Ferrari Reports Strong Second-Quarter Profit Growth
Ferrari announced on Wednesday that its second-quarter profit has increased by 33% compared to the previous year. This growth can be attributed to more customers opting for expensive “personalization” options for their new sports cars.
The company also revised its full-year guidance based on these positive results. Ferrari now anticipates a revenue of approximately 5.8 billion euros for 2023, with a per-share profit ranging between 6.25 and 6.40 euros. Previously, the company had projected a revenue of about 5.7 billion euros and a per-share profit between 6.00 and 6.20 euros. The adjusted EBIT margin is expected to remain above 26% as previously guided.
“We continue to manage a very strong order book in all geographies,” stated CEO Benedetto Vigna. “The decision to revise the guidance upwards was supported in particular by stunning results in personalizations.”
In recent years, Ferrari has significantly expanded its options lists, offering customers a wide range of choices in paint finishes, interior materials, and other details. These additional options, referred to as “personalizations,” can substantially increase the price of a new Ferrari.
Ferrari’s reported profit for the quarter was 334 million euros, equivalent to 1.83 euros per share, marking a 33% increase from the 251 million euros, or 1.36 euros per share, recorded during the same period last year.
Furthermore, the company’s revenue experienced a year-over-year growth of 14%, reaching 1.47 billion euros.
Ferrari’s margin on earnings before interest and tax (EBIT) rose to 29.7% in the quarter, up from 25% in the previous year. The growth in profitability was driven by the increased demand for personalizations as well as sales of high-end and limited-edition models.
In the second quarter, Ferrari delivered a total of 3,392 vehicles, which represents a slight decrease of 1.8% (63 cars) compared to the previous year. The company attributed this decline to “geographic and mix allocation plans.” On a year-over-year basis, deliveries increased in Europe, slightly decreased in China, and experienced a double-digit decline in North and South America.
The quarter’s deliveries included the first units of the Purosangue, Ferrari’s new SUV-like vehicle, which entered full production during this period. Strong results were primarily driven by the 296 GTB, a six-cylinder hybrid sports car, as well as the V-8 powered Roma coupe and Portofino M convertible.
Ferrari’s hybrid models, including the 296 GTB and the V-8 powered SF90, accounted for 43% of its second-quarter shipments, more than double compared to the previous year.
