30 September 2024
Aston Martin Lagonda Global
Holdings plc
("Aston
Martin", or "AML", or the "Company"; or the "Group")
Trading Update and adjustment
to Full Year 2024 guidance
This announcement contains inside information within the
meaning of Article 7(1) of the EU Market Abuse Regulation No.
596/2016 as it forms part of UK law by virtue of the
European Union (Withdrawal) Act 2018. The person responsible for
releasing this announcement on behalf of the Company is Liz Miles,
Company Secretary.
Aston Martin today announces a
strategic realignment of its 2024 wholesale volumes, making a circa
1,000 unit reduction to address disruption in its supply chain and
continued macroeconomic weakness in China. In addition, the Company
seeks to smooth the cadence of wholesale volumes over the coming
quarters to deliver on its demand-led approach and maximise
production efficiencies.
The Company is today providing
updated guidance for Full Year 2024, with adjusted EBITDA now
expected to be slightly below FY 2023 and no longer expecting to
achieve positive free cash flow in H2'24.
From now on, and for the first time
in many years, Aston Martin will be in the enviable position of
commencing the new year with a fully reinvigorated portfolio of
ultra-luxury high performance models. This will support future
growth with the Company remaining focused on achieving its
previously communicated targets for FY 2025.
Operational update
External factors within the global
automotive industry, including supply chain disruption and weak
demand in China, are now impacting Aston Martin's volume outlook
for the remainder of 2024. Concurrent with the significant ramp-up
in production for the second half of the year, following new model
introductions, the Company is experiencing a growing number of late
component arrivals due to disruption at several of its suppliers.
As a result, an increasing number of vehicles are taking longer to
complete, with these issues impacting the efficiency of its
operations and delaying the delivery of its vehicles.
In addition, a decision has been
taken to strategically re-align planned volumes, in line with the
Company's demand-led strategy, commitment to quality and optimised
production processes. The Company is addressing the supply
chain challenges and continues to recognise the significant market
opportunity that China represents as its macroeconomic environment
improves.
Updated guidance
· Q3 2024
wholesale volumes and adjusted EBITDA are now expected to be below
current market expectations.
·
FY 2024 wholesale volumes are
now expected to decline by high single digit percentage
compared with FY 2023 (previously high single digit volume
growth)
· FY 2024 gross margin now expected to be modestly below 40%
(previously targeting c. 40%)
· FY 2024 adjusted EBITDA margin now in the high teen's
percentage (previously low 20s%)
·
H2'24 free cash flow, while
materially improved compared with H1'24, will remain negative
(previously positive free cash flow generation in H2'24)
· The
Company remains focused on achieving its previously communicated
targets for FY 2025
Adrian Hallmark, Aston Martin
Chief Executive Officer commented:
"Having been with the Company for a
month I am even more convinced than before in its growth potential.
The team at Aston Martin has done an exceptional job in launching a
fully reinvigorated core range of vehicles over the last 18
months.
"Near perfect execution was required
to meet the Company's ambitious 2024 plan. However, it has become
clear that we need to take decisive action to adjust our production
volumes for 2024 given a combination of supplier disruption,
the weak macroeconomic environment in China
and a proactive decision to strategically re-align our production
plans to optimise efficiency and achieve a more balanced delivery
cadence in the future."
Lawrence Stroll, Executive
Chairman Aston Martin commented:
"When the Yew Tree Consortium made
its significant investment in Aston Martin in 2020, we did this
with a long-term view of the necessary commitment and turnaround
required to unlock the enormous value potential of this iconic
brand. I remain steadfast in this view and now, with the calibre
and experience Adrian Hallmark brings, I am extremely confident in
the Company's ability to realise the full potential of its
ultra-luxury high performance strategy."
Aston Martin's Q3 2024 results will
be announced on 30 October 2024.
Conference call details
· There
will be an analysts conference call today at 08:00 BST:
https://app.webinar.net/g73K2wyPdYp
· A
replay facility will be available on the website later in the
day: https://www.astonmartinlagonda.com/investors
Enquiries
Investors and Analysts
James Arnold
Head of Investor
Relations
+44 (0) 7385 222347
james.arnold@astonmartin.com
Ella
South
Investor Relations
Analyst
+44 (0) 7776 545420
ella.south@astonmartin.com
Media
Kevin
Watters
Director of
Communications
+44 (0) 7764 386683
kevin.watters@astonmartin.com
Paul
Garbett
Head of Corporate & Brand
Communications
+44 (0) 7501 380799
paul.garbett@astonmartin.com
FGS
Global
James Leviton and Jenny
Bahr
+44 (0) 20 7251 3801
Cautionary statement
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.
About Aston Martin Lagonda
Aston Martin's vision is to be the
world's most desirable, ultra-luxury British brand, creating the
most exquisitely addictive performance cars.
Founded in 1913 by Lionel Martin and
Robert Bamford, Aston Martin is acknowledged as an iconic global
brand synonymous with style, luxury, performance, and exclusivity.
Aston Martin fuses the latest technology, time honoured
craftsmanship and beautiful styling to produce a range of
critically acclaimed luxury models including the Vantage, DB12,
DBS, DBX and its first hypercar, the Aston Martin Valkyrie. Aligned
with its Racing. Green. sustainability strategy, Aston Martin is
developing alternatives to the Internal Combustion Engine with a
blended drivetrain approach between 2025 and 2030, including PHEV
and BEV, with a clear plan to have a line-up of electric sports
cars and SUVs.
Based in Gaydon, England, Aston
Martin Lagonda designs, creates, and exports cars which are sold in
more than 50 countries around the world. Its sports cars are
manufactured in Gaydon with its luxury DBX SUV range proudly
manufactured in St Athan, Wales. The company is on track to deliver
net-zero manufacturing facilities by 2030.
Lagonda was founded in 1899 and came
together with Aston Martin in 1947 when both were purchased by the
late Sir David Brown, and the company is now listed on the London
Stock Exchange as Aston Martin Lagonda Global Holdings
plc.