Ferrari Q1 Core Earnings Up 13% Despite Stagnated Sales

Recently launched Ferrari 12Cilindri model stands as Ferrari new V12-engined flagship hyper-GT.

Ferrari recent revealed its first-quarter (Q1 2024) core earnings, which saw a 13% rise. This comes despite stagnated vehicle delivery efforts by the renowned Maranello-rooted institution.

According to projections, adjusted earnings before interest, taxes, depreciation (EBIT), and amortisation increased by 13% during the period, amounted to €605 million (RM 3.5 billion).

Whilst deliveries of limited series specials such as the Daytona SP3 have commenced in both North America and Europe, these do little at offsetting a sizeable 20% decline of deliveries in China, where tariffs are affecting the profitability of Ferrari's supercars.

Ferrari saw vehicle delivery efforts stagnate through Q1 of this year. It even saw a 20% drop in deliveries in China too - arguably one of its biggest markets.

46% of the fabled prancing horse marque's Q1 2024 deliveries stemmed from PHEV models like the 296 GTB/GTS pictured.

Moreover, with Ferrari famously saying that allocations for their current models being spoken for over the next two years, this allows the company to be more specific on guidance, meaning an upgrade was always unlikely. 

However, according to Bloomberg Intelligence analyst Mike Dean, the findings "may have resulted in a touch of disappointment for those new to the stock."

Even though Ferrari CEO Benedetto Vigna has initiated a transition towards battery power, the company still depends on its lucrative combustion engine (ICE) vehicles to maintain profit margins.

There is also growing competition to make the shift. China's BYD debuted a high-performance electric vehicle (EV) in Feb that’s arguably comparable to Ferrari’s staple performance models, but it comes at a rather accessible price tag of around US$233,000 (approx. RM1.1 million+).

Ferrari's first EV is expected to arrive by late 2025.

The first fully electric Ferrari model is anticipated for debut in late 2025, and the Italian performance automaker is constructing a factory to produce plug-in hybrid (PHEVs) and electric vehicles (EVs) that will be operational next month. For Q1 2024, PHEV models accounted for 46% of the automaker's total exports.

Even the most tenacious luxury shoppers are beginning to feel the effects of the wider economic crisis, which is placing pressure on automakers. In China, where consumers have postponed purchases due to a real estate crisis undermining trust, Porsche issued a warning last month about a slowdown. KR