Industrial and R&D expenses grew EUR166 million, mainly due to higher depreciation and amortization, cost inflation and higher Formula 1 expenses. SG&A was negative for EUR43 million, mainly reflecting the continuous development of the company’s digital infrastructure and organization. In addition, we kept on adding resources to enhance our brand investment, which encompass all our marketing, lifestyle and other initiatives designed to enhance the brand recognition among clients. Other was positive for EUR81 million combining higher Formula 1 commercial revenues as well as better ranking in 2022 versus 2021, new sponsorships, higher contribution from lifestyle activities and certain releases of provisions already discussed during the year. The total net impact of currency was positive for EUR15 million.
With the positive net support of these variances, we reached the yearly records of EBITDA and EBIT margins that we [commented]. Turning to Page 11. Our industrial free cash flow generation was remarkable in the year, reaching EUR932 million, reflecting the increased profitability, partially offset by financial charges and taxes and most of all, capital expenditure for EUR869 million, increasing in line with the pace of development of our product and infrastructure, the already flat significant increase in the working capital, which reflects both the inventory expansion built to protect our delivery plans and the enriched product mix. Net industrial debt at the end of December improved below the EUR100 million mark, reflecting the robust industrial free cash flow generation, partially offset by our initiatives to reward shareholders.
Dividends and buyback were worth approximately EUR800 million altogether, implying a distribution of roughly 85% of the industrial free cash flow generation. Finally, let’s move to Page 12. Building upon the visibility we enjoyed, we outlined the guidance for 2024 as a further solid step towards our target for the years to come. Let me explain the drivers sustaining 2024 along the growth trajectory that we have designed. On sports cars, product and country mix will be positive and much more [relevant] volume once again with an increased contribution from the Daytona SP3 and a constant personalization rate. Commercial revenues from racing in Formula 1 will be affected by the lower ranking achieved in 2023 compared to 2022 despite a higher number of races in the 2024 calendar.
Lifestyle activity will continue to increase the support the top line while investing a larger share of resources to speed up the pace of development. Cost inflation is expected to proceed through the supply chain, and SG&A will increase in line with revenues due to continuing brand investment and digital development. The above will contribute to the further profitability expansion while we expect inflation, brand and infrastructural expense, as well as increased Formula 1 spending due to the higher budget caps to flatten our percentage margin in line with 2023. The industrial free cash flow generation will be sustained by our profitability, partially offset by capital expenditure of approximately EUR950 million as many projects will enter in their advanced stage of development, a still negative change in working capital in its [broader meaning], mainly due to lower net advances collected from clients and increased tax payments proportional to the growth of our income in 2023.
The underlying assumption on the US dollar exchange rate is that it will fluctuate around 1.1, implying a negative FX impact compared to 2023, including hedges. That said, we are already conscious of the stronger business performance recorded so far despite the higher cost inflation. Cash performance has been driven by the product mix, which will remain rich over the business plan and then this has been further enhanced by both the actions on pricing and the exceptional demand for personalization. For sure, we continue to stay focused on pricing and product enrichment and reassured by the visibility granted by our order book, we affirm the confidence into the high end of our 2026 target as Benedetto just said. I thank you for your attention.
And I now turn the call over to Nicoletta.
Nicoletta Russo: Thank you, Antonio. We are now ready to open the Q&A session.
Operator: [Operator Instructions] And the question’s come from the line of John Murphy from Bank of America Securities.
John Babcock: This is John Babcock actually on the line for John Murphy. Just quickly, you talked about doubling the hybrid share from 2022 to 2023 from 22% of shipments to 44%. Out of curiosity, do hybrids tend to be favorable for mix? And then also, can you talk about what the customer reception has been to hybrid engines and if this is something they’re asking for?
Benedetto Vigna: Yes, it’s true we doubled our share of hybrid. This testifies that we are able in Ferrari to use the technology in a way that is unique. Coming back to the specific question, I would say that two points. Number one, the profile of the customer using this technology is not so much different from the one using the thermal traditional cars. And number two profit wise we are within the same ballpark as all the other cars. For us each car is a business initiative and all of them have to deliver according to our standards.
John Babcock: And then also just given what’s going on in the Red Sea. Could you just quickly discuss if this was creating any challenges for Ferrari?
Benedetto Vigna: A challenge at the Red Sea is basically we don’t see it at all. We double checked with our suppliers, there is nothing that is impacting us. So no impact on our production or delivery of cars.
Operator: And the question’s come from the line of Michael Binetti from Evercore ISI.
