Ferrari is an Italian automobile brand, famous for its sports cars and for its participation in automobile racing (in the early days mainly in Formula 1 races). The company was founded in Modena, Italy, on 13 September 1939 by former car racer Enzo Ferrari. Today, Ferrari is part of Fiat Chrysler Automobiles NV (NYSE-FCAU) and is headquartered in Maranello, Italy. In 2005, Ferrari’s annual production was nearly 5,000 cars. When Enzo Ferrari founded Scuderia Ferrari in Modena in 1929 to sponsor amateur car racers, he had no intention of producing road cars. At the time, Enzo Ferrari produced only one type of race car, the Ferrari Tipo 815. This was the first Ferrari car. This model made its first public appearance in 1940 at the Mille Miglia, where the only two prototypes were driven by racers Lotario Rangoni and Alberto Ascari. Due to the intense competition in this race, they placed mediocrely. In 1943 Ferrari moved the factory to the Italian city of Maranello, where it still operates today. The factory was bombed during World War II in 1944 and in 1946 new facilities were added for the production of road cars as well. Ferrari’s first real racing car was the Ferrari 125 S in 1948, which was powered by a twelve-cylinder, 1.5-litre fork engine.
Ferrari N.V. (NYSE-RACE) posted record results for the fourth quarter and fiscal year 2023. The company posted strong year-over-year revenue growth in both the fourth quarter and full year 2023. Year-over-year order growth was 3.3%, up 442 vehicles year-over-year for a total of 13,663 Ferrari vehicles ordered. This included a 1.8% increase in orders in the US and a 10.6% increase in China. Total sales for the fiscal year were €5.970 billion, with a 17.2% year-on-year increase. After tax, the company posted a 34% increase in net profit, at €1.257 billion.
CEO Benedetto Vigna said: «2023 has been a very successful year, during which we have strengthened our brand through a series of achievements that have been reflected in our unprecedented financial results. Our net profit, up 34%, exceeded €1 billion for the first time and our annual EBITDA margin increased by 38.2%» «We now have a very important year ahead of us in the execution of our business plans, which continue on their carefully planned path. The record results of last year’s 2023 and the ambitions we want to realise this year, together with the sight of an exceptionally full order book, allows us to look to the targets we have set for 2026 with the utmost confidence.»
The highest increase in deliveries was driven by the Ferrari Purosangue, which was in the launch phase in the second half of the year. Other models that also saw an increase in demand included the Ferrari 296 and SF90. The first deliveries of the Ferrari Roma Spider started in the fourth quarter. Deliveries of the Ferrari F8 family were discontinued during last year. Deliveries of Ferrari special versions also increased last year, led by the Ferrari 812 Competizione version. Thanks to record profits, the company announced via press release that it will add 250 new positions in the first six months. The company will also extend corporate benefits for its existing employees in the form of Ferrari treasury shares for more than 5,000 Ferrari Group employees, as well as expanding employee health benefits and parental leave allowance.
Ferrari N.V. (NYSE-RACE) announced the purchase of additional common shares under a EUR 350 million share repurchase program for a total invested consideration of EUR 99,454,117.70. The company purchased a total of 2,726,485 of its own common shares. Ferrari N.V. (NYSE-RACE) also regularly pays an annual dividend to its shareholders. The dividend yield is currently 0.51% p.a. and the actual dividend amount has been approved by the company’s General Meeting of Shareholders at EUR 0.45 per share. The title is currently in high demand by private investors and multinational investment corporations for stock purchases (NYSE-RACE). According to analysts at brokerage firms and financial strategists at investment banks, an increase in the share price can be expected for the short to medium term investment horizon. The average target price for the stock with a high estimate has been set at $458.00 per share.