The Prancing Horse has published impressive financial results for this year’s second quarter. Ferrari has reported growing revenues and profits, which even allow for an upward revision of the estimates initially forecast for this year. These data are certainly surprising, at least in a context where the entire sector is not faring well. Consequently, the positive note expressed by Ferrari’s CEO, Benedetto Vigna, who spoke of “excellent financial results that once again demonstrate solid execution and continuous growth,” is valid.
Ferrari has declared revenues of 1.71 billion euros, an incredible growth
The growth expressed by Ferrari during this second quarter of the year says that the percentage figure is now equal to +16%, for a revenue value of 1.71 billion euros. This is in line with deliveries increased by 2.7% for a total of 3,484 units registered. The push of the new Ferrari Purosangue is important, as well as the Roma Spider and 296 GTS. The first deliveries of the SF90 XX Stradale are also recorded, although those of the Roma and 812 Competizione, now at the end of their life cycle, are decreasing, as well as in the case of the SF90 Stradale and 812 GTS now at the end of production.
Ferrari admits that revenue growth does not only come from deliveries, but from a “more varied product mix as well as a more significant contribution offered by customizations.” These factors have allowed positively influencing profitability with the gross operating margin growing by 13.7% up to 669 million euros for an impact on revenues of 39.1% and an operating profit improved by 17% to 511 million for a margin grown from 29.7% to the current 29.9%.
The growth in profits thus records an upward figure in double digits, thanks to a percentage increase of 24% up to 413 million euros with industrial activities producing 121 million euros of other profits, in this case down compared to the 138 million euros recorded last year. Investments increase from 198 million to 268 million euros. The net position instead passes from a liquidity equal to 38 million euros, reported at the end of March, with a debt of 441 million euros by virtue of the payment of dividends for 440 million or for the repurchase of own shares for a total of 148 million; overall liquidity worsens instead, falling from 1.966 billion to 1.882 billion. Based on the collected data, Ferrari has now revised upwards the estimates to take into account multiple positive factors including not only the financial performance expressed so far, but also the indications relating to the orders placed.
Benedetto Vigna added positive opinions on the reception given to the new 12Cilindri and 12Cilindri Spider, which allowed “further driving the collection of orders in the reference quarter.” So if previously the forecast on revenues looked at a value in the order of 6.4 billion euros, now the figure would stand at a value exceeding 6.55 billion euros with a gross operating margin of 2.5 billion (against the previous 2.45 billion expected) and an operating profit of about 1.82 billion euros against 1.77 billion previously expected. In terms of cash flow, the previous figure of 900 million now rises to a value of about 950 million.