Ferrari: strong revenue and profit growth in first 9 months with stable sales
Maranello, 8th November 2013 – The Ferrari S.p.A. Board of Directors met today under the chairmanship of Luca di Montezemolo to examine the financial results for the first nine months of 2013.
Ferrari’s strategic decision announced last May – to reduce volumes and maintain exclusivity while also increasing revenues – has already begun to yield its first results. While deliveries to the dealership network have remained largely unchanged (5,264, three less compared to the first nine months of 2012), revenues have increased by 6.7 per cent to 1.711 million euro.
Trading profit jumped by over 20 per cent to 264.2 million euro as did net profit to 178.8 million euro (+23 per cent). Ebitda at 454 million euro (+15%).
The company’s industrial net cash position has reached new historic record level and, on September 30th, stood at 1.350 million euro, despite an on-going commitment to heavy investment in product development which has resulted in the company’s most complete and innovative range ever, as demonstrated by the models launched in the first nine months of the year: LaFerrari, the first hybrid which represents the ultimate expression of technological innovation, performance and futuristic styling, and the 458 Speciale, an extreme V8-engined berlinetta with Ferrari-patented electronic dynamics controls and aerodynamics.
Ferrari’s industrial net cash flow for the period was 281 million euro.
These results are the fruit of an excellent product mix (12-cylinders accounted for 25 per cent of sales thanks to the consistent success of FF and higher F12berlinetta deliveries), an increasing contribution from all the services for customers, such as the Atelier and Tailor Made personalisation programmes, restoration of classic cars, along with continuing, significant turnover from Brand activities.
Sales continue to grow (+8 per cent) in the USA and Canada to 1627 cars, and it is foreseen that deliveries will increase moderately up until the end of 2013 to avoid excessively long waiting lists.
In Europe, the UK (+15 per cent, 580 cars delivered) is yielding very gratifying results, thanks in part to the arrival of the right-hand drive F12berlinetta. Deliveries to Germany were down by 3 per cent (520 cars) in line with the plan announced earlier this year. Italy remains a marginal market due to restrictive fiscal policies, and now accounts for less than 3 per cent of total sales with just 145 cars delivered to dealerships.
Sales were excellent in the Middle East (+40 per cent, 382 cars) and Japan (+17 per cent, 250), while Greater China (People’s Republic of China, Hong Kong and Taiwan) is very much a two-sided coin. Deliveries to end clients are on the up but deliveries to the network are falling: in fact, the latter have been reduced by 139 to 427 cars. This decision was influenced by two factors: the need to main the brand’s exclusivity on traditional markets, such as Hong Kong, and to take a more cautious position on the People’s Republic of China where rises in taxes on luxury goods may be in the offing.
“I am very satisfied with the results for the first nine months of 2013,” declared Luca di Montezemolo. “They are the fruit of our constant focus on exclusivity, which guarantees significant returns for our shareholders as well as growing numbers of services for clients. The revenues from personalisation programmes and Ferrari Classiche’s activities ably demonstrate this fact and the latter will receive an additional boost when a dedicated centre for collectors opens in the US. We have also maintained our high level of investment in product development and employment: in fact, this year we have already taken on 200 new staff.”
The Board of Directors also sanctioned an important decision with regard to our Brand-related activities (licensing, franchising retail, e-commerce) which, because of their specific nature, require a different management approach to car manufacturing. As a result, a NewCo, 100 per cent controlled by Ferrari, will be set up to deal with all of these activities and guarantee improved, more dedicated operations management.
In the meantime, our Brand activities as a whole continue to deliver positive results. Retail revenues have increased by 17 per cent while licencing is up 3 per cent, thanks to important new partnerships with Electronic Arts and Codemasters, who now flank the well-established licence-holder Microsoft, strengthening the company’s presence in the Electronics & Multimedia sector
Lastly, e-commerce revenues rose by 18 per cent as the Prancing Horse continues to expand its presence on social networks with almost 13 million “likes” for Ferrari’s official pages.