Ferrari is celebrating exceptional financial results for the second quarter of 2023, going into the second half of the year strong. With increased revenues and income, the historic Prancing Horse is proving to have a successful approach to the future of the automotive industry, as well as its motorsport efforts and its business operations.
Net revenues soared to a hefty $1.616 million, a 14.1% increase compared to the same period of last year. This came on the back of 3,392 unit shipments, holding steady from Q2 2022. Adjusted EBITDA and EBIT saw substantial growth at 31.9% and 35.4% respectively versus the prior year, with EBITDA margin at an impressive 40.0% and EBIT margin at 29.7%.
The company’s robust Q2 results were driven primarily by a rich product mix and increased contribution from personalizations from clients who want unique and expressive cars. A variety of models, including the Ferrari Purosangue, 296 GTB, the Roma, the Portofino M, 296 GTS, and 812 Competizione A, spearheaded deliveries. Interestingly, hybrid deliveries doubled from the previous year, hitting 43.0% of total shipments, indicating the company’s progressive drive towards sustainability. This same change is reflected in Ferrari’s reducing shipment of engines, as its contract with Maserati approaches its end.
Ferrari’s remarkable quarter was also punctuated by noteworthy accomplishments. The Ferrari Purosangue bagged multiple awards for its revolutionary and beautiful design, while the company triumphed at the 24 Hours of Le Mans with the 499P, reflecting the iconic brand’s continued prowess in motorsports, and victorious return to the world of top-class endurance racing at Le Mans after a long 50-year hiatus.
Despite facing higher depreciation and raw material costs, Ferrari navigated these challenges effectively, thanks to its strong product portfolio and digital infrastructure investments. The company also credited its improved financial performance to higher revenues from racing activities and new sponsorships.
Ferrari’s CEO, Benedetto Vigna, confirmed the company’s decision to revise the 2023 guidance upwards, primarily due to its outstanding results in personalizations. Emphasizing innovation as a key driver of Ferrari’s success, Vigna celebrated the company’s recent victory at Le Mans.
As a result of its Q2 performance, Ferrari is projecting a strong product mix and higher-than-expected personalizations, which bodes well for the rest of 2023. The company also anticipates better revenues from racing activities and a higher industrial free cash flow, partially offset by increasing depreciation and cost inflation.
Ferrari’s resilient Q2 results and the subsequent 2023 guidance upgrade underscore the automaker’s commitment to continued growth and innovation, even in the face of market uncertainties and cost inflation. It’s clear that Ferrari is banking on its rich product mix, personalizations, and consistent delivery to drive success through 2023 and beyond. As a global automotive icon, Ferrari continues to rev up its financial growth and make significant strides in motorsports and sustainable automotive technology. With its upwardly revised 2023 guidance, the Prancing Horse shows no signs of slowing down.