Aston Martin backs FY guidance as Q1 losses narrow

(Sharecast News) - Aston Martin maintained its full-year guidance on Wednesday as it reported a narrowing of its first-quarter losses, with strong growth in deliveries of its sport utility vehicle DBX. In the three months to the end of March, losses before tax narrowed to £74.2m from £111.6m in the same period a year earlier. Meanwhile, revenue rose 27% to £295.9m and wholesale volumes were 9% higher at 1,269, driven by 59% year-on-year DBX volume growth.

Aston Martin said the total average selling price was up 18% on Q1 2022 at £213,000, while the core ASP was 19% higher at £180,000.

The company also said that it sold out of all 499 examples of the DBS 770 Ultimate - the most powerful production Aston Martin ever that was unveiled in January - with deliveries scheduled to begin in the third quarter.

Executive chairman Lawrence Stroll said: "Since the start of the year, we have continued to see strong demand across our product range, with our current range of sports cars essentially sold out for the year.

"The DBX707, the first car developed under my leadership, continues to receive broad media acclaim and, with a growing number incredibly satisfied customers, is strengthening the DBX orderbook in our all major markets, as well as our overall financial performance."

The company reiterated its guidance for 2023. It still expects to deliver "significant" growth in profitability compared to the prior year, driven mainly by an increase in volumes and higher gross margin in both core and special vehicles.

"We expect significant year-on-year growth and positive free cash flow in the second half of the year," it said.