Ferrari on the way to new records

Ferrari published consolidated results for the second quarter and six months ended June 30, 2022. In the second quarter of this year, delivered cars reached 3,455 units, an increase of 770 units (+28.7%) compared to the previous year. The hybrid share represents 17% of deliveries. Ferrari raises its annual forecasts with the prospect of another record year.

In line with Maranello’s plans, the increase in deliveries in the quarter was driven by Portofino M and F8 range. During the quarter, deliveries of the Ferrari 296 GTB began and deliveries of the 812 Competizione were increased. The Monza SP1 and SP2 of the Icona series reached the end of production in the first quarter.

Asia and adaptation in locomotives

All regions contributed positively in the quarter. EMEA recorded an increase of 4.5%, the Americas at 62.2%, but the prize goes to mainland China, Hong Kong and Taiwan which had triple-digit growth (+115.7%), in line with strong demand, while the Rest of APAC region grew by 21.4%.

In the second quarter of 2022, Ferrari’s net revenue was 1,291 million euros, an increase of 24.9% . Sales of cars and spare parts amounted to 1,100 million euros, an increase of 25%, thanks to the increase in volumes and the contribution of the adaptations of the personalization program, a highly profitable vein for all manufacturers of luxury and sports. To justify the increase in its annual forecasts, the car group also cites the recent weakening of the euro, which makes its products more attractive internationally.

A dynamic to continue

Lower revenues in the engine section (€41m, down 8.5%) were mainly due to the drop in deliveries to Maseratiwith the contract expiring in 2023. The increase in sponsorship, commercial and brand revenue of €117m. (+29.5%) is mainly explained by the best position in the Formula 1 championship in 2021Ferrari, who finished 3rd in the 2021 championship after a disastrous 6th in the 2020 season.

EBITDA (“Earnings before interest, tax, depreciation and amortization”, editor’s note) for the second quarter of 2022 constitutes 446 million euros, an increase of 15.5% compared to the previous year and with an EBITDA margin of 34.6%. In the second quarter of 2022, EBIT amounted to 323 million euros, an increase of 17.8% compared to the previous year and an EBIT margin of 25%.

The volumes had a very positive effect (90 million euros) and reflected the increase in deliveries compared to the previous year. The slightly negative change in the mix/price (€16 million) is mainly explained by a less favorable product mix compared to the previous year due to the lower contribution of the Ferrari Monza SP1 and SP2 and the greater impact of the Portofino M, partly compensated by adaptation

Consequently, net income for the period was 251 million euros, an increase of 21.6% compared to the previous year, while diluted earnings per per share for the quarter was €1.36 compared to €1.11 in the second quarter of 2021.

A margin that is not marginal at all

Ferrari has just published its financial results for the first half with 6706 deliveries, an increase of 23% (!) compared to 2021. If earnings before interest and tax increased in gross value, the margin fell slightly to 25.4%, but of course remained exceptional in the automotive sector. Along with Lamborghini, it should be one of the few brands in the world that sells more than 10,000 cars and has a margin of more than 25%. Ferrari’s net profit for the first half was €2.47 billion, again up 19%.

Ferrari is thus raising its forecasts. On the back of a record second quarter, the luxury carmaker now expects adjusted 2022 Ebitda of between 1.70 and 1.73 billion euros on revenue of around 4.9 billion euros, versus 1.65 to 1.70 million euros and 4.8 billion euros previously.

Leave a Comment