Ferrari has been rated as the âWorldâs most powerful brandâ for the second year running by London based firm Brand Finance.
Ferrari was awarded a âAAA+â rating, ahead of brands like BMW, Porsche, Toyota, Mercedes and Volkswagen. BMW and Porsche were slightly behind with a âAAAâ rating. The judgment was passed after considering factors like customer loyalty, investment and many other parameters.
This rating is an icing on the cake for Ferrari which has also announced that it had sold fewer cars in 2013 compared to 2012; now hereâs the paradox- they made more money in 2013! How did they achieve that? It was part of their limited supply strategy which âmaintains a high level of exclusivity and increase the car’s value over timeâ. This strategy seems to have worked for them as Ferrari posted revenues of 2.3 billion Euros. An increase of 5 per cent over the previous year with just 6,922 cars delivered in 2013, a decline of 5.4 per cent over 2012. Ferrari also said that it had seen record deliveries to US and UK along with good sales in China and Japan.
Ferrari chairman, Luca di Montezemolo, said, âThis is a very important result that comes as a direct consequence of the huge effort made by everyone. We have also taken important strategic decisions relating to brand which will make an ever increasing contribution to the success of the company. A great source of satisfaction to us all is that we have been named the worldâs Most Powerful Brand once again: confirmation we have succeeded in enhancing the value of this incredible brand.â
Ferrari posting record profits
|2013 RESULTS RESULTS: RECORD PROFITS RECORD PROFITS,,, REVENUES AND REVENUES AND REVENUES AND NET FINANCIAL POSITI NET FINANCIAL POSITI NET FINANCIAL POSITION WITH
REVENUES: 2.3.. BILLION EURO BILLION EURO (+ 5%)
TRADING PROFIT: 363.5 MILLION EURO MILLION EURO (+ 8.3%).
NET PROFIT: 246 MILLION EURO MILLION EURO (+5.4%) (+5.4%)
INDUSTRIAL NET CASH POSITION NDUSTRIAL NET CASH POSITION: 1.36 BILLION EURO BILLION EURO,,, THE BEST THE BEST THE BEST EVER
HOMOLOGATED CARS DELIVERED TO DEALERSHIPS OMOLOGATED CARS DELIVERED TO DEALERSHIPS: 6,922 (----5.4%)..
RECORD DELIVERIES TO US AND UK, GOOD PERFORMANCE IN GOOD PERFORMANCE IN CHINA AND JAPAN
RECORD RESULTS FOR BRAND---RELATED ACTIVITIES WITH REVENUES UP TO RELATED ACTIVITIES WITH REVENUES UP TO 54
MILLION EUROS (+3,6%) (+3,6%)
BRAND FINANCE CONFIRMS FERRARI REMAINS WORLD ERRARI REMAINS WORLDâââS MOST POWERFUL BRAND
Maranello, 18th February 2014 â Another extraordinary year for Ferrari. After
2012, its best ever year, the company decided to reduce the number of cars sold
to maintain a high level of exclusivity and increasing their value over the time,
improving results. The concept worked: there were reduced sales in 2013, but
record turnover, profits and finances. This fact was highlighted during the
meeting of the Ferrari Board of Directors held today in Maranello under the
chairmanship of Luca di Montezemolo to examine the end-of-year financial
While the number of homologated cars delivered homologated cars delivered homologated cars delivered to the network dropped to
6,922 cars (-5.4 per cent) in 2013, revenues revenues revenues rose by 5 per cent, eventually
reaching an unprecedented 2.3 billion Euro.
End-of-year trading profits trading profits trading profits reached a record 363.5 million euro (+8.3 per
cent). Ferrari also delivered net profits net profits net profits in excess of 246 million euro (+5.4 per
RoS (Return on Sales) leapt to 15.6 per cent, on a RoS par with the very best-
performing companies in the luxury sector.
The finishing touch to this very positive scenario comes from the significant
investments made by Ferrari over the last 12 months investments , which, including
Research and Development, reached an overall figure of 337 million euro (up
from 324 million in 2012), almost 15 per cent of revenues. These investments
were completely self-financed thanks in great part to the fact that the
companyâs excellent cash flow has been on the increase for some time now,
jumping again in 2013 and resulting in a net financ net financial position net financial position of 1.36 billion ial position
euro, the best ever in Ferrariâs history.
