Ferretti S.p.A.: history, ownership, mission, how it works & makes money

A Brief History of Ferretti S.p.A.

Founded in 1968, Ferretti S.p.A. has established itself as a leader in the luxury yacht sector. The company began its journey in Cattolica, Italy, under the vision of Alessandro Ferretti. Its first model was designed by naval architect J. G. (Giorgio) de Simon, setting the stage for innovative yacht construction.

In the 1980s, Ferretti expanded its portfolio by acquiring several brands, including Custom Line in 1996, which specializes in semi-custom yachts. This growth spurt was marked by the introduction of the Ferretti 68, a significant model that revolutionized the market.

By 2000, Ferretti had become part of the prestigious Ferretti Group, which encompasses luxury brands such as Pershing, Riva, and Mochi Craft. The group's synergy allowed Ferretti to diversify its offerings and penetrate various markets, bolstering its global reach.

In 2005, Ferretti S.p.A. reported revenues of €408 million. The following year, the company reached an impressive milestone with the launch of the Ferretti 830, showcasing advancements in design and technology.

As of 2017, the company faced financial challenges, leading to a restructuring initiative. By 2018, Ferretti Group was acquired by a consortium led by Chinese group Weichai Holding Group and Australian private equity firm Candover Green, ensuring a capital injection to revitalize operations.

In recent years, Ferretti has focused on sustainability and technological innovation. The introduction of new models, such as the Ferretti Yachts 500 and 850, incorporates eco-friendly materials and advanced navigation systems. This commitment to innovation reflects the growing demand for luxury yachts that do not compromise ecological responsibility.

As of 2021, Ferretti Group recorded revenues of approximately €460 million, indicating recovery and growth post-restructuring. The company is expected to continue its upward momentum, fueled by a strong order book and expanding global markets.

In 2022, Ferretti launched the new Ferretti Yachts 780, further solidifying its standing in the luxury segment. The model's introduction highlighted the company's dedication to quality craftsmanship and cutting-edge design.

The current financial health of Ferretti S.p.A. has shown a positive trajectory, with the company enhancing its market position through strategic partnerships and product expansions. The brand's commitment to luxury and innovation has positioned it favorably within the competitive maritime landscape.

A Who Owns Ferretti S.p.A.

Ferretti S.p.A., a prominent player in the luxury yacht manufacturing industry, is primarily owned by the Chinese investment group Weichai Power Co., Ltd. As of the latest available financial reports, Weichai acquired a majority stake of 75% in Ferretti in 2012. This acquisition marked a significant pivot in Ferretti's strategic direction, enabling access to larger capital resources and expanding its market reach.

Weichai Power, listed on the Shenzhen Stock Exchange under the ticker symbol 000338.SZ, is known for its diversified portfolio, which includes heavy machinery and automotive components. The company's net revenue for the fiscal year 2022 was approximately RMB 146.5 billion, reflecting a year-over-year increase of 12%.

The remaining 25% of Ferretti S.p.A. is held by a group of private investors and individual shareholders, including the company's founding family, who retain a minority position to maintain a level of operational influence within the firm.

Ferretti S.p.A. reported significant financial performance in its latest earnings release for Q2 2023. The company achieved revenues of €240 million, a 20% increase compared to the same quarter in the previous year. This growth can be attributed to a rise in global yacht sales and an expanding market in Asia, particularly driven by demand from affluent buyers in China.

The company operates multiple luxury brands under its umbrella, including Ferretti Yachts, Pershing, and Riva, all recognized for their high-quality craftsmanship and innovation. The total number of employees across the Ferretti Group stands at approximately 1,200, contributing to an annual R&D expenditure of €15 million to maintain its competitive edge in yacht design and technology.

In the context of governance, Ferretti S.p.A. has a board of directors that consists of both local and international members, promoting a blend of expertise that enhances corporate strategy. Recent board meetings have focused on expanding the company's footprint in the North American market, with initiatives aimed at increasing brand visibility and engagement.

As of August 2023, Ferretti's stock is traded on the Euronext Milan under the ticker FRI.MI, with a market capitalization of approximately €1.1 billion. The stock has seen a year-to-date growth of 15%, closely following the upward trends in luxury goods markets post-COVID-19.

Ferretti S.p.A. Mission Statement

Ferretti S.p.A. aims to deliver the highest level of luxury and quality in the yachting industry. The company's mission is encapsulated in their commitment to innovation, craftsmanship, and customer satisfaction. Their brands—including Ferretti Yachts, Pershing, Itama, Riva, and CRN—reflect a dedication to excellence in design and performance. They strive to create unique experiences for their clients by blending traditional Italian craftsmanship with cutting-edge technology.

As of 2023, Ferretti S.p.A. reported revenues of approximately €405 million, showing a year-over-year increase of 20% from the previous fiscal year. This growth underscores the effectiveness of their strategic focus on high-end luxury products and personalized services. The company also reported EBITDA of around €40 million, translating to an EBITDA margin of 9.9%.

Ferretti's focus on sustainability is evident in their mission statement, which prioritizes reducing environmental impact while still delivering luxury. The company has committed to using sustainable materials in their yacht productions and aims to significantly reduce CO2 emissions by 50% by 2025.

The company’s operational strategy includes maintaining strong relationships with clients, reflected in their commendable customer satisfaction ratings. In 2022, they achieved an impressive client retention rate of 85%, showcasing their ability to foster loyalty through personalized services and high-quality offerings.

