Ferrari posts 5.4% hike in 2013 net profit by lowering sales

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Italian carmaker Ferrari's concept to maintain a high level of exclusivity by lowering the number of cars sold drove net profits higher by 5.4 percent to €246 million in 2013.

 

In an e-mailed statement Monday, the company said trading profits grew by 8.3 percent to a record €363.5 million.

 

Revenues rose by 5 percent to €2.3 billion despite a 5.4 percent drop in the number of cars delivered to dealerships to 6,922.

 

Return on sales jumped by 15.6 percent – on a par with the very best-performing companies in the luxury sector.

 

“This is a very important result that comes as a direct consequence of the huge effort made by everyone. We wanted to maintain a high level of exclusivity, designing amazing products such as the LaFerrari, the 458 Speciale and the just launched California T, the result of significant investment in product and technological innovation,” president Luca di Montezemolo said.

 

Last year, Ferrari spent €337 million – almost 15 percent of revenues – for investments which include research and development.

 

Ferrari cars sold last year were 100 percent personalized, with the Tailor Made program gaining in strength.

 

“We have also taken important strategic decisions relating to brand which will make an ever increasing contribution to the success of the company. A great source of satisfaction to us all is that we have been named the world’s Most Powerful Brand once again: confirmation we have succeeded in enhancing the value of this incredible brand,” Montezemolo said.

 

Brand-related businesses' operating margins went up by 3.6 percent to €54 million. 

 

Direct retail activities grew by 19.3 percent, and by 30 percent as a result of new openings. 

 

Meanwhile, e-commerce revenues reached €8.4 million. 

 

Ferrari's net financial position as of end-2013 reached €1.36 billion, the best ever in Ferrari’s history. – Danessa Rivera/VS, GMA News