Lamborghini H1 revenue up 14% as switch to hybrid models nears completion

MILAN (Reuters) - Revenues at Italian luxury sportscar maker Lamborghini rose 14.1% to 1.62 billion euros ($1.76 billion) in the first half, although profit was flat and margins fell, as it completes the conversion of its entire range to hybrid engines this year.

The firm delivered 5,558 cars in the first half, up 4%, it said on Monday, putting it on course to beat last year's record, when it topped 10,000 annual sales for the first time.

Supported by the success of its Urus SUV, costing over 230,000 euros, Lamborghini, part of Germany's Volkswagen group, has in recent years expanded its output on solid demand from wealthy clients, gaining ground on rival Ferrari , which last year sold 13,663 cars.

"If we can maintain this trend, we are likely to exceed last year's record," Chairman and CEO Stephan Winkelmann said in written answers to Reuters questions.

Europe, Middle East and Africa (EMEA) was again the region leading sales in the first half, with nearly 2,500 deliveries, while the Chinese market accounted for 337. The U.S. remains Lamborghini's largest national market, with over 1,600 units delivered in the first half.

Winkelmann said orders were strong, with those for the Revuelto, Lamborghini's first plug-in hybrid, launched last year, covering over two years' production.

By the end of 2024, Lamborghini's line-up will be exclusively hybrid.

In April it unveiled the hybrid version of the Urus, which is expected to hit the road later this year and has already received "a large positive response from customers, with orders covering around one year's production", Winkelmann said.

To complete the process, a new eight-cylinder hybrid will be unveiled next month to replace the Huracan.

"Even in a year marked by the transition to hybrid, we can confirm growth of the key financial and business metrics," Managing Director and CFO Paolo Poma said in a statement.

Lamborghini's operating profit was little changed in the first half at 458 million euros while its operating profit margin fell to 28.2% from 32.1% a year earlier.

"We are in the final phase of the hybridisation process for our three models, which involves substantial investments," Winkelmann said.

He added that the result was also due to a more even balancing of costs throughout the year and a negative foreign exchange effect.

Lamborghini plans to launch its first fully-electric (EV) model, a 2+2-seater grand-tourer (GT), in 2028 - three years after the first EV promised by Ferrari - followed by a battery version of the Urus in 2029.

($1 = 0.9208 euros)

(Reporting by Giulio Piovaccari; Editing by Kevin Liffey)