Ferrari (RACE) Q2 2023 earnings

Ferrari on Wednesday said that its second-quarter profit jumped 33% from a year ago as more of its customers chose costly “personalization” options for their new sports cars.

Ferrari also raised its guidance for the full year following the results.

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The company now expects 2023 revenue of about 5.8 billion euros ($6.4 billion) and per-share profit of between 6.25 euros and 6.40 euros. It had previously guided investors to full-year revenue of about 5.7 billion euros and per-share profit between 6.00 euros and 6.20 euros. It maintained earlier guidance for an adjusted EBIT margin of more than 26%.

“We continue to manage a very strong order book in all geographies,” CEO Benedetto Vigna said in a statement. “The decision to revise the guidance upwards was supported in particular by stunning results in personalizations.”

Ferrari in recent years has greatly extended its options lists, offering its customers a huge range of choices in paint finishes, interior materials and other details. Those extended options, which the Italian supercar maker calls “personalizations,” can add hundreds of thousands of dollars to the price of a new Ferrari.

Ferrari reported profit of 334 million euros, or 1.83 euros per share, an increase of 33% over profit of 251 million euros, or 1.36 euros per share, during the same period a year earlier.

Revenue climbed 14% year over year to 1.47 billion euros.

Ferrari’s margin on earnings before interest and tax (EBIT) rose to 29.7% in the quarter, up from 25% a year ago. The increase in profitability was driven by the jump in personalizations as well as sales of higher-end and limited-edition models, the company said.

Ferrari shipped 3,392 vehicles in the second quarter, down slightly (1.8%, or 63 cars) from a year ago. The company said the decline was due to “geographic and mix allocation plans;” on a year-over-year basis, deliveries were up in Europe, slightly lower in China, and down by double digits in North and South America.  

Those deliveries included the first examples of the Purosangue, Ferrari’s new SUV-like vehicle, which entered full production in the quarter. Deliveries were primarily driven by strong results for the 296 GTB, a six-cylinder hybrid sports car, and the V-8 powered Roma coupe and Portofino M convertible, Ferrari said.

Ferrari’s hybrid models, including the 296 GTB and the V-8 powered SF90, accounted for 43% of its second-quarter shipments, more than double its year-ago result.