Aston Martin Lagonda Global Holdings shares were up 3.4% to 874.8p in early morning trading on Wednesday following positive results from its Q1 2022 trading update, with an adjusted EBITDA increase of 18% to £24.4 million from £20.7 million year-on-year.
Aston Martin Lagonda attributed the climb in EBITDA to higher priced Specials and costs efficiency benefits sourced from Project Horizon, which were slightly offset by re-investment into brand and new product launches.
The company reported a 4% revenue boost to £232.7 million from £224.4 million as a result of strong pricing dynamics across its core portfolio, along with 14 Aston Martin Valkyrie programme deliveries.
The high-end car group announced a 14% decline in total wholesale volumes to £1.1 billion from £1.3 billion during Q1.
Aston Martin Lagonda confirmed that its results were in line with management expectations, however the group suffered a 164% widening in pre-tax loss to £116 million from £42.2 million over Q1 2021 due to higher depreciation and amortisation.
The firm also recorded an operating loss rise of 212% to £47.7 million from £15.3 million year-on-year.
Aston Martin Lagonda confirmed strong liquidity with cash of £404 million against £419 in December 2021, alongside net debt of £957 million compared to £892 million which includes the £33 million impact of non-cash FX revaluation of dollar denominated debt.
The luxury car company reported that it was on-track to meet its medium-term targets, including 10,000 wholesales, £2 billion in revenue and £500 million in adjusted EBITDA by 2024 to 2025.
The firm commented that it expected an 8% rise in core volumes with a delivered 50% improvement in adjusted EBITDA from the core business.
The group added that it projected higher profitability from the upcoming deliveries of its DBX707 and V12 Vantage vehicles as a result of the pricing power of the brand.
“We continue to make tremendous progress, now operating as an ultra-luxury brand and seeing exceptional demand across our product range with sports cars sold out for the year and DBX orders up 60%,” said Aston Martin Lagonda executive chairman Lawrence Stroll.
“Our most recently announced limited-edition, the V12 Vantage, was fully sold out prior to its official launch in March; and DBX707 is making headlines as the premier ultra-luxury performance SUV on the market, generating strong customer interest.”
“We are poised to deliver good growth in 2022 and remain extremely confident in the medium and long-term prospects as we transform Aston Martin into the world’s most desirable ultra-luxury British performance brand.”
Aston Martin Lagonda confirmed that the company was focused on mitigating the impacts of the ongoing conflict in Ukraine, the Covid-19 pandemic and lockdowns in China as potential disrupting factors to its supply chain and logistics operations, alongside inflation in the cost of raw materials.
