“We will take the necessary time to identify the best individual to guide the company”. The statement was made by John Elkann, president and pro-tempore CEO of Ferrari, regarding the individual that will replace Mr. Camilleri. Mr. Elkann has said that the results of Ferrari in 2020 “were exceptional”, especially in the fourth quarter, and beyond expectations. Yet, the stock price lost ground right after the publication of the results, as they do contain some concerning numbers. In the same way, it is possible that the objectives set for the year 2021 may not have excited investors.
The Prancing Horse delivered 9,119 cars in 2020, down 10% compared to 2019, mainly due to the operational stop imposed by the lockdown. Net revenue was of 3.46 billion euro, down 8.9% at current rates, while net profits were of 609 million euro, or -13% compared to the previous year. Moving in the opposite direction was the 4th quarter, during which revenue increased by 15% and all other indicators moved in the positive area. “Exceptional” results, according to Mr. Elkann, which also surpassed expectations.
The necessary time
Mr. Elkann, during the conference call, announced that “we will have a fully-electric Ferrari” within the next 10 years. As reported by La Stampa, the company’s president it taking his time with regards to choosing the CEO, a position that has been empty since December. Beside from the names of Andrea Agnelli and John Elkann himself, a list of potential individuals has started to circulate in the last few days. Allegedly, the names of Marco Bizzarri (Gucci), Stefano Sassi (ex Valentino) and Hans GS Hoegstedt, ex CEO of Miroglio Fashion and now in Tom Dixon, are all part of the list.
For the future, Ferrari forecasts net revenue to be 4.3 billion euro in 2021, “with a condition in which operations aren’t impacted by additional restrictions from Covid-19”. Citi’s analysts, cited by EuropeAutoNews.com, stated that “the guidance was rather disappointing”, pointing out that forecasts for cashflow from industrial activities in 2021 appears to be much lower than that of 2019.