Ferrari, profit over a billion and employee bonuses of up to 13,500 euro

(Il Sole 24 Ore Radiocor) - After a morning decline Ferrari reversed course immediately after the release of fourth-quarter and full-year 2023 data and surged to the top of the FTSE MIB. Ferrari closed 2023 with record results and profits that exceeded EUR 1 billion for the first time. Fourth-quarter results were also good: the Maranello-based company reported profits up 33% to EUR 294 million and revenues up 11% to EUR 1.523 billion. For the year, profits were up 34% to 1.257 billion and revenues up 17% to 5.97 billion. The company also provided guidance for 2024, up from 2023 figures with, in particular, revenues of over 6.4 billion. Added to this are rumours of an imminent announcement that the driver Lewis Hamilton may arrive at Ferrari soon; speculation is that 2025 or perhaps as early as 2024.

For Ferrari, 2023 'was a very successful year, during which we strengthened our brand through a series of milestones that are reflected in our unprecedented financial results'. This was said by the CEO, Benedetto Vigna, commenting on the results for the fourth quarter and full year 2023. "For the first time, our net profit, up 34%, exceeded EUR 1 billion and the annual Ebitda margin rose to 38.2%," he said, explaining that "we now have a very important year ahead for the execution of our business plan, which continues punctually along a carefully outlined path." According to Vigna, 'the record results in 2023, the ambitions we have for 2024, and the exceptional visibility on our order book allow us to look with reinforced confidence at the top end of the 2026 targets'.

Meanwhile, Ferrari's 5,000 employees in Italy will receive a competitiveness bonus of up to 13,500 euros this year. Next year the maximum will be up to around 17,000 euros. The bonus will be commensurate with attendance at work: to reach the maximum, one must not have taken a single absence during the year.

For 2024, Equita expected guidance with revenues up 8% on the previous year to 6.39 billion (Factset consensus 6.44 billion); ebitda up 9% to 2.46 billion (Factset consensus 2.48 billion) while net profit up 10% to 1.35 billion (Factset consensus 1.37 billion)'. Equita believes that "in order to achieve the guidance of the business plan to 2026 presented in June 2022 (i.e. a turnover of EUR 6.7bn and an ebitda margin between 38% and 40%, i.e. between EUR 2.5bn and 2.7bn), the implicit growth in turnover over the next two years is 4% and in ebitda 4/6% CAGR, lower than expected both by us (EUR 7.6bn and EUR 2.93bn respectively) and by Factset's consensus (EUR 7.4bn and EUR 2.91bn)".

When the business plan 2022-26 was presented, the analysts recall, it was said that the targets would be front-end loaded, 'but the speed of implementation in the first two years of 2022-23 suggests that there is room for an upward revision of the targets'. Also on the basis of what was stated in the last conference call by management, Equita does not expect short 'updates to the business plan for which,' it says, 'we do not exclude that the messages from the call may be cautious with respect to the consensus, which has already moved further with 2025 estimates higher than the 2026 guidance: turnover almost at 7 billion and ebitda at 2.74 billion'.