Ferrari Posts Higher Revenue, Profit Despite Slip in Shipments — Update

By David Sachs

Ferrari's revenue rose in the fourth quarter despite fewer shipments as the sports-car maker posted its highest annual after-tax profit on record.

The Italian company said Thursday that revenue reached 1.52 billion euros ($1.64 billion), up 11% from a year ago. Analysts had predicted revenue of EUR1.51 billion, according to FactSet.

Revenue rose despite quarterly shipments dropping 2% to 3,245, Ferrari said. Shipments rose 3% for the full year, driven by the Purosangue SUV model and the 296 and SF90 models, Ferrari said. Shipments to China, Hong Kong and Taiwan fell 4% for the full year while the Americas region recorded an increase of 11%.

After-tax profit reached EUR294 million compared with EUR221 million a year earlier. Analysts had expected EUR271 million, according to estimates provided by FactSet. Ferrari's after-tax profit in 2023 reached more than EUR1.26 billion, an all-time record for the carmaker, with help from high sales volumes and good pricing power, it said.

Earnings before interest and taxes rose 25% to EUR372 million, above analysts' expectations of EUR356 million. Earnings before interest, taxes, depreciation and amortization hit EUR558 million, an increase of 19%. Analysts had estimated Ebitda at EUR555 million.

Ferrari set its full-year revenue target at more than EUR6.4 billion after finishing 2023 at EUR5.97 billion, it said. It expects an EBIT margin of more than 27% after finishing 2023 with a margin of 27.1%.

Industrial free cash flow is expected to exceed EUR900 million, following a total of EUR932 million in 2023, the company said.

"We now have a very important year ahead of us in the execution of our business plan, which continues on schedule along its carefully planned path. 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," Ferrari Chief Executive Benedetto Vigna said.

At 1233 GMT, shares were up 5.3% to EUR340.90.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

February 01, 2024 07:54 ET (12:54 GMT)

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