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Updated February 1st, 2024 at 18:38 IST

Ferrari projects further growth driven by strong orders

Ferrari's Chief Executive, Benedetto Vigna, expressed confidence in the company's order book, stressing upon its "exceptional visibility."

Business Desk
Ferrari
Ferrari | Image:Pexels
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Ferrari projects more growth: Ferrari, the renowned luxury sports car manufacturer, anticipates continued expansion in revenues and core earnings for the upcoming year, bolstered by a robust order book. This outlook has reassured investors who had concerns about a conservative forecast.

During the presentation of its 2023 results, Ferrari announced that it expects adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) to reach at least 2.45 billion euros ($2.64 billion) in the current year, surpassing the 2.28 billion euros achieved in 2023.

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Following the release of the results, Milan-listed shares in Ferrari rebounded, rising by 4.7 per cent at 12:50 GMT, after initially experiencing losses.

Analysts at Bernstein noted that Ferrari had recently tempered earnings expectations, making the guidance for the current year a relief for some investors. 

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They suggested that there might be potential for the guidance to increase over the year as Ferrari gains more clarity on personalisation rates, referring to the additional premiums customers pay to customise their purchased cars according to their preferences.

Ferrari's Chief Executive, Benedetto Vigna, expressed confidence in the company's order book, stressing upon its "exceptional visibility." 

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He indicated that this visibility would enable Ferrari to approach the higher end of its 2026 targets with increased assurance.

As part of its long-term business plan, Ferrari aims for adjusted EBITDA of 2.5-2.7 billion euros in 2026. The company also confirmed its commitment to introducing its first fully electric car by late 2025.

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Ferrari reported a 3.3 per cent increase in shipments last year, totalling 13,663 vehicles. This growth was driven by the ramp-up phase of its four-door, four-seater Purosangue model.

(With Reuters Inputs)

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Published February 1st, 2024 at 18:38 IST

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