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- Aston Martin reported pre-tax losses of £12.2m in the quarter to September
- The Warwickshire-based company’s total revenue rose 8% to £391.6m.
Aston Martin Lagonda’s losses plunged 90 percent in the third quarter as the luxury carmaker enjoyed strong demand for its DB12 vehicles.
The group reported pre-tax losses of £12.2m for the three months ending in September, compared with £117.6m for the same period last year.
While the average selling price of its cars fell 5 per cent to around £222,000, its total revenue still expanded 8 per cent to £391.6 million.
Supercars: Aston Martin Lagonda’s losses plummeted 90 percent in the third quarter thanks to strong demand for its DB12 vehicles
Wholesale volumes increased by almost 200 to 1,641, with UK sales seeing a 12% increase and American purchases increasing by more than a third to 477.
Aston Martin said this growth reflects orders for its established DB12 model and the launch of its new Vantage and DBX707 cars.
Launched in May 2023 to replace the DB11, the DB12 sports car was plagued by software issues and production delays, contributing to Aston Martin suffering significant financial losses.
While the company’s losses have improved, it warned last month that supply chain issues, along with lower sales in China, had hit its volume outlook for the rest of 2024.
It now expects wholesale volumes to decline by a “high single-digit percentage” rather than grow and free cash flow to “remain negative” this year.
Aston Martin said on Wednesday it was on track to achieve its revised guidance, helped by production of its new models.
Adrian Hallmark, chief executive of Aston Martin, said: “I can already clearly see growth opportunities for the company as we bring incredible products to market.”
The Warwickshire-based company recently launched the flagship Vanquish V12 and limited-edition Valiant supercar.
He added: “We will drive profitability through a forensic approach to cost management and a relentless focus on quality with a more balanced delivery profile in the future for our entire range of new core models.”
Hallmark, 62, became the company’s fourth CEO in four years when he replaced Italy’s Amedeo Felisa in September.
He previously led luxury car brand Bentley for six years, during which time its sales and profits reached record levels thanks to the popularity of its Bentayga SUV vehicle and personalized features among customers.
When Hallmark joined Aston Martin, the group’s share price had plunged more than 90 percent since its IPO, partly due to the Covid-19 pandemic and weak economic growth in China.
Wealthy Chinese consumers have reduced their spending on luxury brands in recent years amid a depressed housing market and strict travel restrictions.
Aston Martin Lagonda Stock They were up 5.2 per cent on Wednesday morning at 111p, making them the biggest gainer on the FTSE 250 index.
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