In 2021, Ferretti S.p.A. reported an order book worth €700 million, indicating strong future revenue potential. This order backlog comprises projects that highlight their innovative designs and tailored solutions for a diverse clientele in the luxury yacht market.

Ferretti also emphasizes the importance of its workforce as part of its mission. The company employs over 1,500 skilled workers, with a significant number involved in research and development. Their ongoing investment in human capital aims to ensure that they remain leaders in innovation and quality.

In summary, Ferretti S.p.A.'s mission statement reflects its commitment to luxury, innovation, sustainability, and customer satisfaction, supported by strong financial performance and strategic growth initiatives.

How Ferretti S.p.A. Works

Ferretti S.p.A. operates in the luxury yacht manufacturing segment, primarily focusing on the design, construction, and sale of high-quality yachts and motorboats. Established in 1968 and headquartered in Forli, Italy, Ferretti is a prominent player in the global market for luxury yachts.

In 2022, Ferretti reported revenues of €471 million, marking a robust growth compared to €421 million in 2021. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) was approximately €61 million, reflecting an EBITDA margin of roughly 13%. The luxury yacht market is anticipated to experience continuous growth, with the global yacht market projected to reach approximately €56 billion by 2027, with a CAGR of about 9.2% from 2020 to 2027.

Product Portfolio

Ferretti S.p.A. encompasses several prestigious brands, including Ferretti Yachts, Riva, Pershing, Itama, Mochi Craft, and CRN. Each brand has its unique positioning within the luxury segment:

• Ferretti Yachts: Offers a range of sophisticated flybridge motor yachts.
• Riva: Known for its timeless elegance, Riva produces exclusive luxury boats with a rich heritage.
• Pershing: Focuses on high-performance yachts boasting sleek designs and speed.
• Itama: Represents a blend of performance and style, catering to a discerning clientele.
• Mochi Craft: Offers traditional Italian craftsmanship with modern technology.
• CRN: Specializes in custom-built superyachts, emphasizing luxury and personalization.

Sales and Distribution

Ferretti S.p.A.'s sales strategy leverages a global distribution network, comprising more than 60 dealerships in 50 countries. The company's strong presence in the Mediterranean and growing markets in North America and Asia contribute significantly to its sales. In 2022, approximately 55% of the company's revenue derived from international markets, with the USA being a key region, accounting for approximately €123 million in sales.

Financial Performance

In terms of profitability, the company exhibited a net profit of €20 million in 2022, which was an increase from €15 million in 2021, corresponding to a net profit margin of approximately 4.2%.

Operating Model

Ferretti operates primarily on a build-to-order model, which allows for significant customization of yachts according to client specifications. This model enhances customer satisfaction and establishes strong relationships with clients. The production process is characterized by high craftsmanship, integrating traditional Italian boat-building techniques with innovative technology. The company emphasizes sustainability in its operations, aiming to reduce environmental impact through energy-efficient production and sustainable materials.

Future Outlook

Ferretti is strategically focused on expanding its product range and market presence. In 2023, the company announced plans to launch several new models, including the Ferretti Yachts 720 and the Pershing 8X, aimed at refreshing the product lineup and attracting younger clients. With the luxury yacht segment expected to grow in response to increasing disposable income and demand for recreational boating, Ferretti is well-positioned to capitalize on these trends.

How Ferretti S.p.A. Makes Money

Ferretti S.p.A., a leading company in the luxury yacht manufacturing industry, generates revenue through several distinct channels, primarily based on its diverse portfolio of boat brands, customization services, and after-sales support. The company's brands include famous names like Ferretti Yachts, Pershing, Itama, Riva, and CRN.

In 2022, Ferretti S.p.A. reported a revenue of approximately €598 million, marking a growth of around 8.6% compared to the previous year. The gross margin stood at 27.1%, indicating the company’s efficiency in managing costs relative to its sales.

The primary revenue streams for Ferretti S.p.A. include:

• Boat Sales: The sale of luxury yachts, both new and pre-owned, significantly contributes to revenue. In 2022, boat sales accounted for around 75% of total revenue.
• Customization Services: Ferretti offers tailored customization options for clients. This segment contributes approximately 15% of total revenue.
• After-Sales Support: Maintenance, repairs, and spare parts sales account for about 10% of the overall income.

The following table outlines the revenue breakdown by segment for the fiscal year 2022:

Ferretti S.p.A. operates in a highly competitive luxury market. The average selling price of a Ferretti yacht can range from €500,000 to over €10 million, depending on size and customization. Prestigious brands like Riva may command even higher prices due to their legacy and craftsmanship.

Despite the high operational costs associated with luxury yacht manufacturing, Ferretti has successfully maintained a robust order backlog, which was reported at €380 million in late 2022. This backlog includes orders for models across their range, ensuring sustained earnings in the upcoming years.

Additionally, Ferretti S.p.A. has focused on enhancing its production capabilities, investing around €20 million in its facilities in the last two years. This investment aims to streamline the manufacturing process and meet the rising demand for luxury yachts globally.

The company has also been expanding its global presence, with sales networks in Europe, Asia, and the Americas. In 2022, approximately 35% of total sales came from the European market, 25% from North America, and 15% from Asia.

Ferretti S.p.A. continues to enhance its brand reputation through strategic marketing initiatives and participation in global boating events. The company's focus on innovation, including environmentally friendly yacht designs, resonates well with a growing segment of environmentally conscious consumers, thus opening new revenue opportunities.