Maranello (Italy) - Ferrari N.V. (NYSE/EXM: RACE) ('Ferrari' or the 'Company') today announces its consolidated preliminary results(2) for the first quarter ended March 31, 2024.
* Net revenues of Euro 1,585 million, up 10.9% versus prior year, with total shipments of 3,560 units substantially flat versus Q1 2023
* Adjusted EBIT(1) of Euro 442 million, up 14.8% versus prior year, with adjusted EBIT(1) margin of 27.9%
* Adjusted net profit(1) of Euro 352 million and adjusted diluted EPS(1) at Euro 1.95
* Adjusted EBITDA(1) of Euro 605 million, up 12.7% versus prior year, with adjusted EBITDA(1) margin of 38.2%
* Industrial free cash flow(1) generation of Euro 321 million
* 'The start of the year was very positive: revenues and profits recorded double-digit growth with stable deliveries. This was achieved through an even stronger product and country mix as well as a greater contribution from personalizations. Our value over volume strategy continues to be successful,' said Benedetto Vigna, CEO of Ferrari. 'and within this same strategy, the execution of our business plan progresses on schedule, with the enrichment of our product range thanks to the recent launch of the 12Cilindri and 12Cilindri Spider'.
Shipments totaled 3,560 units in Q1 2024, almost unchanged versus the prior year. Quarterly shipments reflected the deliberate geographic allocations, thus in the quarter EMEA(4) increased by 39 units, Americas(4) was up 35 units, Mainland China, Hong Kong and Taiwan decreased by 79 units and Rest of APAC(4) was substantially flat.
Deliveries in the quarter were driven by the 296 family, the Purosangue and the Roma Spider, which was in ramp up phase. The allocations of the Daytona SP3 increased in the quarter, in line with plans. The 812 GTS and the SF90 Stradale were approaching the end of lifecycle, while the Portofino M phased out.
The product portfolio in the quarter included nine internal combustion engine (ICE) models and four hybrid engine models, which represented 54% and 46% of total shipments, respectively.
Net revenues for Q1 2024 were Euro 1,585 million, up 10.9% or 12.8% at constant currency(1).
Revenues from Cars and spare parts(7) were Euro 1,382 million (up 11.4% or 13.5% at constant currency(1)), thanks to a richer product and country mix, as well as the increased contribution from personalizations.
Sponsorship, commercial and brand(8) revenues reached Euro 145 million, up 11.6% or 12.0% at constant currency(1) attributable to new sponsorships, partially offset by lower Formula 1 ranking in 2023 vs. 2022.
Other(9) revenues were flat, with higher revenues from financial services activities offset by the decreased contribution from the Maserati contract which expired in 2023.
Currency - including translation and transaction impacts as well as foreign currency hedges - had a negative net impact of Euro 26 million, mostly related to the Chinese Yuan, Japanese Yen and US Dollar.
Adjusted EBITDA(1) and Adjusted EBIT(1)
Q1 2024 Adjusted EBITDA(1) reached Euro 605 million, up 12.7% versus the prior year and with an Adjusted EBITDA(1) margin of 38.2%.
Q1 2024 Adjusted EBIT(1) was Euro 442 million, increased 14.8% versus the prior year and with an Adjusted EBIT(1) margin of 27.9%.
Volume was slightly negative (Euro 8 million), mainly driven by lower range models deliveries.
The Mix / price variance performance was very strong and positive (Euro 123 million), mainly reflecting the enrichment of the product mix, sustained by the Daytona SP3, the increased contribution from personalizations and the positive country mix driven by Americas.
Industrial costs / research and development expenses increased (Euro 29 million), mainly due to higher innovation expenses as well as depreciation and amortization.
SG&A also grew (Euro 12 million) mainly reflecting the continuous development of the Company's digital infrastructure and organization.
Other changes were positive (Euro 6 million), mainly driven by new sponsorships and a release of prior year car environmental provisions in the United States of America, partially offset by lower Formula 1 ranking in 2023 vs. 2022.
Financial charges, net for the quarter totaled Euro 2 million, nearly halved versus the prior year, primarily driven by increased interest income from the Group's cash balances.
The tax rate in the quarter was 20%, mainly reflecting the estimate of the benefit attributable to the Patent Box(10) and tax incentives for eligible research and development costs and investments.
As a result, the Adjusted Net profit(1) for the quarter was Euro 352 million, up 18.6% versus the prior year, and the Adjusted diluted earnings per share(1) for the quarter reached Euro 1.95, compared to Euro 1.62 in Q1 2023.
Industrial free cash flow(1) for the quarter was strong at Euro 321 million, driven by the increased Adjusted EBITDA(1), partially offset by capital expenditures(11) of Euro 195 million and the increase in working capital, provisions and other of Euro 71 million.
As of March 31, 2024 the Company was in a Net Industrial Cash(1) position of Euro 38 million for the first time, compared to Net Industrial Debt of Euro 99 million as of December 31, 2023, also reflecting share repurchases(12) of Euro 136 million. As of March 31, 2024, total available liquidity was Euro 1,966 million (Euro 1,722 million as of December 31, 2023), including undrawn committed credit lines of Euro 600 million.
2024 guidance confirmed, based on the following assumptions for the year:
Positive product and country mix, along with strong personalizations
Racing activities impacted by lower Formula 1 ranking in 2023 despite higher number of races in the 2024 calendar
Lifestyle activities expected to increase top line contribution while investing to accelerate development
Cost inflation to persist
Continuous brand investments
Robust Industrial free cash flow generation, partially offset by increased capital expenditures and higher tax payment
Q1 2024 highlights:
Ferrari announced that Lewis Hamilton will be joining Scuderia Ferrari in 2025, on a multi-year contract.
Ferrari and SK On, a leading global electric vehicle battery manufacturer, signed a Memorandum of Understandings to renew the on-going technological collaboration and share valuable insights to continue to lead innovation in cell technology.
Subsequent Events:
On April 8, 2024 the E-Cells Lab, a research center for electrochemistry within the University of Bologna, was inaugurated. The electrochemical research laboratory promoted by Ferrari in collaboration with the University of Bologna and the leading electronics company NXP, aims to build knowledge of the materials, and the chemical and physical properties, of lithium cells.
On April 11, 2024 the Roma Spider, the Ferrari's elegant 2+ mid-engined open-top car with a retractable soft top, won the Red Dot: Best of the Best in the Product Design category. Ferrari also won two Red Dot Awards for the special limited-edition SF90 XX Stradale and the futuristic One-Off KC23, respectively.
At the Annual General Meeting held on April 17, 2024, the Shareholders of the Company approved, among others, a dividend in cash of Euro 2.443 per outstanding common share, totaling approximately Euro 440 million, as recommended by the Company's Board of Directors on February 22, 2024. The dividend was then paid on May 3, 2024.
On April 24, 2024 Ferrari announced to have signed a multiyear partnership agreement with HP Inc., through which its brand will appear on racing properties of Scuderia Ferrari.
On May, 3 2024 Ferrari unveiled the 12Cilindri and the 12Cilindri Spider, our new two-seater berlinettas powered by a front-mid, naturally-aspirated V12. These models are the perfect embodiment of the Prancing Horse DNA, offering incomparable performance and handling with sophisticated design.
Under the fourth tranche of the new multi-year common share repurchase program announced on June 30, 2022, from March 31, 2024 to May 3, 2024 the Company purchased 101,349 common shares for a total consideration of Euro 39.5 million. At May 3, 2024 the Company held in treasury an aggregate of 13,885,346 common shares equal to 5.40% 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.
FERRARI N.V. 
