Ferrari sales growth was driven by demand for models including its hybrid hypercar, the SF90. Photo / Supplied
Ferrari sales growth was driven by demand for models including its hybrid hypercar, the SF90. Photo / Supplied
Ferrari projected higher sales and profits this year after delivering record results in 2022, driven by demand across the Americas and China, as it shrugged off the spectre of an economic downturn.
The supercar brand’s net profits, revenues and cash generation hit record levels last year, as luxury buyers splashedout for more models and spent ever-higher sums on personalised features.
Sales growth was driven by its entry-level Portofino M, and higher demand for its hybrid hypercar, the SF90.
In China, sales rose 73 per cent to 1,552 models, while in the Americas they rose 22 per cent 3,447 cars. Europe was still the largest market, up 8 per cent at 5,958 cars.
Bespoke additions, from interior fabrics to distinctively coloured brake callipers, are a mainstay of Ferrari’s business, adding tens of thousands of pounds to the cost of its models that already begin at £170,000 (NZ$320,000).
It also projects its profit margin, which last year was 24 per cent, will rise to 26 per cent.
“Despite a complex global macro-scenario, we look ahead with great confidence, encouraged by the many signs and achievements of an evolving Ferrari,” chief executive Benedetto Vigna said.
Daniel Röska, an auto analyst at Bernstein, said the company beating expectations was “groundhog day”, and that it may even be boosted by a wider global downturn.
“Recession risk in 2023 provides yet another margin of safety, as investors focus on Ferrari’s status as a safe-haven asset,” he said.
Ferrari’s buoyant outlook “suggests management has good confidence in 2023 mix and margin”, analyst Tom Narayan at RBC said.
This year will see the first sales of the Purosangue, the first high-riding Ferrari, as the brand enters the sport utility vehicle market for the first time.
Orders are “well beyond our expectations”, said Vigna, who added that Ferrari’s order book for its models runs into 2024.
The entry-level Portofino M drove Ferrari's sales growth. Photo / Supplied
Although Ferrari will not use the model to drive higher sales, unlike Porsche and Bentley, which have seen significant sales growth from SUVs, the model is expected to help Ferrari increase margins.
Some 22 per cent of its models sold last year were hybrid, with the rest running on combustion engines alone.
The brand is preparing to launch its first fully electric car in 2025, and has made “a lot of progress on the efficiency and sportiness of the car” over the past year, Vigna said.
Ferrari, which historically produces most of its parts in-house, plans to make the axle and electrical inverters itself, and will assemble the cells to make its own battery on-site in Maranello, Vigna added.
Ferrari’s revenues from selling engines to other companies fell 18 per cent to €155m, because of lower shipments to Maserati ahead of the end of a supply contract between the two groups.
