Ferrari action flies on the stock exchange – Le Point

Ferrari is doing well, very well even. The brand prancing horse, which has revised up all its targets for 2019, provides a turnover of around 3.7 billion euros (instead of more than 3.5 billion) and an operating profit ( Ebitda) adjusted around 1.27 billion euros (against between 1.2 and 1.25 billion previously).

Historical record

These announcements boosted the stock, which reached a new historical record on the Milan Stock Exchange. It ended on a rise of 6.51% to 153.85 euros, in a market up 1.64%. The Italian manufacturer again recorded a solid third quarter. Only small false note: its net profit fell by 41% to 169 million euros. But this figure is still slightly higher than expectations, analysts expecting 164 million, according to the consensus of the provider of financial information Factset. Its turnover increased by 9.2% to 915 million euros, a better than expected result (884 million).

The Portofino and 812 Superfast are commercial successes

The rise was driven by a 9.4% jump in the number of cars delivered (2,474 units), thanks in particular to the success of Portofino, Ferrari's new "entry-level" model (196,000 euros all the same) , and the 812 Superfast. These volumes offset the decline in engine sales (-34.3%) to the Maserati group, which was losing momentum. Europe-Middle East-Africa remains Ferrari's main market, with 1,143 vehicles delivered in the quarter (+ 13.7%). Sales fell by 2% (3 vehicles less) in China-Hong Kong-Taiwan, a consequence of the decision to accelerate deliveries at the beginning of the year before the entry into force of new standards on CO2 emissions while they jumped 23.1% in the rest of Asia. In the first nine months of the year, sales increased by 10%, operating profit (Ebitda) adjusted by 11%, while profit was down 11% to 533 million euros.

Armani branded merchandising

Ferrari took advantage of the publication of its results to announce "a strategy of diversification of its brand". This will be based on three pillars: the development of a targeted collection of Ferrari products, a world of entertainment (video games, attractions on the theme of Ferrari …), especially to appeal to a younger audience, as well as only ultra-limited editions and exclusive services for the owners of its luxury cars. Ferrari has already developed merchandising and video games, but intends to improve "standards and quality" products and accessories developed by reducing its licenses by 50%, while launching a partnership with the fashion house Giorgio Armani, reorganizing its stores and modernizing its online sales website. This new offer will be managed by a dedicated team: the aim is for these Ferrari-stamped products to generate "10% of the brand's profits" in the next seven to ten years, explained his boss Louis Camilleri during a conference with the analysts. In 2019, excluding video games, they should report 800 million euros.

Electrification in progress

Ferrari SF90 Stradale © Ferrari

As part of its strategic plan 2018-2022, Ferrari also intends to put a boost on the hybrid, while focusing on special series, including a new concept called "Icona" (Icon). Two models, Monza SP1 and SP2, sold starting from 1.5 million euros, have begun to be delivered. Mr. Camilleri pointed out that there was a "great interest" from Ferrari customers for hybrid vehicles. But he stressed that Ferrari "took its time" for a fully electric car, to ensure that it is a "real Ferrari in terms of DNA".

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