30th Oct 2024 09:58
(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Wednesday said its third-quarter was in line with its recently lowered expectations, and it remain on the road to meeting that revised guidance for all of 2024.
The Warwickshire, England-based luxury sports car maker said this is despite supply chain disruptions, which it is proactively managing.
Aston Martin shares were up 2.0% to 107.60 pence early Wednesday in London.
Pretax loss narrowed dramatically in the quarter that ended September 30 to GBP12.2 million from GBP117.6 million a year before, as revenue rose by 8.1% to GBP391.6 million from GBP362.1 million. This in turn was thanks to wholesale volumes increasing by 14% to 1,641 vehicles from 1,444.
In the year to date, Aston Martin's pretax loss was GBP228.9 million, narrowed from GBP259.8 million a year before, despite revenue slipping 4.3% to GBP994.6 million from GBP1.04 billion and wholesale volumes dropping by 17% to 3,639 vehicles from 4,398.
Aston Martin said wholesale volumes were lower in the year to date because of changes to its product line-up, with the introduction the new Vantage and DBX707 models in the summer.
Chief Executive Officer Adrian Hallmark, who joined Aston Martin last month, commented: "Improved financial and operational performance in Q3 2024 demonstrates our strategy's effectiveness. We are on track to meet our revised full year 2024 guidance, which reflects the necessary action taken in September to adjust our production volumes given supplier disruption, which we are proactively managing, and the weak macroeconomic environment in China."
At the end of September, Aston Martin said it expected adjusted earnings before interest, tax, depreciation and amortisation in 2024 to be "slightly below" the GBP305.9 million it achieved last year.
In the third quarter, adjusted Ebitda was GBP50.7 million, steady on GBP50.5 million a year before. In the year to date, it was GBP112.9 million, down 14% from GBP131.1 million.
Aston Martin also had warned that it no longer expected to be free cash flow positive in the second half of 2024. It had an outflow of GBP81.2 million in the third quarter and GBP393.8 million in the year to date.
Wholesale volumes were expected to fall by a "high single digit percentage" from 2023's 6,620 units. Aston Martin previously had predicted "high single digit volume growth".
"Following the successful launch of the new Vantage and DBX707, with deliveries commencing as planned at the end of Q2 2024, performance in Q4 2024 will benefit from all next generation core models available in market including initial deliveries of the V12 flagship Vanquish," Aston Martin said on Wednesday.
By Tom Waite, Alliance News editor
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