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(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Wednesday said it managed to halve its loss in the first nine months of 2023, thanks to rising orders and deliveries of its luxury cars and SUVs.
However, the Gaydon, England-based manufacturer lowered its guidance for 2023 vehicle production by about 4%.
Pretax loss narrowed to GBP117.6 million in the third quarter ended September 30 from GBP225.9 million a year before. Revenue rose by 15% to EUR362.1 million from GBP315.5 million, as wholesale volumes rose by 4.3% to 1,444 vehicles from 1,384.
In the first nine months of 2023, Aston Martin's pretax loss narrowed to GBP259.8 million from GBP511.3 million a year before, as revenue rose by 21% to GBP1.04 billion from GBP857.2 million. Wholesale volumes rose 8.3% to 4,398 vehicles from 4,060.
Gross margin reached 37% in the third quarter.
The company said the recently launched DB12 sports car is bringing new customers to the Aston Martin brand, while its "ultra-luxury" sports utility vehicle, the DBX, has taken 25% market share in key markets.
Executive Chair Laurence Stroll said the company's 110th year in business has been "a fantastic one", and it will be followed by the launch of its second next-generation sports car in the first quarter of next year.
"Commencing deliveries of our next generation of sports cars is a major milestone marking the beginning of a completely new line up of front engine sports cars that will reposition Aston Martin as an ultra-luxury high-performance brand, enhance our growth and bring higher levels of profitability," Stroll said.
He added: "We remain on track to substantially achieve our 2024-25 financial targets in 2024."
At the end of September, Stroll's investment vehicle raised its stake in Aston Martin to 26.2% from 23.0%.
One negative note on Wednesday was Aston Martin's guidance for wholesale volumes in 2023, lowering this to about 6,700 vehicles from 7,000. "Given the initial delays experienced with the DB12 ramp up during Q3, we have marginally updated our FY volume outlook as the impact limits production capacity for the full year," it explained.
All other 2023 guidance, including for adjusted Ebitda margin of about 20%, was left unchanged. Ebitda is earnings before, interest, tax, depreciation and amortisation.
Net debt was GBP750 million on September 30, down from GBP766 million on December 31.
The stock was down 16% at 184.30 pence early Wednesday in London, having risen 74% over the past 12 months.
By Tom Waite, Alliance News editor
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