Ferrari(RACE)2025-02-04 19:10Financial Data and Key Metrics Changes - In 2024, Ferrari achieved record full-year revenues of approximately €6.7 billion, reflecting double-digit growth compared to the previous year [10] - Net profit reached €1.5 billion, with a diluted EPS of €8.46, up 22.6% year-over-year [26] - Industrial free cash flow generation surpassed €1 billion for the first time, despite capital expenditures peaking at around €990 million [27][36] Business Line Data and Key Metrics Changes - Shipments increased by 89 units in 2024, with significant growth in models such as Purosangue, Roma Spider, and 296 GTS [28] - The hybrid share of total shipments reached 51%, driven mainly by the 296 GTS [29] - Personalization accounted for approximately 20% of total revenues from cars and spare parts, supported by models like Purosangue and Daytona SP3 [31] Market Data and Key Metrics Changes - EMEA and Americas regions saw an increase in shipments, representing close to 75% of total shipments, while the Rest of APAC remained flat at 17% [30] - Mainland China, Hong Kong, and Taiwan reduced their share to 9%, aligning with the company's long-term strategy for the region [30] Company Strategy and Development Direction - Ferrari plans to launch six new models in 2025, continuing to focus on both existing and new clients [18][49] - The company aims to enhance client experiences and accelerate the development of its paint shop, while also focusing on carbon neutrality by 2030 [19][20] - The strategy includes a commitment to maintaining brand exclusivity and desirability through limited model releases [51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning and growth trajectory, despite ongoing global uncertainties [41] - The effective tax rate is expected to rise to around 22.5% in 2025, influenced by the expiration of the previous Patent Box regime [40] - The company anticipates a strong first half of 2025, driven by a favorable product mix and continued demand for personalization [40] Other Important Information - The company achieved a significant milestone with the shutdown of its trigeneration plant, moving towards renewable energy sources [20] - A competitive award of up to approximately €14,400 for employees was announced, alongside certifications for equal pay and gender equality [21] Q&A Session Summary Question: Regarding the model rollout and potential confusion with multiple launches - Management confirmed that the strategy includes targeting both existing and new clients, with different types of cars catering to various customer segments [49][50] Question: Clarification on the mix's impact on P&L and margin expansion - Management explained that the product mix, including special series and personalization, has been a significant contributor to profitability, despite inflationary pressures [53][56] Question: Pricing strategy for the Purosangue and customer profile for the 12Cilindri - A planned price increase for the Purosangue was confirmed, and the 12Cilindri is attracting a mix of new and existing clients, with a notable percentage of younger buyers [63][64] Question: Updates on warranty programs for hybrid batteries - A warranty program for hybrid batteries was launched, with positive traction noted among customers seeking peace of mind regarding battery longevity [68] Question: Number of Daytonas shipped in Q4 - A total of 46 Daytonas were shipped in the fourth quarter, with expectations for a gradual decline in shipments throughout 2025 [76][82] Question: Residual values of hybrids and the impact of upcoming EV launches - Management reassured that the hybrid model plan remains unchanged, and the upcoming electric vehicle will be unique in style and performance [119][120] Question: Insights on average orders per customer - Management indicated that the distribution of orders is not uniform, with some clients preferring specific models, making average order metrics less meaningful [150]