Ferrari customers paying extra for customized paint jobs and wheels have helped the supercar maker upgrade its annual earnings forecast following a quarter where it posted record profits.
Almost a fifth of its revenue from selling cars — slightly less than €200mn — came from personalized features, ranging from customers adding a Ferrari crest to the side of their car, to highly colored brake pads.
The Italian brand is the latest luxury carmaker to post bumper earnings, after Lamborghini and Bentley reported record profitability.
Ferrari’s revenues and profits rose to record levels thanks to strong demand for its V8 models, and sales to the Americas and China during the second quarter.
The number of cars sold increased by 29 per cent to 3,455, while net profit rose by 22 per cent to €251mn and revenues climbed by 25 per cent to €1.3bn.
Its order book during the quarter was also at a record high, which chief executive Benedetto Vigna said was “astonishing”, given it is only taking orders for three models at present.
Ferrari now expects revenues of €4.9bn for the year, rather than €4.8bn, with pre-tax profits of between €1.15bn and €1.18bn, up from €1.1bn to €1.15bn.
The company said “stronger contribution from personalisations as well as a tailwind from foreign exchanges” helped to raise its outlook, despite an end to production of several of its higher-margin cars.
Ferrari’s chief financial officer Antonio Picca Piccon said the personalization rate across all models had been “quite high,” and that the forecasts were “extrapolating based on what we see in the current order portfolio.”
Foreign exchange movements, which added €37mn to its profits in the quarter, were also a factor in the decision to raise annual targets.
While it is charging more for current models and customers are paying for additional features, the company said this would not offset a dip in average selling price from ending the sale of its Monza SP1 and SP2 models, which cost more than €1mn each.
Most of Ferrari’s growth during the quarter came from deliveries of the Portofino M and F8 models. Deliveries were driven by a 62 per cent rise in sales in the Americas region to 1,053 cars and a more than doubling of sales to China, Hong Kong and Taiwan.
“The quality of the first six months and the robustness of our business allows us to revise upwards the 2022 guidance on all metrics,” said Vigna.
About 17 per cent of the cars it sold were its three hybrid models.
Ferrari, which plans to release its first fully electric car in 2025, expects that 40 per cent of its line-up will be electric-only by the end of the decade, but has remained committed to developing engine models for the foreseeable future.