By Giulio Piovaccari

MILAN (Reuters) – Ferrari’s core earnings rose 13% in the first quarter helped by sales of models such as the 2 million-euro ($2.2 million) Daytona SP3 limited-series luxury car and a greater contribution from personalised vehicles.

Shares at the luxury sportscar maker, however, fell on Tuesday as Ferrari confirmed its full-year forecasts, failing to excite investors despite what its CEO Benedetto Vigna called a “very positive” start to the year.

The result was also helped by strong pricing power and product and country mix, and Vigna said the Italian company had produced double-digit growth for both revenue and profits despite stable car deliveries.

“Our value over volume strategy continues to be successful,” he said.

Vigna said Ferrari’s total order book was spanning into 2026 and that almost all of its models were “substantially sold-out”.

He added Ferrari did not plan price increases on existing models after those decided last year, but would rather push further on personalisations.

“It’s an area where we have immediate room,” he said.

Personalisations are the touches for which a customer pays extra to make the model more suited to their tastes, both inside and out.

Analysts at Bernstein said in a note Ferrari’s results were of “a high quality”, showing “how mix and pricing are going to be the principal drivers of margin development as we enter the second part of Ferrari’s 2022-26 plan”.

As part of its current business plan, Ferrari announced investments worth 4.4 billion euros through 2026, while delivering core earnings of 2.5-2.7 billion euros by that year. It has also promised its first fully-electric car for late 2025.

RESULTS IN LINE

In the first quarter, Ferrari’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) reached 605 million euros, in line with analyst expectations in a Reuters poll.

Shipments fell by seven units to 3,560 in January-March, dragged by a 20% drop in the China, Hong Kong and Taiwan region, which however only accounts for around 10% of the company’s total unit sales.

Ferrari confirmed its forecast for full-year adjusted EBITDA to rise to at least 2.45 billion euros in 2024.

Its Milan-listed shares turned negative after results, reflecting some disappointment that it did not raise its full-year guidance, Bernstein’s analysts said.

At 1455 GMT the shares were down 4.1%. They remain close to their all time high of 410 euros touched at end-March after rising around 50% since September.

($1 = 0.9291 euros)

(Reporting by Giulio Piovaccari; additional reporting by Keith Weir; editing by Gianluca Semeraro, Mark Potter and Sharon Singleton)

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