(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Wednesday said its first half loss narrowed in line with rising revenue and falling finance costs, while outlining a positive outlook and investment strategy towards electrification.
Shares in Aston Martin were up 3.5% to 352.00 pence each in London on Wednesday morning.
In the first half of 2023, the Gaydon, England-based luxury car manufacturer said pretax loss narrowed to GBP142.2 million from GBP285.4 million a year earlier.
This was in line with first half revenue rising 25% to GBP677.4 million from GBP541.7 million, while net financing costs narrowed to GBP49.0 million from GBP195.5 million.
Aston Martin said that increased revenue was primarily driven by higher volumes, strong pricing dynamics in the core portfolio and favourable mix dynamics from the DBX707 and V12 Vantage Roadster vehicles.
"Although we may only be halfway through the year, 2023 has already proven to be a remarkable year in which Aston Martin has shone brighter than ever. In May we launched DB12, marking the start of our new generation of front engine sports cars that will further reposition Aston Martin as an ultra-luxury, high-performance brand, with timeless design combining with the latest technology and the most thrilling driving experience," said Executive Chair Lawrence Stroll.
"We are also continuing to invest in our brand and go-to-market strategy, as well as building on the transformational partnership with Aston Martin Aramco Cognizant Formula One team...At the end of June, we also provided a significant update on our electrification strategy and plans to create a singular, Aston Martin [battery electric vehicle] platform, with world-class suppliers complementing our extraordinary in-house engineering and design teams.
Aston Martin said it plans to invest around EUR2 billion over the next five years towards long-term growth and transitioning to electrification, including EUR1.8 billion of capital expenditure and around GBP200 million in new technology access fees to our strategic suppliers and partners.
Stroll continued: "Our electrification journey will start with Valhalla, our first [plug-in hybrid electric vehicle] supercar, and we plan to expand our PHEV range into our core vehicles which will bridge the customer journey from [internal combustion engine] to full BEV."
Looking ahead, Aston Martin said it is on track for its medium-term financial targets of around GBP2 billion in revenue and around GBP500 million in adjusted earnings before interest, tax, depreciation and amortisation by 2024/2025.
Adjusted Ebitda in the first half was GBP80.6 million, up 38% from GBP58.6 million a year earlier.
"At our recent capital markets may, we confirmed that we are on track to substantially achieve our 2024/2025 financial targets in 2024 and, with continued strong momentum, are likely to exceed them in 2025," added Chief Executive Officer Amedeo Felisa.
It also expects to further deleverage its balance sheet, targeting a net leverage ratio of around 1.5 times in 2024/2025. This is consistent with its target to become free cash flow positive from 2024, Aston Martin explained.
By Greg Rosenvinge, Alliance News reporter
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