Ferrari NV (RACE) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

May 4, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by. Welcome to the Ferrari 2022 Q1 Results Conference Call. [Operator Instructions].

I would now like to hand over the conference to your first speaker today, Nicoletta Russo. Nicoletta, please go ahead.

Nicoletta Russo

Thank you, Stephen, and welcome to everyone who is joining us. Today, we plan to cover the group's Q1 2022 operating results, and the duration of the call is expected to be around 60 minutes.

Today's call will be hosted by the Group CEO, Mr. Benedetto Vigna; and Group CFO, Mr. Antonio Piccon. All relevant materials are available in the Investors section of the Ferrari corporate website. And at the end of the presentation, we will be available to answer your questions.

Before we begin, let me remind you that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included on Page 2 of today's presentation, and the call will be governed by this language.

With that said, I'd like to turn the call over to Benedetto.

Benedetto Vigna

Nicoletta. Thank you, everyone, for joining us today. I would like to start by thanking all the women, all the men in Ferrari for their passion and dedication, which has been essential to navigate the first months of this year. All of them contributed with their tireless effort in achieving the strong results that we are going to present today.

Before addressing our results for the first quarter of '22, I would like to spend a few words on the current international scenario and ongoing conflict in Ukraine. While opening for a rapid return to dialogue and the peaceful resolution, our thoughts and support go out to those affected. Ferrari is playing its small part alongside the institution to bring relief to this situation.

In relation to this ongoing crisis and its implication, our supply chain has continued to prove its resilience, guaranteeing a smooth production at our facilities. We have no doubt the current macroeconomic scenario is causing new challenge. However, our team in Ferrari, also with the support of our partners, have been able to manage this situation properly.

That said, while we continue to monitor the current scenario on our supply chain, we have not been immune to inflation. However, this is limited to a portion of our cost base. In fact, we have seen some increase in energy and certain raw material cost, mainly aluminum and precious metals. But in light of this, we immediately took 2 actions to preserve our profitability: the first, in fall of last year, we apply a price increase across our current product range; the second, we just set the price positioning of our new models to adequately reflect our estimates on cost inflation.