Ferrari’s first-ever SUV, the Purosangue, has seen an overwhelming demand, prompting the company to halt orders only two months after its unveiling in September 2022. However, during an earnings call on Thursday, Ferrari CEO Benedetto Vigna announced that the company is preparing to reopen orders for the luxury vehicle.
“We were caught by positive surprise for these strong interest,” Vigna told analysts. He added that anyone who puts down an order today will have to wait until at least 2026 for delivery. This is partly due to the Italian automaker’s commitment that the $430,000 SUV will not exceed 20 percent of the brand’s shipments. Exclusivity will be further maintained, with Vigna pledging not to extend the model’s lifecycle, despite the demand.
Profits Increase By 27% In Q1
During the earnings call, Ferrari announced a higher-than-anticipated rise in profits for the first quarter of 2023, with core earnings surging by 27 percent. As a result, the luxury carmaker’s share price on the Milan stock exchange hit a record high of €267.20 (about $297) on Thursday, marking a 5.6 percent increase.
Ferrari’s adjusted earnings (EBITDA) came to €537 million (approx $592 million) with an adjusted margin of 37.6 percent, beating forecasts. The strong showing is mainly thanks to larger volumes of shipments, with 3,567 units delivered in Q1 2023, 9.7 percent more than last year. The performance was led by the Portofino M, 296 GTB, and 812 Competizione. Ferrari also noted that its strong product mix helped sustain deliveries, with increased personalizations also making their mark.
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An even stronger second quarter is forecast with deliveries of the Purosangue, Ferrari’s high-riding V12 crossover, commencing
Other positive contributions to Ferrari’s Q1 success included forex translation and transaction impacts and a better ranking in last year’s Formula 1 championship. It wasn’t all good news, though. Ferrari saw a dip in revenues from the sale of its engines, which was attributed to lower shipments to Maserati, with their agreement coming to a close at the end of the year.
As for the future, Ferrari is readying its first foray into the world of EVs, with a BEV supercar expected to make an appearance in 2025. Meanwhile, analysts predict that the Prancing Horse will be able to weather the storm of a possible recession. Reuters reports that Bernstein analysts cite the company’s “extremely strong” product mix, pricing power, and lengthy order book as protection against any recession-driven cancellations.
