Aston Martin off track on sales targets but retain investor confidence

Aston Martin off track on sales targets but retain investor confidence

28 Feb    Finance News, News

Aston Martin Lagonda fell short of its revised production targets for 2023, facing delays in the launch of the £185,000 DB12 sports car, resulting in 6,620 deliveries to dealers, below the revised goal of 6,700.

Despite this setback, the company reported an 18% increase in revenues to £1.6 billion, buoyed by the sale of limited edition supercars, with average selling prices reaching £255,000 in the last months of the year.

Underlying operating profits, excluding interest costs, tax, and depreciation, surged by 61% year-on-year to £305 million. Lawrence Stroll, the executive chairman, affirmed the company’s commitment to achieving its long-promised financial targets for 2024, expecting substantial growth in the second half of the year.

Although Stroll has revised predictions for car production downwards, he reiterated the target of reaching £500 million in EBITDA profits on £2 billion in annual sales by 2024-25. While margins for the current year are expected to be in “the low 20s per cent,” the company anticipates high single-digit percentage volume growth.

Despite reporting a bottom-line loss of £239 million, alongside rising net debt to £814 million, Stroll remains optimistic about the demand for ultra-luxury vehicles, emphasizing strong demand for Aston Martin’s high-performance products and personalized offerings.

Shares in Aston Martin rose by 5% in early trading following the announcement, signaling some confidence from investors despite the challenges faced by the company in meeting its targets.

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