ANOTHER RECORD QUARTER SUSTAINING UPWARD REVISED YEAR-END OUTLOOK

• Net revenues of Euro 1,544 million, up 23.5% versus prior year, with total shipments of 3,459 units up 8.5% versus Q3 2022
• Adjusted EBIT⁽¹⁾ of Euro 423 million, up 41.6% versus prior year, with adjusted EBIT⁽¹⁾ margin of 27.4%
• Adjusted net profit⁽¹⁾ of Euro 332 million and adjusted diluted EPS⁽¹⁾ at Euro 1.82
• Adjusted EBITDA^([1]) of Euro 595 million, up 37.0% versus prior year, with adjusted EBITDA⁽¹⁾ margin of 38.6%
• Industrial free cash flow⁽¹⁾ generation of Euro 301 million

 

“Another record quarter with profit growth driven by an even richer mix and by the continuing appeal of personalizations leading us to increase year-end guidance. The order book remains at highest levels reflecting strong demand across all geographies, covering the entire 2025,” said Benedetto Vigna, Ferrari Chief Executive Officer. “Our brand’s uniqueness has once again contributed to this success, informing everything we do - from car launches, including the latest 296 Challenge and 499P Modificata, to the exclusive experiences we offer our clients, such as the Ferrari Gala recently held in New York and the Finali Mondiali at Mugello circuit”.

Maranello (Italy), November 2, 2023 – Ferrari N.V. (NYSE/EXM: RACE) (“Ferrari” or the “Company”) today announces its consolidated preliminary results^([1]) for the third quarter and nine months ended September 30, 2023.

Shipments^([2])([3])

 

Shipments totaled 3,459 units in Q3 2023, up 271 units versus the prior year, serving a very solid order book and reflecting volumes, geographic and product allocation plans by quarter. As a result, EMEA⁽⁴⁾ increased by 8.3%, Americas⁽⁴⁾ was up 21.1%, Mainland China, Hong Kong and Taiwan decreased by 36 units and Rest of APAC⁽⁴⁾ was almost flat versus the prior year quarter.

Deliveries in the quarter were driven by the 296 and the SF90 families, while the F8 Spider was approaching the end of lifecycle. In the quarter the 812 Competizione A and the Purosangue were in ramp up phase, and the allocations of the Daytona SP3 continued as planned.

The product portfolio in the quarter included nine internal combustion engine (ICE)^([1]) models and four hybrid engine models. Hybrid deliveries reached 51.0% of total shipments in the quarter.

 

Total net revenues

Net revenues for Q3 2023 were Euro 1,544 million, up 23.5% or 25.8% at constant currency⁽¹⁾.

Revenues from Cars and spare parts⁽⁸⁾ were Euro 1,330 million (up 26.5% or 29.1% at constant currency⁽¹⁾), thanks to higher volumes, richer product mix and country mix, as well as the increased contribution from personalizations and pricing.

Sponsorship, commercial and brand⁽⁹⁾ revenues reached Euro 145 million, up 13.8% or 13.4% at constant currency⁽¹⁾ mainly attributable to new sponsorships and the better prior year Formula 1 ranking.

The decrease in Engines⁽¹⁰⁾ revenues (Euro 28 million, down 33.0%, also at constant currency⁽¹⁾) was attributable to lower shipments to Maserati, as the 2023 contract expiration gets closer.

Currency – including translation and transaction impacts as well as foreign currency hedges – had a negative net impact of Euro 36 million, mostly related to Chinese Yuan, Japanese Yen and US Dollar.

 

Adjusted EBITDA⁽¹⁾ and Adjusted EBIT⁽¹⁾

Q3 2023 Adjusted EBITDA⁽¹⁾ reached Euro 595 million, up 37.0% versus the prior year and with an Adjusted EBITDA⁽¹⁾ margin of 38.6%.

Q3 2023 Adjusted EBIT⁽¹⁾ was Euro 423 million, increased 41.6% versus the prior year and with an Adjusted EBIT⁽¹⁾ margin of 27.4%.

Volume was positive (Euro 33 million), reflecting the shipments increase versus the prior year.

The Mix / price variance performance was very strong and positive (Euro 170 million), mainly reflecting the enrichment of the product mix, sustained by the Daytona SP3, the 812 Competizione and the SF90 families, the positive country mix driven by Americas, as well as the increased contribution from personalizations and pricing.

Industrial costs / research and development expenses increased (Euro 63 million), mainly due to higher depreciation and amortization as well as raw materials cost inflation.

SG&A also grew (Euro 10 million) mainly reflecting the development of the Company’s organization and its digital infrastructure.

Other changes were positive (Euro 17 million), mainly reflecting higher commercial revenues from a better prior year Formula 1 ranking and new sponsorships.

 
 

Financial income, net contributed positively for approximately Euro 3 million thanks to higher yields on liquidity, realized gains on bond cash tender executed in the quarter and overall net foreign exchange impact.

The tax rate in the quarter was approximately 22%, mainly reflecting the estimate of the benefit attributable to the Patent Box, the Allowance for Corporate Equity (ACE)⁽[1]⁾ and tax incentives for eligible research and development costs and investments.

