) | (42) |
Deferred tax liabilities compensated [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Deferred tax liabilities compensated | € (1,461) | € (1,552) |
Income Tax Expense - Summary _6
Income Tax Expense - Summary of Movements in deferred Tax Balances (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Tax Assets And Liabilities [line items] | |||
initial balance | € 433 | € 306 | € (617) |
Recognised in profit or loss | (350) | 127 | 931 |
Recognised in OCI | (8) | ||
Final balance | 83 | 433 | 306 |
Deferred tax assets [member] | |||
Deferred Tax Assets And Liabilities [line items] | |||
initial balance | 2,027 | 2,656 | 2,557 |
Recognised in profit or loss | (53) | (629) | 99 |
Final balance | 1,974 | 2,027 | 2,656 |
Deferred tax liability [member] | |||
Deferred Tax Assets And Liabilities [line items] | |||
initial balance | (1,594) | (2,350) | (3,174) |
Recognised in profit or loss | (297) | 756 | 832 |
Recognised in OCI | (8) | ||
Final balance | € (1,891) | € (1,594) | € (2,350) |
Income Tax Expense - Summary _7
Income Tax Expense - Summary of Unrecognised Deferred Tax Assets (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets And Liabilities [line items] | ||
Total unrecognised deferred tax assets | € 114,057 | € 113,062 |
Tax loss carry forwards [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Total unrecognised deferred tax assets | 97,544 | 99,133 |
Provision for contingent liabilities [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Total unrecognised deferred tax assets | 5,839 | 3,234 |
Inventory obsolescence [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Total unrecognised deferred tax assets | 2,336 | 2,055 |
Allowance for doubtful accounts [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Total unrecognised deferred tax assets | 2,296 | 2,145 |
Intercompany profit on inventory [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Total unrecognised deferred tax assets | 1,643 | 1,040 |
Provision for warranties [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Total unrecognised deferred tax assets | 1,419 | 1,343 |
Impairment of property, plant and equipment [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Total unrecognised deferred tax assets | 984 | 1,228 |
Goodwill and intangible assets [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Total unrecognised deferred tax assets | 483 | 569 |
IAS 19 adjustment—employees' leaving entitlement [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Total unrecognised deferred tax assets | 389 | 470 |
Deferred Costs [Member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Total unrecognised deferred tax assets | 541 | |
Other temporary differences [member] | ||
Deferred Tax Assets And Liabilities [line items] | ||
Total unrecognised deferred tax assets | € 1,124 | € 1,304 |
Income Tax Expense - Summary _8
Income Tax Expense - Summary of Tax Loss Carry Forward (Detail) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Tax Loss Carryforwards [line items] | ||
Total | € 399,821 | € 393,630 |
No expiration [member] | ||
Disclosure Of Tax Loss Carryforwards [line items] | ||
Total | 339,563 | 328,650 |
Not More than Five Years [Member] | ||
Disclosure Of Tax Loss Carryforwards [line items] | ||
Total | € 26,180 | € 25,647 |
Expiration Date | 2020-2024 | 2019-2023 |
More than Five Years [Member] | ||
Disclosure Of Tax Loss Carryforwards [line items] | ||
Total | € 34,078 | € 39,333 |
Expiration Date | 2024 | 2023 |
Earnings_(losses) per share - S
Earnings/(losses) per share - Summary of Basic and Diluted Earnings (Losses) per Share (Detail) - € / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Earnings per share [abstract] | ||||
Weighted average number of ordinary shares | 54,853,045 | 54,853,045 | 54,853,045 | |
Basic earnings/(losses) per share | € (0.61) | € 0.61 | € (0.55) | [1] |
Diluted earnings/(losses) per share | € (0.61) | € 0.61 | € (0.55) | [1] |
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Earnings_(losses) per share - A
