Ferrari Backs 2023 Outlook After Price Rises Boosted 1Q Earnings

By Joshua Kirby

Ferrari on Thursday backed its outlook for the year after booking higher earnings in the first quarter thanks to higher pricing and strong sales in the Americas and China.

The Italian sportscar maker notched up net profit of 297 million euros ($328.6 million) in the first three months of the year, 24% higher than the same period last year, on sales that rose 20.5% to EUR1.43 billion.

Analysts had expected the group to make quarterly revenue of EUR1.39 billion, according to a poll of estimates compiled by FactSet ahead of the update.

Adjusted earnings before interest, taxes, depreciation and amortization, meanwhile, rose 27% to EUR537 million.

Profitability was boosted by pricing and by the sales mix, with more personalization and more high-end cars sold, Ferrari said. Sales to the Americas, mainland China, Hong Kong and Taiwan also boosted the performance, it said.

Looking ahead, Ferrari said it expects to meet its targets for the year, including revenue increasing to around EUR5.7 billion from EUR5.1 billion last year, along with an increase in the operating margin and higher earnings.

The guidance is based on assumptions including higher prices to offset cost inflation, Ferrari said.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

May 04, 2023 07:32 ET (11:32 GMT)

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