Ferrari’s second quarter earnings report sounded like a recap of a baseball game — the company doubled and tripled its way to big profits for the time period.
The Italian sports car maker reported EBITDA of $458.8 million on $1.24 billion in revenue. The numbers represent jumps of 81% and 210% respectively compared to the year-ago period. As for the brass tacks number — net profit — the company reported $244.6 million, which is a 2,086% increase from the year-ago period.
“This excellent second quarter confirms the strength of Ferrari and of its unique business model,” said John Elkann, the company’s chairman and interim CEO, in a statement.
“With each Ferrari we unveil we are setting new benchmarks for innovation, beauty and distinctiveness which is the only true luxury. As we move towards our 75th anniversary next year, our opportunities have never been wider and greater.”
Despite this, officials declined to revise its guidance for the year, predicted in May adjusted earnings of $2.2-$2.4 billion in 2022. According to Reuters, executives earlier today said they expected to reach the upper ranges of the earlier forecast.
There’s good reason for that expectation as not only was the second quarter impressive on a year-over-year basis, but was also ahead of the more “normal” (i.e. non-pandemic) results from 2019. The company is definitely moving metal as well.
Shipments totaled 2,685 units during the quarter, which is up 1,296 units or 93.3% versus the prior year quarter, which was heavily impacted by the disruptions of the COVID-19 pandemic, including production and delivery suspension during the initial part.
Not only did the Prancing Horse brand sell twice as many vehicles last quarter, it sold more in every market with its “home” market, EMEA, up 89.4%. However, the Americas, which covers North, South and Central America, was up 70.3% while China, Hong Kong and Taiwan recorded a massive spike of 564 percent.
The strong second quarter only added to the company’s good start for 2021. Through the first half, it’s revenue is up 36%, EBITDA rose even more at 73% and net profits jumped 135%, the company reported. Ferrari shipped 5,456 vehicles in H1, which is a significantly more than the 4,127 for the same time in 2020, netting a 32% improvement.
New leadership coming
New CEO Benedetto Vigna joins the iconic Italian automaker Sept. 1 after spending his career in the semiconductor industry.
Ferrari’s decision to step out of the automotive world — or, for that matter, the luxury goods business — in its search has taken some by surprise. But other experts believe it’s a clearheaded move reflecting the increasing importance of digital technology, even for a company best known for exotic V-8- and V-12-powered supercars.
Vigna’s “deep understanding of the technologies driving much of the change in our industry, and his proven innovation, business-building and leadership skills, will further strengthen Ferrari and its unique story of passion and performance,” said the automaker’s Chairman John Elkann in a statement.
Elkann spent the first half of the year wearing two hats. He became acting CEO upon the unexpected retirement last December of Ferrari CEO Louis Camilleri. That executive cited “personal reasons” for his departure but was believed to be dealing with a COVID-19 infection.