Ferrari signals higher profits on strong global demand for sports cars

Ferrari delivered a record number of cars last year as demand for luxury vehicles surged globally despite the Covid-19 pandemic and the sports car maker predicted an increase in its core earnings for 2022.

Shipments grew 22% to 11,155 cars last year compared to Covid-19-hit 2020 and were up 10% on pre-pandemic 2019, the company said on Wednesday.

All regions saw double-digit growth, supported by strong sales of eight-cylinder models, including the F8 family as well as the Roma grand tourer and the hybrid SF90 Stradale. Shipments of more powerful but also more polluting 12-cylinder models fell.

Shipments to China, Hong Kong and Taiwan almost doubled vs the previous year.

“We carefully managed an impressive order intake in line with our strategy to pursue controlled growth and preserve brand exclusivity,” CEO Benedetto Vigna said in a statement, presenting results after taking charge of the company last September with a task to lead it into a new era of cleaner, quieter and interconnected mobility.

The Italian company guided for adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of €1.65-1.70bn (roughly R28,579,162,425 to R29,445,197,650) this year, up from €1.53bn (roughly R26,510,197,346) in 2021.

Last year's result was in line with a company-provided forecast of about €1.52bn (roughly R26,340,475,200), and represented a 34% increase on the previous year.

The margin on adjusted EBITDA hit a higher-than-expected record of 35.9% last year. That figure is expected to slip this year to between 34.5%-35.5% the company said.

Milan-listed shares in Ferrari erased losses after the results were published and were up 0.1% by 12.55 GMT.

In a sign of a strong demand worldwide for luxury cars, Rolls-Royce, a unit of Germany's BMW, said its sales soared 49% in 2021, to a record high of 5,586 vehicles.

Similarly, German sports car manufacturer Porsche, a unit of Volkwagen, delivered more than 300,000 vehicles last year, with an increase in all regions, especially the US, while China became its largest single market.

However, Ferrari and other rivals in the high-performance sports car market, which includes Lamborghini, also part of Volkswagen, Aston Martin Lagonda and McLaren, are wrestling with how to shift to battery power without losing the high performance that supports their premium pricing.

Vigna, a tech industry veteran and former top executive at chip maker STMicroelectronics, will unveil the company's future strategy at a capital markets day on June 16.

Meanwhile, Ferrari, whose 'Prancing Horse' brand is known worldwide for roaring combustion engines, has promised its first all-electric car in 2025, while it has already rolled out three hybrid models.