Profits boosted by customers adding expensive features to their supercars
Ferrari has lifted its full-year income and revenue forecast, citing a boost from better-than-expected spending by the sports car maker's wealthy customers on customizing their vehicles.
The Maranello, Italy-based group said it now expects to deliver adjusted earnings before interest, taxes, depreciation, and amortization of between €2.19 billion to €2.22 billion in 2023. The company previously guided for adjusted core income of €2.13B to €2.18B. Net revenue is also now seen at €5.8B, up from the prior mark of €5.7B.
"The decision to revise the guidance upwards was supported in particular by stunning results in personalizations,” said Ferrari Chief Executive Officer Benedetto Vigna in a statement, referring to the personal touches customers add to their cars.
However, the adjusted EBITDA margin was held steady at approximately 38%, while free cash generation was predicted to be broadly unchanged. U.S.-listed shares in Ferrari slipped premarket on Wall Street, while the stock's Milan listing fell.
Along with elevated pricing, personalizations drove up total sales for the three months ended on June 30 by 13% at constant currency to €1.47B. The trends helped offset a 2% decline in total shipments that included double-digit regional drops in the Americas and the Asia Pacific excluding mainland China, Hong Kong, and Taiwan.
Adjusted core earnings in the second quarter grew by more than a fourth to €589 million, topping Bloomberg consensus estimates of €577.3M.