Aston Martin losses widen amid ‘transition’ to new model launches
The luxury car maker said it expects new product launches to boost sales in the second half of the financial year.
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Your support makes all the difference.Aston Martin’s pre-tax losses nearly doubled to £138.8 million in the first quarter, as the luxury car maker slowed down production of several older car models ahead of a clutch of planned launches later this year.
The FTSE 250 company made 945 wholesale car sales in the three months to March 31, down by a quarter from 1,269 during the same period last year.
However, the car maker said it expects the new launches to boost its sales later in the year, with its new Vantage and DBX707 models due to start being delivered before the end of the second quarter.
2024 is a year of immense product transformation at Aston Martin, with the introduction of four new models to the market before the end of the year
Meanwhile, its flagship V12 and Special models will see deliveries start in the fourth quarter.
Lawrence Stroll, Aston Martin executive chairman, said: “2024 is a year of immense product transformation at Aston Martin, with the introduction of four new models to the market before the end of the year.
“Our first-quarter performance reflects this expected period of transition, as we ceased production and delivery of our outgoing core models ahead of the ramp-up in production of the new Vantage, upgraded DBX707 and our upcoming V12 flagship sports car.”
Despite first-quarter losses being greater than analyst estimates, the company said it is still on track to hit its full-year 2024 target.
The results and upcoming launches represent the next step in a turnaround at Aston Martin in recent years, after Mr Stroll bought the company in 2020.
Net debt, a figure which has held back the car maker since an unsuccessful public listing in 2018, grew to £1.04 billion from £868 million.
But it pointed to a £1.2 billion refinancing deal, completed after several updates from rating agencies, as a sign that the turnaround plan is on track.