Customer demand drives Aston Martin to third quarter recovery
Luxury sports car manufacturer Aston Martin has seen its year-to-date revenues almost treble, rising 173 per cent to £736.4m.
Rising wholesales, driven by customer demand as the economy recovers from the pandemic, has led the company into a positive adjusted EBITDA position.
It has enjoyed a £190m improvement on last year’s totals, as the adjusted EBITDA recovered from minus £117.6 to £72.3m in 2021.
The company has now delivered over 2,100 DBX cars this year, the Aston Martin’s freshly unveiled sports utility vehicle, with plans to further ramp up production at its factory in St Athan.
The company’s shares are up 5.62 per cent for the day on the FTSE 250, and are now trading at 1,859.00.
Aston Martin is still facing operating losses and significant net debt, but its position has started to show signs of progress with increased investment in marketing.
It has reported an operating loss of £68.2m compared to £229.1m year to date in 2020, and its net debt has decreased from £868.5m to £808.6m.
Kenneth Gregor, chief financial officer, told Morning Wire the company will continue to operate at a loss ‘through the short term’ – citing depreciation, amortisation and interest charges.
However, he was optimistic of returning to profits following the investment in product improvements.
He said: “As we look forward into 2022 and beyond, I am optimistic about continuing to build in our EBITDA with the product action we have got coming. In time we will see that bear fruit.”
Looking to the future, Tobias Moers, chief executive at Aston Martin also confirmed plans for its first electric car in 2025-2026, and has committed to all vehicles being fully electric or part electric by 2030.
He said: “We have a clear statement when it comes to 2030, it’s going to be 90 per cent of our cars fully electric or electrified power chain. You may still have 10 per cent with a combustion engine or a track bay, but I am not sure about that. It could be 100 per cent electric or electrified power chain.”