Unit Sales Almost Double; Adjusted EBITDA up
93%; Full-Year Outlook Confirmed
Aston Martin (LSE:AML):
£m
(excl wholesale volumes)
Q3-18 Q3-17 Variance
YTD-18 YTD-17 Variance
Total wholesale volumes* 1,776 891 +99% 4,075 3,330 +22% Revenue
282.4 156.4 +81% 727.3 566.8 +28% Adj. EBITDA** 54.4 28.1 +93%
160.3 121.2 +32% Adj. EBIT *** 27.2 8.6 +218% 91.6 63.5 +44% EBIT
25.3 8.6 +196% 89.7 63.5 +41% Reported PBT 3.1 0.3 +899% 23.9 20.6
+16%
*Number of vehicles including specials
**Adjusted EBITDA: represents profit / (loss) for the period,
before income tax (charge) / credit, net financing expense, profit
and loss on the disposal of fixed assets, depreciation and
amortisation, and adjusted for the non-recurring and exceptional
costs associated with the Initial Public Offering of £1.8
million.
*** Adjusted EBIT: represents Adjusted EBITDA, minus
depreciation and amortisation.
Highlights
- Revenue increased 81% to £282
million, driven by continuing strong demand for DB11 variants and
first full quarter of Vantage production
- Total wholesale units of 1,776
almost double, primarily driven by growth in the Americas and Asia
Pacific, including China
- Adjusted EBITDA up 93% to £54
million driven by increased volume following completion of core
model refreshes
- Net cash flow from operating
activities up £33.9 million versus Q3 2017
- Sports car range strengthened with
introduction of DBS Superleggera
- St Athan facility construction on
track to be operationally ready in H1 2019 and planned investment
continues in new products
- Assembly of first DBX prototypes
started on schedule; full production to begin in 2020
- FY 2018 outlook reaffirmed with
sales towards the top end of the guided range
Aston Martin Lagonda Global Holdings plc (LSE: AML, “Aston
Martin Lagonda” or “the Company”), the producer of luxury
handcrafted sports cars, today reported a record increase in third
quarter revenues and Adjusted EBITDA amid growing demand for new
models including the DB11 Volante and Vantage and rising sales in
core markets such as China and the US.
Dr Andy Palmer, Aston Martin Lagonda President and Group CEO,
said: “Aston Martin Lagonda has marked its first
reporting-period as a listed company by delivering a sharp increase
in unit sales, in profits and revenues. These strong results give
us confidence that we will meet our full-year targets with sales at
the top end of the range. This will pave the way for future growth
as we prepare to begin production of the breakthrough DBX model at
our new plant at St Athan, and as we receive further orders for new
models including the DBS Superleggera and special editions.
We are proud of our inaugural results as a listed company. They
show that our Second Century plan is working and that we are well
placed to deliver long-term sustainable growth. This will be core
to our strategy as we continue to expand and as we deliver
shareholder value.”
For the three months to September 30, revenue rose by 81% to
£282 million and Adjusted EBITDA jumped 93% to £54 million,
representing an Adjusted EBITDA margin of 19%. The strong growth in
Adjusted EBITDA was driven primarily by higher volumes and
increased contribution from market mix. Correspondingly, Adjusted
EBIT increased from £16.8 million to £25.3 million.
Profit before tax was £3.1 million, up from £0.3 million in the
prior year quarter, as total wholesale volumes reached 1,776 units,
compared with 891 in the same period last year. During the quarter,
the company saw especially strong growth in the Americas (+185%)
and Asia Pacific (+133%).
In the year to date, Adjusted EBITDA was up 32% to £160.3m as
wholesale volumes grew by 745 units, market mix improved and a
consulting contract for sale of certain intellectual property was
recognised. Correspondingly profit before tax in the year to date
grew by 16% to £23.9m.
In China, sales more than doubled amid strong demand for DB11
derivatives and the new Vantage. Unit sales in the UK, the
company’s home market, increased 66%, offsetting lower volume
growth and some softness in EMEA pending new model introductions in
the region.
During the period, the company continued to make progress on the
construction of its new manufacturing plant at St Athan in Wales,
where the new DBX model will be produced. Construction is now in
the third and final phase of completion and installation of the
paint shop is complete. Assembly of the first DBX prototypes has
commenced on schedule, ahead of full production starting in
2020.
Net cash inflow from operating activities was £89.6 million, an
increase of £33.9 million, driven primarily by operating profit and
working capital improvement. Capital Expenditure was £70.9 million
in the quarter, £34.6m lower than the prior year primarily due to
the timing of product launches and R&D spending on new
programmes. Cash at the end of the period end was £86.7m (Q3 2017:
£72.0m).
The average selling price per vehicle (excluding specials) was
£136,000 in the quarter, a 7% reduction versus prior year,
reflecting the planned shift in volumes to the Vantage and
V8-engined DB11 derivatives.
Net financing expense increased from £8.2 million to £22.3
million, primarily driven by compounding interest on the Preference
shares, crystallised at IPO, and a reduction in the net gain on
fair value adjustments on foreign exchange hedges. Given the
conversion of the Preference shares to Ordinary shares at IPO, the
interest expense will reduce in subsequent quarters. Preference
share interest amounted to £11.2 million (Q3 2018) and £32.0
million in the year to date.
Outlook
For the remainder of the year, continued volume growth is
expected as the Company increases deliveries of Vantage and DBS
Superleggera. For Full Year 2018, the Company now expects to
achieve sales at the top end of its stated range of 6,200 – 6,400
units, and at the same time reconfirms its stated outlook for
Adjusted EBITDA margin (23%) and Adjusted EBIT margin (13%). The
Company also reconfirms its medium term objectives.
