- EBITDA up 3% to £43.7 million in Q1 2018, representing 24% EBITDA margin on revenues of £185.4 million
- Average selling price per vehicle increases 11% to £160k, reflecting high options uptake and regional mix
- Wholesale units exceed 900 vehicles amid strong demand for new V8 powered DB11
- Order book outpaces overall production capacity
- DB11 Volante production commenced; Vantage in pre-production phase
- All-EV Lagonda brand launched at Geneva motor show with unveiling of Vision Concept
- Planned investment continues in new products and St Athan facility construction
- Recognised as the world’s fastest growing auto brand according to Brand Finance
- S&P credit rating upgraded to “B”
GAYDON, UK – May 21, 2018 – (Motor Sports Newswire) – Aston Martin Holdings (UK) Ltd., the producer of highly desirable luxury handcrafted sports cars, today reported a 3% rise in first-quarter adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to £43.7 million, representing an EBITDA margin of 24% on revenues of £185.4 million.
For the three months to 31 March 2018, the Company achieved positive pre-tax profits of £2.8 million as strong demand continued for the recently launched DB11 V8 twin-turbo coupe and Volante models.
Dr Andy Palmer, Aston Martin President and Chief Executive Officer, said: “Aston Martin delivered another quarter of positive pre-tax profit, achieved in a period of significant planned investment in new products and manufacturing facilities. This is a good set of results during a quarter of planned model changeovers, during which orders have continued to grow for our exciting new models. We have continued to execute against the Second Century Plan, and we were delighted by the exceptional reaction to the new Vantage and the launch of our Lagonda ‘Vision Concept’, representing a significant advance in our portfolio expansion.”
Wholesale volumes reached 963 units, compared with 1,203 in the first quarter of 2017, as the Company sold dealer inventory of older models and executed multiple production line model changeovers in preparation for the introduction of the new DB11 Volante, the Vantage and the successor to Vanquish, the DBS Superleggera. The order book for 2018 has continued to exceed overall production capacity.
As a core component of the Company’s ongoing Second Century Plan, total product investment increased to £68 million, up from £46 million in the first quarter of 2017, as the Company increased research and development spend and continued the development of its new manufacturing facility in St Athan, Wales.
In the three months to 31 March, the Company finalised preparations for the sales launch of the new Vantage, set for the second quarter of 2018, and unveiled the Lagonda Vision Concept at the Geneva International Motor Show, designed to become the world’s first luxury brand exclusively driven by all-electric powertrains.
First-quarter wholesale volumes increased in the US, China and Asia Pacific region as the Company prioritised order deliveries to these key growth markets.
During the quarter, Aston Martin saw increased deliveries of special vehicles including the Vanquish Zagato Volante, Vanquish Zagato Speedster and DB4 GT Continuation. The Company was recently named “the world’s fastest growing auto brand” by leading independent business valuation and strategy consultancy Brand Finance, and the increased strength of its balance sheet was recognised by a credit rating upgrade to “B” by Standard & Poor’s.
The Company established two new business units to accelerate the growth of its heritage and brand extension activities in the period to 31 March, while also integrating its Middle East and North Africa operations to drive growth in this region.
For the remainder of the year, deliveries to customers in all geographic markets are expected to grow as the Company completes several key production model changeovers and begins inaugural sales of new models including the DB11 Volante, the new Vantage, and the upcoming Vanquish successor: the DBS Superleggera.
Mark Wilson, Executive Vice President and Chief Financial Officer, concluded: “We have continued to invest with discipline and focus to prepare for a sustainable long-term future. The strength of our underlying profitability, our order book and our balance sheet give us confidence that we can deliver further growth this year and beyond.”
About Aston Martin:
Aston Martin is an exclusive luxury sports car company with a unique British heritage. The iconic brand fuses the latest technology, exceptional hand craftsmanship and graceful styling to produce pioneering models including the DB11, Rapide S, Vanquish S, Vantage and Vanquish Zagato family of cars. Based in Gaydon, England, Aston Martin designs and creates sports cars offering style and performance which are sold in 53 countries around the world. Founded in 1913, the Group recently launched its Second Century Plan for sustainable long-term growth. This is underpinned by the introduction of new models including the DB11, new Vantage, DBS Superleggera and an SUV, as well as the development of a new manufacturing centre in St Athan, Wales. In 2017, Aston Martin generated revenues of £876m. The Company, employing more than 2,700 people, is predominantly owned by private equity groups Adeem, Tejara and Investindustrial, while Daimler AG of Germany holds a 5% non-voting stake.
For more information visit Aston Martin online at www.astonmartin.com
No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this release. This release contains certain forward-looking statements, which are based on current assumptions and estimates by the management of Aston Martin Holdings (UK) Limited (“Aston Martin”). Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. Such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements. These risks may include, for example, changes in the global economic situation, and changes affecting individual markets and exchange rates.
Aston Martin provides no guarantee that future development and future results actually achieved will correspond to the forward-looking statements included here, and accepts no liability if they should fail to do so. Aston Martin undertakes no obligation to update these forward-looking statements and will not publicly release any revisions that may be made to these forward-looking statements, which may result from events or circumstances arising after the date of this release.
This release is for informational purposes only and does not constitute or form part of any invitation or inducement to engage in investment activity, nor does it constitute an offer or invitation to buy any securities, in any jurisdiction including the United States, or a recommendation in respect of buying, holding or selling any securities.
Adjusted earnings before interest, tax, depreciation, and amortisation are calculated to reflect restructuring costs in the relevant period, non-cash accounting items and items such as non-core disposals, concept vehicle development costs, and other one-time items.
Note: Exchange rate for British Pound Sterling to U.S. Dollar is: £1.00 Pound to $1.342 U.S. Dollar as of May 21, 2018.
Source: Aston Martin Holdings (UK) Ltd.