Revenue history and growth rate for Ferrari from 2015 through 2022. The amount of money a business receives from its clients in exchange for the sale of goods or services is known as revenue. Net income is calculated by deducting all costs and expenses from the top line item on an income statement, which is revenue.
- The revenue for Ferrari for the three months ending June 30, 2022 was $1.374B, up 10.28% from the same period last year.
- Ferrari reported $5.293 billion in revenue for the year that ended June 30, 2022, an increase of 11.17% over the previous year.
- Ferrari’s yearly revenue for 2021 increased from 2020 by 27.85% to $5.053B.
- Ferrari’s yearly revenue in 2020 was $3.952 billion, down 6.32% from the previous year.
- Ferrari’s annual revenue for 2019 increased by 4.44% from 2018 to $4.219B.
Formula One N.V. is involved in the design, production, and sale of sports automobiles. Its offerings include two grand tourer (GT) vehicles, the California T and FF, as well as sports car types including the 458 Italia, 488 GTB, 458 Spider, 488 Spider, F12 Berlinetta, and 458 Speciale. The company also creates one-off, limited-edition, and supercars like the LaFerrari. Its primary operating regions include Greater China, Europe, the Middle East, India, Africa, the Americas, and the rest of Asia-Pacific. Formula One N.V. has its main office in Maranello, Italy.
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This is the revenue generated by each vehicle sold by Ferrari.
According to a German study done by Dr. Ferdinand Dudenhoffer, a director of Automobile-Center Automotive Research situated in Duisburg, Germany, Ferrari, an Italian luxury sports car founded by Enzo Ferrari in 1939, produces an average of $80,000 every vehicle sold.
With that kind of money, you could purchase a Tesla Model X for $79,500 or a Mercedes-Benz C-Class for $73,500.
The price of a single Ferrari can range from roughly $200,000 to over $300,000. (much, much more for classic models sold at auction or limited edition cars).
In contrast, Porsche makes an estimated $17,250 profit for every car, according to Bloomberg, and BMW, Audi, and Mercedes each make an average of about $10,500 per car, according to Motor Authority. Porsche’s cars sell for between $50,000 and $150,000, with modified and auctioned models fetching even higher prices.
In 2017, Ferrari sold roughly 8,400 vehicles, and its market value is currently over $22.6 billion. The sports car manufacturer shipped 8,398 vehicles in 2017 compared to 8,014 in 2016 (an increase of 5%); the low supply helps to maintain the high car prices. Ferrari’s net profit for the first quarter of this year was $178 million, a 19% rise (Porsche produced 246,000 vehicles last year, for instance, which is a 4 percent increase from 2016).
Ferrari unveiled the brand-new Portofino model in February. Ferrari’s California T is being replaced with the convertible, V8 GT sports vehicle, which retails for $215,000. Marchionne revealed to Bloomberg TV in April that Ferrari is testing a brand-new electric vehicle. The company’s first-ever SUV will be powered by the gasoline-battery hybrid technology.
The industry’s cash cow is Ferrari.
Ferrari is still by far the most successful automaker out of all the brands. From 21.4 percent in 2020 to 25.5 percent in 2017, it saw a rise in operating margin. According to the data, the corporation will make a staggering $106,078 for each device sold in 2021. With $6,693 in revenue per vehicle, Tesla came in a very far second.
Felipe Munoz, the article’s author, works with JATO Dynamics as an automotive industry specialist.
Ferrari forecast a rise in its core profitability for 2022 after delivering a record number of vehicles in 2021.
In spite of the COVID-19 pandemic, Ferrari delivered a record number of cars last year, and the sports car manufacturer forecast an increase in its core profitability for 2022.
According to the firm, shipments increased by 22% to 11,155 cars in 2018 compared to 2020, the year of the first COVID lockdowns, and by 10% from pre-pandemic 2019.
Strong sales of 8-cylinder models, such as the F8 series, the Roma grand tourer, and the hybrid SF90 Stradale, helped all areas experience double-digit increase. Shipments of 12-cylinder vehicles, which are more powerful but also polluting, decreased.
Compared to the previous year, shipments to China, Hong Kong, and Taiwan nearly doubled.
Ferrari has orders going as far out as 2023, according to CEO Benedetto Vigna. In a call with analysts on Wednesday, Vigna said, “We have the strongest order book in our history, increasing double digits from the prior year and covering well into 2023.”
With the goal of guiding the automobile towards a new era of cleaner, quieter, and connected mobility, Vigna, a veteran of the tech sector and former top executive at chip manufacturer STMicroelectronics, was appointed CEO of the company last September.
He declared that Ferrari would prioritize technology partnerships as the business advances its electrification goal while practicing financial restraint.
Ferrari has stated that it will release its first all-electric vehicle in 2025, despite having already released three hybrid versions. This year, the business expects to release two new models, one of which is the Purosangue, an SUV.
On June 16, Vigna will present Ferrari’s long-term plan at a capital markets day.
Ferrari provided guidance for adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of 1.65 to 1.70 billion euros this year, up from 1.53 billion euros ($1.73 billion) in 2021, in an earnings statement on Wednesday.
The 2017 result increased by 34% over the previous year and was in line with an estimate set by the company of roughly 1.52 billion euros.
Last year, the margin on adjusted EBITDA reached a higher-than-anticipated record high of 35.9%. According to the business, the percentage is predicted to fall this year to between 34.5 percent and 35.5 percent.
Following these impressive results, the business gave each of its employees a record-breaking performance-linked bonus for 2021, totaling up to 12,000 euros.
Rolls-Royce reported record-breaking sales of 5,586 automobiles in 2021, up 49 percent from the previous year. This is an indication of the increasing demand for luxury vehicles around the world.