Earnings/(losses) per share - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
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. |
Expenses by Nature - Summary of
Expenses by Nature - Summary of Expenses by Nature (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Expense By Nature [abstract] | |||
Changes in inventories | € 14,542 | € 6,850 | € (63) |
Raw materials and consumables | 139,205 | 177,591 | 180,872 |
Services | 91,526 | 107,074 | 118,681 |
Employee benefits expense | 129,051 | 134,622 | 137,904 |
Depreciation and amortization, net of government grants | 23,487 | 10,003 | 11,362 |
Other | 13,396 | 22,451 | 24,004 |
Total cost of sales, selling and administrative expenses | € 411,207 | € 458,591 | € 472,760 |
Expenses by Nature - Summary _2
Expenses by Nature - Summary of Depreciation and Amortization (Detail) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | |
Disclosure Of Depreciation And Amortization [line items] | ||||
Amortisation of intangible assets | € 917 | € 910 | € 1,569 | |
Government grants | (1,626) | (1,061) | € (1,068) | (1,068) |
Total depreciation and amortization | 23,487 | 10,003 | 11,362 | |
Cost of sales [member] | ||||
Disclosure Of Depreciation And Amortization [line items] | ||||
Depreciation | 7,867 | 7,455 | 8,565 | |
Amortisation of intangible assets | 14 | 34 | 73 | |
Government grants | (1,463) | (1,061) | (1,068) | |
Total depreciation and amortization | 10,260 | 6,428 | 7,570 | |
Cost of sales [member] | Right-of-use assets [member] | ||||
Disclosure Of Depreciation And Amortization [line items] | ||||
Depreciation | 3,842 | |||
Selling expenses [member] | ||||
Disclosure Of Depreciation And Amortization [line items] | ||||
Depreciation | 9,084 | |||
Amortisation of intangible assets | 306 | |||
Total depreciation and amortization | 11,805 | 2,274 | 2,124 | |
Selling expenses [member] | Property, plant and equipment [member] | ||||
Disclosure Of Depreciation And Amortization [line items] | ||||
Depreciation | 2,721 | 2,274 | 1,818 | |
Selling expenses [member] | Intangible assets [member] | ||||
Disclosure Of Depreciation And Amortization [line items] | ||||
Amortisation of intangible assets | ||||
Administrative expenses [member] | ||||
Disclosure Of Depreciation And Amortization [line items] | ||||
Amortisation of intangible assets | 903 | 876 | 1,190 | |
Government grants | (163) | |||
Total depreciation and amortization | 1,422 | 1,301 | 1,668 | |
Administrative expenses [member] | Property, plant and equipment [member] | ||||
Disclosure Of Depreciation And Amortization [line items] | ||||
Depreciation | 381 | 425 | 478 | |
Administrative expenses [member] | Right-of-use assets [member] | ||||
Disclosure Of Depreciation And Amortization [line items] | ||||
Depreciation | € 301 |
Expenses by Nature - Summary _3
Expenses by Nature - Summary of Employee Benefit Expense (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Employee Benefit Expenses [line items] | |||
Salary and wages | € 19,060 | € 20,023 | € 19,364 |
Total | 129,051 | 134,622 | 137,904 |
Cost of sales [member] | |||
Disclosure Of Employee Benefit Expenses [line items] | |||
Salary and wages | 60,756 | 62,815 | 57,401 |
Social security costs | 17,251 | 18,310 | 18,854 |
Employees' leaving entitlement | 3,704 | 3,827 | 3,710 |
Other costs | 4,498 | 4,875 | 12,365 |
Total | 86,209 | 89,827 | 92,330 |
Selling expenses [member] | |||
Disclosure Of Employee Benefit Expenses [line items] | |||
Salary and wages | 18,736 | 19,754 | 20,475 |
Social security costs | 3,800 | 4,019 | 4,376 |
Employees' leaving entitlement | 557 | 350 | 660 |
Other costs | 689 | 649 | 699 |
Total | 23,782 | 24,772 | 26,210 |
Administrative expenses [member] | |||
Disclosure Of Employee Benefit Expenses [line items] | |||
Salary and wages | 13,725 | 14,585 | 13,843 |
Social security costs | 3,502 | 3,638 | 3,570 |
Employees' leaving entitlement | 664 | 635 | 831 |
Other costs | 1,169 | 1,165 | 1,120 |
Total | € 19,060 | € 20,023 | € 19,364 |
