New Aston Martin models expected to drive growth after Q1 loss
Aston Martin has reported a bigger-than-expected loss for Q1 after finance costs and operating expenses rose significantly.
The luxury car manufacturer, which is going through a “year of immense product transformation” posted a loss before tax of £111m, almost double what it lost in the same period the previous year.
Revenues have dropped by 10% year-on-year to £267.7m as the firm looks to change its product portfolio and prepares to introduce four new models in 2024.
It says the transitioning out of the previous ranges remains on track, as wholesome volumes fell by 26% to 945. Analysts at Aston Martin had expected volumes for Q1 to reach 1,024.
The new models will be introduced by the end of the year and are expected to drive significant growth in H2 and beyond. Its third CEO in four years will also be appointed this year, with former Bentley boss Adrian Hallmark taking the helm of the manufacturer.
He takes over from former Ferrari boss Amedeo Felisa, who has been CEO since May 2022 after the departure of Tobias Moers, who had also been in post for just under two years.
EBITDA decreased by 34% to £19.9m after a huge increase in net finance costs and higher manufacturing, logistics and other costs ahead of an anticipated ramp-up in production in the second half of 2024.
“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,” Chairman Lawrence Stroll said in a statement.
