Ferrari N.V. — 2023 Form 20-F Summary
Business context and reporting period. Ferrari N.V. is a Netherlands-incorporated luxury-car and lifestyle group, with design and manufacturing centered in Italy. This is the audited annual report for the fiscal year ended December 31, 2023, prepared under IFRS. It is not a standalone Q4 filing; quarterly Q4 financial results are not separately provided in the supplied filing text.
Key financial and operating metrics
| Metric | 2023 | 2022 |
|---|---|---|
| Net revenues | €5.970 billion | €5.095 billion |
| Operating profit (EBIT) | €1.617 billion; 27.1% margin | €1.227 billion; 24.1% margin |
| EBITDA | €2.279 billion | €1.773 billion |
| Net profit | €1.257 billion; 21.1% of revenue | €939 million; 18.4% of revenue |
| Basic earnings per common share | €6.91 | €5.11 |
| Cash flow from operating activities | €1.717 billion | €1.403 billion |
| Free cash flow | €848 million | €597 million |
| Cash and cash equivalents, year-end | €1.122 billion | €1.389 billion |
| Total debt, year-end | €2.477 billion | €2.812 billion |
| Total available liquidity | €1.722 billion | €2.058 billion |
- Gross profit was approximately €2.974 billion, or 49.8% of revenue, compared with approximately €2.446 billion, or 48.0%, in 2022.
- Net industrial debt was €99 million, versus €207 million in 2022; net debt of financial services activities was €1.256 billion. Ferrari defines total net debt as €1.355 billion.
- Capital expenditure was €911 million, including €487 million for intangible assets and €424 million for property, plant and equipment.
- Shipments were 13,663 cars, up 3.3%. Hybrid models represented 44.2% of shipments, more than twice the prior-year proportion.
Changes versus the prior comparable period
- Revenue rose 17.2% (17.1% at constant currency); cars and spare parts revenue increased 18.5%. Higher volumes, pricing, personalization and favorable product and country mix supported growth.
- EBIT increased 31.8%, and EBIT margin expanded 3.0 percentage points to 27.1%. Management attributed the improvement chiefly to favorable mix and personalization, partly offset by higher industrial, depreciation and R&D costs.
- Operating cash flow improved by €314 million, but cash declined by €267 million, reflecting higher investment, debt repayments, dividends and buybacks, as well as working-capital use.
- Inventories rose to €949 million from €675 million, driven by production planning, new-model launches, richer product mix and precautionary supply levels. Customer advances collected were lower than in 2022.
- Engine revenue declined 18.4%; the Maserati engine-supply contract expired in December 2023. Ferrari sold approximately 5,600 engines to Maserati during the year.
Outlook, commentary, risks and unusual items
- The SEC-filed Form 20-F omits the report’s separate “2024 Outlook” section, so the filing text provided does not give clear numerical 2024 guidance. Ferrari’s stated plans include 15 new models over 2023–2026, a measured increase in shipments, and a first fully electric Ferrari planned for 2025. The e-building was expected to open in June 2024.
- Management describes ongoing pressure from inflation, energy and input costs, interest rates, foreign exchange and geopolitical uncertainty. Currency movements had a negative impact on 2023 revenue from cars and spare parts, partially offset by hedging.
- Key risks include preserving brand exclusivity while growing volumes; demand and product-mix volatility; electrification investment and uncertain customer response; increasingly stringent emissions and safety regulation; reliance on single-source suppliers and Italian production facilities; and foreign-exchange, interest-rate and refinancing exposure. 58% of gross debt bore floating interest rates at year-end.
- In March 2023 Ferrari experienced a ransomware attack. The company declined to pay; customer personal information relating to several hundred customers was evidenced as leaked. Ferrari reported no material financial impact or serious consequences from cyber incidents during the year.
- Other notable items: a €7.9 million gain on a partial cash tender for the 2025 bond; a partial release of environmental provisions; and €461 million of share repurchases and €329 million of dividends paid to parent-company shareholders. The Board later recommended a €2.443-per-share dividend, subject to shareholder approval; the filing’s dividend-policy section gives a conflicting figure of €2.433, so the proposed amount should be checked against subsequent company disclosures.
- Auditors issued unqualified opinions on the 2023 IFRS financial statements and internal control over financial reporting. Development costs, with a net carrying value of €1.370 billion, were identified as a critical audit matter because capitalization depends on management estimates of feasibility and future economic benefits.
Most important facts for investors to verify
- Obtain the separate Q4 2023 results and current 2024 guidance; this annual filing does not provide standalone Q4 figures and omits the 2024 Outlook section.
- Confirm the proposed 2024 dividend per share and total amount, given the €2.443 versus €2.433 discrepancy in the filing.
- Track inventory growth, customer advances and working-capital conversion alongside shipment and mix trends.
- Assess the return and accounting assumptions for capitalized development costs, and execution, timing and cost of the electric-vehicle program and e-building.
- Monitor floating-rate debt, financial-services securitization funding, foreign-exchange effects and the remaining share-repurchase authorization.
- Follow emissions-credit requirements and regulatory approvals, supplier continuity, and any further consequences of the 2023 data breach.