Ferrari profit rises but investors cool on mixed outlook
Profit at Ferrari rose by nearly a fifth in the first quarter, driven by increasing demand for bespoke personalisations.
Earnings before interest and taxation (EBIT) jumped 15 per cent to €442m (£351.9m), alongside a 15 per cent rise in revenues to €1.5bn.
Benedetto Vigna, chief executive, described the double-digit growth over start of the year as “very positive” and flagged “stable deliveries.”
“This was achieved through an even stronger product and country mix as well as a greater contribution from personalizations. Our value over volume strategy continues to be successful,” he added.
However, markets reacted coolly to the update, as Ferrari posted mixed expectations for the year ahead.
The supercar maker said it anticipated earnings per share of €7.5 against prior forecasts of €7.77. It said revenue would also come in lower at a total of €6.4bn, against a previous figure of €6.5bn.
Ferrari shipments totalled 3,560 units across the quarter, largely unchanged year-on-year. Deliveries were driven by its 296 family, the Purosangue and the Roma Spider, which were both in the ramp up phase.
The Prancing Horse has raced ahead of rival Porsche in recent years as it has cashed in on strong demand from wealthy consumers to pay out to customise their vehicles.
Shares are up over 40 per cent in the last 12 months. Porsche meanwhile is down 3.8 per cent and it has forecast a dip in profit over 2024.
There have been some signals the luxury boom that swept across the industry following the pandemic is tailing off.
Bentley, the luxury carmaker owned by Volkswagen, reported a sharp dip in annual profit in March after already warning that volumes in 2023 were down 11 per cent.