As a result, the Adjusted Net profit⁽¹⁾ for the quarter was Euro 332 million, up 45.7% versus the prior year, and the Adjusted diluted earnings per share⁽¹⁾ for the quarter reached Euro 1.82, compared to Euro 1.23 in Q3 2022.

Industrial free cash flow⁽¹⁾ for the quarter was strong at Euro 301 million, driven by the increased Adjusted EBITDA⁽¹⁾, partially offset by capital expenditures^([2]) of Euro 205 million and the increase in working capital, provisions and other of Euro 80 million.

Net Industrial Debt⁽¹⁾ as of September 30, 2023 was Euro 233 million, compared to Euro 331 million as of June 30, 2023, also reflecting share repurchases of Euro 194 million. As of September 30, 2023, total available liquidity was Euro 1,612 million (Euro 1,710 million as of June 30, 2023), including undrawn committed credit lines of Euro 600 million.

 

Upward revised 2023 guidance, based on the following assumptions for the year:

• Strong product mix and personalizations higher than initially expected
• Better revenues from racing activities
• Continuing cost inflation
• Increasing depreciation and amortization in line with the start of production of new models
• Industrial free cash flow generation sustained by strong profitability, partially offset by disciplined capital expenditures and negative change in working capital

Q3 2023 highlights:

• Scuderia Ferrari renewed its multi-year partnership with sports company PUMA, which will become its Premium Partner starting from next year. In the next years PUMA will also continue to be the licensing partner for Ferrari-branded products and the supplier of the Formula 1 team and race wear for Ferrari.

Subsequent Events:

• A three-day exhibition hosting ca. 130,000 visitors at New York City’s Hudson Yards complex culminated in an exclusive charity auction during the Ferrari Gala, which took place on October 17, 2023 and gathered the Ferrari community together for a charity auction that raised over USD 7 million. The funds will be devoted to projects supporting education in the community.
• At the Finali Mondiali, which took place at the Mugello Circuit between October 24 and 30, Ferrari presented the 296 Challenge and the 499P Modificata. Derived from the 296 GTB, the 296 Challenge introduces substantial modifications on the power unit, aero and vehicle dynamics fronts, all aimed at guaranteeing maximum performance on the track. The 499P Modificata is a strictly limited-series car for non-competitive track use, derived from the 499P that triumphed in the Centenary edition of the 24 Hours of Le Mans last June 2023.

Under the third tranche of the new multi-year common share repurchase program announced on June 30, 2022, from October 2, 2023 to October 20, 2023 the Company purchased 17,957 common shares for a total consideration of Euro 5.2 million and completed the third tranche of the program. At October 20, 2023 the Company held in treasury an aggregate of 13,258,742 common shares equal to 5.16% of the total issued share capital including the common shares and the special voting shares, net of shares assigned under the Company’s equity incentive plan.

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[1] Refer to specific paragraph on non-GAAP financial measures. The term EBIT is used as a synonym for operating profit. There were no adjustments impacting EBITDA, EBITDA margin, EBIT, EBIT margin, Net profit, Basic EPS and Diluted EPS in the periods presented.
[2] Excluding the XX Programme, racing cars, one-off and pre-owned cars
[3] EMEA includes: Italy, UK, Germany, Switzerland, France, Middle East (includes the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon, Qatar, Oman and Kuwait), Africa and the other European markets not separately identified; Americas includes: United States of America, Canada, Mexico, the Caribbean and Central and South America; Rest of APAC mainly includes: Japan, Australia, Singapore, Indonesia, South Korea, Thailand, India and Malaysia
[4] EMEA includes: Italy, UK, Germany, Switzerland, France, Middle East (includes the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon, Qatar, Oman and Kuwait), Africa and the other European markets not separately identified; Americas includes: United States of America, Canada, Mexico, the Caribbean and Central and South America; Rest of APAC mainly includes: Japan, Australia, Singapore, Indonesia, South Korea, Thailand, India and Malaysia
[5] Of which 935 units in Q3 2023 (+25.7% vs Q3 2022) and 2,497 units in 9M 2023 (+11.8% vs 9M 2022) in the United States of America
[6] Of which 342 units in Q3 2023 (-11.4% vs Q3 2022) and 929 units in 9M 2023 (+4.3% vs 9M 2022) in Mainland China
[7] It includes one ICE track car model
[8] Includes net revenues generated from shipments of our cars, any personalization generated on cars, as well as sales of spare parts
[9] Includes net revenues earned by our racing teams (mainly in the Formula 1 World Championship and the World Endurance Championship) through sponsorship agreements, our share of the Formula 1 World Championship commercial revenues, and net revenues generated through the Ferrari brand, including fashion collection, merchandising, licensing and royalty income
[10] Includes net revenues generated from the sale of engines to Maserati for use in their cars and from the rental of engines to other Formula 1 racing teams
[11] Primarily relates to financial services activities, management of the Mugello racetrack and other sports-related activities
[12] Also known as Notional Interest Deduction - NID
[13] Capital expenditures excluding right-of-use assets recognized during the period in accordance with IFRS 16 - Leases
[14] Calculated using the weighted average diluted number of common shares as of December 31, 2022 (183,072 thousand)