- Ferrari reports robust performance in Q1 and forecasts a strong Q2 due to the launch of the Purosangue vehicle.
- The company, which produces high-end Italian sports cars, declared they were retaking orders for the Purosangue model.
- On Thursday, the Ferrari stock, listed on the Italian Stock Exchange, increased by 5.6%, reaching a record peak of €267.20.
Ferrari, the Italian luxury car manufacturer, reported a 27% increase in their first-quarter core profit and predicted a strong performance in the second quarter.
The company announced that deliveries for its new Purosangue model would begin in Q2 2023. This, in turn, was a factor behind their strong Q1 performance. CEO Benedetto Vigna stated that orders for the Purosangue model have been placed through to the end of 2025.
The Purosangue has proven to be a hit with high-net-worth (HNW) individuals worldwide, with the company reporting “unprecedented” demand for the four-door, four-seater luxury model.
Customers that wish to order the 12-cylinder vehicle, priced at €390,000 ($430,000), will have to wait until 2026 to get their vehicle.
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The Ferrari stock, listed on the Bourse D'Italie, the Italian Stock Exchange, experienced a surge of 5.6% on Thursday, reaching a new all-time high of €267.20.
Between January and March, Ferrari’s earnings before interest, taxes, depreciation and amortisation (EBITDA) were €537m, higher than the predicted €508m.
The Portofino M, 296 GTB, and 812 Competizione models contributed to increased shipments and pricing power, resulting in improved performance.
The company’s CFO Antonio Picca Piccon informed analysts that Ferrari has been applying price increases on specific models and markets. This move was announced last year.
He predicted a robust second quarter but expected a weaker second half of the year. The CFO suggested that the fourth quarter will be particularly troublesome, following the planned product timeline.
During Ferrari’s quarterly results presentation, Vigna announced that the company was pleasantly surprised by the strong interest shown in the Purosangue model.
Despite this, the CEO confirmed that Ferrari would honor their commitment to limit Purosangue sales to 20% of the company's total vehicle sales, to maintain a certain level of exclusivity.
Analysts from Bernstein commented that Ferrari was well-protected against any potential order cancellations due to an economic downturn, thanks to its "extremely strong" product mix, pricing power and long order book.
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