- Aston Martin’s Q2 Results Beat Expectations with Strong Demand: DBX707 SUV and V12 Vantage Roadster Limited Edition Drive Success.
- ‘Valour’ Model’s Remarkable Success: All 110 Units Sold in Just Two Weeks, Waiting List Grows.
- Positive Outlook: Aston Martin on Track to Meet Medium-Term Financial Objectives, Eyes Electrification with New Partnerships.
Aston Martin’s second-quarter results exceeded market expectations due to increased prices and demand for its DBX707 sport utility vehicle and V12 Vantage Roadster limited edition.
In recent months, price increases have increased the group’s average selling price to approximately £184,000.
The demand for its new ‘Valour’ model, inspired by its 1970s racing vehicles and introduced for the brand’s 110th anniversary, has been “unprecedented,” according to CEO Amedeo Felisa.
Felisa added, “Within two weeks, all 110 units were sold, and the waiting list is growing.”
It is anticipated that deliveries will begin in the fourth quarter.
The company added that the DB12, a next-generation sports car introduced in May, has also sold out and customer deliveries will begin this quarter.
Analysts at JP Morgan wrote in a note that the company will now shift its attention to the DB12 and the profitability of its primary product line.
This morning, Aston Martin share prices increased by 3.65%, or 12.40p, to 352.60p.
In the quarter ending in June, Aston Martin reported an adjusted operating loss of £38.9 million and revenue of £381.5 million.
According to a company-compiled consensus, analysts anticipated an adjusted operating loss of £51 million on $344 million in revenue.
The company’s interim pre-tax loss for the six months ending on 30 June was £142 million, compared to £285.4 million a year earlier.
However, Aston Martin stated that it was on schedule to achieve its medium-term financial objectives.
Aston Martin maintained its 2023 volume forecast of approximately 7,000 vehicles and an adjusted core profit margin of approximately 20%.
Since its formation in 2018, the group has struggled. However, the company’s outlook has become more optimistic over the past few months, and it plans to increase cash flow and profit margins by releasing next-generation sports vehicles and limited editions in the second half of this year.
It stated, “We remain on track to meet our medium-term financial objectives of $2 billion in revenue and $500 million in adjusted EBITDA by 2024/25.”
The company anticipates achieving these financial objectives by a significant margin in 2024 and, assuming continued momentum, exceeding them in 2025.
As the company invests in electrification, Aston Martin has signed agreements with China’s Geely and the American electric vehicle manufacturer Lucid Group in the past few months.
