Ferrari NV ((IT:RACE)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Ferrari’s recent earnings call highlighted a positive outlook, supported by record-breaking financial results and successful product launches. Despite challenges in the China market and supply chain disruptions, Ferrari’s strategic focus on sustainability and a robust order book boosts confidence in its future growth prospects.
Record Financial Performance
Ferrari reported record financial figures for 2024, with revenues soaring to approximately €6.7 billion, marking double-digit growth. The company achieved a net profit of €1.5 billion, with a diluted EPS of €8.46, reflecting a 22.6% increase from the previous year. These results underscore Ferrari’s strong financial position and its ability to thrive in a competitive market.
Product Launch Success
The launch of Ferrari’s supercar F80, along with the 12Cilindri Coupe and Spider, has been met with significant success. The F80, featuring a V6 hybrid powertrain derived from the 499P, is already fully allocated, showcasing the brand’s prowess in technology transfer from racing to road cars.
Strong Order Book
Ferrari’s order book remains robust, with orders extending through 2026. The demand for new models, including the 12Cilindri Coupe and Spider, is healthy, and an impressive 81% of new cars were sold to existing clients, indicating strong brand loyalty.
Sustainability Advancements
Ferrari has made strides in its sustainability efforts, aiming to reduce Scope 1 and Scope 2 emissions by a factor of three from the 2021 base year. The company successfully shut down a trigeneration plant ahead of schedule, demonstrating its commitment to achieving carbon neutrality.
Challenges in the China Market
Ferrari’s share of shipments to Mainland China, Hong Kong, and Taiwan decreased to 9%, a strategic move to preserve brand exclusivity. However, this also highlights the challenges Ferrari faces in this region.
Supply Chain Issues
Ongoing supply chain challenges, particularly from suppliers impacted by lower demand from larger OEMs, have necessitated Ferrari to deploy personnel to ensure production continuity and explore second sourcing options.
Forward-Looking Guidance
Looking ahead to 2025, Ferrari plans to launch six new models and maintain strong personalization demand while growing its lifestyle segment. The company aims to reduce its emissions significantly, aligning with its carbon neutrality goal by 2030. Despite macroeconomic uncertainties, Ferrari’s solid order book supports its growth ambitions, with the first half of 2025 expected to be stronger due to product mix dynamics. The effective tax rate is forecasted to rise to around 22.5%, and CapEx is projected at €900 million, reflecting ongoing investment in innovation.
In conclusion, Ferrari’s latest earnings call paints a picture of strong financial health and strategic focus. With record-breaking results, successful product launches, and a commitment to sustainability, Ferrari appears well-positioned for continued growth, despite facing challenges in the China market and supply chain. The forward-looking guidance further reinforces confidence in Ferrari’s unique business model and its ability to navigate future uncertainties.
