Ferrari’s growing revenues
As we discussed in the preceding part of this series, Ferrari (RACE) reported a 3.3% increase in its 2015 revenues. This positive growth was primarily driven by stronger shipments to the Americas and the Asia-Pacific region and by stable demand from the EMEA (Europe, the Middle East, and Africa) region.
Stronger Americas and Europe
The company’s shipments in the Americas grew by 7% in 2015 while revenues from the region grew by 40%. This geographical market accounted for 34% of the company’s total shipments. This positive growth in these regions was primarily driven by California T sales and higher sales of the limited edition hybrid car “LaFerrari.” The strengthening US dollar also added to revenue growth from this region.
The EMEA segment, which represents 44% of Ferrari’s total shipments, witnessed a 2% YoY (year-over-year) growth in 2015. Within the region, the UK was the largest market for the company that year and saw 5% growth, while Italy grew by 15%. Higher shipments in the region were mainly driven by the demand for the 458 Speciale A and the California T models. European demand for the newly launched 488GTB (in 2015) also added to this positive growth.
Growing the Asia-Pacific region
Ferrari’s shipments in the Asia-pacific region (excluding greater China) increased by 26% over the previous year. Australia was strongly positive, with 44% YoY shipment growth. Shipments to Japan also increased by 33% last year.
The California T and 458 Speciale car models that helped the company grow in Europe also contributed to Asia-Pacific growth, which can be seen as a positive factor for the company. Despite the decline in growth in China, the company was able to increase its presence in other parts of the Asia-Pacific region.
New launches in 2015
Ferrari launched the following three car models during in 2015:
- 488 GTB supercar model with 670 horsepower V8 engine
- 488 spider, an open supercar which is also equipped with 670 horsepower V8 engine
- F12tdf, a limited edition supercar equipped with 780 horsepower V12 engine, whose production was limited to just 799 units—all of which, reportedly, are pre-sold
Now let’s take a look at Ferrari’s 2015 margins.