Re: Ferrari's revenue & profit rise in a tough market Ferrari and Porsche lead the ranking of the most profitable brands. Quote:
It's one thing to sell cars and top the volume charts, and it's another to make money selling cars. Being popular doesn't necessarily mean making money and there are two brands in the automotive industry that know this perfectly well. Ferrari and Porsche, two of the most iconic brands, posted the highest profit margins in 2023 despite being at the bottom of the year's volume charts.
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The increase in revenues is not mainly due to the increase in units sold (+9%), but to the increase in car prices. Volkswagen Group, Toyota and Stellantis recorded the highest revenues, with increases of 15%, 11% and 6%, respectively. Basically, all 24 automakers in the sector recorded increases, with the exception of Isuzu, whose revenues remained flat
| Ferrari gains even more Quote:
The classification changes radically when looking at the profitability of these companies. In 2023, all of them together made €187.8 billion in operating profits (the money earned after paying for necessary expenses). This total increased by 18% compared to 2022, when the same OEMs recorded a total of 159.4 billion euros. The 18% increase is higher than revenue growth, meaning the industry margin increased from 7.8% in 2022 to 8.4% in 2023.
The leader remains Ferrari. The Italian company is not only a benchmark for sports cars around the world, but also a real money-making machine. In 2023, Ferrari delivered 13,663 supercars, with a total turnover of €5.97 billion, an increase of 3.3% and 17%, respectively. This means that the company has been able to sell more expensive cars than before and earn more from other activities, such as Formula 1 or merchandising.
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Ferrari's operating profits were 1.61 billion euros, or 27 percent of total turnover. That's a huge operating margin that confirms Ferrari's solid position in the industry. In other words, the company retained 27 cents for every euro of sales. Last year, the percentage was 24%. No other car manufacturer comes close to these brilliant results. Porsche shines too Quote:
The other winner of the year is Porsche, with its profit of 7.28 billion euros on a revenue of 40.53 billion euros. Its operating margin remained stable at 18%, the second highest after Ferrari. Porsche benefited from increased sales of its flagship 911 and Taycan, while its three SUVs accounted for 55 percent of global volumes.
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Other major players include Jaguar Land Rover, which went from a loss in 2022 to a profit last year. Toyota, Kia and BMW Group also posted strong increases in operating margin. Among the major manufacturers, Stellantis leads with a margin of 11.8%, followed by Toyota, Hyundai and Suzuki.
The only two Chinese manufacturers present, BYD and Great Wall Motors (the other companies have not yet published their results), reported mixed results, confirming that they are in a phase of unit volume growth, while profitability is not yet the priority. Link: |