Ferrari achieves double-digit rise in profit, sales

Italian luxury carmaker Ferrari on Tuesday posted a double-digit rise in both profit and sales for the first quarter of 2024 and confirmed its full-year guidance.

Net profit increased by 19% to €352 million (RM1.8 billion), more than expected by the consensus of Factset analysts who were counting on €335 million.

Revenue increased by 11% to €1.58 billion, in line with analysts’ expectations.

However, Ferrari’s shares on the Milan stock exchange fell by 4.7% amid a sense among some analysts that the firm’s annual objectives are not sufficiently ambitious.

For the whole of 2024, the group continues to expect revenue growth of more than 7% to more than €6.4 billion and gross operating income, or Ebitda, to rise by a similar amount €2.45 billion.

Ferrari delivered a total of 3,560 cars worldwide between January and March, seven fewer than in the same period in 2023.

“The start of the year was very positive,” commented chief executive Benedetto Vigna, adding: “Our value over volume strategy continues to be successful.”

Vigna highlighted the “enrichment of our product range” thanks to the launch of the two-seater 12Cilindri and the 12Cilindri Spider.

By 2026, the manufacturer is banking on revenue rising to €6.7 billion, a goal Ferrari intends to achieve by launching 15 new models between 2023 and 2026.

Deliveries in the first quarter were driven by the 296 family models, the Purosangue SUV and the Roma Spider.

Deliveries of limited-edition Daytona SP3 from the Icona range also increased.

Europe, the Middle East and Africa remained Ferrari’s main market in the first quarter, with 1,573 vehicles delivered, up 3%.

Deliveries increased by 4% in the Americas but fell by onefifth in the China, Hong Kong and Taiwan regions.

Sponsorship and brand revenues increased by 12% to €145 million, mainly due to new sponsorships. – AFP