Aston Martin Q3 2024 Performance Report

On Wednesday, Aston Martin Lagonda Global Holdings plc reported improved performance for the third quarter of 2024, aligning with the company's revised full-year guidance. The luxury automaker is successfully navigating supply chain disruptions and is on track to meet its updated expectations for the year.

The introduction of new models, including the Vantage and DBX707, has led to a 14% year-over-year increase in Q3 volumes. This growth is anticipated to continue into the fourth quarter with the addition of the new V12 flagship Vanquish and the Valiant special edition. Year-to-date (YTD) 2024, the average selling price (ASP) rose by 14% to £250,000, largely due to strong demand for special edition models and an increase in vehicle personalization contributing significantly to core revenue.

The company's order book continues to expand, with expectations for further strengthening as new models become available across all markets. Total wholesale volumes for YTD 2024 decreased by 17% compared to the same period in 2023, reflecting a strategic transition in Aston Martin's product portfolio. Despite the overall decrease in wholesale volumes, the Sport/GT category experienced a 16% increase, driven by the initial ramp-up of the new Vantage.

Geographically, wholesale volumes decreased across all regions compared to YTD 2023 due to the portfolio transition, with the Americas and EMEA (excluding the UK) representing 61% of total wholesales. In China, volumes decreased by 54% compared to YTD 2023, affected by market dynamics and the timing of new model deliveries.

Aston Martin's revenue for YTD 2024 was down 4% to £995 million, with the total ASP for Q3 2024 down 5%, partly due to fewer Valkyrie deliveries compared to the same quarter in the previous year. The core ASP decreased marginally by 3%, reflecting a mix from the previous year that benefited from higher-end models.

Gross profit for YTD 2024 increased by 2% to £377 million, leading to a gross margin of 38%, which is a 220 basis point improvement from YTD 2023. Adjusted EBITDA for the same period was down 14% to £113 million, with the adjusted EBITDA margin declining to 11%. The adjusted loss before tax improved to £198 million from a £221 million loss in YTD 2023.

Aston Martin's net debt increased to £1,217 million as of 30 September 2024, from £750 million on the same date in 2023. The company remains committed to its strategy for long-term value creation and sustainable growth, focusing on delivering a fully reinvigorated portfolio efficiently to market and driving profitability through cost management and a focus on quality. The outlook for the remainder of the year includes delivering on revised FY 2024 guidance and positioning for sustainable growth with the launch of new models.

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