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07 MayPress Releases, Corporate and Financial

Robust mix sustained a strong start to the year

ROBUST MIX SUSTAINED A STRONG START TO THE YEAR

 


“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”.

 




 

Maranello (Italy), May 7, 2024 – 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.

 




 

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:

 




 

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:

 

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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 These results have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and IFRS as endorsed by the European Union
3 Excluding strictly limited racing cars (such as the XX Programme and the 499P Modificata), one-off and pre-owned cars
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 850 units in Q1 2024 (+20 units vs Q1 2023) in the United States of America
6 Of which 243 units in Q1 2024 (-80 units vs Q1 2023) in Mainland China
7 Includes net revenues generated from shipments of our cars, any personalization generated on cars, as well as sales of spare parts
8 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
9 Primarily relates to financial services activities, management of the Mugello racetrack and other sports-related activities, as well as net revenues generated from the rental of engines to other Formula 1 racing teams and from the sale of engines to Maserati. Starting from 2024, residual net revenues generated from engines are presented within other net revenues as a result of the expiration of the contract with Maserati in December 2023. As a result, net revenues generated from engines of €33 million for the three months ended March 31, 2023, that were previously presented as “Engines” net revenues, have been presented within “Other” net revenues to conform to the current presentation.
10 Patent Box regime as introduced by Article 1, par. 37-45 of Law No. 190 of December 23, 2014, as amended and supplemented from time to time, then replaced by Article 6 Decree-Law No. 146 of October 21, 2021, converted with amendments into Law No. 215 of December 17, 2021, as subsequently amended by Law No. 234 of December 30, 2021.
11 Capital expenditures excluding right-of-use assets recognized during the period in accordance with IFRS 16 - Leases
12 Including repurchases for an amount of approx. Euro 14 million in relation to the Sell to Cover practice under the equity incentive plans
13 Calculated using the weighted average diluted number of common shares as of December 31, 2023 (181,511 thousand)




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