Small but mighty: Quality Made in Italy pays off. The luxury manufacturer celebrates new records and is now worth more on the stock market than VW, BMW, or Stellantis.
Ferrari reported a record net profit of 1.257 billion euros on Thursday, an increase of 34% in 2023 compared to 2022. It was the first time it surpassed the one billion euro mark.
The annual EBITDA margin rose to 38.2%, again a record for the Maranello brand.
Net sales amounted to 5.97 billion US dollars, 17.2% more than the previous year, with a total of 13,663 units delivered, representing a 3.3% increase compared to 2022.
While Ferrari gained over 4% on the Milan stock exchange, CEO Benedetto Vigna said the manufacturer of glamorous sports cars was 'confident' about success.
The luxury sports car manufacturer Ferrari exceeded Wall Street's revenue and profit expectations for the fourth quarter and closed the year with record profits.
The car manufacturer reported a net profit of 1.26 billion euros or 1.36 billion US dollars for 2023, of which 294 million euros or 317.9 million US dollars were in the fourth quarter. The adjusted earnings before interest and taxes (EBIT) amounted to 1.62 billion euros or 1.75 billion US dollars for the year, with 372 million euros or 402.3 million US dollars in the last quarter. Both were annual records for the company.
Ferrari's revenue increased by 17% last year to 5.97 billion euros or 6.46 billion US dollars, including an 11% increase in the fourth quarter from 1.37 billion euros in the previous year in 2022.
Such records are expected to be short-lived as Ferrari predicts to exceed many of these results in 2024. The company's forecast for this year sees revenue of more than 6.4 billion euros or 6.9 billion US dollars and an adjusted earnings per share of 2.5 billion euros at least 7.50 euros, with an adjusted EBIT margin of at least 38%. The adjusted profit margins are expected to be at the level of 2023 or slightly below.
Ferrari's shares reached a new 52-week high on Thursday, rising about 12% on the New York Stock Exchange to nearly 390 US dollars per share. The company's previous 52-week high was 372.42 US dollars on December 11.
This is how the company performed in the fourth quarter compared to the average estimates from LSEG, formerly known as Refinitiv:
Earnings per share: 1.62 euros adjusted vs. 1.50 euros expected
Revenue: 1.523 billion euros compared to 1.506 billion expected
Ferrari's deliveries increased by 3% last year to 13,663 vehicles in 2023, including 3,245 units in the fourth quarter.
‘We now have a very important year ahead of us with the implementation of our business plan, which continues on its carefully planned path,’ said Ferrari CEO Benedetto Vigna in a press release. ‘The record results for 2023, the ambitions we have for 2024, along with the exceptional visibility of our order book allow us to look with greater confidence at the upper targets for 2026.’
Independent of that, several media outlets reported in other Ferrari news that Formula 1 star Lewis Hamilton is about to make a surprising switch from Mercedes to the Ferrari team for the 2025 season.
