Aston Martin ploughs revenue back into Chinese expansion
LUXURY car maker Aston Martin has a 7% increase in full year revenue supported by strong sales in emerging markets.
The Gaydon company said that in the 12 months to December 31, 2011, revenue increased to £506.8m, its highest since 2008.
Adjusted EBITDA was £76.2m, down 18% due to ongoing investments in new developments. Retail volumes remained stable at around 4,200.
The company said its Chinese expansion plans were also progressing well so it could continue to capitalise on opportunities in the high growth market.
Dr Ulrich Bez, the firm’s chief executive, said: “Our 2011 results demonstrate the energy, passion and ongoing resilience of Aston Martin – a truly unique, independent manufacturer.
“We are on track with our expansion plans around the world, especially in China, and are investing in new models. I’m particularly pleased to see the company returning to 2008 revenue levels despite the continued uncertainties in the global economy.
“The Aston Martin brand is stronger than ever. This is demonstrated by intense interest in our new V12 Zagato, recently shown at the Geneva Motor Show, and our £1.2m One-77 supercar – all 77 of which are now sold.”
Hanno Kirner, chief financial officer, Aston Martin, added: “Despite challenging macroeconomic conditions we were encouraged to see volumes remain stable during 2011 and revenue rise by 7% year on year due to a richer product mix.
“Profitability was impacted by ongoing investments in new market development which resulted in a decrease of 18% from the 2010 EBITDA figure of £93.3m.”
The sports car maker has unveiled three hand crafted ‘Year of the Dragon’ special editions at the Beijing Motor Show to underline its commitment to the Chinese market.
Aston Martin, set to open 11 new dealerships in China this year, showed off the Dragon 88 Limited Edition models, which have a limited run of 88 and are designed to appeal to China’s aspirational middle classes.
On display are a DBS Volante, Virage Coupe and V8 Vantage S Coupe from the Year of the Dragon series. The Dragon 88s on the firm’s show stand are complemented by Aston Martin’s One-77 supercar, together with a four-door Rapide customised by Aston Martin’s new ‘Q by Aston Martin’ bespoke service, and a DBS cutaway model.
Dr Bez said: “The stunning Dragon 88 sports cars – hand-built by our world-class craftspeople in England – reflect the design flair and technical excellence of the luxurious Aston Martin brand.
“I am very happy to be able to present these iconic cars on the world stage here in Beijing, and I and my staff in China look forward discussing them with visitors to the exhibition.
“This is the first time we have participated in a major automotive show in China since our wholly-owned subsidiary, Aston Martin Lagonda (China) Automobile Distribution Co., Ltd., became our general distributor in China in summer 2011.”
He said the move was another important step to developing a successful sales operation in China.
“We expect China to become one of our most important markets and look forward to sharing the Aston Martin experience with Chinese customers. Our dealership network is growing very quickly. It now includes Shanghai, Beijing, Chengdu, Hangzhou, Guangzhou, Chongqing, Shenzhen, Shenyang and Ordos City, and will soon include Kunming and Tianjin,” he added.
