Q2 2024 RESULTS CONFIRM STRONG EXECUTION AND CONTINUED GROWTH. 2024 GUIDANCE REVISED UPWARD

 

• Net revenues of Euro 1,712 million, up 16.2% versus prior year, with total shipments of 3,484 units up 2.7% versus Q2 2023

• Adjusted EBIT⁽¹⁾ of Euro 511 million, up 17.0% versus prior year, with adjusted EBIT⁽¹⁾ margin of 29.9%

• Adjusted net profit⁽¹⁾ of Euro 413 million and adjusted diluted EPS⁽¹⁾ at Euro 2.29

• Adjusted EBITDA⁽¹⁾ of Euro 669 million, up 13.7% versus prior year, with adjusted EBITDA⁽¹⁾ margin of 39.1%

• Industrial free cash flow⁽¹⁾ generation of Euro 121 million

 

“We are delighted to announce excellent financial results in the second quarter of 2024, which demonstrate again a strong execution and continued growth. Our net revenues and profitability were up double digit, sustained by the enrichment of the product mix and the increased demand for personalizations, which led us to upgrade our 2024 guidance” said Benedetto Vigna, CEO of Ferrari. “The quarter was also marked by the inauguration of our new e-building, during a week of events dedicated to sustainable innovation with our stakeholders, and the new victory at the 24 Hours of Le Mans”.

 

 

Maranello (Italy), August 1, 2024 – Ferrari N.V. (NYSE/EXM: RACE) (“Ferrari” or the “Company”) today announces its consolidated preliminary results⁽²⁾ for the second quarter and six months ended June 30, 2024.

Shipments⁽³⁾⁽⁴⁾

 

 

Shipments totaled 3,484 units in Q2 2024, up 2.7% versus the prior year. Quarterly shipments reflected the deliberate geographic allocations, thus in the quarter EMEA⁽⁴⁾ was substantially flat, Americas⁽⁴⁾ was up 112 units, Mainland China, Hong Kong and Taiwan decreased by 61 units and Rest of APAC⁽⁴⁾ increased by 24 units.

The Ferrari Purosangue, the Roma Spider and the 296 GTS drove deliveries in the quarter. The first few deliveries of the SF90 XX Stradale commenced, while the Roma and the 812 Competizione decreased, approaching the end of lifecycle, and the SF90 Stradale and 812 GTS phased out. The allocations of the Daytona SP3 increased versus prior year, in line with plans.

The product portfolio in the quarter included eight internal combustion engine (ICE) models and four hybrid engine models, which represented 52% and 48% of total shipments, respectively.

 

Total net revenues

 

 

Net revenues for Q2 2024 were Euro 1,712 million, up 16.2% or 18.9% at constant currency⁽¹⁾.

Revenues from Cars and spare parts⁽⁷⁾ were Euro 1,474 million (up 17.1% or 20.2% at constant currency⁽¹⁾), thanks to a richer product and country mix, increased personalizations, as well as higher volumes.

Sponsorship, commercial and brand⁽⁸⁾ revenues reached Euro 168 million, up 13.8% or 14.8% at constant currency⁽¹⁾ attributable to new sponsorships and lifestyle activities.

Other⁽⁹⁾ revenues were almost flat driven by higher revenues from financial services activities, substantially 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 36 million, mostly related to the US Dollar, Japanese Yen and Chinese Yuan.

 

Adjusted EBITDA⁽¹⁾ and Adjusted EBIT⁽¹⁾

 

 

Q2 2024 Adjusted EBITDA⁽¹⁾ reached Euro 669 million, up 13.7% versus the prior year and with an Adjusted EBITDA⁽¹⁾ margin of 39.1%.

Q2 2024 Adjusted EBIT⁽¹⁾ was Euro 511 million, increased 17.0% versus the prior year and with an Adjusted EBIT⁽¹⁾ margin of 29.9%.

Volume was slightly positive (Euro 10 million), reflecting the shipments increase versus the prior year.

