Luxury carmaker Aston Martin slumps 12% as losses nearly double

The adjusted pre-tax loss almost doubled to £110.5 million ($137.8 million), compared with a loss of £57.3 million the previous year. Analysts had expected a loss of £93 million in the first quarter, according to Reuters.

Revenue fell 10% to £267.7m, while net debt rose 20% to £1.04bn. The company’s large debt has been a long-standing concern for investors, which has contributed to a sharp decline in Aston Martin’s share price since its listing in 2018.

Jefferies analysts noted “a big gap in metrics,” reporting a 26% drop in volumes.

Aston Martin said on Wednesday that the delivery of four new models in 2024 would drive “significant growth” in the second half and beyond.

“Our first quarter performance reflects this expected transition period, as we halted production and delivery of our outgoing base models ahead of ramping up production of the new Vantage, upgraded DBX707 and our upcoming performance car. flagship sports V12, which we confirmed today, “said president Lawrence Stroll.

Stroll added that Aston Martin took a “significant step” in strengthening its balance sheet during the quarter, finalizing a refinancing with improved terms on five-year senior secured notes following an upgrade in its rating. credit.

“Aston Martin will benefit from a unique position with a completely reinvigorated core model range by the end of the year,” the company said in a statement.

By region, wholesale volumes fell 35% in the Americas, 30% in the UK and 17% in the wider Europe, Middle East and Africa region. Volumes in the Asia-Pacific region were down 14%.

Wholesale SUV sales declined 63% due to a “transient decline in volumes ahead of the recently announced launch of the new DBX707 model,” according to the company.

Aston Martin reiterated its full-year guidance for high single-digit percentage wholesale volume growth and improved gross margins to meet its long-standing target of 40%.

The company is preparing to welcome new CEO Adrian Hallmark, current head of Bentley, in the fall. Hallmark will be its third new CEO since 2020.

Aston Martin’s results follow those of global automaker Stellantis on Tuesday, which also reported a slowdown in sales as it prepares to launch a series of new models this year.