Equity-method investees

12 Months Ended

Dec. 31, 2024

Disclosure Of Equity Method Investees [Abstract]

11. Equity-method investees

Changes in the carrying amount of equity-method investees for the years ended December 31, 2024 and 2023 are analysed as follows.


	Natuzzi Trading Shanghai			Nars Miami LLC			Natuzzi Texas LLC			Natuzzi Store (UK) ltd			Foundation "Made in Italy circolare e sostenibile"		Salena S.r.l.		Total
Balance as at December 31, 2022		37,029			431			176			52			8		—		37,696
Acquisition of non-controlling interests		—			—			—			—			—		—		—
Share of profit for the year		2,873			197			(688	)		515			—		—		2,897
Loss allowance		—			—			502			—			—		—		502
Share of other comprehensive income		(1,257	)		—			—			—			—		—		(1,257	)
Dividends received		—			—			—			—			—		—		—
Share capital reduction		—			—			—			—			—		—		—
Effect of translation adjustments		—			(19	)		10			2			—		—		(7	)
Balance as at December 31, 2023		38,645			609			—			569			8		—		39,831
Acquisition of non-controlling interests		—			—			—			—			—		—		—
Share of profit for the year		988			(4	)		(548	)		(47	)		—		—		389
Loss allowance		—			—			602			—			—		—		602
Share of other comprehensive income		686			—			—			—			—		—		686
Dividends received/(distributed)		—			(77	)		—			—			—		—		(77	)
Liquidation		—			(520	)		—			—			—		—		(520	)
Share capital reduction		—			—			—			—			—		—		—
Effect of translation adjustments		—			(8	)		(54	)		26			—		—		(36	)
Balance as at December 31, 2024		40,319			—			—			548			8		—		40,875

As at December 31, 2024 and 2023 equity-method investees include: (a) the 49% stake in the joint venture Natuzzi Trading Shanghai; (b) the 51% stake in the joint venture Natuzzi Texas LLC; (c) the 30% stake in the associate Natuzzi Store (UK) ltd; (d) the 49% interest in the associate Salena S.r.l., whose carrying value was totally impaired in 2014 in consideration of some legal disputes among shareholders.

With reference to the investment in the associate Nars Miami LLC, the entity was liquidated in early 2024 following the closure of its sole store in 2023.

All such investments are accounted for using the equity method.

(i) Disclosures on Natuzzi Trading (Shanghai) Co. Ltd., joint venture

The following table shows the reconciliation of the carrying amount of the retained interest in Natuzzi Trading Shanghai as at December 31, 2022 with the carrying amount as at December 31, 2023 included in the consolidated statement of financial position.


Carrying amount as at December 31, 2022			37,029
Dividends distribution			—
Share capital reduction			—
Group’s share of profit for the year	751
Elimination of amortisation of Natuzzi’s trademarks	367
Elimination of intercompany profit on inventories	2,144
Amortisation of intangibles assets	(519	)
Reversal of deferred tax liabilities	130
Group’s share of profit for the year, net of equity method adjustments	2,873		2,873
Group’s share of other comprehensive income			(1,257	)
Carrying amount as at December 31, 2023			38,645

The following table shows the reconciliation of the carrying amount of the retained interest in Natuzzi Trading Shanghai as at December 31, 2023 with the carrying amount as at December 31, 2024 included in the consolidated statement of financial position.


Carrying amount as at December 31, 2023			38,645
Dividends distribution			—
Share capital reduction			—
Group’s share of profit for the year	292
Elimination of amortisation of Natuzzi’s trademarks	368
Elimination of intercompany profit on inventories	717
Amortisation of intangibles assets	(519	)
Reversal of deferred tax liabilities	130
Group’s share of profit for the year, net of equity method adjustments	988		988
Group’s share of other comprehensive income			686
Carrying amount as at December 31, 2024			40,319

Summarised financial information of the joint venture Natuzzi Trading Shanghai, based on its IFRS financial statements, and reconciliation with the carrying amount of the Group’s share in net assets and in profit or loss as reported in the consolidated financial statements are set out below.

