Ferrari, the iconic race and luxury car manufacturer, has reported a staggering 45.7% increase in net profit to $353 million (Euro 332 million) in the third quarter of the fiscal year. This surge in profits comes as a result of a richer product range, robust pricing strategies, and sustained demand for personalized vehicles. With an eye towards continued growth, Ferrari has revised its forecasts for full-year earnings upward, indicating a bullish outlook for the company’s future.
Net Revenues and Earnings Growth
In the third quarter, Ferrari witnessed a notable 23.5% increase in net revenues, reaching $1.6 billion (Euro 1.5 billion). Adjusted earnings before interest and taxes (EBIT) saw a remarkable uptick of 41.6%, totaling $449.5 million (Euro 423 million), with an impressive adjusted EBIT margin of 27.4%. Adjusted diluted earnings per share (EPS) for the quarter surged to $1.9 (Euro 1.82), a significant improvement from $1.3 (Euro 1.23) reported a year ago. Furthermore, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) soared by 37% to $632.2 million (Euro 595 million), with an adjusted EBITDA margin of 38.6%.
Strengthened Shipments and Sales Expansion
Ferrari’s shipments surged by 9% year-on-year in the third quarter, totaling 3,459 units. This increase reflects a robust order book and strategic planning across various metrics, including volumes, geography, and product allocation. Notably, for the nine months ended in September, Ferrari reported a total of 10,418 shipments, marking a 5% increase from the same period in the previous year.
Geographic Sales Performance
Sales performance varied across different regions, with Europe, the Middle East, and Asia (EMEA) witnessing an 8.3% increase, while the Americas experienced a substantial growth of 21.1%. Mainland China, Hong Kong, and Taiwan saw a marginal decrease in shipments, while the Rest of Asia Pacific countries (APAC) remained relatively stable compared to the prior-year quarter.
Product Innovation and Future Outlook
Ferrari’s robust performance is further underpinned by its commitment to innovation and product diversification. The company is set to launch fifteen new models between 2023 and 2026, including its highly anticipated all-electric car expected to debut by late 2025. Notable recent releases include the 812 Competizione A and the Ferrari Purosangue SUV, both in the ramp-up phase during the third quarter. Additionally, the Daytona SP3 continued its planned allocations.
Hybrid Technology Adoption
Hybrid deliveries contributed significantly to Ferrari’s total shipments in the third quarter, accounting for 51% of the total. This underscores Ferrari’s commitment to sustainability and technological innovation, aligning with global trends towards greener mobility solutions.
In conclusion, Ferrari’s impressive performance in the third quarter, characterized by substantial profit growth, strengthened shipments, and strategic expansion plans, reaffirms its position as a leading player in the luxury automotive market. With a robust product pipeline and sustained demand, Ferrari is well-poised for continued success in the foreseeable future.
