GuruFocus -
- Revenue: EUR 1.6 billion, up 7% year-over-year.
- EBIT: Approximately EUR 470 million with a margin of 28.4%.
- Net Profit: EUR 375 million.
- Industrial Free Cash Flow: More than EUR 360 million.
- Adjusted EBITDA Margin: 38.8%.
- Shipments: Slightly fewer units than the prior year.
- Personalizations: Approximately 20% of total revenues from cars and spare parts.
- Net Industrial Debt: EUR 246 million after share repurchase of EUR 147 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ferrari NV (NYSE:RACE) reported strong financial results for Q3 2024, with revenues reaching EUR 1.6 billion, up 7% from the previous year.
- The company achieved a double-digit growth in profitability, with an EBIT of approximately EUR 470 million and an EBIT margin of 28.4%.
- Ferrari NV (NYSE:RACE) generated a remarkable net profit of EUR 375 million and an industrial free cash flow of more than EUR 360 million.
- The order book for Ferrari NV (NYSE:RACE) remains strong, with the new 12Cilindri Spider guiding order intake and providing visibility well into 2026.
- The F80 supercar, a new model with a limited run of 799 units, has been fully allocated, showcasing strong demand and technological innovation.
- Shipments were slightly lower than the prior year, reflecting the company's transition to a new ERP system.
- Currency fluctuations, particularly the adverse dynamics of the US dollar and Japanese yen versus the Euro, had a negative impact on revenues.
- There is a concern about the residual values of certain models, particularly in the UK market, which is softer compared to other regions.
- The company faces challenges with increased operating expenses, particularly related to racing activities and lifestyle, as well as persisting inflation.
- Ferrari NV (NYSE:RACE) anticipates higher capital expenditures and taxes, which could impact free cash flow generation in the coming quarters.
A: Benedetto Vigna, CEO: We will start deliveries of the F80 in Q4 2025, and the delivery period will extend over two to three years. The total production is limited to 799 units.
Q: Why did the mix gains decline sequentially in Q3?
A: Antonio Piccon, CFO: The sequential decline is due to the comparison with last year when both the Daytona SP3 and personalization impacts were already high in Q3. The mix was influenced by the product cadence and the phase-out of certain models.
Q: How do you plan to position the upcoming EV Hypercar in relation to the F80?
A: Benedetto Vigna, CEO: While I understand the curiosity, we are a luxury company and prefer to keep some details confidential for now. The F80 represents a significant step in our electrification journey, and we will reveal more about the EV Hypercar in due time.
Q: Could you explain the factors affecting the Q4 guidance, particularly the implied EBIT being lower than Q3?
A: Antonio Piccon, CFO: The Q4 guidance considers higher deliveries of the Daytona SP3 compared to last year but lower sequentially. We also anticipate increased OpEx related to racing activities and lifestyle, persistent inflation, and higher D&A from digital initiatives.
Q: How do you plan to maintain the residual value of the Purosangue, given its different usage compared to other Ferraris?
A: Benedetto Vigna, CEO: We observe that some clients use the Purosangue more frequently, which aligns with its intended purpose. Despite this, demand remains strong, and we receive daily requests for the Purosangue, indicating its continued appeal.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.