Aston Martin Loss Widens on Revenue Drop, But Expects Boost From New Models
Excluding exceptional items, the company’s adjusted loss before interest and taxes widened to £57.1 million from a loss of £47.8 million.
Aston Martin AML -7.69%decrease; red down pointing triangle Lagonda Global Holdings reported a widened loss for the first quarter on lower revenue, but said it expects the launch of four new models this year will drive growth in the second half.
The British maker of luxury sports cars on Wednesday joined European peers in reporting weaker sales and earnings for the first three months of the year compared with a year ago, but stuck to its 2024 outlook. This echoed trends shown in first-quarter updates from carmakers Volkswagen, Stellantis and Mercedes-Benz Group MBG -5.15%decrease; red down pointing triangle on Tuesday.
At Aston Martin, revenue for the first three months of the year dropped to 267.7 million pounds ($334.4 million) from GBP295.9 million in the year-earlier period.
Pretax loss for the quarter widened to GBP138.8 million from GBP74.2 million. Excluding exceptional items, the company’s adjusted loss before interest and taxes widened to GBP57.1 million from a loss of GBP47.8 million.
Total wholesale volumes fell 26% in the quarter, but the average selling price climbed 19%, Aston Martin said.
The company said it is on track to deliver its 2024 targets, with a second-quarter performance expected to be broadly similar to the first, and an inflection point to positive cash flows expected in the second half of the year.