REG - Aston Martin Lagonda - FY 2021 Trading Update

Aston Martin Lagonda Global HoldingsAnnouncement

07/01/2022 07:00

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RNS Number : 7084X  Aston Martin Lagonda Global Hld PLC  07 January 2022

7 January 2022

Aston Martin Lagonda Global Holdings plc
FY 2021 Trading Update

Aston Martin Lagonda Global Holdings plc ("Aston Martin" or the "Company")
today updates on FY 2021 trading.

·    Wholesales grew 82% to 6,182 as planned

o  3,001 DBX units wholesaled in first full year of production taking
estimated 20% market share of the luxury SUV segment

·    Retails (dealer sales to customers) greater than wholesales for both
GT/Sport and DBX as aligned supply to demand and as we operate as a true
luxury brand

·    Following an extensive and challenging development and testing
schedule which has now successfully completed, the game-changing Aston Martin
Valkyrie hypercar programme is in production and deliveries to customers have
commenced

o  With a quality focused production ramp-up, 10 Aston Martin Valkyrie and
Valkyrie AMR Pro vehicles were shipped in Q4. This was fewer than previously
planned and accordingly, adjusted EBITDA is anticipated to be c.£15m lower
than expected. The impact is timing only, all Aston Martin Valkyrie Coupes are
sold and remain allocated to customers with significant deposits

o  An associated reduction in 2021 depreciation and amortisation is expected
to result in a broadly net neutral impact on adjusted operating profit

o  This timing change will see deliveries and the associated EBITDA continue
through 2022 as planned and now through 2023

·    Year-end cash balance of c.£420m, higher than previously anticipated

·    Preliminary results for the twelve months to 31 December 2021 will be
announced on 24 February 2022

Lawrence Stroll, Aston Martin Lagonda Executive Chairman commented:

"I am extremely pleased that our core business has delivered to plan with over
6,000 core wholesales in the year whilst driving inventory to levels that are
appropriate for an ultra-luxury business. The evidence is there that our
strategy is working, as retail sales are well ahead of wholesales supported by
strong pricing and improving residual values. It is a very long time since the
core business was in such good health as it is today.

We have achieved an enormous amount and are well on track with our
transformation of Aston Martin into one of the greatest ultra-luxury brands in
the world with new leadership, partners and products, and our return to
Formula One(TM), which has significantly increased our brand exposure,
perception and desirability. We inherited a challenging programme with
Valkyrie but we are now producing these fabulous hypercars. Our progress
to-date underpins my confidence in the future, our continued success and the
potential for the business. With a full year of DBX deliveries completed and
our compelling product pipeline, including a new generation of front-engine
sports cars in 2023, I am more assured than ever of achieving our medium-term
objectives of revenues of c.£2bn and adjusted EBITDA of c.£500m by 2024/25."

Tobias Moers, Aston Martin Lagonda Chief Executive Officer commented:

"Our core business delivered as planned while navigating a challenging
external operating environment. Brand desirability is strong, with new
customers being attracted to Aston Martin and retail sales ahead of wholesales
as we follow our demand-led ultra-luxury business model. We are achieving
strong pricing and closed the year with dealer stock at optimum levels aligned
to our business approach.

With the DBX having achieved about 20% share of the luxury SUV market I am
pleased that we also successfully launched the DBX straight-six in China in
November as planned, creating opportunities for 2022.

There is also tremendous demand for our limited editions including the two
times oversubscribed Aston Martin Valkyrie Spider, launched in August, and the
plug-in hybrid super car Valhalla. In addition, we have taken aggressive
action on improving the efficiency and profitability of the business, through
Project Horizon.

The Valkyrie programme is now running at rate for 2022 having focused on
delivering with no compromises in the face of supply chain challenges and huge
complexity in the production ramp-up which resulted in a timing impact for
2021. With a full year of Aston Martin Valkyrie programme deliveries in 2022
we are expecting to deliver significant growth, in addition to the launch of
our second DBX derivative, intended to disrupt the performance luxury SUV
market and the final edition of the V12 Vantage."

 

This announcement includes inside information as defined in Article 7 of the
Market Abuse Regulation No. 596/2014 and is being released on behalf of Aston
Martin Lagonda Global Holdings plc by Rachael Hambrook, Interim Company
Secretary.

Enquiries

 Investors and Analysts
 Charlotte Cowley    Director of Investor Relations              +44 (0)7771 976764

charlotte.cowley@astonmartin.com
 Holly Grainger      Deputy Head, Investor Relations             +44 (0)7442 989551

holly.grainger@astonmartin.com
 Brandon Henderson   Senior Manager, Investor Relations          +44 (0)7585 326704
                                                                 brandon.henderson@astonmartin.com
 Media
 Kevin Watters       Director of Communications                  +44 (0)7764 386683

kevin.watters@astonmartin.com
 Paul Garbett        Head of Corporate and Brand Communications  +44 (0)7501 380799

paul.garbett@astonmartin.com
 Grace Barnie        Corporate Communications Manager            +44 (0)7880 903490
                                                                 grace.barnie@astonmartin.com
 Tulchan Communications
 Harry Cameron and Simon Pilkington                              +44 (0)20 73534200

 

 

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.

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