Ferrari Group (FERGR) H2 2024 earnings summary

Executive summary

• Achieved 4.7–5% revenue growth to €348.8m in FY24, meeting all key financial targets and delivering consistent profitability despite challenging luxury sector conditions.

• Strong execution of strategy through global expansion, new offices in Australia, Botswana, UK, and new contractual relationships in Azerbaijan, Jordan, and Maldives.

• Completed warehouse expansions in Germany, Netherlands, UK, and US; planning new facilities in Paris and Saudi Arabia.

• Recognized for management excellence and sustainability, including a Deloitte Best Managed Company Award and first audited sustainability report.

• Listed on Euronext Amsterdam post year-end, enhancing profile and supporting growth strategy.

Financial highlights

• Revenue increased by 4.7–5% year-over-year to €348.8m, driven by organic growth, new business wins, and network expansion.

• Adjusted EBITDA rose 2.6–3% to €92.4m, with margin stable at 26.5% (down 50bps YoY due to expansion and IT investments).

• Net profit increased 0.7–1% to €57.3m, reflecting consistent value delivery.

• Net cash position up 19.9–24% year-over-year to €87.0m; cash conversion rate at 86.1–86.3%.

• Proposed dividend of €25m (€0.27/share), a 44% payout ratio, slightly exceeding the 40% policy.

Outlook and guidance

• 2025 revenue and Adjusted EBITDA margin expected in line with 2024; ordinary CapEx to remain stable at ~2% of revenues.

• Medium-term guidance unchanged: targeting 6–8% revenue growth and 27–29% EBITDA margin within five years, driven by digital transformation and operational leverage.

• Management expects continued positive momentum in 2025, assuming luxury market trends persist.

• Committed to progressive dividend policy with potential for extra dividends or share buybacks, subject to performance and market conditions.