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Ferrari Second-Quarter Profit Soars 33% Amid Increased Personalization Options
Ferrari reported a significant increase in second-quarter profit, jumping 33% compared to the previous year. The surge in profit can be attributed to a growing number of customers opting for costly “personalization” options for their new sports cars. Ferrari has expanded its options lists in recent years, offering customers an extensive range of choices in paint finishes, interior materials, and other details.
Ferrari also upgraded its guidance for the full year based on these strong results. The company now expects 2023 revenue of approximately 5.8 billion euros and a per-share profit ranging between 6.25 and 6.40 euros. This is higher than the previous guidance of about 5.7 billion euros in revenue and a per-share profit between 6.00 and 6.20 euros. Ferrari maintains its previous guidance for an adjusted EBIT margin of over 26%.
Reasons Behind Ferrari’s Profit Increase
The significant rise in profit can be attributed to multiple factors. CEO Benedetto Vigna stated that the decision to revise the guidance upwards was primarily supported by outstanding results in personalizations. Ferrari has broadened its options extensively, providing customers with a wide array of choices in paint finishes, interior materials, and other customizable details. These extended options, known as “personalizations,” can substantially increase the price of a new Ferrari.
Ferrari reported a quarterly profit of 334 million euros, equivalent to 1.83 euros per share. This marks a 33% increase compared to the same period the previous year. Moreover, the company’s revenue rose by 14% year over year, reaching 1.47 billion euros.
Ferrari’s margin on earnings before interest and tax (EBIT) escalated to 29.7% in the quarter, up from 25% a year ago. The surge in profitability can be attributed to the increased demand for personalizations, as well as the sales of higher-end and limited-edition models.
Ferrari’s Delivery Performance and Vehicle Lineup
In the second quarter, Ferrari shipped a total of 3,392 vehicles globally, experiencing a slight decline of 1.8% compared to the previous year. The decline is attributed to “geographic and mix allocation plans.” Deliveries increased in Europe, remained slightly lower in China, and significantly decreased in North and South America.
Ferrari’s deliveries included the initial units of the Purosangue, the brand’s new SUV-like vehicle, which entered full production during the quarter. The strong performance of the 296 GTB, a six-cylinder hybrid sports car, and the V-8 powered Roma coupe and Portofino M convertible contributed to the overall delivery numbers. Additionally, 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 the previous year’s result.
