By Guy Taylor
Ferrari raised its earnings forecast on Thursday after profits surged on wealthy consumers paying out to personalise their supercars.
The Prancing Horse reported a near quarter jump in revenues to €1.5bn (£1.3bn), with shipments rising 8.5 per cent to 3,459 vehicles.
Adjusted pre-tax profits came in at €423m, up 41.6 per cent on the prior year and with a margin of 27.4 per cent.
The results mean the Italian group expects adjusted earnings before interest, tax, depreciation and amortisation for the full year to come in higher, at €2.25b, up from a previously bumped-up forecast of between €2.19bn and €2.22bn.
“Another record quarter with profit growth driven by an even richer mix and by the continuing appeal of personalisations leading us to increase year-end guidance. The order book remains at [Ferrari’s] highest levels reflecting strong demand across all geographies, covering the entire 2025,” said Benedetto Vigna, Ferrari’s chief executive officer.
Demand in the luxury car market has remained solid this year, with rivals Aston Martin and Porsche both seeing revenues grow on strong vehicle sales.
Deliveries were up 8.3 per cent in Europe and 21.1 per cent in America, while mainland China, Hong Kong and Taiwan dipped eight per cent.
Shares are up over 50 per cent in the year to date and rose three per cent following today’s announcement.
Despite its rich customer base, analysts are still flagging concerns over the impact of high interest rates over the coming months.
“There’s still questions around, even though Ferrari deals with a particularly high level of wealth, there is still some risk around an environment of higher interest rates,” Philippe Houchois, equity analyst at Jefferies, told City A.M. last week.
