Ferrari e Finecobank reveal solid accounts, but they slip on the stock market. The Maranello-based car manufacturer closed the third quarter of 2024 with growing results, highlighting financial solidity thanks to a competitive mix of models and an increase in customizations. Despite the positive performance, however, the title Ferrari suffered from the failure to revise its estimates upwards, losing more than 4% at Business Square. The bank also reported solid earnings growth in the quarter, supported by higher fees and strong net inflows. Expectations remain high for a new profit record by the end of the year, but Fineco shares also fell, losing 1,45% on the stock market after the results were published.
Ferrari's third quarter results
The Maranello car manufacturer closed the third quarter with Net revenues for 1,6 billion euros, up 6,5% compared to the previous year even if the deliveries totals were slightly lower, with 3.383 cars sold, 2% less than the previous year. Looking at the markets, Europe, the Middle East and Africa remained stable with a +2% in deliveries, while the Americas recorded a 2% decline and China and Taiwan suffered a significant decrease of 29%. On the other hand, Asia Pacific saw an increase of 6%. outcome operating (adjusted EBIT) reached 467 million euros, with a margin of 28,4%, up 10,3% compared to the previous year. Theadjusted net profit rose to 375 million euros, which means that each share of the company brought a profit of 2,08 euros. Even theadjusted EBITDA was positive, reaching 638 million euros (+7,1%) with a margin of 38,8%. In the third quarter, Ferrari generated a free cash flow of €364 million, supported by revenue growth and improved working capital. This result was partially offset by capital expenditure of €249 million and net interest and taxes of €27 million.
Ferrari's first 9 months results
In the first nine months of 2024, Ferrari showed good financial solidity, with Net revenues of 4,94 billion euros, up 11% compared to 4,45 billion in the same period last year. The deliveries Total were 10.427 cars, an increase of nine units compared to the previous year. Theadjusted EBITDA reached 1,91 billion euros, with a margin of 38,7%, while the outcome operating adjusted rose to 1,42 billion euros, up 14% and with a revenue margin of 28,7%, compared to 28% in the first nine months of 2023. TheNet income exceeded one billion, reaching 1,14 billion euros, with an increase of 18% compared to the 963 million of the previous year.
At the end of September 2024, Ferrari recorded a negative net industrial financial position of 246 million euros, an increase compared to thedebt of 99 million euros at the beginning of the year. However, the liquid assets total available has increased to €2,08 billion, compared to €1,72 billion at the beginning of the year. This figure also includes €550 million in unused credit lines. Overall, in the first nine months of the year, the free cash flow was 806 million euros.
Ferrari confirms 2024 guidance
Though Ferrari he didn't raise his forecasts for 2024, Has confirmed which expects to close the year with revenues above 6,55 billion euros. The gross operating margin should exceed 2,5 billion euros, with a margin above 38%, while net earnings per share should exceed 7,9 euros. The company also expects industrial free cash flow above 950 million, but this will be partly offset by higher expenses and higher taxes.
CEO Vigna's comment
“The third quarter once again recorded growing results for Ferrari, thanks to a strong product mix and a greater contribution from customisations – declared Benedict Vigna, CEO of Ferrari -. It is a confirmation of the commitment to keep the promises of the 2022 Capital Markets Day, together with the exceptional visibility offered by the order book, which covers a large part of 2026, the constant product innovation - demonstrated by the F80, the supercar just presented - and process, with the strengthening of our internal skills in the field of electrification. The shutdown of the gas trigeneration plant in Maranello, ahead of target, also marks a further step forward towards our goal of carbon neutrality by 2030".
The company said that its product lineup for the quarter included eight internal combustion engine (ICE) models and five hybrid engine models, which accounted for 45 percent and 55 percent of total deliveries, respectively.
Fineco, profits above expectations and new projects for 2024
Fineco closes on third quarter of 2024 with a Net income of 169,7 million euros, exceeding analysts' expectations and recording a growth of 16,8% compared to the same period last year, although with a slight decrease of 2,1% compared to the previous quarter. At annual level, the group closed the first nine months with a cumulative net profit of 490 million (+7,9% compared to 2023), while the revenues in the nine months reached 984,1 million (+7,3% on an annual basis), supported by growth in the areas Investing (+ 11,7%), Brokerage (+ 11,4%) and Financial Margin (+ 6,4%).
Solid third quarter for all business areas
In the third quarter alone, Fineco recorded revenues equal to 325,8 million, down 1,7% compared to the previous quarter but up 3,1% compared to the same period last year. edge financial was 177,6 million, slightly reduced compared to the previous quarter (-2,7%) and substantially stable compared to last year (-1,4%). The commissions nice grew by 1,1% compared to the second quarter, mainly thanks to the Investing area (+4,7%), and increased by 8,3% compared to the same quarter of the previous year, with significant contributions from the areas Investing (+ 11,5%) and Brokerage (+ 5,0%).
I Costs operational amounted to 78,8 million, down 2,8% from the previous quarter but up 10,5% on an annual basis. Thequarterly gross profit stands at 243,3 million, marking a growth of 18,4% compared to the same period in 2023.
CEO Foti: “New profit record expected for 2024”
Alessandro foti, CEO and General Manager of Fineco, commented on the results by stating: “The positive data of the third quarter confirm that Fineco remains on a growth path that involves all business areas. The efficient solutions offered by our network of financial advisors, thanks to the support of Fineco Asset Management and the advanced consultancy platform, will continue to fuel the increase in investing commissions. At the same time, the expansion of the customer base allows brokerage to remain at high levels. The estimated collection data for the month of October is in line with this scenario, putting Fineco in the ideal conditions to close 2024 with a new profit record”.
October harvest and growth prospects for 2024
October was a dynamic month, with a Estimated collection of around 1 billion euros, doubled compared to the same month of the previous year. The collection managed reached 430 million, of which approximately 460 million came from Fineco Asset Management's retail collection. Meanwhile, the customer base continues to grow: Fineco acquired 15.083 new customers in October (+27,9% year-on-year), bringing the total to over 1,6 million.
Looking to the 2024, Fineco foresees revenues “at record levels”, with an increasingly commission-oriented mix and a dividend per share expected in rise. Regarding the distribution of excess capital, the bank has decided to adopt a more prudent approach, in anticipation of a higher-than-expected growth of the business.
