23rd Feb 2022 14:46
(Alliance News) - Aston Martin Lagonda Holdings PLC's narrowed pretax loss demonstrated signs of progress as the luxury carmaker continues on its journey towards an electric future.
For 2021, Aston Martin generated revenue of GBP1.10 billion, up 79% from GBP611.8 million in 2020, and its pretax loss narrowed to GBP213.8 million from a loss of GBP466 million.
Total wholesales were 6,178 units in 2021, up 82% from 3,394 units in 2020 as it said more normal operations were resumed following Covid-19 restrictions in 2020.
Its cash balance at the end of 2021 was GBP418.9 million, down from GBP489.4 million at the same time in 2020. Net debt at December 31 was GBP892 million, up from GBP727 million in 2020 reflecting the free cash outflow.
The carmaker said its brand desirability is strong, pointing to retails outpacing wholesales. Wholesales are deliveries to dealers, while retails are dealer sales to customers.
Aston Martin has sought to rebalance the supply-demand of its vehicles after suffering in the past due to an oversupply of vehicles to dealerships. On Wednesday, it said it was looking to raise prices across its fleet amid ongoing global supply chain disruptions.
The Aston Martin Valkyrie Spider was two-times oversubscribed following its launch in the summer, the company noted. It also said the order book was filling up for the plug-in hybrid supercar Valhalla, which is now due to start deliveries in early 2024. Further, all Aston Martin Valkyrie Coupes are sold out with a waiting list running, it noted.
"The number of cars sold to dealers almost doubled, and now that inventory levels have been balanced, demand outpaced supply and helped average selling prices increase. This is a huge step in the right direction for Aston - who painstakingly suffered through the pandemic while also undergoing a major strategy shift," said Hargreaves Lansdown's Laura Hoy.
The Gaydon, Warwickshire-based firm is also targeting net-zero manufacturing facilities by 2030 as it embarks on a path towards electrification. Aston Martin highlighted three of its product launches in 2021 featuring hybrid technology. Its first battery electric vehicle is targeted for launch in 2025 and all new car lines will have an electrified powertrain option by 2026 and SUV portfolio to be fully electrified by 2030.
"It's encouraging to see AML pushing forward with its electrification strategy, which was slow off the mark. There's a long way to go, though, with the first fully electrified Sport and SUV models expected in 2030. This puts the group well behind many competitors, but brand appeal may insulate it somewhat from the shift toward electric. Still, electric is the direction of travel for automakers, so the reception of these cars is a key future growth driver," Hoy added.
By Arvind Bhunjun; [email protected]
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