Ferrari expects 'even stronger' 2023 with more new models

MILAN --Ferrari said new models will continue to boost earnings, as it promised "even stronger" results this year after a 16 percent jump in 2022 core earnings.

Deliveries increased almost a fifth to 13,221 cars last year, led by the Ferrari Portofino M and the SF90 family models, as well as the 296 GTB and 812 Competizione. China saw the strongest growth, with shipments jumping 73 percent to 1,552 cars.

The automaker’s three plug-hybrid models, the 296 GTS, the 296 GTB coupe and the Stradale SF90, accounted for 22 percent of shipments last year.

"Despite a complex global macro-scenario, we look ahead with great confidence,” CEO Benedetto Vigna said Thursday, adding that the company is seeing “persistently high demand for our products worldwide.”

Ferrari has increased the prices of some of its models and is benefiting from wealthy buyers less acutely affected by soaring inflation and rising interest rates.

The company is preparing to shift to electric vehicles and turn its historic factory in northern Italy into a hub for battery-powered cars.

The company forecast adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 2.13 billion to 2.18 billion euros in 2023, up from last year's 1.77 billion euros.

Fourth-quarter adjusted Ebitda rose 18 percent to 469 million euros. Revenue climbed to 1.37 billion euros.

Ferrari said it expects to generate about 5.7 billion euros in revenue in 2023.

The automaker in September unveiled the four-seat Purosangue, which looks more like a crossover than the company’s traditional portfolio of low-slung, two-door sports cars.

Vigna said plans for the Purosangue  were proceeding according to schedule, with deliveries to clients expected to start in the second quarter. "Purosangue ordering has been extraordinarily high; well beyond expectations," he said.

Third Bridge analyst Orwa Mohamad said the Purosangue will increase Ferrari's customer base in 2023.

"Ferrari reported a strong performance with attractive profit margins and one of the most significant volume increases over the last 10-12 years," he said.

RBC analyst Tom Narayan said he had feared a conservative stance on 2023 due to currency headwinds and raw material prices. "But today's guidance raise suggests management has good confidence in 2023 mix and margin," he said.

Electrification plans

Vigna said the company was "fully on track" with its electrification plans, including the launch of its first all-electric car in 2025.

"After June last year we have seen a progression of results, both on the product side and on the development of our manufacturing facility," he said.

Ferrari's battery-electric cars will be fitted with an acoustic system to help them deliver the brand's distinctive noise, according to a patent the company filed last month in the U.S. seen by Reuters.

Ferrari is paying its employees the biggest bonus in years.  Around 5,000 workers will get as much as 13,500 euros ($14,838) this year, up from 12,000 euros last year.

Bloomberg contributed to this report