Ferrari closes a record quarter, revises its 2016 targets upwards and flies to the stock market. Between July and September, total deliveries increased by 29 units, to 1.978 (+1,5%), and net revenues grew by 8,3% (+7,9% at constant exchange rates), to 783 million of Euro. Adjusted EBITDA was $234 million, a 30% margin, and Adjusted EBIT reached $172 million, a margin increase of 260 basis points to 22%. Net income increased 20% to $113 million, and net industrial debt improved to $585 million from $763 million at the end of June.
Reflecting these numbers, Ferrari has revised its 2016 outlook upwards, estimating net revenues of more than 3 billion euros (3,070 billion is the current consensus estimate) and deliveries of around 8 units, including supercars. The adjusted ebitda, in the new estimates, is forecast at 850 million euros, up from the 800 million previously calculated (825 million is the current consensus estimate). Finally, net industrial debt is seen falling below 700 million versus the previous estimate of a figure at or below 730 million (692 million the current consensus estimate).
Also in the quarter, free cash flow from industrial activities amounted to 178 million euros, from 92 million a year earlier, and free cash flow to 175 million, from 74 million. Selling, general and administrative expenses increased (-3 million) mainly following the launch of new models and the costs incurred for the new directly operated stores. Research and development costs and industrial costs were in line with those of the previous year. Foreign exchange, excluding hedging transactions, had a negative impact of 3 million on foreign exchange transactions, mainly due to the pound, partly offset by the yen.
Ferrari's tax rate decreased to 29,8%, from 33,8% a year earlier thanks to the Government's decision to reduce the nominal rate to 24%, from 27,5%, by 2017. geographical area Ferrari deliveries rose in the third quarter by 5% in the EMEA area to 859 units, by 3% in the Americas to 701 and by 15% in Greater China (China, Hong Kong and Taiwan) to 180, while in the rest of the 'Asia Pacific (Apac) fell by 19% to 238 due to "logistical delays caused by one of our carriers".
In the nine months, deliveries increased by 14% in EMEA to 2.762, by 1% in the Americas to 1.998 and by 19% in Greater China to 496. Instead, they decreased by 3%, in the rest of the APAC. In terms of revenues in the quarter (+8,3% and +7,9% at constant exchange rates to 783 million) those from the sale of cars and spare parts (537 million) were in line with the previous year thanks to higher volumes of 488 GTB, 488 Spider and F12tdf and from the first deliveries of the GTC4Lusso and LaFerrariAperta models. Revenues generated by Engines jumped in the period by 92% to 97 million thanks to sales to Maserati and the increase in revenues generated by the supply to other Formula 1 teams.
The growth in revenues from sponsorships, commercial and brand-related revenues (+14% to €125 million) is attributed “to the better positioning in the 2015 championship standings compared to 2014, the increase in revenues linked to sponsorships and the positive contribution of related to brands". Ferrari and FCA Bank also finalized the previously announced agreement relating to the financial services business in Europe under which Ferrari will receive 432 million euros.
As regards the dividend, during the conference call, Sergio Marchionne let it be known that Ferrari will pay a higher dividend for 2016 than in 2015 and 2014.
At the beginning of the afternoon, Ferrari's share on the Stock Exchange gained 5,3%, to 48,54 euros.
