Losses at Aston Martin are easing as new boss cheers record sales of DB12s
- Aston Martin reported a pre-tax loss of £12.2 million for the quarter to September
- The Warwickshire-based company’s total turnover grew by 8% to £391.6 million
Aston Martin Lagonda’s losses fell 90 percent in the third quarter as the luxury car maker enjoyed strong demand for its DB12 vehicles.
The group reported pre-tax losses of £12.2 million for the three months ended September, compared with £117.6 million for the same period last year.
While the average sales price of its cars fell by 5 percent to around £222,000, total sales still rose by 8 percent to £391.6 million.
Supercars: Aston Martin Lagonda’s losses fell 90 percent in the third quarter as demand for its DB12 vehicles was strong
Wholesale volumes rose by almost 200 to 1,641, with UK sales at 12 per lift and purchases across America increasing by over a third to 477.
Aston Martin said this growth reflected orders for the established DB12 model and the rollout of the new Vantage and DBX707 cars.
The DB12 sports car, which was launched in May 2023 to replace the DB11, has been plagued by software issues and production delays, causing Aston Martin to suffer major financial losses.
While the company’s losses have improved, it warned last month that supply chain issues, along with lower Chinese sales, had hit its volume outlook for the remainder of 2024.
It now expects wholesale volumes to decline by a “high single-digit percentage” rather than growing, and free cash flow to “remain negative” this year.
Aston Martin said on Wednesday it is on track to achieve its revised expectations, helped by production of its new models.
Adrian Hallmark, CEO of Aston Martin, said: “I already see a clear growth opportunity for the company as we bring incredible products to market.”
The Warwickshire-based company recently launched the V12 flagship Vanquish and the limited edition supercar Valiant.
He added: ‘We will drive profitability through a forensic approach to cost management and a relentless focus on quality with a more balanced supply profile going forward across our full range of new core models.’
Hallmark, 62, became the company’s fourth CEO in four years when he took over from Italian-born Amedeo Felisa in September.
He previously led fellow luxury car brand Bentley for six years, during which time sales and profits reached record levels thanks to the popularity of the Bentayga SUV car and its personalized features with customers.
When Hallmark joined Aston Martin, the group’s share price had fallen more than 90 percent since its IPO, partly due to the Covid-19 pandemic and subdued economic growth in China.
Affluent Chinese consumers have cut back on spending on luxury brands in recent years amid a depressed real estate market and strict travel restrictions.
Aston Martin Lagonda shares were 5.2 per cent higher at 111p on Wednesday morning, making them the biggest gainer on the FTSE 250 Index.
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