The company, which was listed on the Milan Stock Exchange in May, said a slowdown in furniture exports impacted growth within the second quarter. Net profit surged 187.3 percent in the first quarter of the year.
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“Following an excellent first quarter 2023, in which all IDB strategic business areas registered sustained growth rates, the second quarter of the year saw a general slowdown for the furniture industry,” the company said in a statement. IDB said, according to data compiled by Italian wood furniture federation FederlegnoArredo and Italian statistics bureau ISTAT, industrial production in the furniture sector was down 8.5 percent in May 2023, accompanied by a decline in exports to key markets such as the U.S., Germany and China.
Overall, sales rose to 135.4 million euros as of June 2023, versus 85.4 million euros in the same period a year earlier. Adjusted revenues were 138.4 million euros. Net profit surged 47.6 percent to 12.3 million euros. The adjusted figures include the results of Cubo Design, the Abruzzo, Italy-based company IDB acquired on Jan. 31.
Home to upscale brands like Saba Italia, Gervasoni and Meridiani, IDB said earnings before interest, taxes, depreciation and amortization rose to 24.1 million euros compared to 11.7 million euros in the same period of 2022. Its adjusted EBITDA was equal to 24.5 million in the first half of the year.
The growth of its luxury contract business was driven by Cenacchi International and Modar, and grew 67.1 percent to 39.9 million euros, due to store openings and renovations around the world. By sector, the company’s furniture business, which includes Gervasoni, Meridiani, Saba Italia and Gamma Arredamenti International, saw revenues drop 6.4 percent to 56.3 million euros, impacted in part by a slowdown in China. The company’s forecasts for the full year are “based on a responsible conservative approach” but it expects to close the year with organic growth.