Aston Martin Lagonda fell short of its revised production targets for 2023, facing delays in the launch of the £185,000 DB12 sports car, resulting in 6,620 deliveries to dealers, below the revised goal of 6,700.
Despite this setback, the company reported an 18% increase in revenues to £1.6 billion, buoyed by the sale of limited edition supercars, with average selling prices reaching £255,000 in the last months of the year.
Underlying operating profits, excluding interest costs, tax, and depreciation, surged by 61% year-on-year to £305 million. Lawrence Stroll, the executive chairman, affirmed the company’s commitment to achieving its long-promised financial targets for 2024, expecting substantial growth in the second half of the year.
Although Stroll has revised predictions for car production downwards, he reiterated the target of reaching £500 million in EBITDA profits on £2 billion in annual sales by 2024-25. While margins for the current year are expected to be in “the low 20s per cent,” the company anticipates high single-digit percentage volume growth.
Despite reporting a bottom-line loss of £239 million, alongside rising net debt to £814 million, Stroll remains optimistic about the demand for ultra-luxury vehicles, emphasizing strong demand for Aston Martin’s high-performance products and personalized offerings.
Shares in Aston Martin rose by 5% in early trading following the announcement, signaling some confidence from investors despite the challenges faced by the company in meeting its targets.
