Aston Martin Lagonda Global Holdings PLC (LSE:AML) shares skidded to a seven-month low, down 14% to 190p, after publishing third-quarter results showing the effects of production delays and revised down full-year wholesale volumes.
On the plus side, pricing power and a revitalised customer base supported revenue growth for the British luxury carmaker.
Year-to-date revenues shot up 21%, driven by prices - the average selling price (ASP) increased from £195,000 to £219,000 - generating higher margins despite temporary delays to the DB12 production roadmap.
However, deliveries of the carmaker’s new convertible DB12 model did commence in the period, with an order book extending into the second quarter of 2024.
The DBX luxury SUV model also has an order book well into 2024, supporting Aston Martin’s 25% market share in this corner of the market.
Though operating losses remained consistent at around £145.3 million, total losses before tax shot down by nearly 50% to £259.8 million, while underlying earnings shot up 64% to £131.1 million.
Debt remains an issue for Aston Martin, with the group remaining focused on deleveraging its balance sheet and restructuring old loans. As part of the group’s debt-reduction plans, Aston Martin issued £216 million worth of new shares.
As of 30 September, net debt was close to £750 million, marking a 10% year-on-year reduction.
2024 guidance remains unchanged, with strong demand for the DB12 hopefully supporting a £2 billion revenue target with £500 million in adjusted EBITDA.
In the near term, Aston Martin has revised down full-year wholesale volumes from 7,000 units to 6,700 units.
"Our 110th anniversary year continues to be a fantastic one for the company, and we are delighted with the strategic and financial progress we have made during the first nine months of 2023,” commented executive chairman Lawrence Stroll.
"Our volumes, pricing, gross margins and EBITDA are showing strong improvement and we are delivering an accelerated industrial turnaround."
Stroll said the launch of the DB12 had seen “extraordinary demand” while “driving a reappraisal of Aston Martin amongst new audiences”.
He noted that 55% of initial DB12 customers were new to the brand, and expects a similar brand reappraisal when Aston Martin’s next-generation sports car launches next year.