Conference Call for analysts and investors
A conference call for analysts and investors, hosted by Andy
Palmer and Mark Wilson, will take place today, 15 November 2018 at
9.00am London time. The dial-in number is:
UK / International: +44 (0)33 3300 0804
UK Toll Free: 0800 358 9473
Password: 13586444#
There will also be a live webcast available on
https://www.astonmartinlagonda.com/investors/calendar and the
presentation will be made available on our website at
https://www.astonmartinlagonda.com/investors/results-centre.
A transcript of the call will also be available in due course
at:
https://www.astonmartinlagonda.com/investors/results-centre.
- Ends –
About Aston Martin Lagonda:
Aston Martin Lagonda (LSE: AML) is a luxury automotive group
focused on the creation of exclusive cars and SUVs and is the only
luxury automotive manufacturer listed on the LSE. The iconic Aston
Martin brand fuses the latest technology, exceptional hand
craftsmanship and timeless design to produce models including the
DB11, Rapide S, DBS Superleggera, Vantage and Vanquish Zagato. The
Lagonda brand will relaunch in 2021 as the world’s first luxury
electric vehicle company. Based in Gaydon, England, Aston Martin
Lagonda designs, creates and exports cars which are sold in 53
countries around the world.
Lagonda was founded in 1904 and Aston Martin in 1913. The two
brands came together in 1947 when both were purchased by the late
Sir David Brown. Under the leadership of Dr Andy Palmer and a new
management team, the Group launched its Second Century Plan in 2015
to deliver sustainable long-term growth. The plan is underpinned by
the introduction of seven new models including the DB11, new
Vantage, DBS Superleggera and DBX, as well as the development of a
new manufacturing centre in St Athan, Wales.
For more information visit Aston Martin Lagonda online at
www.astonmartinlagonda.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 Lagonda Global Holdings plc (“Aston
Martin Lagonda”). 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 Lagonda provides no guarantee that future
development and future results achieved will correspond to the
forward-looking statements included here and accepts no liability
if they should fail to do so. Aston Martin Lagonda 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 non-cash accounting items
and other one-time items including exceptional costs associated
with the Initial Public Offering.
Summary financial statements:
Summary Income Statement
Q3 2018 Q3 2017
YTD 2018 YTD 2017 LTM £m £m £m £m £m Revenue 282.4 156.4
727.3 566.8 1,036.5 Cost of Sales (176.1) (92.3) (420.5)
(343.5) (573.1) Gross Profit
106.4 64.1 306.8 223.2 463.4 Selling and distribution (30.6)
(17.8) (75.8) (47.8) (87.9) Administrative and other (50.5) (37.7)
(141.3) (111.9) (200.5)
Operating Profit 25.3 8.6 89.7 63.5 175.0 Net financing
expense 1 (22.3) (8.2) (65.8) (43.0) (88.1)
Profit before tax 3.1 0.3 23.9 20.6 86.9
1 Restated following the introduction of IFRS Revenue from
Contracts with Customers which came into effect 01 January 2018
Summary Income Statement – Non GAAP reconciliation
Q3
2018 Q3 2017 YTD 2018 YTD 2017 LTM £m £m £m £m £m Operating
Profit 25.3 8.6 89.7 63.5 175.0 Depreciation and
Amortisation 27.3 19.5 68.8 57.6 93.2
EBITDA 52.6 28.1 158.5 121.2 268.1
Adjustments: Past service pension benefit - - - - (24.3) IPO
related non-recurring items 1.8 - 1.8 - 1.8
Adjusted EBITDA 54.4 28.1 160.3 121.2 245.6
Summary cash flow statement
Q3 2018 Q3 2017 YTD 2018 YTD 2017 LTM £m £m £m £m £m
Cash generated from operating activities 89.6 55.7 151.5 150.3
345.0 Cash used in investing activities (69.8) (104.9)
(219.9) (210.3) (350.5) Cash (outflow) / inflow from
financing activities (6.0) (1.2) (13.2) 31.9 19.2 Effect of
exchange rates on cash and cash equivalents 1.4 (0.8) 0.4 (1.6) 0.9
Net cash inflow / (outflow) 15.2 (51.1) (81.2) (29.7) 14.7
Cash at period end 86.7 72.0
86.7 72.0 86.7
Summary balance sheet
As at 30.09.18 As at 30.09.17 £m £m
Non current assets 1,362.1 1,092.6 Current assets 424.8
333.4 Total assets 1,786.9 1,426.0 Current
liabilities (643.6) (439.5) Non-current liabilities (1,001.1)
(910.3) Total liabilities (1,644.7) (1,349.8)
Total equity (142.2) (76.2)
Summary net
debt1
Q3 2018 Q3 2017 £m £m Bank loans and
overdrafts 25.0 20.8 Senior Secured Notes 583.1
515.8
Unsecured loan 2 1.3
-
Gross debt 609.4
536.6
Cash and cash equivalents 86.6 72.0 Net debt
522.8
464.6
Net debt/ LTM adjusted EBITDA 2.1x3
2.4x
1 Excluding preference shares 2 Unsecured loan @ 5%
(Japenese Yen) 3 Based on LTM adjusted EBITDA of £245.6m
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181114006047/en/
MediaGlobal Headquarters GaydonSimon Sproule, VP
and Chief Marketing OfficerE-Mail : simon.sproule@astonmartin.com
Mobile: +44 (0)7896 621779orGrace Barnie, Press Officer, Corporate
CommunicationsE-Mail: grace.barnie@astonmartin.com Mobile: +44
(0)7880 903490orTeneo +44 20 7420 3189
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