Ferrari NV (RACE, Financial) has announced its preliminary unaudited financial results for the year ending December 31, 2024, showcasing a robust performance with net revenues reaching €6,677 million, marking an 11.8% increase from the previous year. The company reported a net profit of €1,526 million, with diluted earnings per share (EPS) at €8.46. The results were driven by a strong product mix and increased demand for personalizations, setting a solid foundation for further growth in 2025. The press release was issued on February 4, 2025.
Positive Highlights
- Net revenues increased by 11.8% to €6,677 million.
- Operating profit (EBIT) rose by 16.7% to €1,888 million, with a margin of 28.3%.
- Net profit grew by 21.3% to €1,526 million.
- EBITDA increased by 12.1% to €2,555 million, with a margin of 38.3%.
- Industrial free cash flow generation was strong at €1,027 million.
Negative Highlights
- Shipments in Mainland China, Hong Kong, and Taiwan decreased by 22%.
- Currency impacts had a negative net effect of €85 million.
- Increased costs due to ongoing supply chain challenges.
Financial Analyst Perspective
Ferrari's financial results for 2024 demonstrate the company's ability to leverage its brand strength and product mix to achieve significant revenue and profit growth. The increase in operating profit and EBITDA margins indicates effective cost management and pricing strategies. However, the decline in shipments to China and currency headwinds pose challenges that need to be addressed. The company's guidance for 2025 suggests confidence in continued growth, supported by product innovation and strategic partnerships.
Market Research Analyst Perspective
Ferrari's performance in 2024 highlights the luxury automaker's resilience and adaptability in a competitive market. The focus on personalization and a strong product mix has resonated well with consumers, driving demand. The decrease in shipments to China suggests potential market-specific challenges, which may require strategic adjustments. The company's commitment to innovation, as seen with the new Ferrari F80 and advancements in R&D, positions it well for future growth. The upcoming Capital Markets Day will be crucial for outlining Ferrari's strategic direction and addressing market concerns.
Frequently Asked Questions
Q: What were Ferrari's net revenues for 2024?
A: Ferrari's net revenues for 2024 were €6,677 million, up 11.8% from the previous year.
Q: How much did Ferrari's net profit increase in 2024?
A: Ferrari's net profit increased by 21.3% to €1,526 million in 2024.
Q: What is Ferrari's guidance for 2025?
A: Ferrari expects net revenues to exceed €7.0 billion, with an adjusted EBITDA margin of at least 38.3% and an adjusted operating profit margin of at least 29.0%.
Q: What challenges did Ferrari face in 2024?
A: Ferrari faced challenges such as decreased shipments in China and negative currency impacts amounting to €85 million.
Read the original press release here.
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