Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| In particular, revenues came in at €1,429,000,000; adjusted EBITDA at €537 million; and adjusted EBIT at €385 million, with remarkable percentage margins at 36 -- 37.6% and 26.9% respectively; adjusted net profit at €297 million, with an adjusted net profit margin of 21%; and finally strong industrial free cash flow generation of €269 million, slightly lower compared to the prior year, which was sustained by the advances collected on the Daytona SP3 and the 812 Competizione A |
| The growth in cars and spare parts was driven by higher volumes a richer product and country mix a strong contribution from personalization as well as the price increase on selected models and markets that we communicated last year |
| And this is something that we experienced positively in the second – in the last two months of the quarter |
| Mix and price strongly positive for €85 million driven by higher personalizations whose contribution exceeded our projections |
| Further testament to the strength of demand for our cash is the continued dynamism of the Ferrari pre-owned market, which translates into sound residual values |
| This reopening of the order was done because they said, we were caught by a positive surprise for this strong interest |
| Starting on Page 4, we show the highlights of the first quarter results, which represent a very strong start to the year with revenues up more than 20% versus the prior year, and adjusted EBIT, adjusted EBITDA, adjusted diluted EPS growing more than 25% |
| Super impressive that you are already taking orders for 2026 |
| Also our thematic parks are experiencing record levels of visitor attendance, sustained by the introduction in January of Mission Ferrari, the world's most immersive mega coaster and the last addition to the Ferrari World, Abu Dhabi |
| Again on the first quarter obviously, the very strong print you made on the EBIT margin |
| We see it strong -- relatively stronger in relative terms |
| As Ferrari, moreover, we have a unique advantage because in 2026, our Formula 1 cars will begin to use 100% sustainable fuel |
| So, that explains this very strong Q1 EBIT margin compared to the guidance for the full year |
| I like also to underline, the incredible reception of the brand-new exhibition Game Changers, that is on display since February 18 at Museo Enzo Ferrari here in Modena, that together with the one in Maranello registered record level of visitor attendance, in the first quarter more than 100,000 people more than 1,000 people per day |
| What we see is that the clients have -- are positively surprised because it's really unique car that gives you the feeling that people start to try it to give the feeling of a sport car with the roominess that usually a sport car is not able to provide because it's smaller |
| It generated a strong positive coverage, from press and key opinion leaders |
| It will bring a positive environmental and social economic impact |
| The fact that the positive element that I mentioned in my comment before is that actually personalization came in much better than we would have expected |
| And this together with our equal salary certification, and the girls on track program underlines, our strong commitment on diversity and inclusion side |
| The first quarter of 2023, represents really another strong start to a very robust year |
| I'm very pleased to highlight the following three key data; revenues at €1.4 billion, up 20.5% versus the prior year; adjusted EBITDA at nearly €540 million with a 37.6% margin; industrial free cash flow generation at approximately €270 million |
| Our industrial free cash flow generation for the quarter was strong at €269 million, reflecting the increased profitability partially offset by a negative change in working capital provisions and other mainly linked to the increased inventory value both in relation to the running volumes and the richer product mix |
| Our order book already extends into 2025 on the back of a continuously strong demand |
| It is also worth mentioning that during the quarter we completed the refinancing through new bank loans of the bond maturing for €390 million and this allowed us to successfully diversify sources and tenors, while keeping a stable and safe level of total liquidity |
| What I can tell you is what I said to Stephen and also Antonio said, the – we see a positive trend in the personalization increase |
| So, while -- when you look at the absolute margins, China is positively contributing, as I mentioned a number of times, this is not the case when we come -- look at the percentage margin, but the negative impact in the quarter has been offset by the level of personalization and the margins we have on that |
| Positive country mix in absolute terms sustained by Americas and Mainland China, Hong Kong and Taiwan, as well as the already mentioned price increases |
| The strong mix adding on EBIT margin in China not visible |
| Now let's talk about our strong first quarter results that I'm sure you have already noticed on the projected chart |
| I'm also proud to state that Ferrari has won three prestigious awards |
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| While this year we see suppliers suffering a little bit more on the labor cost impact |
| So can you just explain like what has changed? Because if we look at the mix progression Q1 definitely was weaker than what we should be expecting for the rest of the year because you're going to have a ramp-up in Daytona in the competition in the specials and some of the higher-value cars |
| SG&A were negative by €22 million reflecting marketing and lifestyle activities obviously centered around the Roma Spider unveiling in Marrakesh and the fashion show in Milan as well as our organizational development |
| If I heard correctly you said that you expect now H2 to be a bit weaker and especially Q4 |
| Obviously, we were kind of like guided towards this would be a weak quarter from a sort of mix perspective |
| Engines revenues declined in line with the reduction of supplies to Maserati as the supply agreement gets closer to its maturity |
| While the production of e-fuels will receive a boost from the recent European Union decision, I see many questions and doubts about their costs and availability |
| And what about the motorsport? The racing year, has just begun with mixed results, so far |
| And now saying the Q2 will be better I understand that there will be maybe a slowdown in Q3 in Q4 even though it's not really clear in my head why that would be the case given the Daytona and Purosangue |
| At the beginning when we launched the cars, we were not expecting such strong, let's say, reaction from the clients |
| But when it comes to the mix is it fair to assume that Q1 was let's say the weakest the softest quarter of the year in terms of mix if we just think about the phasing of the models that are coming? So, we've got the Daytona |
| And secondly just a question also about the mix, because I thought that looking at your geographic mix, it wasn't particularly helpful having China I think such a big growth part of that because obviously we know that it's high revenue, but when we take into account the taxes, I understand that the contribution it makes to the overall group margin is negative or is a headwind |
| The Daytona SP3 was in a ramp-up in the quarter with lower deliveries compared to the Monza SP1 and SP2 last year |
| Clearly, you have to produce it |
| And the last one is labor cost |
| So we had to put a little bit of stop to organize ourselves so that we could reopen properly |
| Inflation has not come to an end anyway |
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