Aston Martin swings to loss on IPO costs, but forecasts higher volumes for 2019
Source - SMW
Aston Martin swung to a loss Thursday as IPO costs weighed down performance, but revenues accelerated by a quarter driven by strong sales growth in China and the Americas.
For the 12 months ended 31 December, the company reported a loss of £68.2m compared with a profit of £84.5m a year earlier. Revenues rose 25% to £1.1bn as the company exceeded its sales guidance.
Total volumes rose to 6,441, above guidance of 6,200 to 6,400 units.
Adjusted profit before tax, which excludes the £138m of IPO costs, came in at £68m.
Strong volume growth across was seen across all regions; APAC was up 44%, with China up 31%, the Americas was up 38%, UK was up 17% and EMEA, excluding UK, rose 13%, the company said.
Total average selling price fell to £157,000 from £159,000, driven by the planned decrease in the prices of core vehicles to £141,000 from £150,000 as model mix shifted, as expected 'towards the new Vantage and DB11 V8 variants, and away from the higher priced DB11 V12 derivatives,' the company said.
Adjusted operating profit (EBIT) increased by 18% to £147m, representing an adjusted EBIT margin of 13.4%, in line with previous guidance of 13%.
For 2019, the company guided volumes higher compared to last year, in a range of 7,100 to 7,300; adjusted EBITDA margin lower at 24% and adjusted EBIT margin lower at 13%.
Over the medium term, the company expected volumes of about 47,000.
'2018 was an outstanding year for Aston Martin Lagonda, delivering strong growth, with improving revenues, unit sales and adjusted profits,' said Dr Andy Palmer, Aston Martin Lagonda President and Group CEO.
'Given our progress on the Second Century plan - including completion of our new manufacturing plant at St Athan and our preparations for the DBX, we are confident that Aston Martin Lagonda will deliver another year of growth.'
At 8:40am: (LON:AML) Aston Martin Lagonda share price was -159.7p at 1214.7p