Although the Italian supercar manufacturer decided to protect its exclusivity by intentionally reducing its car sales, as it expands into further sources of income, the company achieved in 2013 record revenues, profits and cash flow.
Named for the second straight year by consultancy Brand Finance the world’s most powerful brand, Ferrari announced its net profit for the year went up by 5% – although its car sales percentage fell by exactly the same amount.
“Despite fewer cars last year, we have improved all the numbers in the financial results,” president Luca di Montezemolo told the Financial Times. “Exclusivity for me is the most important thing. The quality of the sales is more important than the quantity.”
Montezemolo added that Ferrari could keep the same production level as last year, or even lower it further – going against the current as other rivals seek to expand their presence in the very lucrative and still growing high luxury segment. He said though that the company could restart production growth in 2015.
“Making fewer cars but more money is an easy thing to say but hard to do,” Montezemolo said in the interview. “But I want to keep Ferrari exclusive. And I want to maintain the value of the used cars on the market. This is very important . . . For me, Patek Philippe and Hermes are the important benchmarks.”
Majority owned by Fiat SpA, Ferrari said its revenue in 2013 rose 5 % to reach a record €2.3 billion, although car sales went down to 6,922 units. Net profit for the year was € 246 million, growing 5.4 % from 2012, on a 8.3 5 rise in trading profit to €363.5 million.
Via Financial Times