In the third quarter, Ferrari NV experienced a 2% drop in shipments, disappointing investors who anticipated stronger performance from the Italian luxury car manufacturer in the midst of the industry's recent struggles. The decline was primarily attributed to a sharp 29% decrease in deliveries in China, where Ferrari has a smaller footprint compared to competitors like Porsche AG.
Despite Ferrari's shares falling by as much as 7.2% in Milan, marking the most significant intraday decline since May 2021, the company still holds a relatively strong position in the market. While major players such as Mercedes-Benz Group AG, BMW AG, and Volkswagen AG's Porsche are grappling with diminishing sales in China, Ferrari's exposure to the region is more limited.
The contrasting performance is a testament to Ferrari's resilience, with shares showing a robust year-to-date growth of around one-third, outshining rivals facing steeper sales declines globally. Although the third quarter results were deemed "solid rather than spectacular" by Citi analysts, revenue growth did exhibit a slight deceleration.
Ferrari's third-quarter adjusted EBITDA rose by 7% to €638 million, slightly surpassing analyst projections. Sales saw a 7% increase to €1.64 billion, driven by a surge in customers opting for customizations. CEO Benedetto Vigna highlighted that the Chinese order book extends for approximately five quarters, indicating sustained demand in the region.
Maintaining a commitment to exclusivity, Vigna is leveraging customization services to enhance profitability, with a recent unveiling of a €3.6 million supercar among the company's priciest offerings. Furthermore, Ferrari's foray into electrified vehicles is progressing under Vigna's leadership, with plans to launch the brand's first fully electric supercar in the fourth quarter of next year.
In light of these developments, despite the challenges faced in China amidst a broader market slowdown, Ferrari's strategic initiatives and strong performance underscore a positive outlook for the super-luxury car segment, with demand remaining robust and the company positioned for continued success in the evolving automotive landscape.