Adjusted Earnings Before Inte_3
Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (Adjusted EBITDA) - Summary of Reconciliation of Adjusted EBITDA to Profit (Loss) (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | ||
Disclosure of reconciliation of consolidated adjusted EBITDA [abstract] | |||||
Profit/(loss) for the year | € (33,680) | € 33,119 | € (30,845) | [1] | |
Income tax expense | 2,335 | 7,429 | 2,886 | [1] | |
Profit/(loss) before tax | (31,345) | 40,548 | (27,959) | [1] | |
Adjustments for: | |||||
Net finance income/(costs) | 9,868 | (66,296) | 4,004 | [1] | |
Share of profit/(loss) equity-method investees | (1,011) | 290 | |||
Depreciation | 24,196 | 10,154 | 10,861 | ||
Amortisation | 917 | 910 | 1,569 | ||
Government grants | (1,626) | (1,061) | € (1,068) | (1,068) | |
Adjusted EBITDA | € 999 | € (15,455) | € (12,593) | ||
[1] | The Group has initially applied IFRS 9 as at January 1, 2018. Under the transition method chosen, comparative information has not been restated except for separately presenting impairment losses on trade receivables. See note 5(c). |
Adjusted Earnings Before Inte_4
Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (Adjusted EBITDA) - Additional Information (Detail) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of consolidated adjusted EBITDA [abstract] | |||
Depreciation on lease assets | € 13,227 | ||
Interest cost on leases | € 2,635 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - Additional information (Detail) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Guarantees [member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Contingent liability | € 6,770 | € 1,620 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [abstract] | |||
Directors' fee | € 400 | € 387 | € 270 |
Short-term employee benefits | 1,704 | 1,875 | 1,853 |
Social security contributions and defined contribution plans | 563 | 500 | 500 |
Employee Benefit Obligations | 118 | 110 | 133 |
Total | € 2,785 | € 2,872 | € 2,756 |
Related Parties and Informati_2
Related Parties and Information about Significant Non-Recurring Events and A tipycal/Unusual Transactions - Additional Information (Detail) | Dec. 31, 2019EUR (€) |
Disclosure of transactions between related parties [abstract] | |
Loans and/or guarantees provided to key management personnel | € 0 |
Related Parties and Informati_3
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Sales | € 39,865 | € 16,416 | € 3,593 |
Expenses | 124 | 1,001 | |
Amounts owed by related parties | 5,235 | 9,333 | 1,407 |
Amounts due to related parties | 124 | 1,004 | 8 |
Natuzzi Trading (Shanghai) Co., Ltd [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sales | 36,442 | 12,589 | |
Expenses | 124 | 1,001 | |
Amounts owed by related parties | 3,619 | 7,383 | |
Amounts due to related parties | 124 | 1,001 | |
Nars Miami LLCC [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sales | 646 | 776 | 742 |
Amounts owed by related parties | 169 | 191 | 70 |
Natuzzi Design S.a.s. [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sales | 1,686 | 1,750 | 1,591 |
Amounts owed by related parties | 1,013 | 1,338 | 930 |
Natuzzi Arredamenti S.r.l. [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sales | 842 | 1,010 | 946 |
Amounts owed by related parties | 367 | 343 | 329 |
Natuzzi Sofa S.r.l. [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sales | 249 | 291 | 310 |
Amounts owed by related parties | € 67 | 78 | 78 |
NA.FO. S.r.l. [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sales | 4 | ||
Amounts due to related parties | € 3 | € 8 |
Subsequents Events - Additional
Subsequents Events - Additional Information (Detail) - Non adjusting event after reporting date [member] - EUR (€) € in Thousands | Mar. 02, 2020 | Feb. 28, 2020 |
Disclosure of non-adjusting events after reporting period [line items] | ||
Subscription price of a future rights issue | € 15,000 | |
Partial receipt of subscription price of a future rights issue | € 2,500 |