Summarised statement of financial position of Natuzzi Trading Shanghai and Group’s share in net assets as at December 31, 2024 and 2023


	31/12/24			31/12/23
Current assets		52,951			54,190
Non-current assets		16,954			16,681
Current liabilities		(25,753	)		(28,413	)
Non-current liabilities		(2,885	)		(3,222	)
Net Assets		41,267			39,236
Group’s share in net assets – 49% of net assets		20,221			19,226
Intangible assets		1,272			1,796
Goodwill		26,140			26,140
Elimination of intercompany profit from licensing Natuzzi’s trademarks		(4,994	)		(5,357	)
Elimination of intercompany profit on inventories		(1,999	)		(2,712	)
Deferred tax liabilities		(321	)		(448	)
Group’s carrying amount of interest		40,319			38,645

As at December 31, 2024 and 2023 cash and cash equivalents, bank overdrafts and borrowings, lease liabilities current and non-current are set out below.


	31/12/24			31/12/23
Cash and cash equivalents		33,230			31,706
Lease liabilities current		(2,885	)		(1,570	)
Lease liabilities non-current		(767	)		(3,222	)
Total, net		29,578			26,914

Summarised statement of profit or loss of Natuzzi Trading Shanghai and Group’s share of profit for the year ended December 31, 2023, 2022 and 2021.


	2024			2023			2022
Revenue		57,222			69,939			98,483
Cost of sales		(33,492	)		(39,823	)		(60,481	)
Other income and expenses, net		(7	)		(747	)		(91	)
Selling expenses		(19,036	)		(24,297	)		(24,473	)
Administrative expenses		(2,775	)		(3,332	)		(5,665	)
Impairment on trade receivables		(520	)		—			—
Net finance income		78			315			1,037
Profit before tax		1,470			2,055			8,810
Income tax expense		(874	)		(522	)		(2,646	)
Profit for the period		596			1,533			6,164
Other comprehensive profit/(loss)		1,400			(2,565	)		(1,600	)
Total comprehensive profit for the period		1,996			(1,032	)		4,564
Group’s share of profit for the period – 49%		292			751			3,020
Elimination of amortisation of Natuzzi’s trademarks		368			367			367
Elimination of intercompany profit on inventories		717			2,144			(2,562	)
Amortisation of intangible assets		(519	)		(519	)		(519	)
Deferred tax liabilities		130			130			130
Group’s share of profit/(loss), net of equity method adj.		988			2,873			436
Group’s share of other comprehensive income/(loss) for the period		686			(1,257	)		(784	)
Group’s share of total comprehensive income/(loss) for the period		1,674			1,616			(348	)
Dividends received by the Group		—			—			3,697

For the years ended December 31, 2024, 2023 and 2022, depreciation and amortisation, interest income, interest expense and income tax expense are set below.


	2024		2023		2022
Depreciation and amortisation		4,153		5,571		1,945
Interest income		263		557		1,729
Interest expense		354		242		692
Income tax expense		874		522		2,646

(ii) Disclosures on Natuzzi Texas LLC, joint venture

Natuzzi Texas LLC is an immaterial joint venture, set up in 2021, which is engaged in the sale of the Group’s Natuzzi upholstery furniture and home furnishings accessories to end consumers through directly-operated single-brand stores (Natuzzi Italia stores). The company opened its first store in February 2022.

(iii) Disclosures on Natuzzi Stores (UK) Ltd, associate

Natuzzi Stores (UK) Ltd is an immaterial associate, in which the Group acquired a 30% stake in early 2021. Natuzzi Stores (UK) Ltd is engaged in the sale of upholstered furniture and home furnishings accessories to end consumers through directly-operated Natuzzi Italia mono-brand stores.