News Column

Ferrari keeps a lid on sales but profit still soars

February 19, 2014


FERRARI'S plan to cut the number of cars it sells in order to maintain its exclusive image has paid off, with revenue and profits both rising in 2013.

The Italian marque sold 6,922 of its high-end cars last year, down 5.4 per cent. However, rising revenues from custom-made vehicles and Ferraribranded souvenirs helped push turnover up five per cent to 2.3bn (1.37bn), while net profits were up 5.4 per cent at 246m - a new record for the company.

Commercial director Enrico Galliera said the strategy of keeping production low will continue for at least the next few years. "The [results] were achieved by working hard on the side of the business that's connected to sales, namely the personalisation programme," he told City A.M. yesterday.

Sales in some countries, including the UK, were permitted to rise as Ferrari tried to keep customers who were already on waiting lists happy, Galliera added.

The UK has now overtaken Germany to become the biggest buyer of Ferraris in Europe, with British motorists taking home 677 cars last year.

German sales fell by 100 to 652, while Italians also bought fewer Ferraris. The firm's home turf is now described in Ferrari's results statement as a "marginal market for the luxury car sector".

The US remains the firm's biggest market by some margin, taking delivery of more than 2,000 cars last year, followed by Greater China with around 700.

Revenues at Ferrari stores rose 19 per cent on a like-for-like basis, or 30 per cent including new shops. Turnover from brand-related activities, which includes a Ferrari theme park in Abu Dhabi and brand tie-ups with Puma and Microsoft, rose 3.6 per cent to 54m.

Ferrari was yesterday named the world's most powerful brand for the second consecutive year by Brand Finance. Apple was deemed to be the most valuable brand, worth an estimated $104.7bn.

Many luxury car companies have weathered the global recession well, with Rolls-Royce and Jaguar both posting record sales in 2013.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: City A.M. (UK)

Story Tools