Ferrari racing on the Ftse Mib after the publication of the third quarter accounts, which closed with a profit of 171 million, and the decision to raise the targets in the upper part of the range of the guidance provided 3 months ago. The title of the Prancing Horse, after a slight skid, has moved into fifth gear and at 16 pm gains 5,44% to 165,75 euros, the intraday high.
The quarter beat analysts' expectations. L'Useful as mentioned, it is 171 million euros, up 1% on the same period of the previous year. Slightly down (-3%) to 888 million euros i revenues, While the sales they dropped by 7% to 2.313 units.
In sharp rise theebitda, which grows by 6% to 330 million euros, with the margin rising to 37,2% from 33,9%. L'ebit came in at 222 million, down 2%, while the margin rose to 25% from 24,8%. The generation of free cash flow industrial is positive and equal to 77 million euro.
For the first 9 months of the year, deliveries fell by 17% to 6.440 units, revenues fell by 16% to 2,391 billion euros, the ebitda marked a fall by 18% to 771 million with a margin of 32,3% (from 33%). Ebit lost 33% to 465 million euros, with a margin down to 19,5% from 24,6%. Finally, as of September 30, net profit was down 35% to €346 million, with adjusted diluted EPS of €1,86, down 34% compared to the same period of 2019.
Going back to the quarterly data, car deliveries, despite the decline recorded, are in line with the cadence of the production plan for the full year, underlines the company which expects the recovery of 500 units of the 2.000 cars lost following the seven-week production suspension established due to the Coronavirus emergency. Looking at individual models, sales of 8-cylinder (V8) models decreased by 12,8%, while those of 12-cylinder (V12) models increased by 15,4%. The start of deliveries of the SF90 Stradale and Ferrari Roma are confirmed in the fourth quarter of 2020.
At a geographical level, sales in the EMEA area rose by 13% to 1.288 units, while the decline mainly concerned the Americas (-35%), Mainland China, Hong Kong and Taiwan (-25%), stable deliveries in the area Apac.
THEnet industrial debt as at 30 September 2020 was equal to 715 million euro, an improvement compared to 776 million as at 30 June 2020, while the total liquidity available amounted to 1,879 billion euros (1,812 billion at June 30, 2020), including unused committed credit lines of 700 million euros.
As for the whole of 2020, Ferrari has revised the estimates, raising the targets in the upper part of the range of the guidance provided to the market on August 3rd. "This forecast is provided that operations are not impacted by further restrictions due to the Covid-19 pandemic", underlines the company. In detail, Ferrari expects 2020 net revenues to exceed €3,4 billion, an adjusted EBITDA of around €1,125 billion, with a margin of around 32,5%. Adjusted EBIT is expected to be around €700 million, with a margin of around 20%. The adjusted diluted EPS target is €2,8, with industrial free cash flow at approximately €150 million.
Ferrari in the third quarter had “robust” results, especially in terms of revenues. We are confident that we can reach the top of the 2020 guidance range and we will have a very strong fourth quarter, especially in terms of deliveries, revenues and EBITDA”. This is what was stated Louis Camilleri, CEO of Ferrari. The manager explained that the volumes for the period were impacted "by the end of production of some models and the start of production of others". As for deliveries, Camilleri specified that "they were not affected by demand but by issues related to supply". The order backlog, added Camilleri, proved to be very strong in October, 30% higher than usual, while the level of cancellations was very low.