Similar to Porsche, which set a record last year, China overtook the U.S. as the brand’s largest single market, and more than 300,000 vehicles were delivered by Porsche, a record for the company.
However, Ferrari is battling with how to switch to battery power without sacrificing the high performance that underpins their premium pricing. Rivals in the high-performance sports car industry include Lamborghini, Aston Martin, and McLaren.
Ferrari makes the same amount of money selling one vehicle as Ford does selling 908: source
Ferrari far outpaces the competition in terms of the amount of profit it makes on each vehicle it sells.
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Although Ford vs. Ferrari may have been one of the most exciting car movies of 2019, there is really no comparison in the real world of the present. not in terms of financial gain, at least. According to a recent survey, the maker of supercars outperforms every other manufacturer in the world in terms of profits made per unit sold.
Ferrari made a sizable profit of $94,000 for each vehicle it sold in 2019, according to a research by Fiat Group World based on data supplied by manufacturers. BMW has to sell 30 cars to make the same amount of money as the legendary Italian brand, placing it far ahead of direct and indirect competitors. The numbers for Toyota (44), Volvo (45), Volkswagen (56), PSA (65) and Mercedes (67) also show how many units must be sold in order to match Ferrari’s revenue from the sale of only one vehicle. To match Ferrari’s profit margin from one unit, interestingly, Ford needs to sell 908 units while Japanese automaker Nissan needs to sell 926 units.
For the first time, Ferrari surpasses 10,000 annual sales.
Since Ferrari’s initial public offering (IPO) on the New York Stock Exchange in 2015, its shares have increased from an opening price of $52 to $168.20 at the most recent closing. This is as a result of the company’s significant efforts to appease investors, which include increasing output and extending into new, more established industries. Yes, we are referring to the 2021 Purosangue SUV.
Under the long-serving Chairman Luca di Montezemolo, annual production was restricted to 7,000 units, but his successor Sergio Marchionne and current Chairman John Elkann loosened the taps. It indicates that Ferrari is finally selling more than 10,000 vehicles annually.
The Italian business reported sales of 10,131 units for 2019, an increase of 9.5% from the prior year. All those vehicles generated sales of 4.1 billion euros, or around $4.5 billion, and a profit of 917 million euros (EBIT).
However, Ferrari won’t stop producing cars after 10,000 units. The SUV might become one of the company’s most popular vehicles, and there’s also a LaFerrari successor in the works.
The company will have to adhere to far stricter emissions laws albeit now that it has sold more than 10,000 cars, the threshold at which European authorities permit automakers to avoid the stricter regulations. Ferrari intends to release a lot more hybrids as a result. The company recently debuted the plug-in hybrid SF90 Stradale and plans to have 60% of its inventory electrified by 2022. The business is also researching further options, such using hydrogen or biofuels.
Before you start worrying about seeing a red car on every corner, you should know that Ferrari works to maintain exclusivity by only selling its cars in certain areas. For instance, Ferrari’s sales in the Americas actually decreased by 3.3 percent in 2019 as a result of what the firm calls a “deliberate geographical rebalancing,” according to the company.
Ferrari increased their cash flow guidance in the future.
Ferrari increased its full-year forecast for free cash flow attributable to its automaking company from the approximately 350 million euros it anticipated earlier in the year to nearly 450 million euros. Investors in the auto industry should now anticipate:
- A free cash flow for industry of roughly 450 million euros. 172 million euros in 2020; 675 million euros in 2019.
Given that the pandemic is not expected to materially affect Ferrari’s operations between now and the end of 2021, CFO Antonio Picca Piccon stated that Ferrari presently anticipates its full-year results to be at or near the high end of those ranges.
How much money does Ferrari make annually?
Every year, Ferrari generates sales revenue of about $4 billion, of which merchandise accounts for $2 billion. This includes everything from miniature vehicles, logoed hats, and flags to pricey luxury items like a PS3,500 leather trench coat. Although not my style, someone must be purchasing it.
All of this is reflected in how Ferrari is valued on the stock market in comparison to other well-known businesses. Investors are willing to pay a far higher premium for Team Red than they are for Ford or Volkswagen, which are currently valued at 2.8 times annual earnings and 4.71 times, respectively.
Let me use these prices to demonstrate my point: Dior is running at 20.3x, Hugo Boss is at 20.2x, and Louis Vuitton Moet Hennessey is running at 23.4x. far more similar to Ferrari than its auto “competitors”.
Michael Schumacher was one of the main motivators—pardon the pun—for the brand dominance. His successes behind the wheel throughout his reign as champion led to unfathomable goods sales, making him one of the largest and greatest sportsmen of all time.
Considering the Ferrari business strategy, despite the aforementioned, automobile sales are already catching up to their product sales. They no longer employ the 3-car configuration of a mid-engine, a front engine, and a hyper-car because of their break with design firm Pininfarina a few years ago. Instead, they now provide a wide range of cars at different pricing points, and they just announced the creation of their first SUV.
Simply put, more models translate into a larger consumer base and higher sales.
Ferrari has the ability to remain a mainstay of the auto industry for a very long time. Ferarri’s cars are selling more and more, and their business strategy is increasing.
Additionally, they have the luxury fashion division of their company to propel them into the future, give them flexibility, and help them stay one step ahead of the competition.
It would be amazing to witness them win the Formula 1 championship once more. Sainz recently earned his first victory at Silverstone, while Leclerc recently won his maiden race. Even if I support Red Bull, we are all secretly also Ferrari fanatics.
As a financial advisor, it is fascinating to observe the operation of these prosperous business models and draw inspiration for our cash management service. For brand case studies and other financial advice, see our blog.