âThis is a very important result that comes as a direct consequence of the huge
effort made by everyone. We wanted to maintain a high level of exclusivity,
designing amazing products such as the LaFerrari, the 458 Speciale and the just
launched California T, the result of significant investment in product and
technological innovation.â Said President Luca di Montezemolo. â We have also
taken important strategic decisions relating to Brand which will make an ever
increasing contribution to the success of the company. A great source of
satisfaction to us all is that we have been named the worldâs Most Powerful
Brand once again: confirmation we have succeeded in enhancing the value of
this incredible brand.â
Today, 100 per cent of the cars are personalised, with the Tailor Made
programme gaining in strength. The Classic Department is constantly increasing
its activity and profitability.
The strategy regarding deliveries to the dealership network announced in the
course of the year involved a planned overall reduction in volumes, but paying
attention to those markets experiencing very strong demand to avoid excessively
long waiting lists.
One example of this is the USA where there were a record 2,035 deliveries, an
increase of 9 per cent on the previous year.
The UK market grew slightly and, with 677 homologated cars delivered to the
network set a new record and became Europeâs leading market, overtaking
Germany, where deliveries stood at 652, a drop of a Germany round 100 over the
Staying in Europe, sales in Italy were down once again, confirming the trend
over recent years. Italy has become a marginal market for the luxury car sector:
with 205 orders it now represents less than 3 per cent of Ferrariâs global sales.
In Greater China Greater China Greater China (Peopleâs Republic of China, Hong Kong and Taiwan) sales to
end clients were good, standing at 700, allowing it to retain its position as the
second largest market worldwide. Deliveries to the dealership network were
down by around a quarter. However, this was a by-product not of the market
situation but Ferrariâs decision to contain stock numbers.
The positive trend continues in the Middle East and Middle East and Africa Middle East and Africa with an increase of Africa
8 per cent bringing to 599 the number of homologated cars delivered to the
In the Far East, Far East, Far East, Japan performed exceptionally well once again in 2013, ending
the year on 380 cars, a leap of over 20 per cent.
Brand----related businesses (Retail, Licensing an related businesses (Retail, Licensing an related businesses (Retail, Licensing and E ----commerce) commerce) commerce) also yielded
very good results and from this year onwards will be managed by a separate
company, 100 per cent owned by Ferrari and based in Maranello. Overall,
operating margin in that area was up by 3.6 per cent to 54 million euro.
Direct retail Direct retail activities grew by 19.3 per cent on a like-for-like basis, and by 30
per cent as a result of new openings. Part of this good performance, of course,
was because of the new in-store dĂ©cor concept, which will be extended to
upcoming projects, and to the launch of new categories of merchandise.
Licensing maintains its positive impetus too, thank Licensing s to new licencing deals and
the brilliant performance of our main and strategic partners, such as Puma,
Hublot, Movado and Microsoft.
With regard to e-commerce, growth targets set were met, recording revenues in
excess of 8.4 million euros in 2013.
Ferrari also enjoys an excellent online and social network presence. The official
Ferrari website attracted over 40 million visitors while the brand is one of the
leading lights of the global social media scene with 12.5 million fans on
Facebook, up 25 per cent from 2012.
On the Formula 1 sponsorship front, Ferrari signed two major deals, one with
leading logistics expert, UPS and the second with eyewear company Oakley.
Aside from its logo appearing on the Scuderia driversâ helmets, the latter will
also develop a new range of eyewear. Several sponsorship contracts were
renewed in 2013, most specifically with Weichai Power, which is part of the
Weichai Group, one of Chinaâs leading industrial corporations.
In the meantime, leading London-based brand valuation experts, Brand
Finance, have named Ferrari the worldâs Most Powerful Brand for the second
consecutive year, awarding it an AAA+ rating that puts it ahead of highly-
respected and established multinational consumer companies. The brand rating
not only takes into account financial metrics, such as average revenue per
customer and investment, but also a complex array of other parameters,
including brand affection and loyalty, client management and human resources.
Lastly, it also gives us great pleasure to announce that today, on the anniversary
of the birth of Enzo Ferrari, the company embraces a new challenge by taking
over the management of the Museo Casa Natale Enzo Ferrari in Modena.
Located in the heart of the city, the museum will complement the activities of
the Ferrari Museum in Maranello which attracted a record 320,000 visitors in
2013, making it one of Italyâs most popular museums.