Ferrari(RACE)2024-08-01 17:15Financial Data and Key Metrics Changes - Revenues for Q2 2024 reached €1.7 billion, a 16% increase compared to the previous year, driven by a strong product mix and growing demand for personalization [5][17] - Adjusted EBITDA was approximately €670 million, with a margin of 39% [5][17] - Net profit for the quarter was €413 million, reflecting stronger personalizations and increased visibility for the remainder of the year [5][17] - Industrial free cash flow generation was €121 million, despite higher capital expenditures and tax payments [24] Business Line Data and Key Metrics Changes - Shipments increased by 92 units, with notable contributions from the Purosangue, Roma Spider, and 296 GTS [18][19] - The hybrid share of deliveries reached 48%, primarily driven by the 296 GTS [19] - Personalization accounted for nearly 20% of total revenues from cars and spare parts, supported by the Purosangue and Daytona SP3 [20] Market Data and Key Metrics Changes - Deliveries increased in EMEA, Americas, and Rest of APAC, while there was a decrease of approximately 60 units in Mainland China, Hong Kong, and Taiwan [18] - The company strategically allocated products across different regions to enhance brand strength and exclusivity [6] Company Strategy and Development Direction - The company emphasizes sustainable innovation, with a focus on technological neutrality across internal combustion engines, hybrids, and full electric models [9][10] - The new e-building facility will support the development and production of various powertrains, enhancing competitive advantage [10][11] - The company aims to maintain quality over quantity, focusing on high-value revenues rather than increasing production volumes [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong order book, which extends well into 2026, and highlighted the positive reception of new models [6][29] - The company upgraded its 2024 guidance based on improved visibility and stronger personalization demand [25] - Management noted no signs of weakness in demand, with strong client engagement and interest in new models [56] Other Important Information - The company hosted a series of events focused on sustainable innovation, involving stakeholders and culminating in the inauguration of the new e-building [8] - The company reported a negative currency impact of €35 million, primarily due to adverse dynamics of the U.S. dollar, Japanese yen, and Chinese yuan against the euro [23] Q&A Session Summary Question: Order book and unit growth expectations - Management indicated a focus on price and mix with slower unit growth, but potential for slight acceleration in unit growth [28][29] Question: Personalization increase and its drivers - Personalization reached nearly 20%, driven by client demand, particularly for carbon finishes [31][33] Question: EV strategy and market positioning - The company maintains a strategy of technological neutrality, planning to unveil an EV in Q4 2025 [34] Question: Market demand and geographic performance - Strong demand for Dodici Cilindri across most countries, with some weakness noted in China due to tax burdens [38][39] Question: ASP expectations for the second half - ASP is expected to remain stable, with a projected increase of around 10% for the full year [66]