By Ferrari, the renowned sports car manufacturer, achieved remarkable financial results in the fourth quarter of the previous year, leading to its highest annual after-tax profit in history.
Impressive Revenue Growth
Despite a decrease in shipments, Ferrari’s revenue in the fourth quarter reached an impressive 1.52 billion euros ($1.64 billion). This marks an 11% increase compared to the previous year, surpassing the estimated revenue of EUR1.51 billion.
Shipments and Regional Performance
Although quarterly shipments experienced a 2% decline, the overall annual shipments rose by 3%. This growth can be credited to the popularity of models such as the Purosangue SUV, 296, and SF90. While shipments to China, Hong Kong, and Taiwan declined by 4% during the year, the Americas region observed an 11% increase.
Record After-Tax Profit
Ferrari’s after-tax profit for the year reached an unprecedented EUR294 million, significantly higher than the previous year’s EUR221 million. This surpasses analysts’ estimations of EUR271 million. The company attributes this exceptional performance to strong sales volumes and effective pricing strategies.
Impressive Earnings
Earnings before interest and taxes saw a notable growth of 25%, totaling EUR372 million, exceeding analysts’ expectations of EUR356 million. Additionally, earnings before interest, taxes, depreciation, and amortization increased by 19% to EUR558 million. Analysts had estimated EBITDA at EUR555 million.
Future Targets
Ferrari has set an ambitious goal for full-year revenue, aiming for over EUR6.4 billion after finishing the previous year at EUR5.97 billion. The company also expects to achieve an EBIT margin of more than 27%, building upon their 2023 margin of 27.1%. Furthermore, they anticipate industrial free cash flow to exceed EUR900 million, following a total of EUR932 million generated in 2023.
CEO’s Perspective
Commenting on these impressive results, Ferrari Chief Executive Benedetto Vigna expressed confidence in the company’s business plan and future prospects. He emphasized the importance of the upcoming year and how it aligns with their well-charted path. Vigna stated, “The record 2023 results, the ambitions that we have on 2024, together with the exceptional visibility on our order book allow us to look at the high-end of 2026 targets with stronger confidence.”
Positive Market Response
These impressive financial results have had a positive impact on Ferrari’s stock performance. At 1233 GMT, shares rose by 5.3% to EUR340.90.
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