While many economic sectors are suffering from the crisis, Ferrari once again proves the resilience of the luxury market, whose wealthy clientele remains little affected by the degraded economic context. Cars from the prancing horse brand remain highly coveted and production is struggling to keep up with demand.
Sales boosted by Ferrari’s Purosangue SUV
Ferrari announced a record net profit of 1.03 billion euros in 2023, up 34% compared to 2022. This exceptional result was driven by the success of its latest models, in particular the Purosangue SUV launched in 2022. and sold from 390,000 euros each.
The launch at the end of 2022 of the Purosangue, the first SUV in Ferrari history, was a huge success. This model with a shooting brake look has won over new customers looking for a vehicle combining sportiness and the versatility of an SUV.
With a base price of 390,000 euros, the Purosangue does not seduce with its price. But its production limited to a few thousand copies per year and the aura of the brand make it an ultra-desirable vehicle. Ferrari has seen massive demand, with waiting lists and payments stretching over several years.
Thanks to this model, Ferrari delivered 13,221 cars in 2023, up 18.5% year-on-year. Purosangue already represents 20% of total sales. Its success should further boost results in 2024, as production ramps up.
Record profitability despite inflation
Driven by strong growth in sales, Ferrari also reached a record operating margin by 35.9% in 2023. The company was able to offset inflation on production costs thanks to its ability to pass on price increases to its customers.
The manufacturer also increased its revenues thanks to the extensive customization of vehicles. The options offered make it easy to inflate the bill by several tens of thousands of euros.
This historic financial performance confirms the good health of Ferrari, whose market valuation reached 47 billion euros at the end of 2023. The outlook remains bright for 2024, with the order book filling up faster than production can keep up.
With these record results, Ferrari once again proves that automotive luxury is immune to economic downturns. Its clientele of enthusiasts and wealthy collectors remains indifferent to the global economic crisis. Driven by the success of its latest models, notably the Purosangue SUV, the prancing horse brand can boast of insolent financial health.
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