Aston Martin Lagonda Holdings PLC on Wednesday said its annual performance was boosted by significant growth in Americas and record sales in China, as the luxury carmaker saw strong demand for its sports utility vehicle, the DBX.
Last month, the company had said it expected to deliver significant growth in 2022, but only after lowering its 2021 profit forecast due to fewer of its pricey Valkyrie AMR Pro hypercars were shipped in the fourth quarter. On Wednesday, Aston Martin said it expected to ship between 75 and 90 Valkyries in 2022.
For 2021, Aston Martin generated revenue of £1.10 billion, up 79% from £611.8 million in 2020, and its pretax loss narrowed to £213.8 million from a loss of £466 million.
Total wholesales were 6,178 units in 2021, up 82% from 3,394 units in 2020 as it said more normal operations were resumed following Covid-19 restrictions in 2020.
Adjusted earnings before interest, tax, depreciation and amortisation was £137.9 million, swinging from a loss of £70.1 million in 2020, driven by a higher number of specials sales and improved manufacturing efficiency.
Further, Aston Martin said its first SUV, DBX, successfully delivered over 3,000 units in its first full year of production, achieving an estimated 20% share of the luxury SUV market, while maintaining a healthy orderbook throughout the year.
Aston Martin said the first derivative, a Straight-Six mild-hybrid, was released exclusively for China in the fourth quarter with initial demand strong and is expected to continue to build. The second model, DBX707, ‘the most powerful luxury SUV on the market’, was unveiled earlier this month.
The company said the SUV offering is expected to deliver strong growth from the second quarter 2022 onwards.
The carmaker said its brand desirability is strong, pointing to retails outpacing wholesales. Wholesales are deliveries to dealers, while retails are dealer sales to customers.
Aston Martin has sought to rebalance the supply-demand of its vehicles after suffering in the past due to an oversupply of vehicles to dealerships. On Wednesday, it said it was looking to raise prices across its fleet amid ongoing global supply chain disruptions.
The Aston Martin Valkyrie Spider was two-times oversubscribed following its launch in the summer, the company noted. It also said the order book was filling up for the plug-in hybrid supercar Valhalla, which is now due to start deliveries in early 2024.
Looking ahead, the Warwickshire, England-based firm said it was ‘well on its way’ to achieving medium-term targets of 10,000 wholesales, £2 billion revenue and £500 million adjusted earnings before interest, tax, depreciation, and amortisation by 2024/25.
Supply chains globally continue to experience disruption, Aston Martin said, and it is focused on mitigating any hindrances this may have on production.
The first quarter is expected to be the smallest quarter of the year, given the timing of product launches of the DBX707 in the second quarter and V12 Vantage in third quarter. The carmaker is refining the production process for the Valkyrie hypercar programme, it said.
‘We have a strong pipeline of extraordinary products to come with both DBX707 and V12 Vantage this year and a new generation of front-engine cars for 2023. This high-performance new portfolio will command stronger pricing and profitability compared with the past, driving delivery of our financial targets,’ said Chair Lawrence Stroll.
‘Our path to electrification is clear with three of our product launches in 2021 featuring hybrid technology, our first plug-in hybrid coming in 2024, our first battery electric vehicle targeted for launch in 2025 and all new car lines will have an electrified powertrain option by 2026,’ Stroll added.
Aston Martin shares were down 3.7% at 1,057.50 pence on Wednesday, the worst performer in the FTSE 250.
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