The Mix / price variance performance was very strong and positive (Euro 122 million), mainly reflecting the enrichment of the product mix, sustained by the Daytona SP3 and few sales of the 499P Modificata, increased personalizations and the positive country mix driven by Americas.

Industrial costs / research and development expenses were almost flat.

SG&A grew (Euro 23 million) mainly reflecting brand investments and the continuous development of the Company’s digital infrastructure and organization.

Other changes were almost flat, mainly driven by new sponsorships, partially offset by higher costs related to the better Formula 1 in-season ranking.

Financial charges, net for the quarter almost zeroed, compared to Euro 9 million of the prior year, primarily driven by positive net foreign exchange impact and increased interest income from the Group’s cash balance.

The tax rate⁽¹⁰⁾ in the quarter was 19.1%, mainly reflecting the estimate of the benefit attributable to the Patent Box and tax incentives for eligible research and development costs and investments.

As a result, the Adjusted Net profit⁽¹⁾ for the quarter was Euro 413 million, up 23.6% versus the prior year, and the Adjusted diluted earnings per share⁽¹⁾ for the quarter reached Euro 2.29, compared to Euro 1.83 in Q2 2023.

Industrial free cash flow⁽¹⁾ for the quarter was strong at Euro 121 million, driven by the increased Adjusted EBITDA⁽¹⁾, partially offset by capital expenditures⁽¹¹⁾ of Euro 268 million, net cash interests and taxes for Euro 182 million and the increase in working capital, provisions and other for Euro 88 million.

Net Industrial Debt⁽¹⁾ as of June 30, 2024 was Euro 441 million, compared to a Net Industrial Cash⁽¹⁾ position of Euro 38 million as of March 31, 2024, also reflecting the dividend payment⁽¹²⁾ for Euro 440 million and share repurchases of Euro 148 million. As of June 30, 2024, total available liquidity was Euro 1,882 million (Euro 1,966 million as of March 31, 2024), including undrawn committed credit lines of Euro 550 million.

 

2024 guidance revised upward, based on the following assumptions for the year:

• Positive product and country mix, along with stronger personalizations
• Racing activities, including new sponsorships, 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 and higher racing expenses
• Robust Industrial free cash flow generation, partially offset by increased capital expenditures and higher tax payment

 

 

Q2 2024 highlights:

• On May 13, 2024 Ferrari announced the offering of unsecured debt securities in benchmark size, whose net proceeds are intended for general corporate purposes. The issue price of the Euro 500 million notes, due in May 2030, is equal to 99.677% of their principal amount and the notes have a fixed annual coupon of 3.625%. The offering was well over two times oversubscribed and have been admitted to the Official List of Euronext Dublin and to trading on the regulated market of Euronext Dublin. On May 21, 2024 Ferrari announced the settlement of the offering.
• On June 21, 2024 Ferrari inaugurated the new e-building. The facility is characterized by high production flexibility and a strong focus on the environment and people, and has the capacity to produce the future Ferrari range equipped with internal combustion, hybrid and electric powertrains. The e-building will also produce the strategic electrical components that are highly relevant to differentiating Ferrari's technology and performance: high-voltage batteries, electric motors and axles.
• The fourth tranche of the multi-year share repurchase program was completed on June 26, 2024. Ferrari announced its intention to continue with a fifth tranche of up to Euro 250 million to be executed from July 1, 2024 and to end no later than November 26, 2024.

 

Subsequent Events:

• Ferrari N.V. has been admitted to the cooperative compliance programme (pursuant to Italian Legislative Decree 128/2015) by the Italian Revenue Agency, effective as of 2023. The adherence to this regime follows that of Ferrari S.p.A. and further strengthens the Group’s cooperative relationship with the Italian tax authorities.

• Under the fifth tranche of the new multi-year common share repurchase program announced on June 30, 2022, from July 1, 2024 to July 29, 2024 the Company purchased 159,077 common shares for a total consideration of Euro 61.7 million. At July 29, 2024 the Company held in treasury an aggregate of 14,324,743 common shares equal to 5.57% 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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